This may or may not be well received, but hear me out on this.

I was reading the USA Today the other day as I was eating breakfast at the hotel in Sacramento, CA.   In the bottom left corner of the front page, I saw the below snapshot.   I took a picture of it with my Blackberry camera (which is basically a terrible camera).   Take a minute to look at the statistic that is shared.

The USA Today Snapshot shares the statistics of “Percentage of U.S. Births To Unmarried Women”, and I believe it is a very telling statistic as to why so many Americans are struggling financially.

Of course, one statistic does not tell the entire story.   We are not told how many of these children are being fully supported by their fathers.   We do not know how many families are living together, but are unmarried.   What we do know as financial coaches and teachers is that single moms are the number one group of people that we see struggling financially.

For single moms, the struggle is not just financial.   It is also extremely emotional, spiritual, and time-consuming.

Instead of two people to carry the financial load, many times the single mom has to carry it because the father fails to fulfill his obligation to pay child support.

Instead of two people to carry the emotional load of being a parent, one parent has to carry it – usually the single mom.

Instead of two people to take the child to the doctor, to school, to dance class, to football practice, it is done by one of   the parents – usually the single mom.   This is all done in addition to their daily work.

We are passionate about helping people accomplish far more than they ever thought possible.   The task becomes much greater when we encounter this situation.

Thoughts?

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Are you passionate about what you do?

Are you FIRED UP about your schedule today?

I can’t believe our team gets to do what we get to do.   We get to help people accomplish far more than they ever thought possible every single day!   We KNOW why we are showing up to work.

Dr. John C. Maxwell says that passion will make you do things that others will not do – things that most other sane people would never attempt.   We are on a crusade to help all of America be financially free enough to do EXACTLY what they have been put on Earth to do – regardless of the income potential.

Some say it cannot be done.

I say BRING ON THE CHALLENGE!

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In business world, I would regularly lead our teams through a process called FMEA – Failure Modes and Effects Analysis.   The tool is simple to use, and it applies to our money management as well.

Maybe you are perfect and never make mistakes with your money, but for those of you who are not Jesus, then we know that we make mistakes with our finances from time to time.   It is important to analyze WHY we made the mistake so that we can learn from it.

Here is how you work a FMEA.   You first list the problem.   For an example, let’s say that someone has failed to invest in their company 401(k) for the past year.

Failure Mode: Failed to invest in company 401(k) for the past year.

The second step is to list all of the potential causes of this “Failure Mode”.

Potential Causes:

• Did not set up automatic withdrawal from paycheck
• Did not budget, so did not maximize opportunities to invest

The third step is to list the controls that are in place to prevent the causes from happening (if any exist).

Controls:

• Automatic withdrawal from paycheck
• Set up monthly reminder on calendar to ensure that a budget is prepared each month

What have been your financial “failures” over the past year?   What were the causes and what controls can you implement to make sure that they these “failures” do not keep repeating?

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News Flash:   It will soon be $46,000+ when our national debt reaches the new limit approved by Congress – $14.3 TRILLION.

What are we going to do about this?

NOTE:   I don’t know who owns this photograph, but I would gladly provide credit.

On Twitter yesterday, I saw the following tweet from “DebtFreeGuy”:

“Real generosity is doing something nice for someone who will never find out. “

Well said.   Well said!

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Ever read something and said, “I can’t believe what I am reading?”   Well that happened to me recently when I read THIS ARTICLE via FoxNews.

Here are some one-liners from this article:

• The House of Representatives Thursday voted to raise the debt limit by $1.9 trillion. That vote raises the debt ceiling to $14.3 trillion, a new high for the amount of debt the U.S. has ever carried.
• If Congress doesn’t hike the debt ceiling, the U.S. would be unable make good on Social Security and Medicare payments.
• The debt ceiling increase is part of a broader bill that would impose so-called “PAYGO” rules on the House. In other words, the House would have to pay for all tax cuts or programs it creates so they are budget neutral.

Can you believe this is happening in America?   We are paying for outrageous and ridiculous spending as individuals and as a collective whole.   Let me put this into perspective …

• Assuming there are 310 million Americans, this $14.3 trillion in debt is equal to $46,129 per man, woman, boy, and girl.
• In the early-80s our national debt was not even $1 trillion
• We are increasing our debt load while Americans are struggling the most – the burden to repay it will be borne by Americans – and the burden is becoming greater by the minute

I am not sure what I can do to address this mess, but I do know this fundamental fact:   INCOME – OUTGO must equal EXACTLY ZERO

Is that true for your household?   When my income decreases, it means that I must cut out expenses or I will go broke.   It is just that simple.

What on Earth is going on?!!!   As a collective nation, we are spending money like it is water.   It is time for us to “go green” and start conserving all of our dollars – government, businesses, non-profits, and indivudals – it ALL applies to us.

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Have you ever made a poor financial decision because you got caught up in the moment?   I have.   I once bought a car when I was caught up in the moment.   I paid full price (plus more).   I financed the car 105% – I even financed the sales tax!

That decision helped me write the “I Was Broke” part of my book I Was Broke. Now I’m Not.!

If you are just getting started on your Debt Freedom March, I want you to pay attention to another form of impulsiveness that can keep you broke – the impulsive desire to become debt-free.   Let me explain.

I see people who take our classes or participate in the I Was Broke. Now I’m Not. Group Study who catch a vision of what life would be like with a written life plan, a written spending plan, and free of debt.   They understand the freedom that this delivers, so they want it NOW!   It is so inspiring!   So exciting!   So motivating!   Yet, I have seen this impulsive desire to become debt-free become financially harmful.

How has it become harmful?   Here are some common ways I see people (who have great intentions) hurt themselves financially because they want to become debt-free NOW!

• Cash in the 401(k) I have seen countless examples where people cash in the 401(k) to pay off credit cards or other debts.   There are two problems with this.   (1) They ROB themselves of their retirement savings! and (2) There is a tremendous cost – taxes PLUS a 10% federal tax penalty if the person withdraws it before turning 59-1/2 years old.   It usually means that 40% or more of the 401(k) ends up leaving to the government!
• Cash in the whole life insurance policy I have seen people cash in a whole life insurance policy and NOT have other life insurance in place (I own 30-year level term life insurance).   There are two problems with this.   (1) Without another life insurance policy in place, there is a gap in coverage.   Gaps are terrible.   (2) The immediate debt problem is addressed, but if the individual does not address the behavior that led to the debt in the first place, they will usually end up right back in debt.   Only now they will not have the cash value built up to bail them out.
• Apply all of the tax refund to debt pay-off The first step toward financial health is to have at least $1,000 in an emergency fund ($2,500 if you have kids or a house).   Too many times I see individuals become consumed with becoming debt-free and they fail to save money.   As a result, they might pay off more debt at the beginning, but something will happen like a car breakdown or appliance failure.   Without any savings, the individual will have to turn to debt again.   Make sure that you save money FIRST.

Financial impulsiveness rarely works out favorably.

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Have you made any of the following statements?

• A budget is just too hard to live by
• Debt freedom is not really that important to achieving my dreams
• I am too old to save for retirement
• My kids need to learn this stuff, but my financial situation is too far gone to recover
• I gave up dreaming long ago
• There is no way I can earn enough money to pay my bills
• There is no hope for me

The answers are as follows:

• A budget is just too hard to live by (It is a GREAT way to live, and it is the most FREEING thing I have ever done – and remember – I’m a spender!)
• Debt freedom is not really that important to achieving my dreams (Debt freedom is THE REASON my family has been able to achieve many of its dreams!)
• I am too old to save for retirement (Wrong – Even if you are 183 years old, you can still save for retirement)
• My kids need to learn this stuff, but my financial situation is too far gone to recover (Children learn best from a parent who is living strong financial principles out loud in their own lives – and you CAN recover – 2 years from now your financial situation will be ancient history)
• I gave up dreaming long ago (Why?!!!   Dreams are FREE!!!   Dreaming re-awakens the desire and passion that is necessary to stick to a plan even when it is easy to give up)
• There is no way I can earn enough money to pay my bills (Yes you can.   One key way is to reduce the number and amount of bills to be paid – a budget can really help bring that into focus)
• There is no hope for me (There IS hope for you!   You CAN do this!)

Zig Ziglar said it best, “Whether you think you can or think you can’t, you’re right!”

What are you saying to yourself (and buying into) that you need to STOP saying?

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Below is the schedule for the 1st Quarter this year!   Me and the team are FIRED UP about the many opportunities we have to teach practical financial tools and train financial coaches!   If you are interested in partnering with IWBNIN, you can contact our team HERE to start the conversation.

January 9, 2010   FCE Leave A Mark Church Columbus, OH

January 10, 2010   FLE Leave A Mark Church Columbus, OH

January 16, 2010   FCE Christ Church Hickory, NC

January 16, 2010   FCE New River Community Church Lake Wylie, NC

January 17, 2010   FLE New River Community Church Lake Wylie, NC

January 18, 2010   FLE Grace Community Church Clarksville, TN

January 23, 2010   FCE Element Church Cheyenne, WY

January 23, 2010   FFE Element Church Cheyenne, WY

January 25, 2010   FLE Forefront Church Littleton, CO

January 26, 2010   FLE Christ Church Hickory, NC

January 27, 2010   FLE Christ Church Hickory, NC

January 28, 2010   FLE Christ Church Hickory, NC

February 6, 2010 Conference   Community Christian Church Chicago, IL

February 20, 2010   FCE The Lighthouse Cresco, PA

February 21, 2010   FLE The Lighthouse Cresco, PA

February 27, 2010   FCE Colwood Church Caro, MI

February 28, 2010   FLE Colwood Church Caro, MI

March 4, 2010 Unleash Conference NewSpring Church Anderson, SC

March 6, 2010   FCE New Life Center Bridgeton, MO

March 7, 2010   FLE New Life Center Bridgeton, MO

March 8, 2010   FLE NewSpring Church – Campus

March 9, 2010   FLE NewSpring Church – Campus

March 10, 2010   FLE NewSpring Church – Campus

March 11, 2010   FLE NewSpring Church – Campus

March 20, 2010   FCE Main Street Baptist Church Alexandria, KY

March 21, 2010   FLE Main Street Baptist Church Alexandria, KY

Each year, I make a point to reflect on everything that took place in the past year.

Here is a short list of what happened in 2009.

• Announced STUNNING news that we are expecting a 2nd child (read about it HERE)
• The IWBNIN team spoke/taught 91 times!   (we want to speak at your church or business in 2010 – contact us HERE)
• We taught over 40,000 people!!!!   Unbelievable!!!
• Released a new book – What Everyone Should Know About Money Before They Enter THE REAL WORLD
• Built a tree house in the backyard for my daughter – and camped out in it TWICE – once in a major thunderstorm!
• Caught a “Fish-Of-A-Lifetime” – a 47″ 28.3# Muskie

• Completed my 2nd 26.2 mile marathon (like Pastor Jeff Kapusta just did) in Houston, TX – and I beat my goal – and two of my brothers while finishing in less than 4 hours – 3:55!!!!   (you can read about it and see my mile splits HERE)
• Took off with my wife on two separate trips WITHOUT the daughter – NICE!

I am SO thankful for the blessings in my life, and I can’t wait to see what 2010 holds!

Did I mention that we are having a son in early February?!!?!?!

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I was listening to talk radio the other day as I was traveling to my home state of Indiana.

A caller said something like the following, “We bought this house.   We owe more on it than it is worth.   We are just going to give it back to the bank.”

I see this exact thought process happening across the nation, and it frustrates me greatly.

The core of the problem as I see it is this:

Something has happened to us – somebody is going to have to pay – it is NOT going to be us.

Isn’t our word worth anything to us anymore?   If I purchased a house that has dropped in value substantially, it does not change the fact that I gave the bank MY WORD that I would repay the money I borrowed!   MY WORD is not a flippant statement that I can reverse when it becomes inconvenient to me.   MY WORD is far more important to me than a few thousand bucks.

Other situations I see this happening rampantly … business contracts and marriage vows.

In the Word it states “Simply let your ‘Yes’ be ‘Yes,’ and your ‘No,’ ‘No’”.

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You may not know this, but I am a certified, bonafide Six Sigma Black Belt and Lean Expert.   You may have no idea what this means, but it has served me well as an engineer and business manager.   These skill sets help one focus on removing non-value added activity, eliminating unnecessary costs, and determine the truly significant variables that drive product or service improvement and ultimately, profitability.

Even though I left Corporate America a three years ago, I have certainly never stopped using the skill sets I learned!   They are tremendously helpful in running I Was Broke. Now I’m Not.

As I was walking into my daughter’s school the other day to sit with her during lunch (it was square pizza day!), I saw a bar graph that showed the results of the 4th-graders voting for their “Favorite Fast Food Restaurant”.

It reminded me of the power of transforming “data” into “useful information”.   This chart shows a significant result – Chick Fil A smoked their peers.   I asked the kids at lunch why they like Chick Fil A so much.   The answers?   Without exception it was because they loved the food.   Not the toys.   Not the packaging.   Not the cows.   It was the food.

I bet that a simple study similar to this one would allow people to understand the largest financial issue that they need to address as well.   It is time to bring Six Sigma and Lean to the world of personal financial management!

Regarding the kid’s study of favorite fast food restaurant, I would have to perform a 2-sample double-blind t-test to be certain that this is a statistically-significant result.

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Bank of America has repaid its TARP (Troubled Asset Relief Program = BAILOUT) funds back in full to the Federal Government (taxpayers).   A total of $45 billion has been repaid.

As a shareholder of Bank of America stock, I am pleased to see this.

As a tax-paying citizen of the USA, I am ecstatic to see this.

You can read CNNMoney’s take on it HERE and Bank of America posted it on their investor relations board HERE.

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