Financial Choices today Impact Future Generations

I am not the Grinch, just a positive reminder that you need to think wisely as you spend this holiday season.

Keep on trucking, do not get discouraged, this must be done.

I know this budgeting thing is a painful process for many, I am listening to pleas however I must encourage you to keep on going tough as it may be, there is light at the end of the tunnel. 

Remember every choice you make today will impact the next generation in a positive or negative way. That BMW that you think you must have today with money that you have not yet earned could very well be the college tuition for a son or daughter down the road. Are you jeopardizing their future with a selfish act? Do you really want to pass on that legacy?  What are you sacrificing to live in Alamo Heights today? And that career path you are on, is it being done to the detriment of your family? Think about this today, what financial decisions are you making today that will positively impact your next generation? What financial decisions are you making today that will negatively impact the next generation? 

Sometime back in 2002 I read somewhere that the definition of debt is: Spending today what you expect to earn tomorrow. Don't do it! Remember you are always free to check in with me privately whenever you need help or consultation with your budget. I have been helping people for as long as I can remember and the ones who stay on course always win in the long run! Don't give up, if you fall off track, get back up again, you will make it, I promise!

Start Your Budget

Goodday to you. So, you are on day 8 of your journey to becoming debt-free. How does it feel? Are you fully committed? Do you think it is impossible to start during the holiday season? Have you slipped up and used your credit card to buy gifts? Well, if you decide to wait until the holidays are over, that's OK, however you must commit to a maximum spending budget and try your very best not to go over no matter how challenging it may be. Absolutely no vacation planning on credit. If you plan on going on a vacation, first you need to secure a rainy day fund or an emergency budget, once that is in place then you can start saving for a vacation. To do this, you must have a clue as to your total monthly expenses. This is the very first step in formulating a budget.

Your assignment this week is to sit down and write out all your expenses for the month. Here is a sample list of items you might want to start with:

Tithe (If you are christian and tithing, this means 10% of your income - Mal 3:10)
Housing expenses (mortgage or rent)
Car Loan

Car Insurance

Gas

Food

Utilities

Student loans

Life Insurance

Other loans

Clothing

Gifts

Medical costs

Savings
Other

 

Once you have decided on this monthly amount, we will then move on to determine the monthly income. Then we will have some guidelines as to how much each expense should be relative to the income. (example: Food should never run more than 12% of your income, etc.)

 

By the way, if you are married this exercise is best done as a couple, two cannot walk unless they agree.

I'm back with a vengance! Are you ready??

Okay so I started this blog back in 2007 when I began my journey to get out of debt. I can safely say I am debt-free expect my mortgage which I am working on. As you can see it has been awhile since I created a new post, reason, I allowed life to get in the way, period. Well I am back now, willing and ready to share some of my experiences with you, hoping that you will share yours with me as well. Have you started the journey as yet? If not, what are you waiting for? I will not kid you, it is a painful process. While you are going through this process, you might have to drive a not-so-great-car, no "eating-out" for a bit, etc, etc., but remember it is a journey, there is a destination. What I can safely say is, once you are out of the hole and start really saving, it is the greatest feeling and you will say it was well worth it.  It is only then that you can you can truly help someone in need and not worry about it. You will stop living from paycheck to paycheck; you will smile more; you will be able to face life's incidentals without having to go borrow from Tom, Dick or Harry, if they exist! Murphy's Law will not be such a fear anymore, you can truly live like God intended you to live. I am hoping you will start this journey or tell me where you are in the process. Let's do some damage to this "credit" mentality! Are you ready?! Let's do this!

Step #1:  Assess the damage: This is done by figuring out how much debt do you have? It's time to face the music. Lay it all out on the table. All the secret credit cards, with the balances you have been hiding from yourself and who know who else. Let's get real! Any store cards?  Today is assessment day! You need to know the true balance of your debt, including your mortgage. The mortgage and the student loans are the only debt which we will "wink" at for now. All others are inexcusable. How about that car loan or the loan from your sister, brother, job, coworker, payday loans or a friend. If you borrow and promised to repay, it is a loan, include it. Write it all down on paper, no trying to figure it out in your head, you need to see it in ink.  Now, make yourself a promise: I will not use another credit card or borrow anymore money until I know the true balance of my debt. 

Okay so you are one of those really organized individuals who already have the answer to this question, very well then, make yourself a promise not to use your credit card to buy any Christmas gifts! Is that too harsh? No, it is not, how can we borrow money we do not have to buy a gift?

Remember this is a step by step process so we are working on step 1 this week. Let me know when you are ready for step #2. Remember no Christmas or birthday gifts on credit. Get created and make something or give promissory notes indicating that you will get a gift at a later date. Be kind, share your love, the people in our lives need more love than gifts. Let me hear your creative ideas. Living debt-4ree rocks!!

Today I am actively pursuing methods of reaching individuals in need of some financial guidance. I have found that even the basic changes to one's financial management can create major results. Example, just instituting a set budget and monitoring it each month can bring an awareness of where your money is going. Hopefully this will be a big wake up call toward making some changes. Bottom line is, you must control your money and do not allow it to control you. It should never become your boss you must be the boss and tell it where to go, when to go and how much should go regardless of whether it involves spending, saving or giving.

I am very passionate about this and would love to have the opinion of others on this view of money. Is it just me or are you paying attention to your finances now that the economy is has tanked. If you were debt-free at the onset of the economic meltdown how if any were you affected? If you were either in moderate debt or deeply in debt, how were you affected?

As important as physical health is, financial health is equally important. Simply speaking without money it is not possible to get the proper nutrition and other things needed to facilitate good health.

So, if you do not yet have a budget, get going, now! It is that critical. Still waiting to hear from you as to how you are managing your finances. You can win, I promise.

Blessings, peace and love

It's 2010 and the message is the same, even more urgent.......get out of debt now!

I will be updating you later on some of the important happenings of our current economy and the critical and urgent reasons for getting rid of debt. It will change your life. Can you imagine what life is like for those who had no debt and needed none when the economic crisis first hit this nation? Well I wish I was in their position. By posting this blog I am in no way saying I am there but I am sure working on it and would love for you to take the journey with me. Share some of what you are doing to speed up the process. Some ideas are: get a second job, stick to the budget like glue, have a yard sale, make ebay your friend and cut back on all unnecessary spending. I want some more creative ideas, have some? Please pass them on.

Lots of love to ya!

Peace and Love!

DEBT IS GOING TO BE THE DEATH OF US ALL

Hi Friends,
With the current news on the economic situation in our world today I bet we are all rethinking about our stand on debt. I hope all those thoughts are positively embracing the call to get rid of debt asap. If you have been living a debt-free life you are no doubt in a better position to face the economic downturn. However if like some of us you are still in the process of ridding your life of debt you are still in a better position than those who do not see the need to do so.
Please do not take this as a method to beat anyone over the head with a debt-free stick but it is a call to become aware of the negative impacts of debt not just as individuals but as a nation as well. Remember the borrower will always be a slave to the lender so our goal should be to work hard at getting rid of all debt including the mortgage. When your house is paid for and you have no credit card or other forms of loan you will see how much weight is taken off your shoulders and how much easier it is to make good decisions about the jobs you take, the things you chose to purchase and how much better it feels when you own your stuff outright. You will not have to worry about them coming to repossess anything and if you lose a job you will not have to go work at McDonald's just to eat unless of course that is the only job available. Well I am sure you have lots of comments and ideas to share so I welcome them. Let's get this forum going once and for all. Are you doing anything differently now that we have a national economic crisis? Do you have cost cutting/saving methods which are tried and true? Any ventures to acquire additional capital you would like to share with us? I would love to hear about them and so would my friends from all over Texas and elsewhere. Looking forward to hearing from you.

Hi Everyone,
As the holidays approach I know many of us will be tempted to spend more than we can afford and we will use the mighty credit card to pick up the tab. Well I am writing to encourage you to reconsider doing so and think about the repercussions of that action. If you should lose your job right after the holidays and not find another for a few months will you be able to survive those un-budgeted monthly payments. In addition if you are not going to pay off your balance do not forget to add in the cost of the interest. My advise is to get started with a holiday budget and do not spend anymore than your budget allows.
Your friends and family will understand if you are unable to afford those previous expensive gifts for everyone. Modify your giving this year, either by giving only one gift per family, something they can all enjoy together. Or if you just cannot afford it, be honest and left them know that you are on a path to repairing your financial situation and will not be able to give this year. If you work hard on becoming debt free chances are you will be able to make it up to them in the future. If you feel you must give something then shop wisely and find inexpensive but chic items or become creative and make something. This might be a bit more difficult for children to understand but if dealt with in the right spirit I am sure you will be able to pull it off. I am working on some practical ideas and will submit them in a few days.
In the interim, enjoy life, live it to the fullest and whatever you do please 'do not overspend'.