Archive for November 2009

SERIES: Fundamental Rules Of Money Management V

In this series, I have been sharing some thoughts on some fundamental rules of money management that are time-tested and known to be true.   If applied, these rules can help you take your finances to the next level.

Rule #5 If it sounds too good to be true, it is most likely a scam.

Call me cynical, but most “too good to be true” and “get rich quick” ideas are great ways to throw money away.   It would be better to just set fire to your money.   I remember a day several years ago when this “great deal” presented itself to me.   “All you need is $1,000,” I was told.   Once I would turn in my $1,000 (it was required in cash – hello? – can you smell the scam cooking?), I would secure a slot.   Once eight other people gave $1,000 under my slot, I would receive $8,000.   Little did I know that I was being introduced to a pure form of a Ponzi scheme.

It seemed like everyone was jumping in.   I know several of my co-workers did.   It was a “hurry, hurry, hurry” mentality.   “If you don’t jump in NOW,” I was told, “you will lose the opportunity.”   This was back when I was busy writing the “I Was Broke” part of I Was Broke. Now I’m Not. so I did not even have $1,000 if I wanted to participate.

You already know what happened.   The folks running the scheme took all of the money and vanished from town – never to be heard from again.

Here is what I have discovered – when you are B-R-O-K-E, you are way more susceptible to get-rich-quick schemes and scams.

Be calm.   Be patient.   Use the real power of compound interest to fund your hopes, plans and dreams.

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SERIES: Fundamental Rules Of Money Management IV

Welcome to a new series on the wildly popular! In this series, I will be sharing what I believe are Fundamental Rules Of Money Management. I look forward to reading your thoughts on this topic!

Rule #4 You must have margin.

I have lived with no money in the savings account.   When I was in that situation, I was very aware that it was not the best situation.   It was clear that $0 in savings left little room for financial emergencies to occur, but I was unaware of the full implications of zero saving until I finally had a healthy savings account.

A healthy savings account provids margin.   It allows you to think beyond today and tomorrow.   Margin allows you to consider a business decision, career path, or even moving without seizing up due to making this statement to yourself, “That will cost money.   Money that I do not have.”   Financial margin allows you to absorb unexpected financial events (like refrigerator, hot water heater, or car failure) – without incurring new debt.

Margin also allows you to take advantage of unexpected financial bargains.

To me, financial margin equals to less stress, peace, a calm wife, and freedom.

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Savings Workshop – Greenville, SC – THURSDAY

Just two days left until the savings workshop takes place in Greenville.     There are still a few slots left for anyone who wants to use the coupon code HALF and register for only $5 instead of $10.   It is going to be a great time where you can learn the methods I use all the time to save money on just about anything I buy.   The Saving Freak/Grocery Freak will be leading this money saving class!

Here is what I know.   If you apply the tools taught in the Savings Workshop, you will save more than $1,000/year!   You will learn how to save money on groceries, dining out, travel, cell phone service, on-line shopping, shopping at department stores, insurance, and many more items.   It will definitely help you save on your Christmas shopping that you haven’t started yet.   To sign up just go to the registration page and make sure to use the code HALF to get half off the regular price.

SERIES: Fundamental Rules Of Money Management III

Welcome to a new series on the wildly popular! In this series, I will be sharing what I believe are Fundamental Rules Of Money Management. I look forward to reading your thoughts on this topic!

Rule #3 Nothing will happen until you do something.

I used to work a J.O.B.   I was energetic enough because I am a naturally hyper person, but I was working a J.O.B.

Instead of waking up in the morning and saying, “Good morning, Lord!   I can’t believe I get to do this!!!”, I would wake up and say, “Good Lord.   It’s morning.   Where’s the coffee?”   I wanted to do work that made a difference.   I think most people fall into that category.   There is nothing more miserable than working a J.O.B. that makes absolutely no difference in anyone’s life.

I have met a lot of people who feel stuck in their job.   They hate it.   To say that they “despise” their job would not be overstating it.   They want to do something else, but they feel trapped.

I have been there.   I decided to do something about it.   I began to offer free financial counseling for members of our community.   Trusting people allowed me into their homes to help them prepare a written spending plan or to develop a strategy to become debt-free.   Those people allowed this crusade to become a reality.   But it would not have happened had I not made the first move.

This rule applies to all areas of life.   Want to go out on a date with that girl?   Better do something – ask her!   Want the next promotion?   Let the boss know that you are interested – and prepare like crazy so that you are ready for it!

Want to win with your finances?   DO SOMETHING about it.

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