Gather Little by Little

It is one thing to be put on The Rack for no fault of your own, but do not go there voluntarily!

I receive credit card offers for cash advances in the mail on a regular basis. The offers are almost always terrible – interest rates in excess of 20% and fees on top of the interest! I recently was sent an offer with a 23% APR and a fee of 8%, what a deal! The most significant aspect of the credit card cash advance offers is that they do not seem to be meant for a specific expense. The cash advance is simply that – the bank hands you money and you hand a whole lot back. These types of offers are not for a car or home loan, there is no asset or collateral attached to the cash advances, the money is just “emergency” or “fun” money at usurious interest rates.

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I recently heard someone refer to a multi-family living arrangement as, “that’s what Mexican’s do”. I think that the comment was intended as a slight. Even if it was not, it was clear that the speaker thought a particular life choice was something that he would not consider. What he did not realize is that in a world drowning in debt, many Hispanics have figured out some of the secrets to achieving financial freedom without credit.

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Your credit rating is a very precious thing as is trust; it is hard to earn and easy to lose. So, if you are lucky enough to enjoy an R1 credit rating, you want to make sure to keep it. There are a few tricks to help you keep a stellar credit score. But before we start, here’s a quick definition of the different credit ratings (going from R1 to R9):

Credit Rating:

R1: This is revolving credit that has always been paid on time.

R2: A revolving credit account with a late payment of 30 days.

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A fast is an ancient religious practice. Fasting typically involves the voluntary abstinence from food and/or water for a period of time. There are many reasons for fasting. Some individuals partake in fasts to please their god. Others use fasting as a part of their health routine; it is a way to cleanse the body of toxins. Still others use the fast to focus the mind or to exercise control over their bodies. Sometimes food becomes too large a part of our lives and a fast can help us practice self-discipline. From time to time we will hear about a prisoner or a celebrity going on a hunger strike in order to protest some injustice.

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Since completing my introduction post, I have received several questions about personal finance. This one is coming from Cindy who is asking when should you file for bankruptcy? This is a very important question as the consequences of bankruptcy will follow you for several years. Therfore, you might want to think twice before choosing this path.

First, understanding what filing for bankruptcy means

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This article is part of the series How to Get Your Finances Under Control

As some of you may have noticed, it has been about 2 weeks since I published, Step 6 Get Out of Debt of my How to Get Your Finances Under Control series. The reason for this to be honest is I have been struggling. Not so much as to what the steps are, as I have those and have had them since I first began the series. Nor has it been due to trying to determine what each step should contain, as I have that for a while as well. I have been struggling due to an integrity issue: Should I tell my readers how to do steps that I have not yet done?

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Proverbs 22:7 – The rich rule over the poor,
and the borrower is servant to the lender.

This article is part of the series How to Get Your Finances Under Control

God’s word (The Bible) has nothing good to say about debt. While debt or borrowing money isn’t a sin, scripture is pretty clear that borrowing is bad. This is called a Biblical principle.

Debt is risk, debt is stress. Step back for a minute and think about what stresses you most about your finances. Is it that you don’t make enough, that you spend too much, or is it due to your debt? Chances are, it’s your debt.

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Proverbs 27:12 – A prudent person foresees the danger ahead and takes precautions.
The simpleton goes blindly on and suffers the consequences.

This is part of the series How to Get Your Finances Under Control

Now that we have a budget in place, we need to start an emergency fund. Following a budget and having an emergency fund in place are the two most critical steps in getting your finances under control.

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This article is step 4 of the series called How to Get Your Finances Under Control

One of the most important steps on your journey to getting your finances under control is establishing a budget. While creating an effective budget takes time and a little number crunching, the freedom your budget will provide you is well worth your time.

People in general tend to make a budget more difficult and complex than it really is. A financial degree or expensive version of Quicken is not required. All you really need is a pen, a sheet of paper and the basic ability add and subtract.

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Proverbs 13:16 – Wise people think before they act.

Having a simple and clear written financial plan is one of the key steps to Getting Your Finances Under Control. The plan will serve as a baseline for your understanding of where you currently are, where you want to be, and when you want to be there. It will also serve in helping you make future decisions.

Your personal financial plan should contain the following:

1. Summary of your current finances
2. Current Risk Management Programs
3. Goals and Objectives
4. Detailed Plan

Summary Of Your Current Finances

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