Money Mastery - Principle Based Money Management

Five Taxes That Didn't Exist 40 Years Ago...

2011-10-19T19:10:37Z

I just read a fascinating article in Forbes about taxes that reminded me how important it is to know the rules, as Money Mastery Principle 5 teaches.

Did you know that in 1900, it took only until January 22 for Americans to work long enough to pay their taxes? In 1930, the official Tax Freedom Day was February 12, but in 2011 that day doesn't come until June 15!

5 New Taxes Added in the Last 40 Years

There have been five new taxes that have been added since 1971, some of which you may have known about, but others that will probably seem utterly ridiculous, as they did to me:

1. Airline and Airport Taxes: In addition to the old sales tax, that has always existed on your airline ticket, there are now so many "other" taxes listed that you may find it hard to even find the actual ticket price. Following are just a few of the many new taxes: 9/11 security tax ($2.50), arrival and departure tax ($8.00), flight segment tax ($3.70), and ticket excise tax (7.5% for domestic flights).

2. Illegal Drug Tax. Okay, this just seems crazy but it was enacted to target hard-to-get drug dealers. The IRS assumes that even criminals have to file taxes and if the way they're living doesn't match reported income, they can be audited...supposedly. It's intent was to prosecute criminals for tax evasion, even if they can't be tried for their other crimes.

If you can believe it, this is the actual wording the IRS lists on their Web site for how criminals should itemize their illegal drug income: “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.”

Uh, okay...like if these guys aren't abiding by the other laws of the land they're going to abide by the IRS's laws! Go figure. It just goes to show how much power the IRS assumes...and often gets!

3. Healthcare Insurance Tax. Mandatory in 2012, if your employer pays all or part of your healthcare benefits, they must now include that amount as part of your salary on your W-2 form. This will add to the amount of money you "earn" thus increasing your tax burden. This new tax law has been one of the most controversial parts of the recent healthcare reform. And some are finding this to be just another slap in the face from the current presidential administration.

4. Stolen Property, Bribery and Kickbacks Tax. Ante up, anyone who's ever taken stolen property, accepted a kickback from a shady relative, or taken a bribe...you must report all that as income on your 1040 Form. That includes recording the stolen item's fair market value (unless you return the stolen item to its owner by the end the year, no less). Bribes, stolen property and kickbacks are considered "self-employment" income by the IRS and have to be reported.

5. Nobel Peace Prize Tax: If you should ever win a Nobel Prize or the Pulitzer, or any other prize, for that matter where you get a monetary "prize of value" you must pay taxes on them. Now that should inspire you to get out there and do your best!

“If I could just make 10% more . . . ” and Money Mastery

2011-10-03T18:15:29Z

In one of the very first jobs I had out of high school I worked for a metallurgical testing company. It was clerical work, but very “high-tech” clerical work because instead of your basic electric typewriter I was using the state-of-the-art IBM Selectric.

It had a built-in memory so that if you were going to use the same text over and over, you could program that into the typewriter. I worked with two other typists. Our task was to transform the chicken-scratch test results given to us by the lab technicians into readable reports.

We’d insert a 6-page carbon-copy form into the typewriter, carefully align it to start typing at a specific distance from the top of the page and hit a button. This caused the typewriter to magically type out the first line of the form. At the end of the line, we’d type in the test results—three or four characters that could be all numbers or a combination of numbers and letters. When we hit the return, the next line would also print automatically (oh, yeah, the program was that advanced). In probably less than two minutes, we’d have a full, one-page report for our customers with five copies.

So what does this have to do with Money Mastery? Well, nothing.   What brought it to mind was my supervisor. She was one of the three typists.   She was a few years older than me, married, no children, a bleach-blonde, lots of eye-liner, smoked, etc. Oh, yeah, relevancy.   I remember her saying, “If I could just make $100 per week, that would be enough.” I was only 18 at the time, but I intuitively knew she was deceiving herself.

I thought, “In a few years that’s not going to be enough for her.” (Can you imagine being satisfied today with working forty hours a week and only making $100?   And that’s gross, not net of taxes.   I mean, that’s really gross, isn’t it?)

I also knew—intuitively again—that expenses rise over time. I’d had no specific financial or economic schooling about this, but I had studied the California gold rush in history class. Miners had to pay highly inflated prices for basic needs like flour and salt (low supply/high demand).   A hundred dollars for a blanket sounded really scary to me, but what really struck me were the normal, non-inflated prices before the gold rush.   Coffee had been selling for around 10 cents a pound at the time, and miners had to pay 20 to 30 cents for it. Ten cents a pound is really minuscule compared to what we pay for coffee now!   It stuck with me.

Are you like my supervisor? Have you ever said "If I could just make X more per hour, week, month, or year, then I’ll be fine."? This is never true.   It’s not how much you make, it’s how you choose to spend your money.

The British economist and essayist C. Northcote Parkinson (1909-1993) made some very astute observations about the human psyche with regard to work and money.   He said, “work expands to meet the time envelope allowed.”

In other words, give someone two days to complete a job and he’ll take the two days; give him one day and he may be able to complete the same job in a day.   That’s why many laborers aren’t paid an hourly wage.   For instance, many agricultural pickers are paid by the box or the pound. It’s not that people are lazy. It’s just how most of us operate.

In college, it didn’t matter if I was given two weeks or 18 weeks to complete a research paper, I’d be cramming it into the last three or four days and typing it in the wee hours of the morning of the day that it was due. Sound familiar to you?

Parkinson also said, “a luxury, once enjoyed, becomes a necessity.”   Think air conditioning in your car or home.   Your GE microwave. Your I-pod. Your I-pad. Your HP laptop. Your Android. I’m not that much of a gadget-freak. I don’t need to have the “latest and greatest” as soon as it hits the shelves, so I’m probably mentioning items that are “obsolete” to some of you techies.    But you get the point.

He also said, “expenses rise to equal income.” It won’t matter how many raises you get or how many more sales you make, you’ll find a place to spend it. This is the principle most relevant to mastering your money demon. Having a spending plan is key to making all of the other parts of your financial puzzle work.

Go to www.mymoneyplan.net to find out how to create your own spending plan.   Without that, you’ll keep spinning your wheels and spending your hard-earned greenbacks on things that will never complete your puzzle.

Whether or not you have financial security is entirely up to you. The sooner you understand all of Parkinson’s laws and learn how to be accountable for your own decisions about how you choose to spend your time and money—always keeping the big picture in mind—the sooner you’ll have financial peace of mind.

See www.moneymastery.com.    Now's the time to experience peace knowing you’re on the right path with ever more financial security and control along the way.   No one can change your course but you!

Adult Children Taking Parents' Money

2011-09-30T18:49:55Z

I read an interesting article on a recent survey conducted by the National Endowment for Financial Education and Forbes.com about the large number of parents who continue to support their adult children.

According to the survey, which was conducted in May of this year, 37 percent of parents who are helping their adult children say they "don't want their children to struggle financially the same way they struggled financially." I find this statement laughable.

Your Kids Are Now in the Same Boat...Because You Don't Have a Plan

The reason these parents struggled financially is because they did not have a systematic plan for handling finances. Since they had no plan, they therefore could not teach their children how to plan financially, so their kids are in the same boat.

What the mainstream media pushes is that today's generation is suffering more financially because they inherited a terrible economy and that their university educations cost much more than they can earn in a new job right out of college. While it is true that the economy is worse and education and housing cost more than they did when their parents were going to school, this is not the main reason young folks struggle today financially.

They struggle because society, including their parents, teach them that they can't make it on their own and that they need bailing out!!! This is why they struggle so terribly. Parents who continue to pay their children's way are not doing them any favors and are simply teaching them to keep their hands out in expectation. Meanwhile, parents are losing their retirement funds and hard-earned nest eggs.

Survey Indicates a Disturbing Trend

According to the survey parents are providing support to adult children in the following ways:

50% housing
45% living expenses
41% transportation
35% insurance coverage
29% spending money (Really????? Spending money???? Good grief!)
28% medical bills

This seems ridiculous to me. Parents who really want to help their children will stop supporting them and learn for themselves first how to handle their own money. Then, the next time a kid asks for help, they will have the courage to say, "I'm sorry, I realize now I don't have any money to give you, but I do have a system of financial management I'd like to teach you. It's called Money Mastery and the first thing you'll need to do is give me all your receipts and bank statements so I can see how you've been spending all my money over the past year....then we'll create a spending plan together so you can get your need to consume under control and you'll be able to live off what you make."

Don't think it's possible? Yeah, that's what a lot of my clients think when they first come to see me. They don't see how they can live off what they make, let alone their poor, struggling, recently graduated adult child can off his pathetically small salary.

Let me assure you, it is possible. You can have wealth on ANY income. My elementary school teachers and postal worker clients who are now millionaires can attest to it.

Remember, it matters not how much you make but what you do with what you earn that counts.

Learn more at www.moneymastery.com or give me a call: (888) 292-1099. I welcome your comments.

Money Mastery Principle 5: Know the Rules of the Game

2011-09-21T22:59:09Z

Okay, so maybe this is a stretch in terms of a good video tutorial on the importance of Money Mastery Principle 5, which is "Know the Rules (of the Financial Games You Play)" but I did need an excuse to sneak in my all-time favorite stand-up comedian, Brian Regan.

In this hysterical clip on shipping boxes through UPS, he shows why knowing the rules comes in really handy. And I'll add, knowing the rules of the financial games you play (like having a mortgage or using a credit card) not only comes in handy, but it can save you from complete financial ruin.

Oh, and BTW, Brian Regan is a clean comedian...something hard to find now days.

Enjoy!

The Entitled, However Rich, Are Truly Poor

2011-09-12T18:46:10Z

Okay, I just had to post one more thing on entitlement because this article is so good (a short read) and worth taking a look at:

The Unfortunate Age of Entitlement in America by Anthony Robinson

As Peter said, if you've got kids that never seem to be satisfied, this article gets at the root of such discontent.

And the source of your discontent as well...

Glut of Choices Spells Financial Disaster for Some

2011-09-07T19:08:08Z

The entitlement thread has been interesting and got me thinking about the theory of "Maximization" as introduced in 2004 by Barry Schwartz, a professor of social theory at Swarthmore College.

Schwartz claims that the glut of choices in which we find ourselves in America has created people called "maximizers." He notes the following in his Swarthmore College commencement address:

"Choice overload is a problem for everyone, but it's a special problem for people who feel like they have to get the best when they make decisions — the best college, the best job, the best romantic partner, the best car, the best stereo, the best investment, and yes, the best pair of jeans. Andrew Ward and I call such people, 'maximizers.' In contrast, people who are satisfied with a good enough option — we call them 'satisficers' — can stop looking as soon as they find one, and relax."

Ironic that so much choice, along with the entitlement mentality of today's society, should cause so much unhappiness, and as Peter and Alan have stated, financial disaster.

I recommend reading Schwartz's entire Swarthmore College commencement address on Maximizing and if you suspect you might be a Maximizer, reading Peter and Alan's book MONEY: What Financial "Experts" Will Never Tell You which you can buy in the Money Mastery store or at Amazon.com.

Post-Depression Parents Failed Their Children Financially

2011-09-07T03:02:41Z

As a follow-on to Alan's very interesting blog post last week on entitlement, I just have to add a comment about the "gimme gimme" generation as it relates to post-Depression parents.

The materialism and expectation that plague today's generation stem partially from a lack of respect towards money, a respect that's been lost as a whole from our society, I believe, since the ending of the Great Depression 72 years ago.

Why?

The generation who suffered through the Depression carried a real fear of not having the basic necessities of life since most people of that era went many years without being able to provide very well for themselves or families.

The Depression taught people a profound respect for money and its power over life. It also taught them the value of self-reliance, the importance of self-denial, and the danger of overindulgence.

As America came out of that great economic trial into the most prosperous time in all of history, the teens and young adults who witnessed their parents' difficult struggles and who had, themselves, been forced to go without for so long, determined to do "something better" for their children. As these young adults married and began having babies during World War II, they unfortunately did not teach their children to fear and respect money as they should have.

Hold Your Hands Out...It's Your Right

Instead post-Depression parents taught their children to hold out their hands in expectation. Consequently, that Baby Boomer generation, as a whole became the first "me" generation and they taught their children the same thing. So we now live in a time of great self-indulgence and very little financial self-control.

As much as these parents wanted to do "something better" for their kids, in reality they failed them financially, by teaching them that they could have everything they wanted and to demand, in some cases, that others give it to them.

It's ironic that some of those who commented on the Deseret News article feel that their generation (the Gen Xers and Gen Nexters) have the most education, the most intelligence, the better jobs, and the greater opportunities because they think they have the most self-confidence and are a much better prepared and less whiny generation, compared to the Boomers. But what these 20-somethings fail to realize is that their "educated self-confidence" (i.e. arrogant self-absorption) comes from having parents who gave them everything they demanded, the same way those Boomers had been given everything they demanded from their post-Depression parents.

And now each generation has failed financially the one that has come after them, since a good deal of the so-called "education" that these self-absorbed 20- and 30-somethings possess is based on a sense of entitlement.

Stop the Nonsense

The only way to stop the nonsense is to return to good old-fashioned principles of sound financial management, or in other words the Money Mastery Principles. If you have kids that you wish weren't quite so demanding, I urge you to go to www.moneymastery.com and learn more about parenting your children without giving in to their selfish demands.

Entitlement is Rampant...Yet So Many Just Don't See It

2011-09-02T18:55:43Z

I just finished reading a fascinating article in the Deseret News on the problems that entitlement are causing our society today.

I was especially impressed with the way the article explained how entitlement not only affects families and relationships, but how it is adversely affecting the economy, money, finances, and future security, something Peter and I have been harping on for how many years now?

Read it: The Age of Entitlement, Selfishness is Rampant, by Amy Choate-Nielsen and Sara Israelson-Hartley.

The ideas presented go right along with what Peter and I wrote in our book, MONEY: What Financial "Experts" Will Never Tell You about what happened to the generations that came after the Great Depression.

What is even more interesting about this online post in the Deseret News are all the comments that follow it. Many people (even those in the 40s) were angered by the assumption that we live in an entitled society and claim that the article's premise is nonsense. Interesting....

I guess unless you were like my parents, struggling to make a living during the Great Depression, or were a World War II kid like me, who sometimes went to school without shoes simply because we had outgrown them and our parents hadn't been paid yet, you just don't see that things really have changed. Believe me, whether you get it or not, those entitlement changes are affecting all of us financially.

So, my parting shot is this: to those who do not believe that we are living in terribly selfish and entitled times, ask yourself the following two questions:

1. Do you fear that you will not have anything you want?

OR

2. Do you fear that you will not have everything you want?

I'll just bet your answer is #2...

In a society that is bound and determined to maximize every part of its life to get the absolute most and best out of everything, it fears that it won't get everything it wants.

And that almost always guarantees financial disaster...

Good Saving Ideas...But Missed the Most Important Of All

2011-09-01T19:27:51Z

Some of the advice I read on sites like Frugalmom.net is really valuable...especially in operating an efficient household, taking care of family, and trying to keep my home office running.

A recent post on this site suggested a list of 65 things women can do to help cut costs and put a little more into savings every month.

They included such things as...

Wash laundry in cold water
Use homemade detergent for washing clothes
On warm days, hang laundry on the line outside to dry
Cut dryer sheets in half
Save vegetable seeds to plant
Use rags instead of paper towels
Cloth diapers instead of disposable
Turn day old bread into breadcrumbs
Keep lights & tv off during the day
Make birthday cards
Use a calculator as you shop to help you from going over your budget
Save gas by doing all of your errands in one day
Shop at Goodwill
Bake your own bread
Do your own oil change
Walk instead of drive, if possible
Shop at garage sales
Can fruits & veggies from your garden
Barter
Wear jeans more than once before washing

Hmmm...sounds like the old self-reliant, "pioneer" thinking may be coming back in vogue. Yes! I like this! As a person who was raised in a part of the country and in a religion that emphasizes the importance of provident living, I like these ideas and am glad to see that women everywhere are learning how to embrace them, as their grandmothers and great-grandmothers once did. Such sound advice should never have gone out of style.

Nice Advice, but a Spending Plan is Better

But, while this advice is nice, it doesn't emphasize the most important and fundamental thing women should be doing to save money right now and that is to create a Spending Plan.

If you do not have a spending plan in place, it doesn't matter that you are going to the trouble of shopping at garage sales and making your own bread. You will continue using the money you already have inefficiently. That's because a plan and tracking your spending according to that plan help you see what you truly value and where you are really spending money.

It's a Lot Less Trouble to Find Money That's Already Sitting There, Waiting for You

Students of the Money Mastery program that create a spending plan find an average of $300 per month that they didn't know they were wasting or using inefficiently. This is the quickest way to find money to put into emergency or emotional savings over trying to make your own laundry detergent or turning off a few lights here and there.

While these frugal suggestions are helpful, they should be secondary to creating a good spending plan. To learn how go to www.mymoneyplan.net and become an online community member.

Women and Money: How You Can Get Comfortable with a Touchy Subject

2011-08-23T19:06:49Z

Again, I'm talking to women....

It seems that financial literacy for women has gotten really fashionable in the last 5 to 10 years.

I'm glad because that means what I've been harping on for the last 30 years can finally be more accepted as one of the essential things women must do to remain happy in their relationships, as much as physical health and close friendships are for maintaining a balanced and happy life.

But many women have shied away from financial literacy.

That's because the so-called "experts" have made it seem complicated and messy. And with all the other "messes" women are constantly cleaning up (i.e. kids, house, even a spouse) managing money has often taken a backseat to other more seemingly pressing duties.

But becoming financially literate does not have to be difficult or messy (oh, and by the way, it doesn't have a lot to do with figuring out how to play the stock market or which IRA fund to invest in).

I've been teaching my clients (predominantly female) for years that the following basics are the foundation of what you need to know to help you, your children and your spouse live happier, peaceful lives.

Here's a taste of what I teach my female (and I must add, happy) clients:

1. Money (and spending money) is emotional, not mathematical (Learn more here: Money Mastery Principle 1).

2. If you track your money, you can control it (Money Mastery Principle 2) and then you can find money you didn't know you had which leads to what I call the "Emotional Savings Account" (this is fun money, meant to be spent only on yourself and family members). My female clients especially love the Emotional Savings Account.

3. Financial peace comes from the "Money Huddle", a weekly open communication time with your partner . Women love this concept because it helps them help their partners feel comfortable talking and sharing, which is something most women really crave.

4. Knowing the rules of financial games you play empowers you to make sound financial decisions for the future (Money Mastery Principle 5). When I teach my clients that they don't have to know EVERYTHING, but they do need to know something about their own financial life, they immediately begin to relax and learn.

There are so many other great principles that will help you becoming financially literate, which are fairly easy to apply, some of which bring IMMEDIATE gratification. You can learn about them at: www.moneymastery.com. I urge you to comment to this post with any questions you may have for me about money or give me a call: (888) 292-1099.

Emotional Savings — Great Way to Reduce Stress

2011-08-08T20:12:51Z

I'm talking to moms today...

...That's because one of my recent coaching sessions with a single mom really got me thinking about all the stresses moms must face every day.

My client seems to create more stress for herself at times than she needs to. Sometimes it’s poor planning, she's trying to cram too much into her day. Other times she says it's splurging when she feels like she has "extra money" (but hasn't been tracking so she's not really sure) and then she's in stress when an emergency occurs and she doesn't have the money to cover the problem.

Other times, she says she's worried about her kids and all the "what ifs" and this puts great stress on her.

So, I felt like she needed an emotional pick-me-up, financially speaking. I think many women do...since they seem to bear the burden of most the emotional issues in a family.

Up until now, I've been working with her on a spending plan, but we hadn't yet gotten into adding savings categories to that plan, for immediate problems such as emergencies of course, and a long-term savings category for retirement security.

A Third Savings Category

But there's a third savings category she needs to add to her Spending Plan, and that's called Emotional Savings.

I rarely see any so-called financial "experts" talk about this very important spending category. They harp on getting an emergency fund together, and of course saving for retirement, but have they forgotten that everyone spends money emotionally even if they do not have it? And have they also forgotten to tell their loyal followers that unless they have specific money put away for these impulse purchases they will never get ahead financially? Of course they haven't. But emotional savings is just as important to have as emergency savings.

Here's why this spending category is so great:

We often spend money for purely emotional reasons...this is not a bad thing. It is simply something we should plan for.

You WILL spend money for impulse purchases whether you have the money or not, so you just need to be prepared for these events, the same way you would be prepared for an emergency event.

Putting aside extra money for these purely emotional purchases will keep you from spending other money, set aside to pay bills, for instance, or reduce debt.

Gives you a feeling of freedom when a desire to buy something you see that you just have to have, i.e. that handbag in the window, comes up.

Keeps you on track so that even if you do buy something that was unplanned, you will have the money to cover it.

Fun Money

This is "fun" money, meant to be used for yourself, children, spouse, and immediate family members.

What things could you buy with this money that has been set aside purely for the purpose of spending it on how you want?

High-tech gadgets for yourself or kids.
A special getaway or gift for your spouse.
New clothing for a special occasion.
Novelty decor for your house or garden.
An extended vacation to an exotic location.
Pampering at the spa.
Recreational vehicles.

There really is no rule to the way this money could be spent, other than it should not be spent on anyone but yourself or immediate family and you should not go over what you have set aside for this purpose.

Once I explained the emotional savings idea to my single-mom client, she just lit up! You could see her instantly relax.

Don't you need a little stress relief? Sure you do! So go out and create an emotional category in your spending plan, then even if your money is tight, set aside a specified amount, could be just $5 or $10 every month for this purpose at first, then build up as you get your spending and debt under control.

You'll be surprised at how it will empower you, even if it's only a little bit each month that you are saving. It will give you peace of mind, it will de-stress you and it will make you feel like you're in more control. Plus, it will help you feel like you're staying on track with your money, even with a splurge or two every month.

Hey, no one likes to be on a financial "diet" all the time. Everyone needs that chocolate, ice cream or brownie sometimes for good emotional health.

So go ahead, set some money aside for your "financial chocolate" fix. EVERYONE at times needs some fun and indulgence without feeling guilty.

Questions or comments?

To learn more about the 60/20/20 rule of saving and the emotional part of that, go to www.mymoneyplan.net. I'd like to hear from anyone who has emotional savings and how it's worked for them. Comment to this blog.

Does Your State Have Financial Literacy Requirements for Graduation?

2011-08-02T23:36:48Z

It amazes me how many teens and young adults have not been taught a thing about managing their money...other than how to swipe a debit (or credit card).

Tracking is an "awesome" new idea?

When I am writing down what I spend in my tracking register at the checkstand, invariably the kid behind the counter with the goofy look on his face will ask me what I'm doing — then after I've explained it, he/she will say something like, "That's awesome, I should do something like that," as if it's a totally revolutionary idea.

Pathetically funny stats about how teens view finances...

The statistics provided by surveys for Charles Schwab, Co. and the Jumpstart Coalition, paint an ugly and almost pathetically funny picture about how teens view money:

80% of teens 13-18 think "it's important to me to have a lot of money in my life."
73% believe they'll be earning "plenty of money" when they're out on their own.
Teens surveyed predicted an average salary of $145,000 based on career interests.
Boys predicted an average salary of $173,000 and girls $114,000.
62% of American teens ages 13-18 believe they are prepared to deal with the adult world after high school.
63% say they are knowledgeable about money management.
32% of high school seniors use credit cards and 53% use debit cards.
52% of high school seniors do not know that paying off a credit card more slowly will result in higher finance charges.
83% of high school seniors did not know that stocks are more likely to yield higher returns than savings bonds, savings accounts, and checking accounts.
60% of high school seniors did not know that they could lose their health insurance if their parents become unemployed.
52.3% of high school students did not know they could check their credit report for free once a year.

If financial education is not taking place in the home, which it appears from such numbers, it is not, then where is it going to happen?

Some states, like Utah, have decided it's going to happen in high school and it's one of only three other states that have made a one-semester course in financial literacy mandatory for graduation.

How does your state stack up?

This will give you an idea (the blue colored states are the only four requiring a course for graduation):

In response to Utah's requirement, Time & Money has developed its Money Mastery program for teens and had it rated by the Utah State Office of Education as a primary-recommended course for study. The Money Mastery course is being taught in several schools across the state.

If you want to learn more about what you really ought to see being taught at your child's high school, go to http://www.moneymastery.com/education/ to see the teacher's outline of the Money Mastery program for Utah.

Then, learn how to manage your own money so you can explain it better to your kids or at the very least demand more from your state's legislature in requiring financial literacy courses for graduation from your own high schools.

Most Debt Elimination Techniques are Worthless

2011-07-27T19:33:31Z

Sounds pretty harsh, I know, but it's true. Some of the advice I read in so-called "expert" sources sound good but most of it is just plain silly.

A July 26 blog posting on Wallet Pop by Lynette Khalfani-Cox sort of proves my point.

She writes about "5 Ways to Reduce Your Debt" and gives some pretty good advice, but totally misses the mark on others.

What Khalfani-Cox writes that I do agree with:

1. Put your debts in writing
Many people struggling with credit card debt have absolutely no idea exactly how much they owe. Instead, they just "guesstimate" their total bills -- and they're often way off with their numbers.

She's right...you must put your debts in writing. She doesn't really mention how, but here's how: Create a debt elimination plan using a financial forecasting software that lets you rank debts so they can be Powered Down.

Members of MyMoneyPlan online community have unlimited access to the best forecasting software around called Master Planner.

2. Adjust your tax withholdings at work
The IRS says the average tax refund check tops $3,000. If you routinely get a big tax check back from Uncle Sam, that mean's you're having way too much in taxes taken out of your paycheck and you're giving the government an interest-free loan.

Again, she's absolutely right on the money... One of the best ways to get out of ALL debt is to "find" money you didn't know you had. Have the right amount of taxes withdrawn each month from your paycheck and use the extra you would have been giving to Uncle Sam all year to help pay down debts. This is best done by creating an "Accelerator" payment in your debt plan using the Master Plan software. Go to the W-4 Withholding Calculator at the irs.gov Web site to calculate your correct withholding.

Where I sort of agree with Khalfali-Cox:

She writes, "avoid the 'minimum payment' trap. If you're only paying the minimum payments on your credit cards, you're simply helping banks and other credit card issuers to get rich."

Of course what she says is true...Everyone knows that it's stupid to just pay the minimum. The problem is that you're continuing to do so because you do not have a debt plan that helps rank debts so you can see exactly how much to pay on each debt and when, and exactly how long it will take you to get out of all debt if you stick to this plan.

Just saying that you need to pay more on your credit cards than the minimum is nothing more than lip service...you've got to show people how!!!

Plus, this advice does not take into account the problems people have with over-spending that comes from not having a spending plan, and how they will find the "extra" money if they don't have that plan.

This can all be solved by creating a spending plan along with a debt plan at www.mymoneyplan.net or by commenting to this blog with your e-mail so I can talk to you about it.

What I think Khalfali-Cox advises that totally misses the mark:

She writes about trying to find if you're owed any unclaimed money or property that you can use to pay off debt.

Okay, I guess it's possible that there might be some unknown money out there waiting for you in such a form, but the real unknown money waiting for you, which actually does exist and you can completely count on, will only be found when you create a Spending Plan.

Every single one of my clients who creates this plan and tracks their spending for 90 days finds at least $300 extra every month that they did not know they had. This "found" money was sitting in their pocket all along and can now be used to pay off debt.

Every single person who will track their spending will find this extra money. I'd say that's a lot more sure than hoping that someone left you money or property that you didn't know about. It's all about using the money you ALREADY HAVE more wisely.

Her last piece of advice about holding a garage sale to find extra money you can apply to debt isn't a bad idea, but is a bit limited.

When I ask my clients to take a hard look at their life and everything they own in order to begin eliminating debt, they go well beyond the garage and all the drawers in their houses looking for small items they can sell at a garage sale, although this isn't a bad place to start. They also start eying:

Expensive musical instruments they or their children no longer play that they can sell.
Collector's items that can be sold at auction or to other collectors for some significant cash.
Recreational vehicles they can no longer afford to keep such as boats, campers, ATVs, extra cars, etc., which they can sell.
Gifted items that have come from grandparents, aunts, uncles, etc. upon their death, such as rare china and silver for example, that are not really wanted and can be sold to pay off debt.

These are just a few ideas that can bring some serious cash that can then be put into an "Accelerator Payment" to further accelerate the rate at which you can pay off your debt.

And if you think that credit cards and other consumer-type loans are the only debts you should be worried about, think again. Your mortgage, as long as you are living in your home, is a liability that's costing you thousands of dollars. The sooner you get out of house debt, the sooner you make some real headway towards becoming wealthy on ANY income.

What do you think?

Let me hear your comments about getting out of debt. Of course, many of the efforts suggested out there to eliminate debt are helpful, it's just that some are going to be less effective than others.

Go to www.mymoneyplan.net so you can sign up for the Master Plan debt plan software and start using the tools that actually work.

Cool New Concept in Debt Elimination...

2011-07-25T20:08:53Z

In light of the current national debt crisis, I thought I'd just share the hilarious SNL video with Steve Martin poking fun at Americans who can't seem to get a handle of their own personal debt crisis.

It's called: "Don't Buy Stuff You Cannot Afford"

Watch the full clip here: http://www.nbc.com/saturday-night-live/video/dont-buy-stuff/27169/ (short ad runs first)

or a shortened clip on YouTube:
http://www.youtube.com/watch?v=VL3KuaFvOSc&feature=related

Not Just a Funny Punchline

This is hysterical...but also points out that what was once priceless advice that was taken seriously has now become nothing more than a punchline.

But, the fact is if the U.S. government had taken the advice not to buy things it cannot afford, we would not be in the trouble we are now as a nation.

If you are still in need of cool "new" concepts for getting out of ALL debt (in addition to the best advice of all to "not buy stuff you cannot afford") I urge you to visit www.mymoneyplan.net now or give me a call directly: (888) 292-1099.

I will explain Power Down principles of debt elimination that will get you out of ALL debt (mortgage included) in 9 years or less without using a penny more than what you are already making...really.

The government may be in shambles financially, but you don't have to be. Send me a comment or call me directly with questions or concerns: (888) 292-1099.

Cool New Expense Tracking Tools

2011-07-20T17:12:52Z

Money Mastery Principle 2 teaches that if you don't track your spending, there's no way to control it.

So at Time & Money, Peter and I are always looking at and working on new, and more convenient ways to track expenses.

New Tools

Showcasing new tools is always good, especially when they have to do with tracking your spending. So, I wanted to share a new tool, called the Automated Spending Tracker (AST) we have come up with, along with the folks at Money Mastery for Life, that let's you cell phone text track your expenses.

Here's how it works:

1. Simply set up a spending plan with spending categories at www.mymoneyplan.net (learn more by exploring this valuable online community).

2. Input the cell phone numbers you plan to use to track with.

3. At the point-of-purchase, send a text message to the AST text number that includes the spending category, for example, "groc" for groceries and the amount you spent in dollars and cents.

4. You will receive a return text message with your spending balance in that category so you always know what's left to spend, especially as you are out and about shopping, in order to help make better spending decisions.

5. At 2:00 a.m. daily, you will receive an e-mail with an updated spending plan showing your change in balance based on your purchases from the day before.

That's it. It's that simple.

The AST is a simple new way to track expenses via your cell phone. It goes hand-in-hand with our existing voice messaging tracker that allows you to call in expenses by category via phone and receive an updated spending plan so you always know how much you have spent and can compare what you have left to spend with what you planned to spend in each category.

This comparison is what keeps you on track with your spending goals.

What do you think?

I'd like your feedback on this new tool and the concept behind it and if you'd be interested in using it. We are getting ready to launch the new program and need beta testers.

Please comment to this blog with your e-mail address and phone number or call me directly at (888) 292-1099.

Also, go to www.mymoneyplan.net to learn more about spending plans and tracking systems.

Dollar Continues to Weaken Worldwide

2011-07-14T21:14:46Z

In response to Peter's recent post on considering precious metals investing, I thought it might be interesting to look at the U.S. dollar's drop in value in several countries around the world.

Because the dollar continues to weaken, I have to agree with Peter that now might be a good time to become your own central bank and look into buying more gold and silver.

Following are countries in which the U.S. dollar is weaker in value than that country's currency:

Asia/Middle East
Brunei
India
Indonesia
Israel
Japan
Korea (South)
Kuwait
Malaysia
Philippines
Sri Lanka
Singapore
Taiwan

Europe (falling almost all over Europe)
Albania
Bulgaria
Croatia
Czech Republic
Denmark
Hungary
Latvia
Liechtenstein
Lithuania
Norway
Poland
Romania
Russia
Sweden
Switzerland
U.K.

Why Talk Stock Market When Gold and Silver Are So Hot?

2011-07-14T04:06:53Z

More and more of my clients are becoming disenchanted with their 401(k)s and what's happened with the stock market.

Yet the media continues to push mutual funds and stock investing as if they're the only way to plan for the future and fund retirement.

Interesting alternatives are all around if people will take note.

One of those interesting alternatives is precious metals.
According to Bloomberg News today "gold futures surged to a record $1,588.90 an ounce as the dollar’s slump and the European debt crisis spurred demand for precious metals as alternative assets [italics added]. Silver surged the most since March 2009."

Invest now before they become too expensive.
As the dollar continues to fall in value in the face of more inflation and the never-ending (it seems) mortgage crisis, gold and silver will continue to rise in value. Now might be the best time to look into investing in these metals before they become too expensive to afford. They're not likely to fall in value any time soon and can be a simple way to get into the investment game while ditching the complexities and hidden challenges associated with playing the market.

Get on the Web to learn more about precious metal investing. Now is the time to break away from the herd.

"I Should Do That...Write Down What I Spend"

2011-07-10T05:31:20Z

I often get this question at the checkout stand when I hand my credit or debit card to the clerk and they see me writing down what I just spent in my tracking register:

"That's a cool idea...I should do that too."

I'm always astounded by that response and the idea that writing down what you spend at the point of purchase is somehow a "cool, new idea."

I then will ask them: "if you don't write it down in a register or keep track of it in some other way, how do you know what you have left to spend or even the balance of your checking account?"

Their usual response is something like the following: "I don't always know...I just get online every once in a while and look at my balance." They then will sometimes confess that they are often overdrawn or can't figure out why they don't have any money left at the end of the month.

Granted, most of the clerks I am talking about here are in their teens or early 20s, but what is that telling us about the way we have educated our children about how they should be handling their money?

Tracking Is Not a "Cool, New Idea"

If tracking expenses is being perceived by these young adults as something new and unique that they've never really thought of doing until they see me do it, then it's no wonder that most families are deeply in debt, that the economy is in such a state, and that as a nation, we are in a heap of trouble, financially.

Young adults don't know how to set up a spending plan and track their expenses according to that plan because they have not seen their parents and the other adults around them doing it.

Now we have raised a generation of financial illiterates who will be the next set of adults getting jobs, being elected to office, and trying to run the country. And because of credit and debit cards, don't even understand the concept of a check register, the first and most basic method of expense tracking. Many of them think a check register is only used if you write a check, not connecting the fact that handing someone your debit card is the same as writing a check.

If you have children in your home, now is the time for them to see your good example. Build a spending plan, put it on the fridge so all can see it, and let your children see you recording daily how you have spent according to the categories in that plan.

If you want more ways to track including using your cell phone to text and voicemail track, comment to this blog with your e-mail address and I'll get back to you.

Social Security So Broke They Can't Even Communicate with Public Anymore

2011-07-10T04:16:32Z

This week the Social Security Administration announced that it will no longer be sending out statements to the public about the status of their Social Security earnings.

"In light of the current budget situation," said a written statement on the Social Security Web site, "we have suspended issuing Social Security Statements. You may be able to estimate your retirement benefit using our online Retirement Estimator."

This Should Raise Questions

If they are so broke they can't even communicate with the American public, to whom they are obligated to communicate with about supposed "benefits" as any fiscally sound financial entity would do, i.e. a bank, credit union, etc. then that should raise some questions:

1. Why are they so broke?

2. What does this mean to your future?

3. Does this mean that they are so broke that you will never get another statement again and will be responsible to figure out your own benefits from now on?

The Bottom Line

The government has an obligation to the public that it is not meeting. If Social Security is so broke, don't let yourself go broke. Take responsibility for your own future.

Go to www.mymoneyplan.net to start building some real security you can count on.

New AARP Ad Interesting In Light of Medicare Woes

2011-06-29T15:57:16Z

The AARP (American Association for Retired Persons) has recently released a new ad that is interesting, if not entertaining.

Older Americans state in the ad that Medicare troubles could be solved and the money found to continue supporting the program if the federal government would eliminate many of its other wasteful programs including such things as a study on snails and poetry reading at zoos.

It's a compelling argument that takes a stab at big government spending, all the while advocating more big government spending (Medicare).

While Medicare is certainly a more worthy cause than a government snail study, the focus of these ads is on government and all they should be doing to resolve problems for the aging.

Money Mastery takes a different approach in that it gives the power to control your own life back to you, regardless of what's going on in the economy or government.

Learn more at www.mymoneyplan.net.

What to Do with a Wad of Money

2011-06-23T22:30:42Z

I am often dismayed by the lack of sound financial advice being pedaled by mainstream media.

Frankly, I'm fed up with people like Walter Updegrave, writing for CNN Money, who continues to spew the usual dribble about how to manage money.

His latest video advice came in response to a question posed by a 30-something soon-to-be-first-time-dad wondering what he and his wife should do with a sizable chunk of cash sitting in their checking account.

The first part of Updegrave's response was sound:

Set aside 3-6 months of expenses in a liquid emergency savings account for when troubles occur.

But the second part of the response was disappointing.

He suggested they take the remaining money and invest in the market.

Of course I'm not suggesting that you shouldn't invest in the market. But I ask you:

Why is 'investing in the market' always the answer to any question posed about what to do with extra cash?

There are so many other things you could do with that money to get a better return!

Here are a few ideas to think about. My suggestions may be new if you have only ever from Dave Ramsey and Suze Orman or the run-of-the-mill CNN Money news writers who are stuck on one line of thinking.

What to Do with Extra Cash

Keep an open mind and let these suggestions simmer before you completely dismiss them:

Purchase real estate to produce positive cash flow. Get a monthly chunk of money coming back to you in the form of apartment rent or something like that.
Apply savings to debt. Don't park money in a low-interest account. Put it in a HELOC (home equity line of credit) and use it to pay off debt. This puts the saved interest expense in your pocket and keeps the money available should you need it for emergencies or other events.
Equipment leasing. Invest in equipment and rent it out.
Use existing resources more wisely. Are you sitting on a piece of property that could be rented for weddings or corporate events? Do you have a basement that could be converted to an office or apartment? Think about what you already have that you could capitalize on.
Hard money lending. Loan money to individuals or businesses on a secured basis for a short-term at high interest rates and fees. Sounds harsh, but those who need cash now are thankful that someone will give it to them, even if it costs more in interest to get the loan. Plus, you need the high interest rates to cover the loss you may incur when you loan money to friends, co-workers, and others who can't pay the loan back later.

Start thinking outside the box when it comes to wisely using a chunk of available money.

In addition, if you are still in debt, even for your home, you are going to want to seriously consider using that chunk of money to pay off debt (after you have your spending under control, have set aside 3-6 months of emergency cash, and have set up "emotional" savings as well).

What do you think?

Do you already use one of the suggestions I listed? Do you have other suggestions?

What advice have you been given for putting your chunk of change to work? Feel free to share.

There's No Such Thing as Savings

2011-06-16T17:52:18Z

If you’re like most Americans, you’ve probably had the following conversation with yourself, “I’ll begin putting some serious money away just as soon as I get my debt paid off and I have some extra cash on hand.”

Sound familiar? Sure it does, especially if you’re struggling to pay the bills.

But isn’t it funny how the debt never seems to go away and the “extra cash” is never on hand? You can’t possibly be expected to put money in savings under those conditions, right?

Well, you can’t if you believe the notion that “saving” is something you do after everything else has been taken care of or if you have “extra” cash.

Many people think “saving” is something only the wealthy can do because they have lots of extra money lying about. But most of America’s affluent were not born with silver spoons in their mouths.

According to the book The Millionaire Next Door, eight out of 10 wealthy Americans accumulated their riches themselves and they were largely able to do so because they learned early on the art of paying themselves first.

As George Clason teaches in his book The Richest Man in Babylon, the rich get wealthy and stay wealthy because they have learned how to keep a part of all they earn for themselves.

Before a wise man pays his creditors, before he buys goods and services, before he indulges his children, he pays himself first.

How does a person learn such an art? It may seem hard when debt is looming, but it’s easier to apply than you might think.

First, you must change the way you look at the idea of “savings.” I teach my clients that there really is no such thing as “savings.”

Savings is actually just “delayed spending,” because after all, all money will be spent, either now or later.

If you begin to look at savings in this way, you will realize that saving is not a special thing that you do “if you have enough extra money left over” but a monthly obligation you must pay to yourself, just as you would pay any other debt you owe.

Since savings is a form of “spending,” you must treat it as seriously as you would any other kind of spending.

Second, you must track your money carefully so you can see where you are wasting money.

One of my clients was desperate to keep his daughter in college, complaining that he was very frugal and could not find the extra $200 a month he needed to help her stay at the university.

As he began tracking, he found he was wasting $187 a month on junk food.

Once he made that discovery, he immediately changed his spending habits and was able to send his daughter the money she needed to continue her education.

How much money will you find you’re wasting when you begin seriously tracking your spending? I can guarantee it will be at least 1 percent of your monthly income.

Step 1
Set up categories for spending for such things as groceries, transportation, and debt. Be sure to create a category for “self pay” or “savings.”
Step 2
As you track your spending look for wasted or “found” money.
Step 3
Before you make a debt payment or buy food or other items, deposit this “found” money in your “self pay” or “savings” account. Anybody can find at least 1 percent they can set aside immediately. For more help in tracking your spending, check out MyMoneyPlan.net.

Taxed on Seed or Crop...Which Would You Prefer?

2011-06-14T17:48:27Z

Taxes have such a subtle, yet profound effect on your money. That’s why it’s important to organize retirement funds based on how those funds will be taxed (Money Mastery Principle 8).

By doing so, it becomes easier to see how taxes will affect retirement money over time.

In addition, using calculating and forecasting tools can help project how much money will be available at retirement age and what percent will be subject to some kind of taxation.

For example, without the tools to play “what if” scenarios with your money, it may be easy to get caught up in popular retirement and savings programs that may actually end up costing you serious tax dollars when it comes time to retire.

Take 401(k) programs for instance. The argument for these plans is that when a person begins to withdraw funds at age 65, he or she will usually “be in a much lower tax bracket” than they were during their working years, so theoretically, they should pay much less in taxes.

But that may not actually be the case.

Bart Croxford, a CPA writing for the Salt Lake Tribune, spells out what may be closer to the truth:

“I have never seen anyone who promotes tax-qualified plans [such as IRA or 401(k) plans] run the figures through retirement. They run the figures to age 65...But in savings, as in sports, it’s the final score that counts, not the score at half-time or even after three quarters. The real clincher...is the fact that with tax-qualified plans, one must pay taxes on the entire amount taken at retirement, including the growth, which accounts for the largest portion by far. Whereas on tax-free plans, one pays no taxes on the growth at all. In other words, one can be taxed either on the seed or the crop. With tax-qualified plans, one pays on the crop and on tax-free plans, one pays on the seed. One does not receive the tax deduction now, but he or she receives a far greater benefit by not having to pay taxes on the amount received at retirement.”

Of course this does not mean you should automatically dismiss 401(k) programs, and we strongly encourage you to take advantage of matching contributions your employer may make towards a fund. However, it is important to consider how retirement funds will be taxed in the long-run.

8 Questions Your Credit Issuer Doesn't Want You to Ask

2011-06-09T17:39:58Z

If you’re like most Americans, there’s a pretty good chance that you received at least one offer for a new low-cost credit card this month.

While some of those offers look tempting, with rates as low as 6 percent and no annual fee, you may want to use caution before abandoning your present card (or cards).

Asking the right questions will insure that you’re getting the best deal, one that won’t end up costing you more in the long run.

Before you sign, be savvy.

Make sure you review the fine print the credit card company doesn’t want you to read, or get them to answer to your satisfaction, the following questions:

How long does the new rate last? If the offer isn’t for at least six months to a year, it’s not worth it. That’s because you’ll need at least that much time to pay down your balance at the new rate.
Does the introductory rate apply to new purchases as well as transferred balances? Many people assume when they transfer their balance to a new card that the low rate applies to any new purchases they make on the card. Usually card issuers offer the lower rate only on the transfer balance, and charge high rates on any new charges made to the card after the transfer. Be sure you know their policy before signing.
How high will the rate go when the trial period is over? Make sure that rate isn’t higher than the one you’re already paying.
Is there an annual fee for the new card? Even though the interest rate may be low, the offer may include a ridiculously high annual fee. Ask the issuer if they’ll waive the annual fee; if not, wait for a better deal.
Is there a grace period for finance charges and how long is it? Ideal grace periods should be between 25 and 30 days before a charge appears on your account. But beware, some issuers begin charging interest expense the very day you use your card.
What does “pre-approved” mean? It may mean that the credit issuer will re-screen you after you sign, so if this is not disclosed in the offer, look elsewhere. Bad or soft spots in your credit history can be ample justification from a card issuer’s standpoint to bump you to higher rates.
What is the charge for late payments? Beware of cards that charge a penalty the very first day you’re late on a payment.
Will a late payment change the introductory rate? If you pay late, some card issuers will bump you to a higher penalty rate during the introductory period.

Take the time to learn the rules of the complex financial games you are playing (like using a credit card) by reading the fine print on the offer.

Remember, knowing the rules puts you on an even playing field with the credit card issuer. Don’t be satisfied with skimming over these rules.

And don’t be satisfied with any credit issuer who can’t answer your questions fully.

More Ways to Protect Your Credit from Identity Theft

2011-06-06T19:54:05Z

I wanted to add some additional tips to my last post on how to protect from identity theft:

1. Do not sign the back of your credit cards. Instead, write in: "Photo ID Required."

2. When writing checks to pay your credit card bill, do not put your complete account number in the "For" line. Instead, just write in the last four numbers. This prevents people who are handling your check as it passes down the line from having access to your number.

3. Put your work phone on your checks instead of home phone. If you have a P.O. box use that instead of your home address.

4. Photocopy (front and back) your license, credit cards, etc. You will know what you had in your wallet and all of the account numbers in case your wallet is lost or stolen.

5. File a police report immediately if your wallet is stolen. This proves to credit issuers that you were diligent in your efforts to protect your credit.

Protect Your Credit from Stolen Identity

2011-06-03T19:26:56Z

Identity theft is becoming a real terror for many people. I have had people tell me they have dreamed about losing their wallet and then becoming a victim of identity theft. Obviously it's enough of a fear that it's entered the subconscious of many and become a nightmare! Unfortunately for some, the nightmare has become a reality where their credit is being destroyed. Did you know that for some of these victims it will take up to 10 years to repair their credit?

Following are some tips that can help you avoid becoming a victim:

1. Give out as little information as possible. Do you need to complete that registration card? No. Do you need to give the store your phone number when you make a purchase? Of course not. Do you have to have your Social Security number printed on your checks? You'd better not! In fact, you don't need to give out your Social Security number at all, unless you're dealing with the government.

2. Don't fall for phone calls asking for your personal information. Companies that you do business with will already have your personal info, so don't give it out over the phone!

3. Review bank and credit card statements often. Go through them to make sure nothing appears on them that you haven't actually purchased.

4. Finally, buy a shredder. One of the easiest ways for thieves to get your information is to dumpster dive. And if you're nervous about your mail, get a P.O. box as well.

The Real Skinny on the Credit Reporting Industry

2011-06-01T18:47:35Z

Good credit can sometimes be hard to keep...that's because whether you work hard at paying all your bills on time and keep balances current, the credit reporting industry leaves much to be desired, so you may end up with a blemished credit report regardless. This can be very frustrating.

My clients have often asked me to help them understand how credit reporting works. I'm sharing it here because EVERYONE needs to know how this industry really works so you can better protect your credit:

The three U.S. credit reporting bureaus are:

Each of these bureaus collects information about the way you pay your bills and compiles it in reports that they sell to lenders, banks, service providers, credit card companies, merchandisers, and any other entity who may benefit from knowing how you handle credit extension.

Fact or Fiction?

Question #1: It is not each credit reporting agency's job to be sure the information reported to them about the way you pay bills by lenders, hospitals, and service providers is accurate and up-to-date.

FACT: Credit reporting bureaus are not in the business of making sure everything that's reported to them about you is accurate. It costs them money to verify and delete inaccurate information. Contrary to popular belief, the three reporting bureaus DO NOT monitor the information on credit reports to make sure it is accurate. None of the credit reporting agencies are interested in making sure the information they get on you is CORRECT. The fact is they could care less if info is correct because they're going to sell it to make money no matter what's on the report.

Question #2: Each bureau has its own region of the United States in which it reports credit history, so you only need to worry about the report for the agency in your region.

FICTION: While it is true that certain bureaus are used more heavily by certain lenders in particular regions of the United States (for example, Experian data is more heavily relied upon by Utah lenders than TransUnion and Equifax) that does not mean that you do not need to have a clean and accurate report for all three since there is no hard and fast rule about how data may be used by potential lenders or service providers searching your reports.

Question #3: After a certain waiting period has passed, bad credit marks will be removed by the credit reporting agencies.

FICTION: Although by law consumers have the right to have certain things removed from their reports (such as bankruptcies, repossessions, and charge-offs) after a particular number of years have passed, this does not mean that these items will be automatically removed from the report by the bureaus after the waiting period is over. Again, since these agencies are not in the business of making sure everything on your report is accurate, you may have to personally request these deletions.

Important: Credit reporting agencies are in the business of selling your personal information to others. Unfortunately they do not care whether that information is correct or not. It is therefore up to YOU to be sure it is accurate.

Job-hunting Resources for Retirees

2011-05-26T20:44:30Z

I wanted to pass along some good information that I recently ran across for retirees who still want to work or still have to work:

Retireeworkforce.com: This site is geared to 50+ job seeker.

Retirementjobs.com: Has more than 30,000 listings from companies specifically seeking 50+ candidates.

Retiredbrains.com: For older Baby Boomers looking for jobs, volunteer opps, and educational resources.

Seniors4Hire.org: Nationwide online career center and job bank.

Wiserworker.com: Lets Baby Boomers and older workers search for job listings by keyword or location and provides carer resources.

Yourenclore.com: Seeking retired engineers and scientists with companies that need to meet a surge or fill a short-term need; clients include Fortune 500 companies such as Boeing, Eli Lilly and Procter & Gamble.

Seniorjobbank.org: For 50+ workers; provides searches by categories, industry, or location.

Seniorhelpers.com: Hires older workers to provide in-home companionship for seniors; pay is low but hours are flexible.

Experienceworks.org: Helps low-income seniors get training to find jobs in their communities.

AARP.org: Provides a job search engine.

Woman Thinks Suicide Will Solve Family's Financial Problems

2011-05-26T20:16:33Z

One woman, commenting on a news story about the Centers for Disease Control's newest study on suicide rates increasing as the economy worsens, said that her life insurance will still pay out if she commits suicide and said she was seriously considering this, in light of her current financial situation. Unable to get work and with two special needs children whom she could not even afford to drive to their school, this woman felt that she was worth more dead than alive to her children and could take care of them better if she wasn't here.

I was a bit shocked by her comment, having seen people in all kinds of emotional states when they come to me for financial help. I have had people pretty close to divorce, bankruptcy, foreclosure, prison, and many other dire circumstances, but I can honestly say, no one has come to me close to death due to financial troubles.

According to the study, however, suicide rates have risen to 22%, an increase of 5% from before the Great Recession. What this says to me is that tough economic times only highlight all the deep emotional trauma and issues that people are dealing with on a daily basis, not actually create new ones. The problems have been there all along, but in good times, people can ignore them more effectively or can cover them up easier with more credit card debt, unbridled spending, etc. Once the bottom drops out of everything, it's pretty hard to glaze over significant financial problems and people have to come to terms with themselves. There's no more hiding.

What needs to happen, no matter what the state of the economy is the willingness to look at emotions all the time. When my desperate clients learn how to do this routinely, systematically, and methodically, every day, every week, every month, they no longer feel trapped by their finances and make decisions all along that keep them from the mentality that death would be better than dealing with their troubles!!!

If you need help, emotionally with your money, get in touch with me or go to www.moneymastery.com.

Having a Spending Plan Will Spur Watching for "Good Deals"

2011-05-23T17:44:44Z

Couponing is becoming quite popular again, thanks to some new reality TV shows that spotlight people who do "extreme" couponing. While I don't necessarily think this is an activity that you should spend all your time on, if you have created a Spending Plan, you will more than likely be inspired to want to use all of your money more efficiently within that plan. Thus, couponing may become a more significant family activity that can really help you learn to control spending...plus it helps with the tracking of the expenditures within your Spending Plan because to get the coupon deals, you must be very organized and particular about the types of things you buy, amounts, etc.

One of the sites that can be a very helpful part of your wise spending efforts is BeFrugal.com. This couponing site offers many great coupons and other spending control services. You may also want to search the Internet for other couponing sites; many will let you search for coupons by state and particular item.