Finance

I taught over 500 young people about money at West Ridge Church in Dallas, GA recently, and it was INCREDIBLE!  I was teaching from my book, What Everyone Should Know About Money Before They Enter The Real World.

Here is what stood out to me:

• They were very energetic – but also paid attention very well
• The compound interest example captured ALL of their attention – even the 6th and 7th graders!
• Young people dream more than adults
• Their dreams are much less impacted by the potential financial cost
• They are just more passionate about life – period!
• Most of them are more aware of money and money issues than the young people I was teaching five years ago.  I think the global recession has caused this generation to truly pay attention to money.
• They clearly know that it is EZ™ to win with money!

FIRED UP!

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In this day and age of identity theft, it is vitally important you monitor your credit report.

You can get a copy of your credit report FREE (not a misleading statement like so many of those TV commercials you see that say “offer implies enrollment in a fee-based credit monitoring service).  The for-real-free credit report is available at: AnnualCreditReport.com

According to their website …

AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies – Equifax, Experian and TransUnion.

AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).

Be sure to download your credit report from each of the big three credit reporting companies – Equifax, Experian, and TransUnion.  A lot of the information will be repetitive, but it is important to check out all three.

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Many people may know that they need term life insurance, but they do not clearly understand how the process works.  In the presence of unanswered questions, many people make a choice (a poor one) to do nothing.  My hope is that this post will help answer your questions about the term life insurance application process!

Acquiring term life insurance generally follows the following steps.

1. Find term life insurance that fits your needs.
2. Request and fill out an application (can obtain from your insurance agent or do this ON-LINE)
3. A nurse contracted by the life insurance company will contact you to set up an appropriate time for a health analysis (usually involves a blood test and a basic physical).
4. Your application is either accepted or denied.
5. If accepted, you will be provided your actual premium rate cost and the policy will go into effect once payment is made.

NOTE #1: Smoking and weight issues do not necessarily mean that you can not obtain life insurance, but it usually results in higher premiums due to increased health risks.

NOTE #2:  I carry 10 times my annual take-home pay in term life insurance in 20 or 30 year level term coverage.  For example, if a person makes $30,000 in annual take-home pay, then that would be $300,000 in term life insurance coverage.

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Disclosure

In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.

Part Five  Eliminate Debt and Bills

This one might surprise a few of you, but this could possibly be the best investment you could ever make!  Consider the amount of money from your household budget that is currently being applied to debt and monthly bills.  It is literally hundreds or thousands of dollars every single month!  What else could be done with that money? It could be invested OR you could reduce your work hours or even retire!

The rate of return is guaranteed when you eliminate bills.  If you are paying 21.99% on a credit card, you can gain that interest simply by eliminating the debt!  This is why I am such a big fan of eliminating debt – especially on items that drop in value like a rock or have no value at all.

Read the entire series (available after 9/30/2011)

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In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.

Part Four  Invest In Real Estate

Real estate is another great investment opportunity available.  Land, residential and commercial rental properties, and flipping houses have helped many people become millionaires.  Of course, it is VITAL in any venture like this to maintain healthy financial margin!  “No money down” real estate deals have led to many more bankruptcies than they have yielded multi-millionaires.  While it is important to consider some risk, purchasing real estate without any financial margin is a recipe for a financial disaster!

Some keys to think about when considering real estate investments are:

• Clearly understand what you will do with the property BEFORE buying it
• Have a Plan B and a Plan C
• Establish healthy financial margin – at least six months worth of expenses and operating costs
• While a deal may look good “on its own”, but sure to look at your collective holdings and evaluate your ability – time and financial – to handle the project appropriately
• If you are susceptible to taking extreme risks, establish accountability with someone who understands the business
• You will generally make money by purchasing the property for the right price
• Always be ready for a “surprise” – I see them happen all of the time to real estate investors

Questions To Ask

• Do I have the time and energy to pursue this type of investment?
• Is this something I am only doing for the financial gain or is this something that I love?
• Is my spouse on board?
• If I investment my money in real estate, where will I NOT be able to invest as a result?

Read the entire series (available after 9/30/2011)

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