Archive for January 2013

The Importance of a Financial Coach

I recently asked the following question on Twitter (via @joesangl): “What does it mean to be a “COACH”? What does a COACH do?” The responses were awesome and are shared below:

  • @Shelton_22: @joesangl A coach must Love, Develop, Motivate, Construct, Encourage, Prepare, and Inspire an individual for the future.
  • @peteraug: @joesangl brings out the potential in others
  • @CynnamonClinton: @joesangl A coach, teaches, leads, motivates, and instructs based on their own achievements, mastery & experiences!
  • @RealAustinHall: @joesangl to lead, motivate, be an example, inspire, encourage, discipline, show compassion, challenge and direct towards a common goal.
  • @PaulJolicoeur: @joesangl A coach comes along side, to push you beyond where you thought your limit was!

Every single successful person I know has had someone in their life who provides coaching to them. So-called “self-made” persons KNOW that they have achieved greatness because of the help and coaching of others!

This is why I have three financial coaches.

When I was broke, I realized I was seeking advice from broke friends! It was like accepting long distance running advice from a sumo wrestler.

Proverbs 15:22shares, “Plans fail for lack of counsel, but with many advisers they succeed.”

I was broke, and I knew wisdom was necessary for me to change my financial life. I established desired criteria my coaches should possess:

  1. They had to love me.
  2. They weren’t interested in selling me anything.
  3. They had availability to mentor me.

My financial coaches helped me change my life!

Do YOU have a financial coach?

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5 Reasons Why Budgeting Is Important

“You need a budget.”

Chances are pretty high that you’ve heard that statement before.

If you are a saver, your heart started beating wildly (because you LOVE budgets). If you are a spender (like me), you probably felt the hair raise on the back of your neck and immediately felt flashes of frustration.

So this post is written primarily with the spender in mind. Savers: feel free to print out and show to your spender spouse or friend!

5 Reasons Why BUDGETING Is Important

  1. It maximizes every dollar you earn.  As a spender, I can “accidentally” spend money. Preparing a monthly budget (and an annual budget once each year to cast vision for the future) allows me to know that money is limited and ensures that I maximize every dollar I do receive.
  2. It makes you aware of your impulsiveness.  This is not the most pleasant feeling, but it very helpful to be reminded that it is much easier to remain broke than it is to win with money. My budget ensures that I am continually aware of my impulsiveness and the danger that presents to my long term goals.
  3. You can buy stuff without feeling guilty.  This is probably my favorite reason for budgeting! I used to play a round of golf and feel guilty because I knew it wasn’t in the budget (because we didn’t have a budget). I’ll never forget the day that I was able to just go enjoy a round of golf and KNOW it was in the budget and I had planned for it! It didn’t help my golf score, but it did help me and my marriage!
  4. You have probably married a saver (or if you aren’t married, and hope to be some day, you will most likely marry a saver)  I married a saver. Jenn is a beautiful and amazing bride, but she just does not have any desire to go spend all of our money. So when we didn’t have a budget, I nearly drove her crazy with my random ATM cash withdrawals and surprise expenses. I am certain she was the one celebrating the most when I finally “got it” and began participating in the monthly ritual of planning our spending and following that plan!
  5. Budgeting will fund your dreams faster.  I know that I said #3 is probably my favorite, but I’m taking it back. This one is my favorite! I love funding my dreams. Because of budgeting, my family has been able to give more money away than we ever thought possible. We have been able to take wonderful cash-paid-for-in-advance vacations, pursue our dream of launching this organization, and pay off our house! All in 10 years and 1 month! I can’t WAIT to see what happens in the next 10 years!!!!

There’s my list. What would YOU add to it?

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Winning With Money Requires Practice And Disipline

Several years ago, before my bride and I had children, I took the time to build a radio control airplane from a really basic kit.

It took a LONG time because it was intricate work, but the work produced a really nice airplane with six foot wide wings that would fly really well.

Along came our daughter and time for the hobby disappeared as the necessities of building a career, completing my master’s degree, and life itself. The plane somehow made it through several moves without being totally destroyed.

Now that my son is running around everywhere, he is enchanted by the plane. He always wants to see the plane, touch the plane, fly the plane, fly on the plane, and sit in the plane (not possible – but he’s too young to determine that).

Recently, I pulled it off the shelf to see if I could get the motor to start. It did not. For literally three hours, I tried to fire the engine unsuccessfully. My son became bored and wandered off. He eventually went down for an afternoon nap, and then it suddenly started for me! There was only one issue – the throttle was stuck! There was no (safe) way to turn it off, so I literally held it until the fuel ran out.

When my son awakened, I told him that I had managed to fire it up so we needed to go outside. He lost his mind in excitement. We ran outside, and it would not start. NOTHING I tried worked. I eventually put the plane back up in the garage.

The next day, I woke up with aching legs and arms from attempting to start the stupid airplane (if you’ve ever experienced starting an RC airplane with a chicken stick, you know what I’m talking about). The stiffness helped me realize I had done about 400 squats and 2,000 reps of “chicken stick motions.”

There’s a financial lesson to be learned here. Many times, we will start off our financial journey with a dream, a budget, and detailed plan to accomplish it. Everything goes well as long as you continue to dream, budget and plan. But eventually, time can cause our enthusiasm for important things like budgeting and planning to wane.

So we stop.

We put away the tools.

Time passes. A lot of time passes, and one day we discover the need to utilize the tools again. But when we pull out the tools, we’re rusty. It doesn’t operate like it used to.

No matter how much effort we put into it, it just won’t seem to work anymore. You discover the “throttle is stuck” on an expense, and it is going to require some work to turn it off! You may not be able to get your spouse to participate.

It is for this reason my bride and I:

  1. Put together a budget EVERY MONTH – planning our spending BEFORE the month and the bills arrive. This is EVERY MONTH, not every now and then!
  2. Share our dreams with each other – and keep a list. This allows us to remind ourselves and each other WHY we are doing the discipline of planning and budgeting.
  3. Save money EVERY MONTH – we know we simply cannot prosper if we don’t save!
  4. Give money away EVERY MONTH – we truly believe we are blessed to bless others!
  5. Invest money EVERY MONTH – we can’t fund huge dreams without the assistance of compound interest!

Take a few minutes to think about the disciplines and practices you need to pull back out and start up again, and be sure to recognize that you are going to have a few “stuck throttles” and “misfires” as you get back in the groove of discipline.

In the meantime, I’ll be out in the garage firing up my RC airplane.

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SPECIAL ANNOUNCEMENT: I Paid Off My House!!!

Every month there will be an update of Joe & Jenn’s Home Pay-Off Spectacular!

But there is MAJOR NEWSregarding this series: TODAY will be the last installment in this series because …

I PAID OFF MY HOUSE!!!

Way back in December 2002, my bride and I decided to change our financial life. We set a goal to pay off our house by January 2014. We were able to beat our goal by an entire year.

Because of that decision, we get to experience the JOY of paying off our house!

Here’s this month’s update!

Total Squares:  2,426

Paid-For Squares:  1,913  2,426

Squares Remaining:  513  0

% of House Owned By The Sangl’s:  78.9%  100.0%

% of House Owned By Wells Fargo:  21.1%  0%

Here is the updated Sangl Home Pay-Off Spectacular (click to view large size)

Just look at that! The entire house is completely filled in!!!

We’re experiencing a range of emotions:

  • Excitement!
  • Relief
  • An overwhelming sense of blessing

I’ve written this in nearly every “Sangl Home Pay-Off Spectacular,” but I want to say it again: YOU can do this too!

Start your own home pay-off spectacular using our free tool here => Pay Off Spectacular – House.

Read previous Sangl Home Pay-Off Spectacular Updates

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You Can Win With Money!

This post is for everyone who is struggling with money woes.

You CAN win with money! Even if the bills are piling up, and it seems impossible for you to ever make it back to “break-even,” let alone prospering.

If you make right decisions now, your current financial situation will be ancient history two years from now. Don’t let your current financial situation dictate your dreams to you. Instead, let your dreams guide your financial decisions!

No one wants to make tough choices like selling a vehicle, changing housing situations to lower the rent or a mortgage, cutting cable, or telling our children that they can’t participate in an activity they love. It’s awful and dreadful.

But I will tell you that it is worth it!

It was on December 2, 2002 that I made a decision to change my financial life.

  1. It required difficult decisions. We made them.
  2. It required budgeting. We broke out the calculator.
  3. It required giving up some personal dreams. We did so with sadness.
  4. It made us weird. Many of our friends and family thought we had lost our minds.

You can win with money. In fact, I believe YOU are just one or two major financial decisions away from turning your entire financial life around! You probably already know the decisions you need to make. I encourage you to make them.

It. Is. So. WORTH. IT!!!!

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