SERIES: How To Win With Money – Part 1

April 10, 2013 in How To Win With Money with 0 Comments

Welcome to another series here on the wildly popular I Was Broke. Now I’m Not. website. We’re passionate about helping YOU win with your money. In this series, we are going to be talking about a practical, step-by-step plan that you can use to take your finances to the stratosphere!

How To Win With Money

1.  Set Goals

Suppose I told you to run a race, but I did not tell you where to run. You could do a lot of running and still not end up at the ultimate goal – the finish line! Now suppose I challenged you to run a race, and at the same time I provided you a detailed map of the race course, a GPS, and a personal guide. The chances that you will end up at the finish line will have increased exponentially!

There is nothing like the power of a clear goal to spur one to take action. While a person might be able to make progress with their life without having clear goals, the process of establishing and tracking goals makes their achievement more likely. This is especially true when it comes to money and money management. One rarely stumbles upon wealth. Facts support this. Most wealthy people achieve their success through a series of focused decisions that are inspired by their goals.

Your money decisions should be driven by your goals for life! Many people make the mistake of allowing their current financial situation to dictate their goals. They make “broke thinking” statements such as, “I can’t afford that” or “I’ll never be able to do that.” This is a money lie that can create paralysis in all areas of life.

Establish life goals that mirror your plans, hopes, and dreams. Refuse to let the high costs frighten you away from establishing each goal because each one can be fully funded by following this plan.

Take some time in the near future (why not right now?) to write down some of your goals. Here are some good questions to ask yourself to fire up your dreams again:

  1. What opportunities do I want to provide to my children?
  2. What trips do I want to take?
  3. Who do I want to bless? What do I want to bless them with?
  4. What type of house do I want to live in?
  5. Where do I want to live?
  6. When do I want to retire?
  7. What career(s) do I want to pursue?

Here’s a “MY LIFE GOALS” form you can use to write your goals.

Read the entire series (available after 4/20/2013)

How To Prepare A Budget That Works

April 9, 2013 in Budgeting with 1 Comment

There are a lot of people who struggle with budgeting. They know theyshould have a budget, but there never seems to be enough time, energy, or money to prepare one.

I know the feeling. However, I also know the feeling of not having control of my money and always running into financial disasters toward the middle to end of each month. It was in December of 2002 that I experienced my IHHE Moment (I Have Had Enough Moment) and resolved to figure out a way to gain full control of my money. By July of 2003, I figured out a way to make budgeting work for my family. Below are the steps I put into place. If you put them into place, I’m confident this budgeting process will work for your household too!

  1. At least 3 days before the month begins, make a list of all your expected income and expenses for the upcoming month.
  2. Pull up the FREE BUDGET TOOL. Enter the income and expenses into the worksheet.
  3. Modify your income/expenses to ensure that the following formula is true: INCOME – OUTGO = EXACTLY ZERO

It really is that simple.

However, before you dive into preparing your best budget ever, I urge you to consider a few tips I’ve learned along the way:

  1. Prepare the budget BEFORE the month begins (before you get paid and start spending money). It is very difficult to prepare an effective plan in the midst of already spending it!
  2. Be realistic. I found that my previous attempts to budget failed because I was lying to myself and not being realistic.
  3. Put some fun in the plan. It really is okay to spend some money on FUN – as long as you aren’t mortgaging future plans, hopes, and dreams in the process.
  4. Use cash envelopes or a pre-paid gift card for categories where you have a tendency to overspend. This has worked wonders for my budget! The categories I use cash envelopes for are groceries, restaurants, clothing, spending money, and entertainment.
  5. Recognize that you will forget some expenses – especially in your first few budgets! I’ve seen many people address this by putting a “I forgot!” line item in their budget to cover these forgotten expenses.

Now go put that budget together, and start winning like never before!

Read recent posts

Baby Sangl Survey: Baby BOY or GIRL – VOTE!

April 7, 2013 in Baby Sangl with 2 Comments

On February 1st, I announced that our family was growing again. We’re so fired up about this for several reasons:

  1. Doctors told us that having another child was highly unlikely.
  2. This makes three miracles
  3. Children are a blessing from God!

At the end of this month, we’re going to have the “find out what we’re having” ultrasound. Since this expense will continue to help me max out my health insurance deductible, I thought we could have some fun with this by “voting” what we think “Baby Sangl” is going to be: another beautiful daughter who makes my wallet spontaneously combust or another son who will follow in the footsteps of his brother and break everything in the house – including my flat screen tv with his toy fire truck.

So … let the voting begin:

Subscribe to automatically receive every post in your email

Read recent posts

 

Biblical Financial Lessons- Proverbs 13:22

April 5, 2013 in Finance with 0 Comments

I believe that the Bible is the best money book ever written, and I really want to take some time this week to share a money lesson I have learned from the Word.

Proverbs 13:22  A good man leaves an inheritance for his children’s children, but a sinner’s wealth is stored up for the righteous.

There are two distinct parts to this verse.  Let’s focus on each part separately.

“A good man leaves an inheritance for his children’s children”

This is a very challenging statement.  It forces us to understand that we are not just supposed to look at the “here & now”, but also to the future.  Here are some key things I take from this:

  • It’s not all about me
  • I’m supposed to bless my children and my grandchildren
  • The way I live my life will affect my descendents
  • Blessings are generational

“but a sinner’s wealth is stored up for the righteous”

What an interesting statement to follow the first portion of the verse with!  This part is making an observation that God will bless the righteous and that those who ignore Him and His commands will have their wealth transferred to those who will pursue Him.

Question: If you keep managing money the way you are currently managing it, will you leave an inheritance for your children’s children?

Read recent posts on JosephSangl.com

Recommended Spending Percentages

April 4, 2013 in Finance with 1 Comment

I often am asked the following question:

Do you have a breakdown that shows what percentage of our monthly income should go towards the different categories? For example, what percentage of our money should we be spending on housing, transportation, etc.

Here is a general guideline for major spending categories:

Typical Spending Percentages
Giving 10 – 15%
Saving 10 – 15%
Housing 15 – 35% (including utilities)
House Payment < 25% (including escrowed taxes, insurance, PMI)
Transportation 10 – 20% (including gasoline, taxes, insurance, & repairs)
Food  10 – 20%
Clothing 5 – 10%
Other Debt < 10% (not including house and car payment)
Entertainment 5 – 10%
All other 5 – 10%

Hope this helps!  If you have a question, you can ask it HERE.

Read Recent Posts

Impulsiveness = B.R.O.K.E.

April 3, 2013 in Finance with 2 Comments

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.

Read recent posts

Personal Financial Discipline- Do You Have It?

April 2, 2013 in Finance with 3 Comments

Personal discipline.  Do you have it?  Or do you lack it?

Signs of personal discipline in personal financial management:

  • Waiting at least overnight before making a large purchase decision
  • Balanced checkbook
  • Monthly spending plan
  • Saving every paycheck
  • Giving every paycheck
  • Organized financial documents – including insurance EOBs
  • Credit cards paid off in full every month
  • Regularly obtain credit report to ensure it is accurate
  • Married couples – both know where the money goes and how much they have saved
  • Singles – established accountability

Signs of poor personal discipline:

  • Overdrafts
  • Disorganized records
  • Late payments
  • Credit cards balances not paid off every month
  • Spouses not working together
  • Impulsive spending decisions
  • Little or no saved money
  • No giving

What would you add to either list?

Read recent posts

SERIES: I’ve Declared Bankruptcy – Now What? – Part Three

March 25, 2013 in Bankruptcy with 0 Comments

“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone. We’re launching this series to help people who have went through bankruptcy so they never go back and so they can prosper!

Part Three Fix the root cause.

Identifying the root cause is very important, but fixing it is even more important. Statistics indicate that nearly half of all individuals who declare bankruptcy will declare it again at some point in their life. You can ensure that this statistic is lowered by ensuring that you address the root cause and prevent it from leading to bankruptcy again.

Did a pile of medical bills incurred while you were without medical insurance send you into the financial ditch? Address the root cause (not having medical insurance) by ensuring that you never again allow medical insurance to lapse.

Did you get laid off from the job you held for years and a lack of savings sent you into a downward financial spiral? Address the root cause (not making savings a top priority) by ensuring that you save money every time you are paid money in the future. It is a bill you owe to yourself!

Maybe you entered into a business partnership based solely on trust and your partner left you holding all of the bills. Address the root cause (failing to seal a handshake agreement with a contract that clearly identifies ownership, roles, responsibilities, privileges, and liabilities) by never again entering into an agreement without a rock solid contract.

Perhaps poor spending behavior and impulsiveness finally caught up with you and left you with an overwhelming pile of debt. Address the root cause (failing to have a monthly budget that prioritized giving, saving, and investing) by submitting yourself to a financial coach who will hold you accountable to living and operating by a budget every month.

Changing behavior is rarely fun, but it is so worth it!

Read the entire series (available after 3/25/2013)

Read recent posts

SERIES: I’ve Declared Bankruptcy – Now What? – Part Two

March 20, 2013 in Bankruptcy with 0 Comments

“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone. We’re launching this series to help people who have went through bankruptcy so they never go back and so they can prosper!

Part Two Identify the root cause of what resulted in bankruptcy.

In your quest to move forward financially and to never again have to declare bankruptcy, it is vitally important that you conduct a detailed autopsy on what resulted in the death of your finances. What were the underlying real issues that created the financial mess? This can be a difficult process because you may have to sift through some painful memories, but this is what can help you never return to being totally broke.

The root cause is the real reason that bankruptcy occurred. If one is not really searching to fix the issue, they might say that the root cause of bankruptcy was that “they just felt overwhelmed.” Being overwhelmed is not the root cause. It is a feeling created by a deeper issue. For example, suppose this individual had purchased a new car and a new house, and then lost their job two months later. This situation certainly can create feelings of being overwhelmed, but we now have identified a contributing factor: job loss.

But the job loss is not the real root cause either! The REAL root cause is the fact that a new car and home were purchased without having any financial margin (savings) stored up “just in case of” a major negative financial event. Therefore, the real root causes of the situation are:

  1. NO SAVINGS  “Not having financial margin stored up”, and
  2. NO MONTHLY MARGIN  “Living against the edge by having all income pledged away to loans”

Do you see the process?

Here are some helpful questions to ask when determining the root cause(s):

  1. Did this happen because of one major poor financial decision or because of a series of poor ones?
  2. When did the situation become unmanageable? What made it that way?
  3. Why did you decide to declare bankruptcy?
  4. What could I have had in place that would have prevented bankruptcy from happening?

This is not about assigning blame and creating guilt. It is all about identifying the real culprit of bankruptcy so it can be addressed and prevented from ever causing bankruptcy again!

Read the entire series (available after 3/25/2013)

Read recent posts

SERIES: I’ve Declared Bankruptcy – Now What? – Part One

March 19, 2013 in Bankruptcy with 0 Comments

“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone. We’re launching this series to help people who have went through bankruptcy so they never go back and so they can prosper!

Part One If you are beating yourself up over declaring bankruptcy, STOP IT!

One of the biggest obstacles for anyone recovering from bankruptcy is overcoming guilt and embarrassment. In fact, many people never really get over these feelings. It is perfectly okay to say, “That was horrible. I’m never doing that again!” It is not okay to stay stuck. Acknowledge the very real feelings that come with the territory, and then resolve to move on. As the late great leadership expert, Zig Ziglar, would say, “Today is the first day of the rest of your life!”

Beating yourself up will tell you LIES. Here are some common examples (participate in the discussion by sharing others you’ve heard in the comments section):

  1. “I’m not smart enough to win with money.”
  2. “I hope I never get money again because I’ll just wind up broke like last time.”
  3. “My family and friends believe I’m a failure.”
  4. “The world is against me.”
  5. “I can’t trust anyone.”

These are LIES. Ignore them. They only allow you to beat yourself up some more. Stop it! (because you can do this!)

Read the entire series (available after 3/25/2013)

Read recent posts

FOR CHURCH LEADERS: Generosity Learning Experience

March 19, 2013 in Conferences with 0 Comments

I’m so excited about the opportunity to speak at the Generosity Learning Experience (presented by INJOY Stewardship Solutions) that will be visiting six more cities over the next two months. If you are a church leader (or know one to invite), I believe you could be helped in a tremendous way by attending one of these special events.

In this one-day event, you will have the opportunity to learn from some of the top leaders in the area of increasing generosity and raising major dollars to fund the mission and vision of your church.

We’re going to be talking about increasing your regular giving as well as how to conduct a wildly successful capital stewardship campaign. The day will be full of practical wisdom and real-world examples to demonstrate application.

Each event runs from 8:30AM – 3:30PM, and the locations and dates are:

  • April 16, 2013 (TUES)  Charlotte, NC
  • April 17, 2013 (WED)  Indianapolis, IN
  • April 18, 2013 (THUR)  Dallas, TX
  • May 7, 2013 (TUES)  Baltimore, MD
  • May 8, 2013 (WED)  St. Louis, MO
  • May 9, 2013 (THUR)  Houston, TX

Here’s what you’ll take away:

  • The latest unreleased ISS resource that will help your church take its generosity to another level! Once released, this product will retail at $99, but every church that attends will receive it FREE of charge!
  • FREE lunch! (Who doesn’t love Chick-fil-a?)
  • Practical steps you can immediately implement to increase giving in your church by 30%
  • A step by step guide to developing BIG TIME generosity leaders in your church.
  • Learn how to get your church ready for a major giving initiative
  • PLUS MUCH MORE!

For a limited time, you can receive HALF-OFF your first ticket purchase and to encourage you to bring your team with you, receive 75% OFF up to 3 additional tickets (through March 22, 2013). Space is limited so make sure you reserve your spot right away!

Learn more and register HERE (or click the registration link below).

SERIES: I’ve Declared Bankruptcy – Now What?

March 18, 2013 in Bankruptcy with 0 Comments

“I’ve declared bankruptcy. Now what?”

This is a combination “statement – question” that millions of people have made over the past few years. According to the United States Courts website (HERE), 1,221,091 individuals and companies declared bankruptcy in the U.S. in 2012 alone.

Bankruptcy is an embarrassing, stressful, and humiliating process. It can make one feel like they are not just a financial failure, but a total failure as a person. That’s not true, of course. Many people have made the tough decision to declare bankruptcy (Dave Ramsey is a famous example in the world of personal finance – so grateful he shares about it openly!), and it became a catalytic moment in their life that launched them to an incredible future. This is the very reason the option to declare bankruptcy exists in the first place: to help people recover from extremely difficult financial decisions.

Because bankruptcy affects people so deeply, over a series of posts I’m going to help answer the question: “Now what?” The reason this matters so much to me is because a large percentage of people who declare bankruptcy once are likely to file again! In fact, 28% of the people who filed for bankruptcy in 2011 were “repeat filers.” It is my goal through this series to help bankruptcy filers become adept financial leaders and managers so that they can prosper and never be broke again!

To open this series, here are a few facts about the most common types of bankruptcy one can declare:

  1. Chapter 7 Bankruptcy  Liquidation of one’s assets (minus exempt items)
  2. Chapter 9 Bankruptcy  Municipality bankruptcy
  3. Chapter 11 Bankruptcy  Reorganization under the bankruptcy code
  4. Chapter 12 Bankruptcy  Family farmer or fisherman bankruptcy
  5. Chapter 13 Bankruptcy  Individual debt adjustment

And here are some interesting facts about bankruptcy:

  1. You can’t erase student loans by filing bankruptcy  This is true in almost all cases.
  2. You can’t erase taxes owed by filing bankruptcy  This is true in almost all cases.
  3. You can’t erase child support or alimony obligations by filing bankruptcy  This is true in almost all cases.
  4. More than HALF of bankruptcies are due to medical bills  The failure of our own bodies causes a financial collapse. Awful!
  5. Filings for bankruptcy have dropped substantially over the past few years (more than 10% each year)  Has the economic recession gotten our attention and made us better money managers?

I look forward to this series. Please share your stories and comments as it will help thousands of people who are in this process right now!

Read the entire series (available after 3/25/2013)

The I Was Broke. Now I’m Not. Group Study Kit costs only $20 and can help you avoid bankruptcy and position you to prosper! Check it out HERE.

Joseph Sangl’s Current Investments – March 2013 Update

March 15, 2013 in Investing with 2 Comments

Anyone who has attended a Financial Learning Experience has heard me say that it is important to INVEST money and to do so every single time you are paid money. At the end of our live events, I am regularly asked or emailed the following question:

“What investments do you recommend?”

My answer is always, “I don’t recommend specific investments. I can only tell you the investments I own, and they have worked well for me. The investments you choose are up to you.”

Occasionally, I update everyone on the investments I currently hold. Below is a chart of the current investments we hold. If it is publicly-traded, I have included the ticker symbol. Click on the chart itself (or HERE) to see a larger version.

We have finally seen the market improvement that many people expected. With companies declaring record profits and sitting on record amounts of cash, I’m seeing that they are finally beginning to invest again. That should bode well for investors and the economy at large. At this moment, I will continue to purchase individual stocks as well as research private investments – particularly small businesses (my favorite!).

Here’s the pie chart showing the investment distribution:

My thoughts:

  1. The stock market has been hot, but nothing is ever hot enough for me to put all my eggs into one basket. I greatly prefer diversification beyond the open markets.
  2. A lot of day traders think they are incredible geniuses right now. That’s not because they are all awesome – it’s because it is hard to lose in this type of market! As enticing as day trading may seem, it feels a lot like gambling. I prefer being a “slow & steady” and “stay the course” investor.
  3. Tracking net worth on a monthly basis has made me a “first-hand witness” to the incredible momentum of my investments. Without consistently tracking net worth, I’m pretty sure I would have missed it!

Your thoughts?

Read recent posts

Disclosure

How To Become A Millionaire Using Compound Interest

March 14, 2013 in Wealth with 3 Comments

“How to become a millionaire.”

That title can seem to reek of selfishness or greed, but what if you looked at wealth this way:

  1. Wealth allows us to serve and bless the less fortunate.
  2. Wealth enables us to fund the work of our church and other great causes.
  3. Wealth allows us to focus on doing EXACTLY what we’ve been called to do!
  4. Wealth provides income so we can meet our needs when we are no longer able to work.

Perspective matters, doesn’t it?

I’ve tried broke, and I’ve tried not being broke. I like not being broke much better!

With that said, here’s how YOU can become a millionaire:

INVEST and capture the power of COMPOUND INTEREST.

When it comes to compound interest, three things matter a lot:

  1. Amount of money invested (start with whatever you can and work to increase it from there)
  2. Time (start early!)
  3. Interest rate (growth rate of your investment)

Here’s how YOU can achieve $1,000,000 at a constant Interest Rate of 12%:

  1. Invest $85.00 per month for 40 years at 12% annual interest.
  2. Invest $286.13 per month for 30 years at 12% annual interest.
  3. Invest $1,010.86 per month for 20 years at 12% annual interest.
  4. Invest $4,347.09 per month for 10 years at 12% annual interest.

Here are some ways YOU can achieve $1,000,000 in just 20 years:

  1. Invest $1,697.73 per month for 20 years at 8% annual interest.
  2. Invest $1,316.88 per month for 20 years at 10% annual interest.
  3. Invest $1,010.86 per month for 20 years at 12% annual interest.
  4. Invest $768.54 per month for 20 years at 14% annual interest.

Here is how YOU can achieve $1,000,000 with just $300 per month:

  1. Invest $300.00 per month for 473 months at 8% annual interest.
  2. Invest $300.00 per month for 404 months at 10% annual interest.
  3. Invest $300.00 per month for 355 months at 12% annual interest
  4. Invest $300.00 per month for 318 months at 14% annual interest.

For those familiar with investing, I already know one of the biggest questions you want to ask:

“Where on earth do I get 12% annual interest?”

It’s a great question! The number one way to get 50% or even 100% interest is to contribute to an employer-sponsored retirement plan where matching contributions are made. For example, if your employer matches your contributions “dollar-for-dollar” up to 3% of your pay, that is a 100% interest rate that AUTOMATICALLY HAPPENS with NO RISK! It’s called FREE MONEY! Beyond that, I like investing in mutual funds that are older than me and also in other great investments like residential and commercial real estate as well as small businesses.

In fact, I have spread my investments into most of these categories with small businesses and mutual funds being my preferred options. If you are interested, you can view my CURRENT INVESTMENTS HERE.

Are you wanting to break out of the ordinary into extraordinary? My latest book, OXEN: The Key to an Abundant Harvest, can help you grow what you have into an abundant harvest. Read more and purchase OXEN HERE.

QUESTION: What do YOU need to do to become a millionaire? Share with us in the comments HERE.

Read recent posts

Are You EATING Your Financial Freedom?

March 13, 2013 in Saving with 13 Comments

Most people struggle to save money. There are so many urgent and important items that compete for every single dollar in our wallet.

The kids are constantly growing out of their clothes, something in the house is continually breaking down, and the car seems to have a ravenous appetite for money. These are all items that consume our money, but the largest competitor for savings in most people’s household is FOOD. In fact, when someone completes their first-ever budget, they begin to review their actual spending patterns and nearly always come to the same conclusion that they’ve been spending way to much on food. They summarize their discovery by stating something like:

“I’ve found out where my savings account is – I’ve been eating it!”

I discovered this truth when I did my first budget way back in July 2003! The realization is as stark today as it was then. I was literally eating my savings (and my future)!

There are many ways to reduce your food costs (and I would love for you to share your great ideas with us all in the comments!):

  1. Don’t go to the grocery store when you are hungry!
  2. Split a meal with someone else while at a restaurant.
  3. Use cash envelopes
  4. Shop the sales at the grocery store!
  5. Use coupons (but buy things you will really use!)
  6. Make dinners from scratch (healthier and brings family together!)
  7. Designate one week as a “We’re eating all our meals using stuff in the pantry this week!” (you will quite possibly have the most interesting meals you’ve ever had!)

Readers: What additional ideas would you share? Click HERE to share in the comments!

Read recent posts

Page 2 of 116«12345»102030...Last »