I remarked to my wife the other day that if we have no major, unexpected financial calamities this year, our financial situation might be back to where it was in 2002-2003. That is, back before we had our second and third child, before we went down to a single income, before I learned to budget, before we moved and before we took sixteen months to sell our home in another state. In financial terms, back to a below average debt-to-income ratio, back to being in possession of an emergency fund and back to being able to again contribute to our retirement savings. I do not want to count our chickens before they hatch and I probably just jinxed our prospects, but being almost back to even is a nice feeling.

Then today I was sitting at a stoplight and a really slick, wide rim, dual exhaust SUV pulled up beside me and for an instant, I thought, “Boy, it would be nice to roll around town in one of those.” My next thought was, “why in the world would I ever want something like that?” Even if I could afford to purchase it without using a loan, a nice car is just another source of worry. I have enough trouble parking our minivan next to other vehicles at Walmart, much less a huge luxury ride without a scratch on it. Then it hit me:

I have become far more interested in debt freedom than in a nice car, house or clothes. I like knowing that while we do not have a whole lot in this world, but that we are not living beyond our means, either.

And I would not trade that place of contentment for the best house on the block. There are people all around us who own really nice stuff, but that stuff only ends up being a source of worry. Isn’t it interesting to look back on one’s life and realize that you were just as happy before you came across certain luxuries than before you got used to having them around? I recently purchased a new computer to use for blogging, homeschooling, etc. The one I purchased is not extravagant, but it is probably the most expensive thing that we own outside of our car. The other night I thought about what I would do with that desktop computer if, for some reason, we suddenly had to pack up and leave and all we could take with us was what would fit in our car – and my thoughts went immediately to that computer. How could I fit it in? Would it fit under a seat? Boy, it would be a shame to leave it behind! I am always puttering with it and warning the kids to stay away from it if they are eating or have dirt on their fingers . . .

Good grief! That pile of circuits and wires is a useful tool, but I am not sure that I can take the stress of ownership!

I want to heed the warning of Ecclesiastes 5:10-20:

Whoever loves money, never has money enough; whoever loves wealth is never satisfied with his income. This too is meaningless. As goods increase, so do those who consume them. And what benefit are they to the owner except to feast his eyes on them?

The sleep of a laborer is sweet, whether he eats little or much, but the abundance of a rich man permits him no sleep. I have seen a grievous evil under the sun, wealth hoarded to the harm of its owner, or wealth lost through some misfortune, so that when he has a son there is nothing left for him. Naked a man comes from his mother’s womb, and as he comes, so he departs. He takes nothing from his labor that he can carry in his hand.

This too is a grievous evil: As a man comes, so he departs, and what does he gain, since he toils for the wind? All his days he eats in darkness, with great frustration, affliction and anger.

Then I realized that it is good and proper for a man to eat and drink, and to find satisfaction in his toilsome labor under the sun during the few days of life God has given him—for this is his lot. Moreover, when God gives any man wealth and possessions, and enables him to enjoy them, to accept his lot and be happy in his work—this is a gift of God. He seldom reflects on the days of his life, because God keeps him occupied with gladness of heart.

And be more like Matthew 6:25:

Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes?

Article by Stew

Photo by yachtfan

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I think the above statement most readily applies to government, but I know there are some folks out there who think that government does not have enough money . . .  Politics aside, how often do we think, “Boy, if I would just win the lottery,”  or “I wonder if I am in somebody’s will?” or, “if I could just find something around my house that would sell for five figures on Antique Roadshow, all my money troubles would be over!”

But will more money smooth your financial road? The truth is that one in three lottery winners will go broke withing five years and one of the most difficult challenges for professional athletes is the transition from being broke to great riches in just a few years. Purchasing a lottery ticket probably demonstrates poor financial decision making skills in and of itself.

As I walk through life, I observe that some of the wealthiest people pry money out of their wallets with great effort. They drive humble cars and live in houses that are comfortable but not extravagant. In contrast, many folks who have “flashy” riches often deal with major debt behind closed doors or their financial lives follow a cycle of boom and bust. When their income stream is full, they live high on the hog, never thinking that their income might change in the future.

Luke 16:10

Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else’s property, who will give you property of your own?

If one cannot handle the few pennies that are in his possession right now, how can he be a good steward of quarters and dollars in the future? If you struggle with debt and overspending, more money will compound and multiply your struggles. However, in this passage, Christ is not just speaking of financial wealth, he is explaining that we have all been entrusted with assets in this life. We all have something that we bring to the table. And if we want more, if we desire greater responsibilities, his question to us will be: “What are you doing with the things that I have already given you?”

Article by Stew

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My wife and I are between churches right now. We have been visiting different local assemblies throughout the fall we are close to making a final decision about the congregation that we will join. Last week we had one of the pastors over for dinner. In the course of our conversation, he made an interesting statement. He said:

I believe that a believer should not have 401K’s, IRA’s or any other type of retirement account.

At first I was a little taken back, but then I started to think about many of the promises that we find in Scripture – like the Apostle Paul’s admonition to a young pastor in I Timothy 6:8:

But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.

How about the story of the rich man in Luke 12?

Then he said to them, “Watch out! Be on your guard against all kinds of greed; a man’s life does not consist in the abundance of his possessions.” And he told them this parable: “The ground of a certain rich man produced a good crop. He thought to himself, ‘What shall I do? I have no place to store my crops.’”Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store all my grain and my goods. And I’ll say to myself, “You have plenty of good things laid up for many years. Take life easy; eat, drink and be merry.” “But God said to him, ‘You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?’ “This is how it will be with anyone who stores up things for himself but is not rich toward God.”

If we take these verses literally, we have to say that “Pastor Jim” might be on to something. It kind of shatters our worldview as Americans, but read this next part carefully:

Then Jesus said to his disciples: “Therefore I tell you, do not worry about your life, what you will eat; or about your body, what you will wear. Life is more than food, and the body more than clothes. Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds! Who of you by worrying can add a single hour to his life? Since you cannot do this very little thing, why do you worry about the rest?”Consider how the lilies grow. They do not labor or spin. Yet I tell you, not even Solomon in all his splendor was dressed like one of these. If that is how God clothes the grass of the field, which is here today, and tomorrow is thrown into the fire, how much more will he clothe you, O you of little faith! And do not set your heart on what you will eat or drink; do not worry about it. For the pagan world runs after all such things, and your Father knows that you need them. But seek his kingdom, and these things will be given to you as well. “Do not be afraid, little flock, for your Father has been pleased to give you the kingdom. Sell your possessions and give to the poor. Provide purses for yourselves that will not wear out, a treasure in heaven that will not be exhausted, where no thief comes near and no moth destroys. For where your treasure is, there your heart will be also.

There are many more passages that emphasize this idea, more than we can discuss here. Basically, Pastor Jim was saying that we need to claim this promise of God. IF we are believers, true followers of Christ, instead of saving money for a comfortable retirement, we will trust Him and use that money to care for our neighbors and especially our church members in need.

I call this idea “radical faith”. At least it sounds radical to our way of thinking, but is he right? What if we have grown too dependent on the easy wealth that surrounds us? What if our faith muscles are so weak that we no longer trust clear promises from God’s Word?

Article by Stew

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Everybody is looking for ways to make extra money these days. Since I started working for money around age 12 or 13, I have always had several streams of income. Someday, I hope to be able to live on a 40 hour workweek . . . someday. But until that happens, here are some extra ways to make some cash. Keep your eyes open, be creative, find something that works for you.

1. Yard Work – Many people are looking for help with various jobs around the home. Mowing, shoveling, weeding, cleaning out roof gutters, raking and more are all ways to generate money for your budget. How can you get these jobs? You can post your card or a flier at your local hardware store or laundromat. Another way to get work is to volunteer to help out a senior citizen with their work and let word-of-mouth do the rest. The thing about yard work is that there are no set rates and it will not pay the same as your regular job, but extra money is extra money . . .
2. Blogging – Publishing a blog is easy, but sticking with it over the long haul is difficult. I did not generate any serious income from blogging until I had been doing it for over a year and half. However, blogging can be a reliable source of income if you have the ability to write, post interesting content and keep at it.
3. Sell stuff on Ebay or Craiglist – I used to sell things on Ebay, but lately, Craiglist has really worked for us – both in selling and buying. Look around your house, I am sure that we all have things we can sell. Kids clothes, furniture, electronics,  power tools, even coupons can be sold online for very little hassle or up front investment on your part.
4. Babysitting – I know, you have not babysat since you were fourteen . . . but if you are a stay-at-home-mom, let your friends know that you are willing to take in a child or two during the day. There are many working mothers who prefer that their child is in a home rather than an institutional daycare. Mrs. Stew makes a lot of extra money this way.
5. Sewing and alterations – Sewing is somewhat of a lost art, but if you are one of the few with talents in this area, let others know! There is always sewing to be done in conjunction with weddings, find a couple of those and you will be in good shape.
6. Window cleaning - This job might fall under the yard work category up above, but most homeowners despise window cleaning and many lack the equipment necessary. If you have a ladder, you can be in business. A Saturday of window cleaning could really jump start your debt reduction or emergency fund savings.
7. Painting - Painting is another one of those love-hate jobs, but if you are willing there is no end of work. I recently helped a couple paint their rental apartment and soon realized that my painting experience could someday be a real moneymaker.
8. Cleaning houses – This is another job that Mrs. Stew used early in our marriage to make extra cash. It was a little shocking to me to realize the number of people who want nothing to do with cleaning their own homes. If you need cash, a little mopping and vacuuming could be just the ticket.
9. Crafts – This is not my cup of tea at all, but Mrs. Stew has several friends who make crafts and accessories to seel on a website called Etsy. If you are crafty, you might be able to spin straw into gold . . .
10. Home shows – Once again, this is not my thing, but there are many people who sell really useful things like kids books, cooking utensils, vitamins and through home parties. If you find a product that you are passionate about, you might be able to take advantage of this alternate stream of income.
11. Photography - People are finding that studio photography is out of their reach, furthermore, many want pictures taken outside. The age of digital photography has made picture taking accessible for all of us. If you can develop a reputation, you can make money in evenings and weekends.
12. Haircuts – This might work better for college students, but at the college I attended, there was at least one guy or girl in every dorm who had a pair of clippers and could cut hair. For some of them, this was the only employment they had all the way through college. Think about it, maybe it is an idea that could work for you.
13. Pet care – Walking dogs, picking up yard waste, giving baths, changing bedding and cat boxes. Pets come with a lot of work and there are a lot of pet owners who would not mind spending a little money to avoid some of those responsibilities. I am not a big fan of pets, but pet care might prove to be a way for you to earn some “walking around” money.

If I know GLBL readers, a few more ideas are on the way – feel free to add to the list by leaving a comment.

Article by Stew

Photo by Tim in Sydney

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This article is just one of more than 10,000 blog articles being published on the internet today as part of Blog Action Day. Our efforts will reach an estimated 10.9 million people.  The entire M-Network is participating and writing articles to participate in this incredible effort to have a positive impact on poverty.

Poverty (also called penury) is deprivation of common necessities that determine the quality of life, including food, clothing, shelter and safe drinking water, and may also include the deprivation of opportunities to learn, to obtain better employment to escape poverty, and/or to enjoy the respect of fellow citizens – Wikipedia

Around the world, more than 1/2 of the human population lives in poverty conditions.  World Bank defines extreme poverty as living on less than a dollar a day and moderate poverty under two dollars per day.  World Bank estimates that in 2001, 1.1 billion people had consumption levels below $1 a day and 2.7 billion lived on less than $2 a day.  That’s 3.8 billion people in the world living in moderate poverty or below…3.8 billion.

Our responsibility

Regardless of their situations, regardless of their reasons, it’s our responsibility to help.  Too many times people look to government programs to assist with things like food stamps.  It’s not enough.  We need to help.  Here are just a few of the many Bible versus that encourages Christians to to make a difference:

• “Jesus answered, If you want to be perfect, go, sell your possessions and give to the poor, and you will have treasure in heaven. Then come, follow me.’” – Matthew 19:21
• “For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in.” – Matthew 25:35
• “On the contrary: If your enemy is hungry, feed him; if he is thirsty, give him something to drink. In doing this, you will heap burning coals on his head.’” – Romans 12:20
• “If anyone has material possessions and sees his brother in need but has no pity on him, how can the love of God be in him? Dear children, let us not love with words or tongue but with actions and in truth.” – 1 John 3:17-18

What can we do?

The options are almost limitless and only limited by your ability and self restrictions.  We met some people in Guatemala that literally sold their home, quit their jobs, sold all of their possessions and came to live in Guatemala to help families in need.  They literally followed the instructions given by Jesus in Matthew 19:21.  On the other hand you can give money to reputable charity organizations.

Shanty town in the Guatemala City dump

The worst thing you can do is to struggle with what to do and take months to make a decision.  Don’t think, don’t wait, just act.  Allocate a category in your budget to giving and give.  Personally, we give through our church who through missionary programs helps families, children, and charitable organizations throughout the world.  While in Guatemala, we gave away far much of the money we brought with us.  Many times I just couldn’t say no, the conditions we saw we heart wrenching.  My wife and I still think and talk of moving to Guatemala once our children are grown and starting a home for children.

Here are just a few of the many small things you can do to make a difference:

• Give to your local Church. Most churches have missionary programs that support and fund that have positive impacts on poverty stricken and needy people all over the world.   Not sure if your church does this?  Ask.
• Give through organizations. Not the church going type?  There are many many different organizations throughout the world that focus on helping with poverty.  Here is just one list.  Doing a Google search for poverty organizations yields more than 20 million results!  Do your homework though, not all of these do what they say they do.
• Sponsor a child. Chelsey wrote a guest post for me about a child she sponsors named Lisbet.  Sponsoring a child is an awesome way to make a positive difference in a child’s life.  The great thing about his program is that you get to develop a personal relationship with that child as well.  You can see the difference you are making.  We are in the process of sponsering two children, a boy and a girl thanks to Chelsey’s article.  I’ll post about it as soon as I know more.
• Adopt a child. We did this in 2006.  We adopted a little girl from Guatemala who’s mother couldn’t afford to support her.  We not only potentially saved her life, but she has made a significant positive impact on ours.  Honestly, I’m not sure sometimes who got the better end of the deal…most of the time, I’m pretty convinced it was us.
• Go on a missionary trip – Our church routinely has missionary trips.  Primarily to Haiti but to other countries such as Spain, Guatemala, and Mexico to name a few.  These trips have very clearly defined goals, like building homes, repairing homes, fixing churches or building mission buildings.  I’ve seen the pictures from these trips and the impact is huge.

Again, these are just a few of the many many different things you can do.  Want to make a difference, pick one like sponsoring a child and just make it happen.

“Dear children, let us not love with words or tongue but with actions and in truth.” – 1 John 3:18

I’d encourage you to make a commitment today to make a difference.  I’ve heard it said that by putting something down in writing, you’re far more likely to do it.  How about adding a comment and in it making your commitment on what you will do to make a difference.  Have a great idea for helping out with poverty or know of an organization you really like?  Add it in a comment.  I’d like this article and your comments to be a beneficial source for people searching for what they can do to help others.  Add to the value and add a comment!

Links to other M-Network member’s blog action day articles:

• blog action day – poverty @ Plonkee Money
• Blog Action Day: Bloggers Unite Against Poverty and How You Can Help @ Being Frugal
• Fighting Poverty in America and Abroad @ Cash, Money, Life
• War On Poverty (Blog Action Day) @ Moolanomy
• http://www.mrsmicah.com/2008/ 10/15/blog-action-day-the- little-we-do/ @ Mrs. Micah
• Blog Action Day 2008 – Talking About Poverty. @ My Two Dollars
• War On Poverty (Blog Action Day) @ Moolanomy

Other blogs from my blogroll participating:

• Blog Action Day: Poverty
• Learning to Give: What *I* Can Do to Fight Poverty
• Blog Action Day: Why I Think the Internet Is Key to Combating Poverty
• Reflections on Poverty – Blog Action Day 2008
• How the US Military Fights Poverty Worldwide @ Military Finance Network
• Teach a child to save a generation @ The One Caveman
• God is calling you to sponsor a child @ Brown Eyed Basics
• I Want A Kid @ Debt Kid
• Blog Action Day 2008: Poverty @ Bible Money Matters
• Giving to the poor @ ChristianPF
• Poverty in the United States – Blog Action Day 2008 @ PTMoney
• How You Can Reduce Poverty with $25 (Blog Action Day 2008) @ Green Panda Treehouse
• Fight Poverty: Donate to Food Banks @ Blueprint for Financial Prosperity
• Blog Action Day 2008 – Poverty @ My Investing Blog

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James 1:12 – Blessed is the man who perseveres under trial, because when he has stood the test, he will receive the crown of life that God has promised to those who love him.

Mark collapsed in his desk chair. What a day, he thought. His project at work was late, 2 weeks late to be precise and his manager was not happy about it. She had made that very clear to him during a meeting earlier today. Driving home had taken him more than an hour due to an accident on the freeway. Under normal circumstances, the drive would take less than 20 minutes. He missed dinner with his family, something he always look forward to and cherished. Instead, he had just finished eating the microwaved leftovers by himself.

To top things off, he once again was unable to mow the lawn as it was dark once he finally got home and had dinner. He was only about 2 weeks behind on it and was expecting a “reminder” letter from the HOA any day now.

Looking towards the desk, he spotted the checkbook, and next to it a huge pile of bills just waiting to be paid. Mark had put “bill night” off as long as he could. A few were already overdue and a few others due within the next day or two.

Turning on the fluorescent desk light, he began opening each one and adding them up…

1. HOA Letter reminding him to mow his yard – figures he thought to himself. Sighing, he tossed it in the trash
2. Samson’s Workout World – $90 ($40 for last month – he had forgot to pay, $10 late fee, and $40 for this month). Funny thing was, neither him or his wife had been there in 6 months. They kept meaning, just never had the time.
3. Ford Motor Credit – $520 (Total Balance $15,000) – They had purchased a new SUV last year
4. Southeast Hospital – $1,600 (for his daughter Sarah’s stay in the hospital 6 months ago)
5. Visa – $300 (Total Balance: $8,312)
6. Discover Card – $119 (Total Balance: $3,217)

“Wow, this doesn’t even include the mortgage!”, he said out loud to himself. He opened his paycheck he had received earlier that day and winced as he looked at the amount. His check wouldn’t even cover the minimum payments.

He sighed, knowing he now had to do the thing he had feared most, “Samantha? Honey, we need to talk…”

**********

Mark is in what I like to call, financial chaos. Not only is his personal life stressful and hectic, his finances are a mess making his level of stress exponentially higher. He has more incoming than he has outgoing. He’s facing bills that are falling behind, late fees and way he’s in way too much debt. To top it off, he had a bad day at work, a terrible drive home, missed dinner with his family, and now he has to tell his wife they can’t make the minimum payments on all of their bills. Mark and Samantha are being tested. Ever been in their shoes? Does this maybe all sound too familiar?

Mark and Samatha have two options for how to handle their situation (note: I didn’t say Mark’s situation) :

1. They can get angry, ask God why he is letting this happen to them and wonder why their non-Christian neighbors get by just fine. This is what most people tend tend to do. They pray and don’t change their behavior at all, hoping that God will just make it all away. But we don’t change one bit.
2. Understand that God tests our faith and gives us what seems to sometimes be unsurmountable problems but never gives us more than we can handle (1 Corinthians 10:13). How we handle the test is really what drives us to success and allows us to follow the path that God is trying to lead us down.

We as humans, have a tendency to want to blame everyone but ourselves for our problems including God. How often have you asked God why He was allowing some bad thing to occur in your life? Shamefully, I have, far too many times.

When the storms of life began to blow a little harder than we are comfortable with, instead of becoming angry or frustrated, we need to realize that the situation is most likely a test. A test designed to see how we will react. A test designed to test our faith and the strength of our relationship with God. God does indeed test us, and does so to increase our faith. 1 Thessalonians 2:4 says “On the contrary, we speak as men approved by God to be entrusted with the gospel. We are not trying to please men but God, who tests our hearts.” Deuteronomy 8:2 reminds us that God also does this to humble us and better know us, “Remember how the LORD your God led you all the way in the desert these forty years, to humble you and to test you in order to know what was in your heart, whether or not you would keep his commands.”

When we are tested we two options, pass or fail. Who wants to fail God? I certainly don’t. Each time you face a trial or difficult time in your life, ask yourself is God testing me? Chances are He is. Don’t fail Him and look at the trial as a chance to learn and strengthen your relationship with him. God has a plan for everything that occurs in your life, regardless of how big or how small, and that plan is always in our best interest.

Going back to personal finance, God wants us to be good stewards with out money (Luke 16). Luke 16:10 tells us – “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much“.

Make every effort to be a good steward and to pass the tests, trials and tribulations (James 1:2) you may face daily.

So what happened to Mark and Samantha? Let’s find out …

**********

Mark informed Sarah of the bad news. It wasn’t a pleasant conversation, but fortunately, this chaotic financial moment became the turning point for their finances. They decided to pass the test and show God they could be good stewards of their finances. The recognized that their “I want it now” mentality was the ultimate cause of their financial situation. They realized their situation was a way of God teaching them good stewardship and to help them get on a better path. That evening, they recognized they were the problem. They decided to work on their finances together, they developed a budget, to hold each other accountable, and to reduce their expenses to live on less than they earn.

The next morning, Mark listed their the new SUV they had purchased on Craigslist and sold it that week. They owed more on it than it was worth and had to borrow some money to pay the difference, but owing $2,000 was better than owing $15,000.

Mark got a second job working at UPS in the evenings. They took the first UPS paycheck and got current on their bills. They then saved up a $1,500 emergency fund and developed a debt snowball. They began paying as much as they could on their debt. A few weeks later they realized the house they had was just too way too much for them, so they sold it and bought a smaller home a little further out of the city that was significantly cheaper. They found the smaller home was really nice, as it required less upkeep and allowed them to spend more time with themselves and their children.

Two years later, Mark and Samantha signed the check that would pay-off their Visa card, their last debt. They had a nice home that was well within their means, two payed for used cars than ran well, and a ton of spare money each month they could allocate to their 401k savings program and their 6 months emergency fund. Both of them made a number of sacrifices during that two years. They didn’t eat out much and spent more time at home. They never stopped tithing and continued to tithe 10% each month. It was hard, but they did. Mark and Samantha both agreed it was worth the effort. The freedom they now felt could not be explained in words.

Mark and Samantha passed the test, will you?

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No, I haven’t completely lost it, nor is GLBL going to become a blog on the 1-series BMW all of the sudden.  I’m not going to buy a new BMW 135, but I sure would love to. I would be lying though if I told you all of the thoughts above haven’t crossed my mind in the past few days. These same thoughts have also caused me to do a little self interspection and think about what it is about cars in general I like so much.

I think it really boils down to a vice. No, not the kind of vice that you hold a piece of wood or metal in, a mental vice:

From Wikipedia: vice can refer to a fault, a defect, an infirmity, or merely a bad habit.

I don’t really have many vices, but unfortunately I have one that is rather expensive and to top it off one that leans strongly towards quickly depreciating assets (i.e. cars).  I’ve liked cars as far back as I can remember.  My obsession with cars is most likely all my Dad’s fault, as I think it’s inherited (Sorry Dad, but it’s true! – Yes he reads this blog)

Other than cars my other vices are fairly minor. I like gadgets and books. That’s about it really. Of course gadgets can be expensive, but fortunately as I aged a bit, the appeal of these is tapering a little. I don’t smoke, I don’t drink , I’m not a big shopper, and I’d rather eat at home than out (my wife is a great cook).

Anyway, I’m far too disciplined in my finances and self management now to make a stupid financial decision like going out and buying a new 1-series. But that inner “live for today” voice along with genetic car vice like to gang up on me far too frequently. It’s a constant battle to fight them off, especially when I feel like everyone around me is driving a new car, and here I am cruising around in a 120,000 mile 2001 Nissan Sentra.  I mean, what might they think about me?

Did I mention the 135 has a dual turbo charged inline 6 and is estimated to go 0-60 in 5.2 seconds?? Maybe I can be patient and pay cash for a used one in 10-15 years…hmmmmm.

What financial vices do you struggle with? What vice rears it’s ugly head in your life far too frequently?  Post a comment!

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19% – Segment of the 2006 US Economy involving cash

Visa U.S.A Inc. recently conducted their annual consumer spending survey. Overall, respondents said that they prefer electronic transactions to traditional paper money and checks.

Visa’s chief economist Wayne Best said that 79% of baby boomers and 74% off echo boomers (the children of baby boomers) believe that the U.S. economy will be cash free as early as the next decade.

According to Best, during the past 10 years, check usage has declined from more than 1/2 of all monetary transactions to less than 1/4 today. Boomers will account for 46% of the 15 trillion U.S. economy in 2015. This is a huge percentage of consumers wanting to make the shift from cash to electronic.

Visa is recommending that retail operations aggressively review all cash-processing operations and shift to electronic exchanges. Best says that in 1996, 2% of adults used debit cards. Today, 75% of adults do. This is a radical shift and further backs up the Visa’s claims.

With that being said, I think we have to take these numbers and claims in context: All of the numbers are from Visa. Visa doesn’t make money on cash and it would of course be in their best interest to move all financial transactions from cash to electronic. Are their claims overstated, yes most likely; however, I do believe that people are moving to electronic transactions.

I know I am, it’s just easier. I use my debit card for most all purchases as I seldom carry cash with me. A debit card takes up less space, is easier to use and allows me to automatically track my expenditures using online banking. From a different perspective, it also has major environmental benefits causing a significant reduction in paper.

What do you think? Is cash on the way out? How would you feel without cash in the U.S Economy? Comment below with your thoughts or just contact me.

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Getting out of debt is much harder than getting in debt. I know, I know that’s obvious right? Well sure it is. The problem is people don’t seem to think about it when they overspend, buy things they don’t need, and live for the moment.

We live in a “I deserve it now, therefore I’m getting it now” world. Living this way is not honoring God first with your wealth. Deuteronomy 8:17-19 says: “Otherwise, you may say in your heart, ‘My power and the strength of my hand made me this wealth.’ But you shall remember the LORD your God, for it is He who is giving you power to make wealth…It shall come about if you ever forget the LORD your God and go after other gods and serve them and worship them, I testify against you today that you will surely perish“.

God expects us to be good stewards with our money, and if we don’t honor Him and acknowledge that all income and weath we may have come from him, than the outcome won’t be pleasant. Deuteronomy 8:18-19 is a stark reminder that we should not forget where our money comes from and is a warning of what can happen when we do.

As part of honoring God and being a good steward, my wife and I have been working very hard to eradicate our debt. Next to making more money, the best way to do that is to prune your expenses. Here are 7 things I’ve done to do just that:

1 – Eating lunch in the food court

We have a really nice food court in the building where I work. There’s an Italian place, a Chinese restaurant, a fast food chain, and a chain hot sandwich shop. It is so tempting to just grab something to eat downstairs and bring it back to desk. The problem is, it’s expensive. I like eating at the hot sandwich place, as they have really great salads. The salads are $5.00. On average, I work about 20 days a month. If I eat there everyday, that’s $100/month or $1200/year. So I stopped. I now pack my lunch, and only eat in the food court maybe once or twice a month.

2 – Starbucks coffee

We also have a Starbucks coffee shop in the building. Not to mention the 2 that I pass everyday on my way into work. I absolutely love Starbucks coffee, the smell, the taste…But again, it’s expensive. Even to get just a basic Grande size coffee (as opposed to the more gourmet coffees likes the Latte’s, Cappucino’s, etc.) is $2.00. Assuming you get 1 coffee per day for 20 days, that’s $40.00/month or $480.00/year.

I buy Starbucks pre-ground at the grocery store for about $8.00. Two bags last me a month, so that’s $16.00 per month instead of $40.00. It doesn’t taste exactly the same, but good enough for me.

Yes I know, I could drink Folgers or Maxwell House and get it much cheaper, but I enjoy my coffee and it’s one thing I am willing to spend a little more money on.

3 – Avoid places where I tend to spend money

I wrote a full article on this the other day. But just by avoiding places where you tend to spend money, you can save a great deal of money, and have less stuff which is always a good thing.

Only go to the store when you need something and bring a list. Only purchase the items on the list. If you’re bored one day, don’t go to the mall, go the park, visit a friend, but avoid the stores!

4 – RV Camping

We love to camp and particularly love to camp in an RV. I am just not a tent camping kind of person. I like the outdoors, don’t get me wrong, but only when I can close the door and avoid the nasty side of the outdoors (rain, bugs, critters, etc).

We have had a travel trailer (a pull behind camper) for about 12 years. We made it a habit to try to go camping at least once a month. It was great family time.  We enjoyed seeing new places and the adventure of staying in remote locations. Not to mention it’s nice to just bring your own home, bathroom and kitchen with you.

The problem is RV Camping is expensive. Pull behind campers for the size we need run about $15,000 – $30,000. They depreciate like nothing I have ever seen. Camping runs about $30 – $70 per night. Add to that insurance, items required for the camper, well you can see where I am going with this. Oh, and I forgot, you have to have a big vehicle to pull it.

We sold our camper and the Dodge Ram Diesel pickup truck I had to pull it. It freed up more than $700.00 a month for us. We’ll go back to it, but we’ll be a great deal smarter the next time. Anyway, this saved us $700.00/month or a whooping $8400/year!!

5 – Renting Movies

We have all put stopped renting movies. Every so often we’ll watch one and when we do we usually just order it through our cable provider where they are cheaper. We used to rent 2-3 movies a weekend, which works out to be about $48.00/month or $576.00/year. Instead of watching movies, we watch various TV shows, or just turn the TV off altogether and read, work our our hobbies, or head outside with our kids.

6 – Watering the Yard

Not sure about yours, but my yard looks terrible. It’s all dried up and yellow, and I now have more dirt than grass. In the spring it looked like a golf course, now it looks like a desert. The same cycle occurs every year. Spring, re-seed, fertilize and water…grass is beautiful and green. Summer comes, grass burns up and dies. Fall, re-seed, fertilize and water…grass is beautiful and green until it goes dormant for the winter.

What a waste. Every summer, we are under water restrictions, and frankly watering my lawn really cranks up the old water bill. To the point of doubling it.

I am tired of fighting and endless battle, so we stopped watering it. I’ll still do some basic maintenance and watering in the fall and spring as we live in a neighborhood and I respect my neighbors enough to keep the yard looking nice, but I refuse to work so hard and pay so much money for it. It just isn’t worth it.

By not watering my yard every night, I save about $40/month or $480/year on my water bill.
7 – Buying generic brand clothing

In the past, I always purchased brand names. Not for vanity reasons, but because I thought the quality was better. In same cases this is true. For example, I have had a pair of Doc Martin dress shoes for about 6 years. I wear them practically everyday. They are reaching the end of their life, but have been an incredible pair of shoes. I mean 6 years!

In general though, you can get just as good of quality from non-name brand versions. I now own 2 pairs of Sam’s Club member mark jeans. They are in the closest next to my Levi’s. My Member’s Mark fit better, have heavier material and seem to wear far slower than the Levi’s. I have worn Levi’s all of my life, but no more. Member’s Mark for me going forward.

I am not sure of the savings per month, as I don’t buy clothes for myself monthly. But I would suspect just comparing item to item cost, I have cut my clothing expenses in 1/2. So being conservative, let’s assume I spend $500/year on clothing, I now only spend $250. That’s $21.00/month or $252.00/year.

Using these numbers, but following these 7 steps, I now save at least $949.00/month or $11,388/year!!!! Those are huge numbers. I say at least because I really can’t account for how much I have saved by avoiding places I like to spend money.

Take a long hard look at your expenses. Look for any opportunity you can to prune your expenses. This might involve making some really hard choices, like we had to do with our RV. Sometimes you have to sacrifice in the short term to gain in the long.

What have you done to reduce your expenses? What tips can you provide to other readers? Jump in, we would love to read about your ideas!

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Let’s face it, getting out of debt requires a great deal more time and effort to get out of debt than it does to get into debt. Getting out of debt is not an easy or quick process. To be honest, it seems to take forever and it’s hard…real hard.

Contrary to popular belief, the bible does not teach that debt is evil or sinful; however the bible is pretty clear that debt is not advised. In Romans 13:8 it says we should “let no debt remain outstanding“. Here are some some key steps you can take right now to “let no debt remain outstanding“:

1. Cut up your credit cards

If you don’t have them, you can’t use them. If you keep using your credit cards, and keep racking up debt you can’t pay back. Cut up your cards. Matthew 18:8 – If your hand or your foot causes you to sin, cut it off and throw it away.

2. Pay more than the monthly minimum on one card

If you pay on the minimums on yours cards each month, it will take you a very long time to payoff your card. Not to mention you will pay an incredible amount of interest. Trust me, the credit cards companies know this, and they love people who pay minimums.

Let’s say you have a $5000.00 balance on an 18% interest rate card and you pay the minimum of $200 per month (about 4% of the balance). It will take you 12 and half years to payoff this card completely. You will also pay the credit card company almost $3000.00 in interest when all is said and done.

Here’s the catch though, that’s assuming you don’t use those cards anymore and that you pay on time. If you don’t pay on time, your rate can significantly go up. If you continue to use the card and pay minimums you’re just making a bad situation worse.

At the very least double or triple your payment on one card. Even better, establish a debt snowball and work it aggressively. Be as passionate about paying off that debt as you were when you bought that big screen TV, new suit, furniture, etc. I would suggest paying on your card whenever you can.

If you want to see what your true cost is of paying the minimum, use this calculator.

3. Reduce your interest rate

Like most things in life, interest rates on debt are negotiable. Banking is very competetive right now. You can often get a reduced rate by just calling the credit card company or lender. Reducing your rate will reduce your payment, so don’t start paying less. What you are doing here is reducing the total amount you will pay, not the payment. No guarantees though, as some credit card companies won’t reduce it.

4. Transfer your balance to a lower interest rate card

If you are like me, you get at least 3 or 4 0% interest rate offers per week. Moving your balance from a high interest rate card to a low interest rate card is a good move. Be careful though, a number of credit card companies these days charge balance transfer fees around 3%-5%. Also be warned, that if you miss a payment during the 0% time frame your rate will go up to 18%+ rates immediately.

I advise moving to a new 0% card in under one condition, when you get the new card, you cut it up immediately.

5. Pay your debt bills on time

As i have already mentioned above, not paying your bill on time can really cost you. Not only will the credit card companies frequently increase your interest rate, they will also charge you a late fee. If you miss payments too many times or not pay within 30 days, your credit can be effected.

Regardless of whether it is a credit card, or utility bill, car payment, or mortgage make sure you pay your bills on time. Late fees are just a tax on not being organized. There is really no excuse in today’s world with electronic calendars, cell phone reminders an online bill pay services.
6. Don’t blow your windfall money

Receive a big tax return, or get a surprise bonus from work? Don’t go and blow it on the latest gadget, clothing, or whatever else you want (but don’t need). Use it to payoff your debt. Taking these unexpected (or even expected) windfalls and paying against your debt can make huge dents in something that often seems overwhelming.

If you are in debt and use cash that you have to purchase something, it’s the same as purchasing it on credit. “Huh?” you say? Well, you are keeping that amount money in debt and you continue to pay interest on it, rather than paying it off, it’s the same as borrowing the money off the card. No different.

7. Increase your income

To free up money in your budget, you have two options: 1) Decrease expenses or 2) Increase your income. Given you are in debt, while you might be able to decrease your expenses some you might make a much bigger difference increasing your income.

Some ideas to do this are: Get a second job, have a yard sale, sell stuff on eBay or Craigslist, make money blogging or business, start a small side business with your hobby. Proverbs 14:23 says “All hard work brings a profit, but mere talk leads only to poverty“. So go work hard and apply those profits to your debt!

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