Finance

I love credit card offers.  They are packaged so well.

• Slick-looking logos and card designs
• Use of flattering language like "pre-approved", "Platinum Credit Card Benefits", "Financial Benefits", and "Invitation"
• Urgency – "This is a limited-time offer!"  They fail to mention that the time is only limited by Jesus' return to Earth (could be tomorrow – maybe they are right!)
• "Fixed APR"

Sounds great, right? WRONG!

Let me share some direct quotes from the same offer.

• "We reserve the right to change the account terms for any reason"  In other words, "Dear Customer – You have NO rights!"
• "We allocate payments at our discretion.  This means, for example, we will allocate payments to pay off your 0% introductory APR balances before higher APR balances."  In other words, "Dear Customer – We are going to stick it to you!"
• Regarding "Fixed APRs", the small print states "The APRs for this offer are not guaranteed; APRs may change to higher APRs, fixed APRs may change to variable APRs, or variable APRs may change to fixed APRs.  Any changes will be in accordance with your account agreement."  What?  A "Fixed" APR is not fixed?!!!  And regarding the fact that changes will be in accordance with the account agreement – the agreement is that the credit card company can change the account terms for any reason!

Read Joe's recent blog posts 

Another story of life-change was released on the podcast today!  Have you listened to the Podcast from Joe?  To subscribe to the podcast using iTunes, click HERE.  If you do not have iTunes, you can download an mp3 by clicking HERE.

Looking for additional Personal Finance Resources?  You can obtain free tools by clicking HERE and purchase books/materials by clicking HERE.

I was talking to my friend who visited over the weekend and he mentioned this book called The E-Myth.

I borrowed the book from another friend on Monday and completed reading it on Wednesday.  It is a great book for small business owners or anyone contemplating starting a small business.

A key reason that this book applies to me is the fact that I really want to help over 100,000 people accomplish far more than they ever thought possible with their personal finances by October 2011.  This will require a humongous team effort!

Here are some things I am taking away from this book.

• The same thing that prompted me to write THIS is what will enable this effort to reach 100,000 people.  I certainly can not do it all!
• Great doers don't necessarily make great leaders.
• Putting together a structure and a system always trumps "flying by the seat of the pants"
• Consistency in the overall "experience" is HUGE
• Following the system – everyone following the same system and protocol leads to this consistency
• Great people have a vision of their lives that they practice emulating each and every day.
• I want to go to the hotel the author mentions in chapter 15.

Well worth the few hour read!

Tony also offers his takeaways from this book HERE.

Looking for additional Personal Finance Resources?  You can obtain free tools by clicking HERE and purchase books/materials by clicking HERE.

I recently read that student loan debt is rising in America.  No big surprise since I am seeing the same thing in all of my financial counseling appointments!

There are two facts I want you to know about student loan debt.

1. It WILL come due some day
2. You can not bankrupt on student loan debt 

Yes, student loans will come due one day.  I financed my undergraduate degree.  I was able to pay some of it as I went along, but I still left Purdue University with nearly $20,000 in debt.  It took me 8.5 years to pay it back.  Do you want to pay payments on your education for 8.5 years or more?

You can not bankrupt on student loan debt.  There are two things that are non-bankruptable – taxes and student loans.  So if your plan was to go get a degree and then declare bankruptcy, you have a VERY BAD PLAN!

The median student loan debt of graduating bachelor degree recipients in 2004 was $19,300 according to the College Board.

Are your children going to have to finance their education as well?  If so, it will likely set back your child 5-10 years in achieving debt freedom.

I resolve to provide my daughter a paid-for college education and set her up to start out life with ZERO debt.  Life is just so much more fun when you are debt-free!

 
Looking for additional Personal Finance Resources?  You can obtain free tools by clicking HERE and purchase books/materials by clicking HERE.

With over 70% of Americans living paycheck-to-paycheck, this situation happens more often than you might imagine!

You see, when you are living paycheck-to-paycheck, bills go past due THE INSTANT that you miss ONE paycheck.

So what should you do if you encounter this situation?   I have prepared a list of things that I would do IMMEDIATELY if I were living paycheck-to-paycheck and lost my job.

• PRAY!!!  It really does work!
• Call every single creditor you owe and inform them of your situation.  Humbly ask them to help you.  Ask them if they would please lower the interest rate to 0%, charge no fees, and give you three months of no payments.  Most of them will work with you!!!  Communication person-to-person works so well!!!
• File for unemployment.
• Immediately cut out all non-essential expenses.  Get rid of the cable, internet, home telephone (keep the cell phone), gym membership, etc.
• Go get a job that earns something to help bridge the gap between full-time positions.
• Apply for new jobs on monster.com, hotjobs.com, and the newspapers.
• Spend all of your money on paper BEFORE you actually receive the money.  In other words, start PLANNING your spending!  Free tools are available by clicking on "Tools" at the top of the page!

By the way, if you are living paycheck-to-paycheck, but still have a job – consider yourself warned!!!  TODAY it might happen to you.  What would your family have to do if you lost your job today?  Why not make today THE DAY that you change your family's entire financial future?

Looking for additional Personal Finance Resources?  You can obtain free tools by clicking HERE and purchase books/materials by clicking HERE.

It has been fun hearing everyone's thoughts about what Jenn and I should do about our 10 year old car that has been failing routinely and helping my mechanic friends achieve financial freedom!

I do want to remind everyone that I did try to replace my car, but the deal fell through!

So with all of the problems, all of the frustrations of the old Purdue car, we have decided to replace her.

She was replaced last Tuesday with a SUV that is able to run over the old car without the driver even noticing.

God gave us an incredible deal!

So the saga of the old car is over.  She is replaced.

And, yes, Steve_Sr1 (see his comment below that post), I will be changing the oil routinely and checking the oil regularly.  Thanks for the reminder!