Christmas Tips From Dave Ramsey

I pulled this right off of his newsletter. We were just talking about this in class. Here it is.


Top 10 Christmas Shopping Mistakes

We’ve all paid “stupid tax”—making costly decisions with zeros on the end. A lot of those decisions happen when we’re caught up in the emotion of the Christmas season and procrastinate a little too long.
Make this year different!
Here are the top 10 Christmas shopping mistakes and how you can act differently:
Not prioritizing.Instead of getting stressed out with all the parties, baking and shopping, in addition to your normal daily life, set some priorities before you’re bombarded with a million requests. Think about which things are “must do” and which are “would be nice to do.” It’s all right to say no to keep yourself sane. Shopping for gifts is more fun when you’re not completely stressed out.
Not using a budget.Before you make a gift list and head to the mall, set aside a reasonable amount of money for gifts. Make a commitment that you won’t add $20 to the fund every week just because you saw something cute that your niece would love. Get budgeting advice here.
Using credit cards.Once you have your budget finalized, stay away from credit cards! You will still spend 12-18% more if you use plastic, and you’ll be paying it off come 2009! Doesn’t paying with cash sound more freeing than having a credit card balance looming over your head? You bet.
Buying for everyone.Do you really need to buy gifts for every family member and friend you have? That can get overwhelming and expensive for everyone. Talk with them and work toward an agreement to draw names for gifts or donate money to a common cause.
Not listening.Listen to the hints your loved ones drop about what they need or want this year. Maybe your Aunt Sally mentioned that she would love someone to help her in the garden, or Cousin Bob keeps losing guitar picks. A thoughtful gift like this will mean a lot.
Not having a thought-out list on paper. If you think you can spend time in “Christmas retail world” without getting distracted by all the shiny toys, you’re in for a big surprise! You’ll be more likely to buy impulsively if you do it that way. Write down what each person you’re buying for would like and stick to the list. Stay focused!
Not shopping around.“Shopping around” doesn’t mean you have to spend 24 extra hours running from store to store to save 10 cents. Take a look at your gift list and do some comparative price-checking online before you head out into the retail and traffic madness. This will save you money, time and stress!
Waiting until the last minute.Procrastination is not the most appealing gift out there. Don’t find yourself stressed out on Christmas Eve just because you didn’t invest a little bit of time to plan.
Forgetting to plan for next year.Throughout the next year, look for outrageous sales on things your loved ones will need. If you time the sales just right and clip some coupons, you could land a major discount on something you were going to buy in a few months for a birthday or wedding gift. Remember to have a list and budget for this, too.
Forgetting why we celebrate.If this season becomes all about shopping and gifts, you’ve missed the whole point. People—not things—matter. The miraculous birth of a baby who changed the world is what matters.

Curb Holiday Spending

It is truly amazing how many articles, news stories and blogs you find now - all about budgeting, all about saving money. When we all first walked through the doors of our preview lesson many of us were interested in saving money, but we were weird. Now being weird is normal. Amen to that!

I don't know about you, but many of our debts stem from spending too much at Christmas and falling into the trap of "I am tired, I waited until the last minute to go shopping - I just need two more things and I am done." I was a teacher, I had virtually no time to plan Christmas and no time to pay attention to prices. I would wait until the last minute and spend one long, miserable day shopping. I am not exactly the shopping type, so I would choose a few stores and just attack my list. Only to find that I spent way too much and lost my holiday spirit, due to being stressed or worse yet, being around other grumpy, stressed shoppers.

This article basically outlines what we have already been taught from the class, but thought I would pass it along.

In addition:

1. www.woot.com An online one day, one item sale site - great deals, check it out every day for steals on anything from wine to electronics.

2. www.amazon.com Many of you use this anyway, but for us - I check out several websites and price around. This site offers free shipping at times and other holiday deals.

3. www.craigslist.com Okay, I used to stay away from this site due to the racy crowds, but you can find a good deal on slightly used items. (We post some of our stuff there and its free, unlike Ebay).

4. Keep your receipts and check periodically on prices - you can take the item and your receipt back and get the difference! I do that quite often! And make sure you do the work for rebates - these companies count on you to be lazy or wait until it is too late to turn in the paperwork! Don't forget!

Blessings!

Week 9 Totals

The numbers are in and they are awesome! I can't tell you how proud I am at how well you are all doing.

Money Saved $46,251

Debt Paid $80,629

Keep Chasing That Cheetah!

Money Saved and Debt Paid - 6 Week Totals

The numbers are in. Not 100% accurate, but in none the less.

Through 6 weeks the class has paid $18,276 in debt and saved $31,060

Not bad since we have yet to even complete our first full month of "living like no one else."


These numbers will grow dramatically as you grow dramatically. I told the class this last night but I think it is worth repeating.

If you are embarassed by the numbers you wrote down, or you left your card blank, (there were several of you), then I challenge you to do something about it. It's time to start living like no one else so you can start winning. Don't quit. Don't lose hope and become Practice the goat. If it bothers you that you are not saving and paying off like you want, then get mad and do something. Have a yard sale. Start eating beans and rice for dinner. Cancel your cable. Sell something. Feeling sorry for yourself won't get it done. If you need help or encouragement, then call me. Go Get Gazelle Intense!

Class Debt Totals are in...

$2,973,208.20

That number represents about 60 of the 65 people in our class, and the 37 households that responded. If you take the number above and divide it by the number of responses, we are left with an average debt (not including personal residence mortgages) of $80,356.98 per household!

This is where the rubber meets the road in this class. This is where you either become "practice the goat", and quit, or you are Gazelle Intense and you run for your life. It sucks to be in debt! No one knows that better that Stacie and I do. Our total debt (mortgage included) just about equals that giant number above. Giving up will not help. Filing for bankruptcy is not the answer.

You wandered into debt but you cannot wander out. Run! Run from the Cheetah! Do whatever it takes to get your life back. Isn't it worth it in the end? If it took you 5 years but you were debt free, how would that change the rest of your life? The time is now.

No one has quit yet, don't be the first. See you next week.

Cutting Coupons

Act of Kindness relating to Coupons:

Okay, so what do I do with all those coupons I don't end up using? If you are like me, I don't use all those coupons that I get in my paper and I end up throwing them away, not to mention I end up not using some of the ones I have already clipped. Want to do something great? I found this website that linked me to something great - a way to give. Our service families that are stationed overseas need our help. We can send our coupons that we don't use, that are expired up to 2 months and it will help them save money. We adopt a base and follow a few simple rules, and send the coupons overseas. The families get to use them up to 6 months expired and it helps a ton.

I have already started saving my coupons. I wanted to do this through our church, but do to recent changes, we will post-pone adopting a base for now. So, I am still choosing to adopt a base and send what I have already collected. Want to help me? If you do, send me an email and I will explain it. I think a side benefit we can all gain besides helping someone else, is we can even trade / swap coupons together and what we don't use, we can send off to them.

If you want some help at the grocery store and a way to get more coupons:

http://www.couponmom.com/ - this was mentioned on the Oprah show today, it looks like a ton of resources for you!

http://www.coupons.com/

http://www.smartsource.com/

http://www.smartspendingresources.com/resources.html ( a ton of resources on ways to save money - coupons, family freebies, etc. I would recommend going to the articles tab as well, for other things to ponder)

If you want to start your own Act of Kindness and adopt your own base withing your church:

http://www.ocpnet.org/

If you want to help the cause and pool our resources, I would love it! Let me know.
Melanie

Money Saving Tips on the Oprah Show Today 10/8

Okay, the chatter on the news and on the Internet is all money-minded. Over and over again, we are hearing that America has been living beyond its means and the credit market is stretched too thin. Wow, I am so thankful I am taking FPU at this time! I feel ahead of the cheetah (even just a 1/2 step is enough at this point). I tuned in on the Oprah show today because it had something I was interested in - the Thriftiest Family in America. What are they doing to save a buck, I wondered?



I wanted to pass on the link from the show to help my fellow Gazelles. What can you do to live within your means? If you go to the above link there is help on cutting costs at the Grocery Store, as well as other ways to save. The gist of the show today was making a mind-shift and being aware of where you are spending your money. I think many of us are worried that our quality of life may change, however as they kept pointing out its quality time you spend with family and friends, not the things. The Thriftiest Family also stated to do a lot of research in taking advantage of local resources to have fun, i.e. renting a DVD or Video from your Local Library for free, eating at restaurants where children eat for free, or using coupons. I think we can all learn a bit here, but its the follow through - its the mind shift we need to make to be and do better.


Hope this helps a bit.

700 Billion in new Debt, I mean Bailout

If you think the decision by Congress stinks, then now is your chance to vote all those who voted for the bail out out of office. Click on the link above or go to:

http://clerk.house.gov/evs/2008/roll674.xml to see how your Congressman voted last week.

By the looks of the Market this week the bailout is a flop and we can kiss our 700 billion goodbye! Although things could turn around . . .

If you like the bailout plan, then I cannot help you.

Here's what 700 billion looks like:

Laid end to end, 700 billion dollar bills (66 million miles worth) would stretch from the Earth to Mars and almost all the way back, when the planets are at their closest. Stacking dollar coins would produce a pile 435,000 miles high, well beyond the distance to the Moon. And still no one would want them.

700 billion M&Ms (at 2 grams per chocolatey orb) would be enough to fill 10 one-pound bags for every one of the 300 million Americans. That would be a popular bailout!

700 billion dollars could buy 2009 Lincoln Town Cars for every person in Vermont, North Dakota, Alaska, South Dakota, Delaware, Montana, Rhode Island, Hawaii, New Hampshire, Maine, and Idaho.

The combined weight of every human male in the world is considerably less than 700 billion pounds, even including the players in the NFL.

700 billion dollars could buy 87 McDonald's combo meals for every person on Earth, with change left over for antacids.

My heart has beaten approximately 2,196,917, 208 times since I was born 58 years ago. At this rate, I'd have to live to live to be 20,300 years of age to reach 700 billion heartbeats. I'm willing to go for it, for the sake of research.

posted from: http://www.walletpop.com/blog/2008/09/25/grasping-700-billion/

Nice going Congress!

Cash Envelopes for the Computer Minded Nerd

If you are like my husband, and well, like myself, then the thought of carrying cash may scare you. Now hold on, I know Dave Ramsey said that we will feel it more, if we have the cash in our hands - and I know he is right. However, I saw this on a blog today and thought it was interesting. If you are one of those nerds who likes to use Money, Quicken or any other online or computer program and are trying to bridge the gap between using the computer software and using Dave Ramsey's envelope system, this COULD help you.

If you click on the above link, and look at the product overview and quick tour, you may find that this system could be right for you. It does allow you to make virtual envelopes and it helps keep track of your money and spending and it even has a feature to use with your cell phone, so you can check your balances before you buy (no ooops on the budget). There are some cons though, it costs money. Another con: it may be hard to learn a new program in a hurry. Another con: it doesn't follow Dave Ramsey's complete plan... so you may find it counter productive. You can try a free trial for a month and see if this works for you, but if you are looking at the bottom line like me, this may be too much for your budget. If you are a nerd that must make their budget on the computer and wants everything nice and neat, this may help.

As for our family, I think I am going to try the traditional cash envelopes. We really need to make this budgeting thing work. Remember, its a marathon.... not a sprint. WE CAN DO IT!

Peace,
Melanie

A Ban On Credit Cards? Hmmmm?

This post submitted by Chris Breese. I thought you might find it interesting.

A modest proposal: Ban credit cards...
Julie TilsnerSep 29th 2008 at 6:00PM

Well why not? What if they outlawed credit cards? Would the world end? Would it be financial Armageddon? Would we shuffle from food line to water queue in our now-tattered $250 blue jeans? It's never gonna happen, we know. So play along with me here. I'm not talking about business credit. That's an altogether different animal (currently in hibernation). I'm talking consumer debt. This idea that we can have the McMansion AND the boat AND the trips AND the kitchen remodel because we could, up until just a bit ago, borrow all that money to do so.And look where we are today. What if we *had* to live within our means again? What if we couldn't buy whatever we wanted because we didn't have credit cards? Would it suck? Heck yeah. But only because we've gotten so used to having credit, and being able to buy those cute shoes or fund our student film or buy that iPhone because it's so cool and you just gotta have it.In other words, what would happen if we couldn't have all that...stuff...unless we actually had the cash for it? We'd have to get used to saving again. Saving actual dollars (while they're still worth anything at all, I mean). What if you had to do the now unimaginable and save a 20% cash downpayment before buying a new house? Wouldn't that kind of thinking actually help our economy down the road? A nation of savers is a good thing, isn't it? We wouldn't be so in debt. We wouldn't have so much superfluous stuff. We might work less and live more. Thrift might come back into style.Being truly forced to live within our means would really foul up our carefully-crafted consumer society, true. But as I'm told, many generations of people have managed to do so. My dad tells me that in the '60s you went to the bank on a Friday with your paycheck, and took out enough cash to get through until the next week. If you ran out...well...tough luck. So set me straight please. Why couldn't we just ban credit cards forever? It's just a thought, given today's financial meltdown...caused by the credit crisis.

Real Life FPU Testimony - Think This Stuff Works?

I received this email this morning from an FPU Alumni. Read what she wrote about how this has effected her family. Great Stuff!

"I have no greater joy than to hear that my children are walking in the truth." III John 1:4

Hi Alex and Stacie...

Just wanted to share with you yet again about what a blessing Financial Peace University has been to my family. I know that, ideally, I would have brought them all to sign up for a regular class, but God has used our little family class in ways that I never could've imagined. Last week we did our final lesson, #13, and we were sad to think that we weren't going to listen to Dave on Family Nights anymore.

At tonight's Family Night, though, my family surprised me by writing and reading notes of thanks about FPU to me. I was blown away by their comments and just have to share them with you. I know it's a lot of reading, but I think it's worthwhile. [I went onto the blog, but couldn't figure out how to post this, so you're welcome to share any of this on the blog that you'd like.]

Here's what my family said to me...

A modified limerick from my husband, Pete...
There was a young lady from Chino –– Hills
Who knew to to pay off those mean ol' –– bills.
So she gathered her family,
They all heard Dave Ramsey
And, Praise God, they learned some financial –– skills.

From my new son-in-law, Eric...
Going through Dave Ramsey's Financial Peace University has changed my life. I have a completely different outlook on finances and because of that I have a total peace in my future. Even with the recent economic struggles I feel completely confident that we will not only survive, but that we will thrive. I know how to budget and plan and finally learned... what it truly means to buy only what you can actually afford. Because of Dave Ramsey I truly have Financial Peace.

From my 22-year-old daughter, Miriam (Eric's wife)...
Mom, Dave Ramsey and FPU has changed my entire outlook on finances. It has rocked our world! Thank you for having our family learn so much wisdom, because I'm serious when I say Dave Ramsey has set Eric and I up for great financial success in our lives. That is a truly wonderful feeling! I'll still never forget the first time my ears perked up at Dave on the way home from Cambria. Thank you for helping open our eyes to the TRUTH. "Now we live like no one else, so later, we can live like no one else."

From my 20-year-old daughter, Marjorie...
Mom, thank you for all of the hard work and care that you put into all of our financial futures. Even though I wasn't very fond of Dave Ramsey when you first brought the CDs home and when we listened to him in the car, I am very happy that you have shared the information with me. I know that because of it, the way I handle my money when I'm out of the house will be very different than I previously anticipated. I have learned a lot about how credit and debt can ruin your life and now, thanks to you and Dave, I will be successful financially and I will never have to deal with the problem of debt because I will "live like no one else, so later I can live like no one else." Thanks for sharing your knowledge.

A cute story about the first time my kids heard Dave Ramsey...
The first time I put one of Dave Ramsey's CDs on for my family was on the way home from a trip to Cambria, CA. We had just begun FPU a month before and I had heard some great principles that I thought would benefit the kids. I purposefully chose FPU CDs that I thought would interest them, "Dumping Debt" and "Credit Sharks in Suits" and decided to play them in the car. My kids were all listening to their iPods. Miriam confessed tonight that she turned her iPod off, but left her earplugs in so that I wouldn't know she was listening to the FPU CD. Monty (age 16) was in the very back seat and I thought he was sleeping. Miriam sent Monty a text message and said, "Are you listening to this!?" and he sent a reply back, "Yep!" That CD burned principles in their brains that they will never forget! What a return... the cost for FPU was an investment in the lives of my descendants!

Okay, that's enough! I know you can relate to the absolute blessing it is to see lives changed. Thank you for your part in facilitating the class that started all this. I plan to trim this down and send some excerpts to Dave Ramsey, too. I'm SO glad he heard the Lord's voice about FPU and listened!

Accountability and Money

We learned this week the importance of accountability and money. Most of us don't have this yet. If you are married you have a perfect accountability partner already there. However, this requires that you actually sit down and talk about money. Step #1 is to start doing exactly that.

For you singles out there I have a few suggestions. Use this blog to let people know you are looking for an accountability partner. You have access to not only everyone in our FPU class currently, but also the 67 others who have already taken the class. Anyone can be your partner in this. It's better if they already practice Dave's methods themselves. If you want help finding someone, let me know.

New ways to save money, do it yourself!

By taking FPU you learn to look at money differently. You learn to take control of your money and make it work for you. Last night our 5 year old refrigerator stopped cooling. I was like, "great, this is not what we need. Now we have to call a repairman and pay through the nose. But then I remembered all of Alex's great Do-It-Yourself stories and I thought, "I can do this." So my wife calls a repairman just to make sure it isn't the compressor ($30.00 service call) and after he says it is working, she thanks him and he leaves. I then did some research on the internet and discovered what the problem was, a $48.00 part (Starter Relay). So I installed the part a couple of hours ago, and Whala! Bingo! The frig is working!!! Yes!!!!!

The nice repairman was going to do the job for $185.00. I did for less than $85.00.
Do you know how much $100.00 is in 50 years invested in good growth stock Mutual Funds at 12%? :)

With FPU saving money just becomes second nature, and it makes you think outside the box!

Week 1 - Wow

I have had the pleasure of experiencing this week 1 feeling 4 times now. I have to tell you, this never gets old. It's hard for me to go to sleep on Tuesday and Wednesday night and I don't think that anything will change for another 12 weeks at least. We had 56 people attend! That is absolutely outstanding. The good news is that we have two fantastic locations and there is plenty of room for more people. I hope that those who missed will be returning. I also want to remind you to invite others. It is not too late to come to class in week 2 or even 3 but week 3 may be pushing it. I will be posting again soon with reminders and updates on homework and other important stuff.

13 Weeks Sure Is A Long Time...

So here we are. Once again on FPU Eve. I may be the only one up at 10:30 thinking and preparing for tomorrow, but this I do know this for sure. Many of the people who will come to class over the next two days are really wondering what the heck they signed up for. Perhaps you are thinking to yourself, "I will come to the first class, and if it's any good, then I might come back."

If you feel that way you are certainly not alone. Most people don't want to discuss their finances. The best part is you don't have to discuss anything. What you will have to do however if you want this class to work for you is this. You must look at the man/woman in the mirror and face reality. Reality is this. All of your combined financial decisions have brought you to where you are today. Like it or not, it didn't happen over night and it certainly won't go away that fast either. The next 13 weeks could save your marriage. It could save your home. It could give you hope. It could improve your most important relationships. It could give you a plan. It could provide retirement. It could help you prepare for your children's college. It could change your family tree.

It "could" be all of that and much more. But one thing is for certain. Just as in the game of life that we play every day, in FPU ... You must be present to win! See you in class

Normal is...Not Within Your Budget

The other day I came across an article about affordable housing markets. The article itself isn't incredible, but the premise behind it is. Part of the article discusses how when the housing marketing was increasing like crazy, people were able to purchase homes that were way above their means through "cheap adjustable rate mortgages." The article later states, "A fallout from the real estate slump is that once again many homeowners are forced to look for homes that are within their budget."

Isn't that an amazing idea?! Purchasing a home you can actually afford?!

Once again I'm thankful that Dave educates us on the truth that normal is broke. If living way out of my budget is normal, count me out!

By the way, if you want to read the full article, here's the link: http://news.yahoo.com/s/bw/20080904/bs_bw/aug2008bw20080828371262

-John

Get Ready To Live Like No One Else

Previews have started for the upcoming offering of FPU on Tuesday and Wednesday nights. We have had some great turnout for the first two and I expect to see even more people show up this week. Please keep these preiews, and those who show up in your prayers.

Live Like No One Else So You Can Give Like No One Else!

This evening after leaving our final FPU class, I found an email waiting for me. It exemplifies the theme of giving, so I thought I'd share it with you. I don't know who authored the message, but it will give you the warm and fuzzy feeling we laughed about in class. Read on...

I put my carry-on in the luggage compartment and sat down in my assigned seat. It was going to be a long flight.

'I'm glad I have a good book to read. Perhaps I will get a short nap,' I thought.

I fly frequently, and I always look for an opportunity to share Jesus with someone. I wondered who it might be this time because there were empty seats all around me. Not much of a chance to talk to anyone.

Just before take-off, a line of soldiers came down the aisle and filled all the vacant seats, totally surrounding me.

'This is more like it! OK, Lord, which one will it be? Who needs to hear about you?'

I decided to start a conversation. Where are you headed?' I asked the soldier seated nearest to me. 'Chicago--to Great Lakes Base. We'll be there for two weeks for special training, and then we're being deployed to Iraq.'

After flying for about an hour, an announcement was made that sack lunches were available for five dollars. It would be several hours before we reached Chicago, and I quickly decided a lunch would help pass the time. As I reached for my wallet, I overheard soldier ask his buddy if he planned to buy lunch. 'No, that seems like a lot of money for just a sack lunch. Probably wouldn't be worth five bucks. I'll wait till we get to Chicago.' His friend agreed.

I looked around at the other soldiers. None were buying lunch. I was hungry, but could not bring myself to eat in front of them. I walked to the back of the plane and handed the flight attendant a fifty dollar bill. 'Take a lunch to all those soldiers.'

She grabbed my arms and squeezed tightly. Her eyes wet with tears, she thanked me. 'My son was a soldier in Iraq. It's almost like you are doing it for him' Picking up ten sacks, she headed up the aisle to where the soldiers were seated.

I Forgot About Me! Overwhelmed by her emotional response, I returned to my seat.

She asked, 'Which do you like best--beef or chicken?'

'Chicken,' I replied, wondering why she asked.

She turned and went to the front of plane, returning a minute later with a dinner plate from first class. 'This is your thanks.' Now I felt guilty--I had dinner and the soldiers had only a sack lunch.

After we finished eating, I went again to the back of the plane, heading for the rest room. A man stopped me.

'I saw what you did. I want to be part of it. Here, take this.' He handed me twenty-five dollars.

Soon after I returned to my seat, I saw the Flight Captain coming down the aisle, looking at the aisle numbers as he walked, I hoped he was not looking for me, but noticed he was looking at the numbers only on my side of the plane. When he got to my row he stopped, smiled, held out his hand, an said, 'I want to shake your hand.'

Quickly unfastening my seatbelt I stood and took the Captain's hand. With a booming voice he said, 'I was a soldier and I was a pilot. Once, someone bought me a lunch. It was an act of kindness I never forgot.'

I was embarrassed when applause was heard from all of the passengers.

Later I walked to the front of the plane so I could stretch my legs. A man who was seated about six rows in front of me reached out his hand, wanting to shake mine. He left another twenty-five dollars in my palm.

When we landed in Chicago I gathered my belongings and started to deplane. Waiting just inside the airplane door was a man who stopped me, put something in my shirt pocket, turned, and walked away without saying a word. Another twenty-five dollars!

Upon entering the terminal, I saw the soldiers gathering for their trip to the base. I walked over to them and handed them seventy-five dollars. 'It will take you some time to reach the base. It will be about time for a sandwich. God Bless You.'

Ten young men left that flight feeling the love and respect of their fellow travelers. As I walked briskly to my car, I whispered a prayer for their safe return. These soldiers were giving their all for our country. I could only give them a couple of meals.

It seemed so little.....

Not Quitting Can Really Pay Off...Literally!

The numbers are in...and they are staggering. After 12 weeks you have successfully paid off

$149,109 and saved $89,052

That is absolutely amazing. You guys totally rock! Don't forget that we will do this next week also after the final lesson. Also the Taco man is ready for FPU Graduation on Sunday 8/31. Bring a friend. We have some exciting debt free announcements scheduled for that day as well as great food. If you need directions to the church location, please go to www.MissionPointeChino.org for more information. You can also call me anytime (909) 539-3484

This is Why You Do This!

Following Dave's Baby Steps is hard. After 10 weeks of taking this course, you surely have felt the impact by now. Starting your second budget and trying to decide if this is really worth it or not is something that I am sure all of you are experiencing. So the timing of this email that I received the other day could not have been better planned.

Here it is from Shannon, an FPU Graduate with exciting news.

Hi Alex, BIG BIG NEWS, IT'S OFFICIAL WE ARE DEBT FREEEEEEEEEEEEE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Extreme Home Makeover Home in Forclosure!

Wow! Give someone a paid fore $450,000 home and see what happens! This is why financial counseling is so important. 60% of lotto winners are bankrupt in 5 years.

To see the article just click on this blog's title or go to:

http://www.wsbtv.com/news/16980412/detail.html

Very Sad. . .

Advantages of FPU

Taking this class has provided all of us with tools to gain control of our finances and it's given us a measure of peace in knowing that we're doing our best to manage our money in a way that's pleasing to God. I would venture a guess that each of us, having gone through our own financial struggles, is sympathetic to others who are in financial distress. We can't always reach into our own wallets, but now we have another way to help, don't we? We can introduce others to FPU so they can learn how to improve their own situations. To me, it's similar to the axiom where you don't just give a man a fish; you teach him how to fish.

At first when we mentioned to others that we were taking a financial class, people looked at us a little oddly. Nobody wants to admit that they need help with their financial situation! We've begun stressing that the class affirms some of the common sense things we've all done to manage our money, but it goes further than that and teaches us how to think from a different perspective, especially in areas where our knowledge is more limited. It's worth the effort to tell others so they have the chance to learn and grow, too.

Another advantage is in having the chance to meet so many new people. Jim and I are both enjoying every aspect of the class! (I know he'll be happy to rejoin the class when he returns from his business trip!)

When is a Good Deal Too Good?

Tom sent this to me. Nice timing Tom...

When Is a Good Deal Too Good?
By Michael Masterson
When negotiating a deal, how hard should you push for an advantage? Should you play the competition game and get as much as you can? Or should you "take care of" the other guy, even if he isn't taking care of himself?
What should you do if you discover a benefit or cost in the deal that the other guy isn't aware of? Do you bring it up? Or figure "If he's too stupid to notice, he doesn't deserve to find out."
If your resources and position in the marketplace give you a substantial negotiating position over the other guy - if he needs you more than you need him - should you take advantage of it?
Let's answer these questions today.
I do business with a lot of very accomplished businesspeople - entrepreneurs and executives who understand how business really works. They have learned the importance of going after new business, and have developed the personal skills to apply themselves aggressively toward that end.
Some of these people, however, allow this virtue to become a vice. When they negotiate deals, they focus all their energy on themselves and their goals. If they think of the other guy at all, it is only to discover a weakness they can take advantage of.
These guys can be great family men and loyal friends - but when it comes to doing business, they believe in taking care of Number One. And for them, because of the way they see business, taking care of Number One means caring little or nothing about the other guy.
Some of these guys are just plain evil. They like screwing people and take pleasure from giving others pain. But many more see themselves as just and moral but with a "realistic" view of the business world. For this group - let's call them the self-righteous sharks - business is an "either-or" proposition: "Either I get the gold or he does."
Self-righteous sharks tend to act selfishly in all facets of their business life - in sharing information, in deciding at whose office a meeting will be held, in determining who sits where at a business dinner, etc.

Networking

I'm enjoying the FPU classes! Watching everyone learn together, share their stories, laugh, and offer encouragement to one another is as beneficial as watching Dave's videos. We're on a journey together, aren't we?

Since Alex encouraged us to network through the use of the FPU blog, I'm going to ask you all to keep me in mind if you know of any job openings. While I haven't worked outside my home in years, I have worked on projects from my home computer and actually prefer that flexibility. I am, however, perfectly willing to go out to work. I've built a sales training manual, developed a hyperlinked spreadsheet that provided easily accessible product information for a sales team, and have also put together PowerPoint presentations and monthly newsletters. I enjoy researching via the Internet. If I don't know how to use software or perform a particular function within it, I work at it until I learn it. Someone recently challenged me to learn a web design software program and I've just managed to upload a simple (and not quite complete) website onto the Internet. I enjoy writing, particularly to bring laughter to someone's day and to encourage others in their walk with Christ. I'm currently helping to build and administrate a prayer ministry at our church and also am a co-leader of a small group.

If you know of a way for me to use these skills, please advise! Thanks for your consideration!

Blessings,

Debbie

America's Money: Debt Crush

CNN Money has some interesting articles written by regular folks about their debt.

http://money.cnn.com/galleries/2008/news/0805/gallery.real_people_debt/

Maybe one of us should post our story too?

Just click on the title above (America's Money: Debt Crush) and it should take you to
CNN Money and the articles.

Planning Your Work, Working Your Plan

So yesterday around 7am Stacie and I were having breakfast and crunchin numbers. Not so much the August or even the July budget, but the 2 year plan and exit strategy. Talking about the what-if scenarios and the best and worst-case scenarios. It was exciting, tiresome and sickening all at the same time. The emotional rollercoaster ranges from the excitement of having a plan that will work and where the progress can be measured, to the sickening questioning of how we ever allowed this to happen in the first place.

Ultimately we realize the amazing peace you get from having a plan, working your plan, tweaking your plan, and re-working your plan. Never before FPU did we have a plan.

Having a plan is great, but I am continually reminded of what the Proverbs tell us..."The heart of man plans his path but the LORD directs his steps."

Praise God, and keep fighting the good fight!

Tell a Friend

We are now officially at the half way point of the 13 week course. Seems like only yesterday that many of you were wondering if just how painful this 13 weeks was going to be.

On Wednesday night we had our first true 'guest' attend the class to check out what FPU was all about. She called me the following day and was very complimentary about the course and said she will be taking FPU at the next offering. What a great way to build the word of mouth advertising that we need. Ads will attract some, but as most of you know, it's typically word of mouth and invitation by someone that you know that has the greatest impact. I would like to challenge each one of you to bring someone to class with you. Have them check out what we are doing so that the next class grows to an even larger size. Imagine the impact that we can have on the community by helping others learn how to manage their money and get out of debt! See you all next week.

"Pain = Intensity"

Pain is a good thing. It's God's way of getting our attention. If you are as dense as me then you need a lot of it to change. Like they say in the 12 step recovery groups, "Until the acid of your pain eats through the wall of your denial, you will not change." I see FPU as financial recovery group. My wife and I have certainly felt the pain of our dumb financial mistakes. Like Dave says we have done stupid with zeros on the end of it.

So we are intense about getting out of debt because we have felt the pain. Debt hurts. Then why are so many people still walking around with crushing debt? How come our friends and relatives don't get it when we tell them we are working to be debt free? Not enough pain. You have to "hit bottom" before you get it in most cases. Or, as God tends to do, he brings the bottom up and hits you. Because if you wait to hit bottom with debt it may be hundreds of thousands of dollars. So I find the best way to get people I know out of denial is not by telling them how messed up they are, but by telling them how messed up I was (and still am). We have lost over $40,000 over the years by leasing our cars. Dumb. We took a lot of vacations that cost over $6,000 a week. dumb, dumb. I could go on, but I'm crying too hard. Made any mistakes?

Credit Cards

One of my goals in taking FPU is to make my wallet a lot lighter with very few (if any) credit cards. I've closed several accounts...American Express, Discover Card, Bank of America, and Macy's. I still need to close a few more. I was a department store credit-aholic. I like this new simplification in my life. How about you guys?

Bank Reviews

As a number of you may be aware, one of the local banks in Southern California, Indymac, was recently taken over by the FDIC. Since my funds were located at Indymac, I am now considering moving them to another bank, once I have access to them come next week. Although I plan on reviewing websites and talking with other banks about the services they offer, I would really appreciate hearing from FPU class members regarding the banks you use, the quality of customer service you've received at your bank, and the positive and/or negative experiences you've had with a bank. Thanks so much, as this information will be helpful in my decision making process.

Accountability Partners

As many of you know we have quite a few singles going through the class. One of the ways that you can improve your focus is to have an accountability partner. I am writing this for you singles. Reply here if you are interested in having an accountability partner from this class. You both are going through the same class at the same time which may be helpful. I suggest that you comment and leave the following information.

You name, email or phone and your intensity level (see below)

Intensity level 1 - I have given up borrowing money, I am sick and tired of being sick and tired. I am Gazelle intense and willing to do whatever it takes to get this done!

Intensity level 2 - I understand what I need to do and I am doing most of it, but really I could use a kick in the pants.

Intensity level 3 - I agree with what Dave teaches, and i believe it works, I just haven't done much with it yet and I probably should.

Money Saving Tip / Understanding Your Edison Rates

Thanks Debbie for sending this to me. Here it is.....

Hi, Alex…with the high temperatures and our reluctance to use air conditioning any more than necessary due to the cost, I visited the Southern California Edison website to see what I could learn about reducing the electric bill. This link (http://www.sce.com/CustomerService/UnderstandingTieredRates/ ) takes you to the Edison website, where you will find an explanation of how much higher our bill will be when we exceed the baseline. You can read about how much a “bucket” of energy costs. Click on Money Saving Tips in the last paragraph and you can learn more, including how to get $50 for an old working refrigerator.

WARM Regards,


Debbie

Super Savers Revisited...

Week 5 has now come and gone. Many of the questions in the small group discussion have turned to budgeting, saving, and just plain squeezing more out of the budget. This is great! So, to aid in this process, I thought it would be a good idea to re-visit the super saver lesson and ask everyone to post their money saving ideas. We could all learn from what you have to say so please don't be shy and post away.

Sell So Much Stuff...The Kids Think They Are Next

That's exactly what Dave tells us to do. I have been selling things, I know that some of you have been selling things too. Here is a great article that Tom just sent me that helps you to make some tough decisions when deciding what to sell. Thanks Tom for sending this...

Simplify Your Life: Order Out of Chaos
By Judith Strauss
You build a pile of rocks, and it collapses because it was a bit unbalanced. The way the rocks end up on the ground may appear to be random. But a mathematician would tell you there's an underlying natural order at work here - something that can be replicated, and explained, by "chaos theory."
Chaos theory is an attempt by scientists to understand why it's difficult to predict the way dynamical systems (systems that change over time) will turn out. And why, when you try to impose a particular organization upon a dynamical system that is inconsistent with its underlying nature, it just doesn't work.
Chaos theory has been applied to everything from the weather to music to psychology to the stock market. Today, I'm going to show you how to take advantage of it to efficiently organize the things you use every day.
Let's start with your closet. Logic suggests that you should hang like things together. All shirts together. All slacks together. All jackets together… and so on. So that's what you do. And what happens? Slowly but surely, order turns to chaos.
But wait. When you look closely, you see that the jumble that has evolved in your closet is not random. In fact, it makes sense in a very practical way. The clothes you wear most often have gravitated to the front. Tops and bottoms that you like to wear together are hanging next to or near each other. And the rest of your wardrobe has mysteriously disappeared into dark corners.
Now, on to the kitchen. Your spices are carefully arranged in a cabinet, maybe even alphabetically. Your oils and vinegars are grouped together in the pantry. Condiments - mustards, ketchup, mayonnaise, barbecue sauce, etc. - occupy the same shelf in the refrigerator. Pots and pans, dishes, utensils - all neatly organized. How long does that last? Not very. But again, your favorites - the ones you use most - wind up in the most convenient spots.
Same thing happens with your reference books, your CDs, and your medicine cabinet. And that's a good thing.
The idea is to allow the way things get used to dictate where they go.
I've been told that when a college campus or medical complex is being laid out these days, the designers wait until it's been built before deciding where to put the sidewalks. Then they follow the pathways made by people walking between buildings. When they did it the other way around - putting the sidewalks where they thought they would function (and look) best - people made pathways in the grass anyway.
The trick is not to get hung up on aesthetics. Your closets, kitchen cabinets, bookcases, etc. may look like a mess, but who cares? How many people besides you ever see them?
So fight the urge to tidy things up and put them where they "belong," and you'll end up with the most efficient way to organize your stuff. As a bonus, when the time comes to have a yard sale or put together a bundle to donate, everything you know you really should get rid of will be right there - neatly collected in the back of your closets and the deep recesses of your cabinets and shelves.

Gazelle Focus is Contageous

Guess what happens when you have Gazelle Intensity and then you have the blessing of watching the Dumping Debt lesson 3 times in 4 days? When you combine that experience with the awesome testimonies of people like Pricilla and Josh, David and Gina it makes your head explode. Stacie and I have been comfortable lately and we spend a lot of time justifying our inability to pay down more debt because we have empty rental properties.

So today, we sold our motorhome and also put our Ford Focus up for sale. We have even been talking about possibly moving into an apartment to reduce our household expenses dramatically. We are about as fired up as we have been in a long time! Stacie and I pray for all of you. Keep climbing that mountain!

Gazelle Intensity

Week 4, Dumping Debt is one of my favorites. Not just becuase "dumping debt" is what Dave is really all about, but because it just fuels me. I can't watch this lesson without getting passionate. I sit in the back of the room and the tears just flow every single time. I think of how hard this is yet how simple. I think of how there is no way that I can quit and become "Practice the Goat." I think of how there are 43 of us right now pulling for each other and awesome that God has brought us on the journey together.

Part of our journey together will be this blog. I changed formats due to the poor structure and limited capability of the original blog. You can post here and see the immediate impact. I look forward to what God has planned for us.

Remember your homework, complete your credit card history form and most importantly, your Debt Snowball. See you all next week! Make it a great one, and chase the cheetah!