What Everyone Should Know About Money

Sneak Peek: Credit Scores – Part 2

Well we have officially entered graduation season! Students are graduating from both high schools and colleges all over the country. This is an extremely exciting time in ones life, but it can also come with lots of questions. I’ve written a book that’s specifically for high school students, college students and twenty-somethings – What Everyone Should Know About Money Before They Enter The Real World. So many of us have experienced a time where we have learned a financial principle or tool and said, “I wish I had learned that before I entered the real world”. One of these questions is in regards to credit scores.

I wanted to share with you an excerpt from my book that addresses the subject of credit scores.

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Everyone Should Know About Money Before They Enter The Real World:

What number is a good credit score?
According to Fair Isaac, a credit score can range from 300 to 850. The higher the score, the lower the risk. This means you want a higher number.

Companies establish their own criteria as to which credit score is a good credit score. As a general rule, any FICO score greater than 750 is an excellent credit score. Anything more than 800 is considered outstanding. As credit scores drift into the 600 range, credit might still be available, but it will come at a higher cost. Credit scores in the 500 range might prevent you from obtaining reasonable lending rates and terms.

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Learn more about the book and order your copy HERE.

Sneak Peek: Credit Scores – Part 1

Well we have officially entered graduation season! Students are graduating from both high schools and colleges all over the country. This is an extremely exciting time in ones life, but it can also come with lots of questions. I’ve written a book that’s specifically for high school students, college students and twenty-somethings – What Everyone Should Know About Money Before They Enter The Real World. So many of us have experienced a time where we have learned a financial principle or tool and said, “I wish I had learned that before I entered the real world”. One of these questions is in regards to credit scores.

I wanted to share with you an excerpt from my book that addresses the subject of credit scores.

========================================================

Everyone Should Know About Money Before They Enter The Real World:

Your credit score will have an impact on your life.
Credit scores are a measure of one’s ability to manage debt. The dominant credit scoring system which is used by most lenders was created by Fair Isaac. This system provides a measure of an individual’s credit worthiness and is commonly known as a FICO Score.

A credit score impacts many things. It determines whether or not you can obtain a loan. If you qualify for a loan, the credit score dictates the interest rate charged.

Credit scores also impact insurability. When you obtain auto, renter’s or homeowner’s insurance, the credit score directly impacts the insurance cost. The lower your credit score, the higher the insurance premium will cost. I have seen insurance premiums doubled because of poor credit.

Credit scores also impact the ability to obtain a cell phone contract or an apartment lease. It can affect utility connections. Utility providers usually require much larger deposits from people who have low credit scores. If you have an excellent credit score, a deposit might be waived entirely.   Credit scores can even impact your ability to obtain a job.

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More about the subject of credit scores, in my next post! Stay tuned!

Learn more about the book and order your copy HERE.

What Everyone Should Know About Getting A Degree

I could never have attended Purdue University had it not been for student loans. I began dating Sallie Mae right away, and it took years for me to break up with her.

As we continue our discussion surrounding graduation, here are some points about getting a degree and student loans from my book – What Everyone Should Know About Money Before They Enter The Real World. This is a great resource for those currently graduating high school or college.

  1. Go to school for 4 years for a 4 year degree (or for 2 years for a 2 year degree). Not six years for a four year degree. This can have substantial financial consequences. For example, if you attend college for two years more than required for the degree, you will have to pay for two extra years of school PLUS you will forfeit the salary you could have earned during that two year period. For many people this is a $100,000 financial swing!
  2. Obtain a degree that will help you repay the loan. There are many people who go to prestigious private colleges to obtain a degree that is the equivalent to underwater basket-weaving. While I think that underwater basket-weaving would be amazingly cool, it probably won’t help repay the loans. My mechanical engineering degree from Purdue University and MBA from Clemson University certainly helped me repay my student loans.
  3. Tech or Community College for the first two years can really lower costs. Most states have established programs that allow all credits earned during the first two years of community college to transfer directly to the state schools. I have seen the costs for community college. They are much lower than state or private universities. The local community college where I live is literally one-third the cost of the state school.
  4. Obtain subsidized loans, if possible. Subsidized loans do not accrue interest while the student maintains at least half-time student status. They also do not accrue interest while the loans are in grace periods or deferment.
  5. The name of the college does not matter nearly as much as the effort you put into your studies. Many students fall in love with a particular college and feel that they just must attend only that institution. I have discovered that no one really cares about the fact that I went to Purdue and Clemson – all they want to know is if I can help them accomplish their stated objective.

Print this out and have a conversation about it with your student or future student. My bride and I have been talking about this with our daughter since she was six or seven. I know it might seem like boring conversation, but I promise you that it has had a positive impact on our daughter and the plans she has made for education.

I have written an entire chapter on this topic in my book for high school and college students – What Everyone Should Know About Money Before They Enter The Real World – I promise you it will help financially prepare your student for the real world. You can purchase that book HERE or for your e-reader HERE.

Christmas 2013 Special Offer

Here’s a special offer for this Christmas! All three books I’ve written about personal finances PLUS a bonus audio book of Oxen – first time ever available!

You get all four of these resources for more than 30% off retail! Order by December 20th and receive by Christmas!

IWBNIN-WESKAM-OXEN-DVD

These three books by Joseph Sangl are a perfect 1-2-3 punch to help live a fully funded life!

BOOK: I Was Broke. Now I’m Not.

In I Was Broke. Now I’m Not., Joe shares about his own journey and then teaches the practical tools he used to win with money.

Tools taught in this book include:

  • How to plan for life!
  • How to develop a spending plan that actually works (a budget)
  • Strategies for eliminating debt
  • The date you will become debt-free
  • Amount of money needed for retirement
  • The power of compound interest
  • Investing
  • Insurance

BOOK: What Everyone Should Know About Money Before They Enter The Real World

In What Everyone Should Know About Money Before They Enter The Real World, Joe shares key money principles that every person should learn before embarking on their own journey with money. This book is perfect for students as well as young families facing their first major financial decisions!

Topics include:

  • Planning for life
  • Budgeting
  • Giving
  • Saving
  • Debt (with a specific chapter dedicated to Student Loans)
  • Credit Scores
  • Investing & Compound Interest
  • Insurance
  • Purchasing A Home

BOOK: Oxen – The Key To An Abundant Harvest

In Oxen, the topic moves toward maximizing the money you have! This book provides principles that will help you maximize your financial resources so you can experience an abundant harvest and fund your biggest dreams. You will learn how to:

  • Leverage the power of oxen
  • Identify and acquire oxen
  • Earn income even while you are not working
  • Measure and build net worth
  • Fund your dreams

Oxen is not a theory. It is timeless truth that has been applied by millions to achieve an abundant financial harvest. Your dreams are huge. They can be funded. Oxen will help you do it.

AUDIO BOOK BONUS: Oxen (included with purchase)

As a BONUS, this Christmas Special will include a special AUDIO version of Oxen with author Joseph Sangl as the narrator!

5 Things Every Student Should Know About Student Loans

I could never have attended Purdue University had it not been for student loans. I began dating Sallie Mae right away, and it took years for me to break up with her. With that said, there are several that every student should know about student loans. Here are five of them.

  1. Go to school for 4 years for a 4 year degree Or for 2 years for a 2 year degree. Not six years for a four year degree. This can have substantial financial consequences. For example, if you attend college for two years more than required for the degree, you will have to pay for two extra years of school PLUS you will forfeit the salary you could have earned during that two year period. For many people this is a $100,000 financial swing!
  2. Obtain a degree that will help you repay the loan There are many people who go to prestigious private colleges to obtain a degree that is the equivalent to underwater basket-weaving. While I think that underwater basket-weaving would be amazingly cool, it probably won’t help repay the loans. My mechanical engineering degree from Purdue University and MBA from Clemson University certainly helped me repay my student loans.
  3. Tech or Community College for the first two years can really lower costs Most states have established programs that allow all credits earned during the first two years of community college to transfer directly to the state schools. I have seen the costs for community college. They are much lower than state or private universities. The local community college where I live is literally one-third the cost of the state school.
  4. Obtain subsidized loans if possible Subsidized loans do not accrue interest while the student maintains at least half-time student status. They also do not accrue interest while the loans are in grace periods or deferment.
  5. The name of the college does not matter nearly as much as the effort you put into your studies Many students fall in love with a particular college and feel that they just must attend only that institution. I have discovered that no one really cares about the fact that I went to Purdue and Clemson – all they want to know is if I can help them accomplish their stated objective.

Print this out and have a conversation about it with your student or future student. My bride and I have been talking about this with our daughter since she was six or seven. I know it might seem like boring conversation, but I promise you that it has had a positive impact on our daughter and the plans she has made for education.

I have written an entire chapter on this topic in my book for high school and college students – What Everyone Should Know About Money Before They Enter The Real WorldI promise you it will help financially prepare your student for the real world. You can purchase that book HERE or for your e-reader HERE.

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