Archive for August 2012

Weird Financial Math

Weird financial math occurs in many households.

Here’s usually how it goes.

  • Person is scheduled to be paid next week.
  • Person thinks, “I’ll spend some of that money now on Item #1 on my credit card.”
  • Person spends money on Item #1 on their credit card.
  • They also spend money on Item #2, 3, and 4 using that credit card.
  • By the time the person actually receives their paycheck, it has already been totally spent.
  • Instead of repaying the credit card, they spend the actual cash from the paycheck on items #5, 6, 7, and 8.

Do you see what happens?

They are attempting to make ONE paycheck cover the costs of items that equal TWO paychecks.

It is weird financial math.

While 1 + 1 really does equal 2, they are attempting to make 1 + 1 equal 1.

I prefer to use the weird and wonderful math that happens when compound interest works for me!

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U.S. National Debt Update – August 2012

The US National Debt has increased by $46,233,894,979 since our last update on July 11, 2012.  Another month, and the United States has dropped another cool $46 billion in the hole.

National Debt as of 8/9/2012

$15,915,814,457,919

That is an increase of $1.594 BILLION PER DAY since our last update 29 days ago.

Whether we choose to address this problem as a nation or not, we WILL have to deal with it. We are really being faced with one of two decisions:

  1. Face the problem now by making some really tough choices  Like reducing some great programs or potentially eliminating some of them. NONE of us like to reduce spending. It is NO FUN. It STINKS. But we all have faced this in our personal finances before. Of course, we want to let our children participate in any activity they enjoy, but sometimes we have to say NO because of the costs! Of course, many people would love to have a huge house with every amenity known to mankind, but sometimes it is just not possible to maintain the financial burden required to maintain it!
  2. Let the problem fester until we are FORCED to make the tough choices  Whenever I have let the clock run out on tough financial decisions, I have found that my options have been severely reduced and the pain is much greater. I’ve always found myself saying, “I wish I had made this decision sooner.”

I wonder which decision the American citizens will make.

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5 Great Personal Finance Websites

It is a passion of mine to learn something new every single day. It is part of my daily routine to read more than 30 blogs and websites. Many of them are related to personal finances. With that said, I want to share “5 Great Personal Finance Websites” with you because they have helped me continue to learn about money.

  1. MyMoneyBlog.com Great posts ranging from the author’s personal financial story to investing articles. You can follow the author on Twitter HERE
  2. CNNMoney This is a great place to learn about what is happening in the world on subjects ranging from world markets to personal finance advice
  3. Christan Personal Finance Great biblical wisdom can be found daily on this website
  4. Yahoo! Finance Another collection of perspectives on “all things personal finance”
  5. Rich Dad Poor Dad A blog from the Robert Kiyosaki team that focuses on maximizing all of your resources

What great personal finance website would you add to this list?

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IHHE RANT: This Won’t Work For Everyone

For the next few days, I’m going to be sharing a few of my IHHE (I Have Had Enough) Rants.

IHHE Rant: This Won’t Work For Everyone

I love traveling this nation helping people become financially free and fund their dreams. It is my calling. It is AWESOME when I hear people say that they have become debt-free. It is even MORE AWESOME when someone tells me that they have been able to fire themselves from their J.O.B. and go do that “one thing” that they have been called to do. YES!

BUT …   there is that occasional person who says, “This will not work for me. Living by a budget is too hard.” Hmmmmm. Let’s think through this. The person is so stone broke that they can’t two nickels to rub together. … but living by a budget is too hard.

I think living BROKE is too hard! The STRESS. The EMERGENCIES. The TEARS.

It is just not worth it.

I’ll take my budget and its financial freedom.

Can I get a witness?!

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IHHE RANT: START TODAY!

For the next few days, I’m going to be sharing a few of my IHHE (I Have Had Enough) Rants.

IHHE Rant: Start Today!

I am praying and pleading that I have met the last person who will say to me, “If I get ____, then I will be able to go do what I really want to do with my life.”

Are you kidding me?   Life is too short to spend wishing and hoping.   If you KNOW that you are called to do something, then get started today!  You may not be able to do it full time right now, but you can at least do it part time and develop the skills necessary to take it to full time.

You want to start a business?   Start doing the work part-time right now!   You want to be a stay-at-home mom?   Make the financial decisions necessary to at least work one less hour per day or one day less per week.   You want to travel around the world? Start researching now on the Internet and save money to be prepared for the day that the dream WILL arrive!

STOP saying, “If I …”, and instead START saying, “I am …” or “I will…” or “When I…”!

You CAN do what you are called to do.   What can YOU do to get started toward it today?

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