Your Brand Plan for business and career - Personal Finance http://www.yourbrandplan.com/forum/ Financial management content feeds from some of the best and a forum where you can share. en Thu, 17 May 2012 09:21:57 GMT vBulletin 60 http://www.yourbrandplan.com/forum/images/misc/rss.png Your Brand Plan for business and career - Personal Finance http://www.yourbrandplan.com/forum/ Young widow http://www.yourbrandplan.com/forum/personal-finance/51118-young-widow.html Wed, 16 May 2012 12:53:27 GMT I became a widow at the age of 41 with 3 kids. We were not prepared, it was an unfortunate accident and now at the age of 47 I am having to put myself through college (have an Associates, working towards Bachelors) and work part-time. We had insurance monies but not enough to cover all debt and I... I became a widow at the age of 41 with 3 kids. We were not prepared, it was an unfortunate accident and now at the age of 47 I am having to put myself through college (have an Associates, working towards Bachelors) and work part-time. We had insurance monies but not enough to cover all debt and I listened to some bad advice about investing versus paying off debt and lost nearly all of the investment. My 25 year old daughter and I are currently enrolled in Financial Peace University. She is married with 2 kids and I don't want her to end up like me! I am happy to say I have paid off everything except my condo and feel very optimistic. I have my $1000 in emergency funds and have prepaid for a family vacation next month. I am working towards the ultimate goal of having 3-6 months of living expenses and 100% debt free! My favorite saying, other than Dave's, is to "Live Simply". I tell my friends and kids, if you can sell it at a garage sale, you don't need it! Thanks Dave, you are an awesome speaker and motivational force in my life.

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51118-young-widow.html Lost the amp, the ring, and the girl http://www.yourbrandplan.com/forum/personal-finance/51117-lost-amp-ring-girl.html Wed, 16 May 2012 12:53:27 GMT Too many of us musicians and artist-types have used a credit card to buy a guitar. Or an amp. Or groceries. And too many of us have been burned.Case in point: I was once foolish enough to buy a guitar amp with a credit card. (I get extra bonus stupid points for doing this at a pawn shop.) Of course... Too many of us musicians and artist-types have used a credit card to buy a guitar. Or an amp. Or groceries. And too many of us have been burned.Case in point: I was once foolish enough to buy a guitar amp with a credit card. (I get extra bonus stupid points for doing this at a pawn shop.) Of course I couldn’t afford to buy the amp. (Roland Jazz Chorus 77. Mint.) I was a starving college student. I was also 19 or 20 years old, and I’d recently received five or six credit card applications in the mail. I thought this was FREE MONEY! Being young and ignorant, I responded accordingly, applying for every card I could get my hands on. And every card I received felt like a blessing.How wrong can a guy possibly be?Anyway, back to the amp… after taking it home, playing it for a few months, and using it to earn a grand total of exactly $0.00, I decided I was in love with a woman. I took the amp back to the same pawn shop and hocked it for a diamond ring.Two months later, when the relationship ended and I took the ring back to the same pawn shop, they were happy to buy it back from me. For 50% of what I’d paid for it.They still had the amp, and I wanted it back. But I didn’t have the full amount. And guess what… they only would accept the minimum $15 payment OR the full amount. After a few months of minimum payments, I realized I would never get the amp back.So, in conclusion, I lost the amp. I lost the ring. I lost the girl. But I got to KEEP all of the credit card debt!That’s how this game works.So here’s my rant. Using credit cards = being in debt. For life. It means sending part of every paycheck to a credit card company. It means living life in debt.In contrast, being DEBT FREE = walking down the street with a smile. It means not worrying about how the bills are going to get paid. It means abundance, wealth, joy, and the ability to GIVE.I lived all of my adult life (from age 19 to age 41) in debt. Then I woke up, paid off all of my debt, CUT UP ALL OF MY CREDIT CARDS and closed every credit card account, built up an EMERGENCY FUND of six months worth of expenses, and now my wife and I are saving for a house. (Say it with me: We won’t even THINK about signing a contract until we have at least 20% down, and the terms will be a 15 year fixed mortgage with monthly payments that equal no more than 25% of total income. Until then, we wait, we work, we save, we stay in GRATITUDE for all of the abundance in our lives.)(NOTE: My wife and I both work for non-profit agencies. It took us almost two years of constant effort to get ‘debt free’. It was NOT the overnight cure that I’d hoped for. Much to my surprise, I’m finding that nothing worthwhile in my life IS a quick fix.)What’s happening today?When I get my paycheck each month, I don’t worry about “minimum payments” or “late payments” or “missed payments” to any credit card company. I laugh all the way to the bank. When I want to rent a car or buy an airline ticket, I use my DEBIT CARD. (If a company doesn’t accept my debit card, I don’t USE that company.) I like to pay CASH for things. I don’t owe anyone ANYTHING. Especially not a credit card company.And with all of the energy and passion that is freed up by releasing debt-related fears and worries, I have more energy for my music, for communing with nature, for connecting with my colleagues, family, friends, and loved ones. My life is simply fuller, richer, and more delicious than ever before!

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51117-lost-amp-ring-girl.html Door prize disaster http://www.yourbrandplan.com/forum/personal-finance/51116-door-prize-disaster.html Wed, 16 May 2012 12:53:27 GMT I had just gotten my first apartment and knew nothing about money or gimmicks. I graduated top of my college class without any money smarts. A local shopping warehouse was offering a free set of steak knives for attending an informational meeting. Mind you I had a one bedroom apartment and was... I had just gotten my first apartment and knew nothing about money or gimmicks. I graduated top of my college class without any money smarts. A local shopping warehouse was offering a free set of steak knives for attending an informational meeting. Mind you I had a one bedroom apartment and was making $5.32 an hour. I went to the seminar, got the knives, and bought a membership for $500! I couldn't afford to buy anything, anywhere, after that. And the knives didn't even cut all that well. Learned my lesson-paid the stupid tax!

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51116-door-prize-disaster.html Life After Baby Step #2 http://www.yourbrandplan.com/forum/personal-finance/51115-life-after-baby-step-2-a.html Wed, 16 May 2012 12:53:27 GMT Dear Dave,It has been a year now since we first shared our story with you about our journey through Baby Step #2 (What Baby Step #2 Really Looks Like). I wanted to write to you and let you know that my husband and I still continue on your plan; we are weird and in it for the long haul.As of today,... Dear Dave,It has been a year now since we first shared our story with you about our journey through Baby Step #2 (What Baby Step #2 Really Looks Like). I wanted to write to you and let you know that my husband and I still continue on your plan; we are weird and in it for the long haul.As of today, May 7, 2012, we are finally on Baby Step #4. My company offers a very competitive 401K plan where I am allowed to invest up to 14% of my salary with a 50% match. My husband’s company offers a less impressive plan, but we are taking advantage of those “free dollars.” We will both be fully vested by the end of this year. The rest of the money we need to save to hit the 15% retirement savings is now being socked away into a Roth IRA. We’ve been researching mutual funds like crazy on Morningstar.com to decide what to invest in. Before this step, I don’t think I could have given a good explanation of what “fully vested,” “mutual fund,” or “IRA” even meant.In our original story, I shared with you that we were expecting our first child. Good news, he is here and he is a healthy happy little man. His crib, highchair, bouncer and clothes are all gently used; his baby food is all homemade; and his diapers always are purchased with a coupon. I could also easily write a book about the things that are on the market that babies don’t need. After all of the saving, scrimping, and bargaining, he’s just as happy as those babies with the designer clothes and brand new $1,000 cribs.Luckily, we were able to finish our savings in Baby Step #3 before our little man arrived. We did such a good job at being “gazelle intense” that we were able to pay his medical bills in cash. We were happy to find out that when you pay in cash even the hospital will give you a small discount!We anticipate starting Baby Step #5, saving for our son’s college education, before the end of the year through a Coverdell ESA. I don’t want him to repeat my mistake and find out too late that school loans aren’t actually “good debt.”We have been so tempted to start on Baby Step #6, paying extra on the house, instead of saving for retirement, but hearing you talk about eating Alpo during our golden years has kept our priorities in check.So, what does this side of the fence really look like? A lot like before. We still take our lunches every day to work, date nights consist of staying home with a red box movie and we don’t think we will ever own something with a lower case “i” in front of it. We’ve shared our story with everyone who seems interested and we’ve purchased copies of your Total Money Makeover book so we can share the plan with others.During this half of the program we’ve been solicited to buy a lot of things ranging from a whole life policy for retirement savings to co-signing for a family member’s new car loan (we don’t even drive a new car). A lot of people assume since we are through Baby Step #2 that we have a ton of expendable cash (no, it’s not like we won the lottery), which is not the case for our family at this point. After saving for retirement, paying for healthcare and taking advantage of my employer’s FSA for dependent care, my paychecks are the same size as my first “adult” job 8 years ago. This helps us avoid the “We deserve it” mentality.I know a lot of people see your plan and focus so hard on getting through Baby Step #2 that they are ready to quit once that is done. I wanted to write in and encourage others to stick with it. Yes, in general, things haven’t changed much after Baby Step #2, but there are so many wonderful gifts that God has given our family through the plan:• He has given us peace of mind that at the end of the month all of our bills will get paid, and also for 3-6 months after that• My husband and I, not the bank, OWN EVERYTHING in our house and in our garage• Extra clutter in our lives was graciously donated or sold• We know exactly how much we need in retirement to maintain our current lifestyle• When quality giving opportunities come into our lives, it is easy for us to make donations• I didn’t need to pay for a mommy boot camp membership since we still don’t have cable and continue to watch our grocery budget• Holidays feel more meaningful when celebrated with love instead of gifts that need paid off later• Money fights don’t happen as often when you have a solid budget• Good friends/people will help you with your goals if you let them (Thank you to so many of our marriage, mommy, and financial mentors…you know who you are)The best thing that came about from your program, Dave, is that I am leaving my son with a good example of what hard work and knowledge can do to change a family tree. I suppose he will be happy if I leave him a little cash and a paid for education too.Congratulations to all of you, who have powered on through Baby Step #2 before us, and keep up the great work to all of those who are just getting started. Together, we can change not only our lives, but the lives of the next generation. Have faith in God, Dave and the plan…they have faith in you.Lori, Bobby, and Baby Logan FeilmeierOmaha, NEMay 2012

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51115-life-after-baby-step-2-a.html Shot myself in the foot http://www.yourbrandplan.com/forum/personal-finance/51114-shot-myself-foot.html Wed, 16 May 2012 12:53:27 GMT I have sold a ton of stuff since first hearing about Financal Peace in September. Really, I've sold every major item I can sell except two things. I came to Dave's site hoping to figure out if I should sell a couple fire arms at a loss. I paid retail price for both and have quickly learned that they are worth less than retail when I try to sell them. I still have a small vehicle loan and a huge student loan to pay off. I wish I had known Dave a long time ago - before I used my money to buy toys that didn't hold their value instead of paying down my debt.It seems, as I read these stupid tax stories, that I have one of my own.And now that yard sale season is here, the non-major items will be sold soon.

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51114-shot-myself-foot.html <![CDATA[We finally get to say "We're debt free!"]]> http://www.yourbrandplan.com/forum/personal-finance/51113-we-finally-get-say-were-debt-free.html Wed, 16 May 2012 12:53:27 GMT When my husband and I had first learned about Dave Ramsey and the Total Money Makeover, we had little idea what kind of financial trouble we were in. We were newly married, and indulged frequently in many of life’s little extravagances (shopping without limits, eating out several times a week,... When my husband and I had first learned about Dave Ramsey and the Total Money Makeover, we had little idea what kind of financial trouble we were in. We were newly married, and indulged frequently in many of life’s little extravagances (shopping without limits, eating out several times a week, buying new cars, etc.) When we went to church, we rarely would put anything in the collection basket. We lived frivolously and didn’t realize the dangerous path we were heading down. We had moved from Iowa to Illinois in our first year of marriage. We rented ourselves a cheap townhome and had planned on buying a home shortly after we got to know the area. It was Christmas of 2005 when we received the Total Money Makeover book from two of our dear friends. After reading it, I was so excited to get started on a budget (the typical “nerd”). My husband, the “free spirit”, was a little more reluctant, but agreed in order to “keep the peace.”We started off 2006 with $130,000 worth of student loan and new car debt. It was then we realized we were in no place financially to buy a home. When I wrote our first month’s budget, I had put $60 into our grocery fund! Looking back, I obviously had no clue where our money was going. We had multiple arguments that first year over the budget. I wanted to squeeze every last penny and put it towards debt, and my husband wanted us to at least enjoy life “a little bit.” I think my husband was sick of me preaching “but Dave says…”With God’s grace and hard work, we were able to work through our differences. I learned that I needed to give up my constant control over the budget. My husband learned to control his “buying impulses.” He even sold his beloved truck for an old Honda Civic with no air conditioning and no power “anything.” I think there were tears in his eyes when his friend drove off with his truck.We continued to live in cheap apartments in order to save money for a down payment on a home and pay off our debts. In 2008, we were blessed with a new baby boy. One week before I was to return to work from maternity leave, we closed on our first home with a 20% down payment. On our way to the closing, my husband was in a car accident. Luckily, he was not injured. However, the car was totaled, we were moving into our first home, and we had a 3 month old child to care for. I was not stressed in the least, however, because I knew we had our emergency fund in place and exactly what we could afford when getting us a replacement vehicle.Fast forward to 2012…Two children, ages 3 ½ years and 20 months old, a 15 year mortgage instead of a 30 year mortgage, and still working on paying off that last stubborn student loan. It took me 6 years of doing the budget to realize that in order to receive, that I also needed to give. At first, it was very difficult for me to start tithing, as I wanted so badly to FINALLY be out of debt. But I soon realized that the more we gave, the more God blessed us. My husband and I talk about the budget without fighting anymore. I will be able to go down to part time in June to spend more time with my two children. My husband found a job that he loves. We give more than we ever have, and we give cheerfully. And on May 6, 2012, 6 years after starting the budget, my husband and I were so proud and blessed to be able to finally say “We’re debt free!!”

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51113-we-finally-get-say-were-debt-free.html Why I Hate Credit Card Points http://www.yourbrandplan.com/forum/personal-finance/51108-why-i-hate-credit-card-points.html Wed, 16 May 2012 12:53:27 GMT


With few exceptions, I have no interest in rewards in the form of "points," "miles," or anything similar. (See also: Swipe Envy)

I've always felt this way, but I've been prompted to write this by a particularly annoying commercial. What sets me off is when the actor playing the customer talks about how his points are "like money in the bank."

Of course, my response is, "You know what's more like money in the bank? Money in the bank!"

Then he goes on to talk about how he can "spend" his points to get stuff he wants.

To which I say, "You know what else you can spend to get stuff you want? Money in the bank!"

(I actually do say these things — out loud, at the TV. So far, fortunately, my wife is managing to find my reaction amusing rather than annoying.)

When Points Are Worth It

There are two circumstances when taking points, miles, or any similar construct is a win: When someone else is paying (but you get the rewards), and when the company screws up.

When Someone Else Is Paying

The modern origin of these schemes is frequent flier miles. They were invented as a way to incentivize business travelers to chose a particular airline for their company-paid travel.

The issue was that business travelers had a lot of control over their business travel. Even within rules that required choosing the cheapest fare, the traveler had considerable influence, because they could control the details of when they could leave and when they had to return. If they wanted to travel on Airline X, it was easy to schedule meetings such that traveling on Airline Y would require an extra overnight stay or any extra day away from the office.

The reason there are so many complex rules about using and transferring frequent filer miles was to make it difficult for companies to insist that their business travelers use them for business trips or turn them over to the company.

But this is only an advantage when the person who's getting the miles isn't the one paying the fare. When you're paying for your own ticket, frequent flier miles are just a way to prepay for future trips that you may not even take.

A special case of this is when you can get your money back, but still keep the points. For a while there was a deal to let coin collectors buy directly from U.S. Mint at face value. People were buying coins with a credit card that offered miles, and then just depositing the money at their bank at face value.

When the Company Screws Up

It doesn't happen often, but sometimes a company will screw up. There was a famous case a few years ago where a company offered free travel for people who bought appliances. Unfortunately for the company, the people who designed the scheme got careless. They were thinking about large appliances like refrigerators, but wrote rules that let small appliances like vacuum cleaners and bread makers count. People quickly figured out the cheapest set of small appliances that would entitle them for the trip they wanted to take and bought those appliances in great numbers. The company ended the program as quickly as it could, but still ended up losing a lot of money.

Prefer Cash

Except for those special cases, you're almost always better off taking the cash — using a cash-back rewards card, or buying from a business that doesn't load you up with a stupid points-based rewards program.

I know some people parse these schemes very closely and find that there are circumstances where they can come out ahead. (See, for example: Credit Card Rewards Programs and Maximizing Rewards Programs with Points.com.) To a first approximation, I'm automatically doubtful.

I have a credit card that provides cash back. I could get one that provides miles instead. But I know that a credit card company that provides miles is buying the miles from an airline — and it wouldn't be doing so unless it's getting the miles for less.

The airline is glad to sell miles to the credit card company cheap, because it knows that it comes out ahead in a dozen different ways. It sets the rules for how much the miles are worth and when they can be used. Plus, it knows that most of the miles will go unused for months or years — and that some miles will never be used.

Even the people who do the careful parsing, and think they're getting their miles cheap, sometimes end up being unable to take the trip that they think they're getting such a good deal on — a work emergency or a family emergency or just a change in circumstance will force a change in plans, and there they'll be with a bunch of frequent flier miles.

Prefer cash. You can spend it on whatever you want, not just on whatever the firm that offers points or miles wants to sell you.

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Written by Philip Brewer and published on Wise Bread. Read more articles from Wise Bread.






More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51108-why-i-hate-credit-card-points.html Financial Lessons From Winnie the Pooh http://www.yourbrandplan.com/forum/personal-finance/51057-financial-lessons-winnie-pooh.html Tue, 15 May 2012 11:03:29 GMT


Remember Winnie the Pooh? I do — and not just for his honey-fuelled adventures with his friends in the Hundred Acre Wood. Even very small children seem to sense the substance behind A.A. Milne’s “stuffed-with-fluff” cast of characters. In fact, A.A. Milne once famously said that although the characters were based on his young son Christopher Robin’s favorite stuffed toys, he didn’t write Winnie the Pooh for children at all. And maybe that’s why a tubby, honey-loving little bear has continued to resonate with adults and children alike since he was first introduced in the 1920s.

Winnie the Pooh has a certain way about him that is both endearing and enlightening; what he learns in his adventures extends far beyond the confines of the cozy Hundred Acre Wood, creating a philosophy that applies to, well, just about everything. Here are some of his key lessons — and how they apply to Wise Bread’s major topic of interest, money. (See also: 21 Personal Finance Lessons From Harry Potter)

Be Thoughtful

Pooh may be a bear of “very little brain,” but that doesn’t stop him from sitting down and having a good a think, whether it’s about how to help a friend or scrounge up some extra honey. If there’s any lesson you can apply to your financial life, it’s to take the time to think things through. “Think it over, think it under,” Pooh would say. Whether you’re struggling with debt or doing some soul searching about how to spend your money, eventually, the answer will come to you.

Greed Doesn’t Get You Anywhere

Money is something we often pursue singularly — and at a cost. For Winnie the Pooh, honey is money, and Pooh often gets into trouble when his hankering for the sweet stuff clouds his judgment. Whether that means tumbling out of a tree, falling in a hole, or getting his head stuck in the honey pot, Pooh’s impatience often gets the best of him. In real life, the consequences of being too focused on getting what we want are often more painful than Pooh’s many tumbles. Plus, the adventure is often in pursuing the prize, not in actually getting it.

Don’t Get Discouraged

Sometimes when we’re in financial hot water, the problem seems so big that our tendency is to say “why bother?” Sound like someone you remember? In the Winnie the Pooh stories, a downtrodden donkey named Eeyore does little more than complain. His friends don’t seem to notice, but it’s clear that the donkey’s low spirits mean he’s often left behind to mope. Today may not be a good day, but if you spend it feeling sorry yourself, tomorrow won’t be any better. It’s tough to be a Winnie the Pooh in an Eeyore world, but it has its rewards. Focus on how to make things better, rather than on what’s going wrong.

Save for Later

Winnie the Pooh is always polishing off the honey (or “hunny”) that’s before him and looking around for more. Unfortunately, although he’s always hungry, this often means his cupboards are bare, and he’s left to go to great lengths to get his paws on more sweet stuff. We often do the same when it comes to our money by spending like there’s no tomorrow on payday, then suffering through the rest of the month. So next time you get your paycheck, tuck some into the honey pot for later. You know you’re going to need it.

Enjoy the Simple Things in Life

There’s nothing that makes Pooh so happy as “a little something,” such as some tea, some honey, a bit of condensed milk, or “a simple meal of marmalade, spread lightly over a honeycomb or two.” Pooh takes pleasure in food and his friends, so that every day is his favorite day. In real life, things are a lot more complicated. That said, most us know (way deep down) that money can’t really buy the things that make life worth living. That’s what makes them so sweet.

Ask for Help

If it wasn’t for his friends — Piglet, Rabbit, Eeyore, Tigger, and Owl — this tubby, bumbling yellow bear might not get much farther than the next honey pot. But each little character has his strengths, and together, they’re able to set up a trap for a “Heffalump,” take an “Expotition” to the South Pole, and rescue Piglet from a flood by floating by in an upturned umbrella. Chances are that when it comes to challenges in your financial life, there are more solutions than you can even imagine. Ask your friends for help — you’ll be glad in more ways than one.

Be Grateful

“Sometimes,” said Pooh, “the smallest things take up the most room in your heart.” Gratitude plays a big role in Winnie the Pooh, and it isn’t just the wise old bear who feels it — even “ Piglet noticed that even though he had a Very Small Heart, it could hold a rather large amount of Gratitude.” According to Pooh, you can “only do what you ought” when you “know what you’ve got.” There’s nothing wrong with striving for greater in things in life — just don’t forget to appreciate what you already have.

You might be surprised that so many of the lessons that flow through A.A. Milne’s Winnie the Pooh stories relate to our finances. The reason is simple — money is a major part of life, and it’s tied in to our philosophy and the way we think about things. So “have a think” (as Pooh would say) about how you view your money and your life. You may be surprised at what you discover. And, if you decide to tackle some of your financial challenges, you may just enjoy a few adventures along the way.
'When you wake up in the morning, Pooh,' said Piglet at last, 'what’s the first thing you say to yourself?'

'What’s for breakfast,' said Pooh. 'What do you say, Piglet?'

'I say, I wonder what’s going to happen exciting today?'

Pooh nodded thoughtfully.

'It’s the same thing,' he said.

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Written by Tara Struyk and published on Wise Bread. Read more articles from Wise Bread.






More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51057-financial-lessons-winnie-pooh.html Dave Says - May 14, 2012 http://www.yourbrandplan.com/forum/personal-finance/51045-dave-says-may-14-2012-a.html Mon, 14 May 2012 23:39:58 GMT I'm a single dad with two teenagers at home ...

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51045-dave-says-may-14-2012-a.html Ramit Sethi: Case Study: How Mike earned an extra $6,065 in 8 weeks http://www.yourbrandplan.com/forum/personal-finance/51029-ramit-sethi-case-study-how-mike-earned-extra-6-065-8-weeks.html Mon, 14 May 2012 18:42:18 GMT A classic line from people starting to try to earn money on the side: “I had a lot of people that were interested, then they would disappear and never take me up on my proposal.” Some people have tried freelancing on their own, but can’t figure out how to turn their sometimes impressive technical skills [...]



More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51029-ramit-sethi-case-study-how-mike-earned-extra-6-065-8-weeks.html Timeless Money Lessons From Teens http://www.yourbrandplan.com/forum/personal-finance/51017-timeless-money-lessons-teens.html Mon, 14 May 2012 12:02:00 GMT Image: http://static1.killeraces.com/files/fruganomics/imagecache/250w/blog-images/girls at prom.jpg (http://www.yourbrandplan.com/timeless-money-lessons-from-teens) As a mom, I want to teach my kids everything they need to know about money and life, preferably before they...


As a mom, I want to teach my kids everything they need to know about money and life, preferably before they leave my home (the oldest will be going to college in the fall, and time is running out). As a writer for Wise Bread, I see how I fall short compared to many readers who, based on their comments, have parents who taught them to flawlessly distinguish needs from wants or have ingrained the full value of a dollar in their children by requiring hard work inside and outside of the house on a daily basis.

Fortunately, kids and teens can learn from imperfect parents. Plus, they can teach their moms and dads financial lessons the grown-ups had never considered or remind them of timeless financial truths. Here are some things that teens have to say about spending, making, and saving money. (See also: 10 Tips From a Financially Savvy Teen)

Being Fashionable Means Having Your Own Style

High school student Syretha Shirley of Las Vegas tells me that relying on designer labels and name brands to define your style puts you on the path to being a conformist, which is counterproductive to being truly fashionable. In some cases, insecurity can influence people to copy the cookie-cutter style statements offered by leading brands. Don’t count on your shoes (no matter how expensive) to boost your self-image, she says. Have the confidence to express your style through distinct choices.

How to Develop Your Own Style

Define your signature style, set a budget, and shop at discount stores like Marshalls or thrift shops. Pull together disparate items to create your own look. To have fun and build a stylish wardrobe, take shopping trips with a friend and work together to uncover fashionable finds.

If you don’t have the time or taste to develop a distinct stand-out style, adopt a simple, tasteful one or a classic look that’s easy to create and maintain.

Making Money Can Build Your Savings and Your Self-Esteem

Jack James of San Jose, California, a 13-year-old and book author, tells me that he was surprised to find that running his own business boosted his self-esteem, which was damaged by bullying at school. During the two years that he was homeschooled to get back on track academically (Jack has dyslexia) and become stronger in his sense of self, his mom suggested that he start a business. He resisted at first, but her nagging convinced him to consider how he could earn money.

A few years ago, he began bringing in garbage, recycling, and yard waste carts in a business that continues today. Many of his neighbors are his customers, giving him the opportunity to develop friendships while also providing a service. He deposits his earnings in a savings account, which has grown to a healthy $1,000.

The side benefit from the business is the self confidence that Jack gained from generating income. Unlike bullying peers (and the adults who witness but don’t advocate for those who are being bullied), the money doesn’t unfairly judge or condemn but has the capacity to reward effort independent of learning abilities and disabilities.

How to Earn Some Money

Both teens and adults can do lots of things to earn money through money-making hobbies and side jobs, such as playing an instrument or tutoring.

Teens can make a side income doing traditional teenage jobs (like babysitting or cutting grass) and helping adults that are willing to pay them for services (like painting or moving stuff).

At any age, finding a way to make money that makes use of your natural talents is ideal not only for earning income but also to prepare you for a career or help you in your present job. My youngest son began selling his old stuff online a few years ago and learned how to present merchandise, respond to inquiries, price goods, and fill orders. He is interested in a career in technology and having some of these experiences gives him firsthand knowledge of user interfaces, financial systems (he has his own PayPal account), and more.

Don't Worry, Just Save

Money problems are a source of worry, stress, and suffering. Syretha has watched as family members overspent on their wants, became unable to take care of their needs, and, in some cases, made mistakes in attempting to get money quickly with life-changing consequences.

How to Avoid Worry Over Money

Realize that you really will need money later, despite how distant those needs seem now. Save to avoid extreme stress and financial crises, which can lead to poor decision making and cause problems that affect long-term career possibilities, personal freedoms, family relationships, and more.

Match your lifestyle to your financial wherewithal, and make sure to set aside money for future needs. Don’t put purchases for day-to-day needs on your credit card. Use your credit card for true emergencies, not fashion wants or other types of non-essentials.

Put Yourself First

Place your values and goals above social opinion instead of trying to please or impress other people. Trying to be popular can often sidetrack your efforts so that you are unable to spend time investing in yourself and achieving your goals.

Investing in herself is a priority for Syretha. Much of her time is spent improving herself, her financial position, and her community. Currently, in addition to high school and side jobs (babysitting and braiding hair), she is being mentored, writing a book of poetry, participating in a teen empowerment group focusing on personal development and community service for young women, and attending a Boys & Girls Club where she took a Money Matters course on financial literacy.

When Boys & Girls Clubs of America partnered with the Charles Schwab Foundation to sponsor the Money Matters Music Mogul contest, both her mentor and mom encouraged her to enter. She wrote an original song that won first place and was made into a music video by hip-hop producer Kevin "Khao" Cates.



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Putting yourself first doesn’t mean not caring about others but having the freedom to focus on what is important to you. For example, one of the reasons that Syretha is so happy to win the contest is the opportunity to spread the word about being money smart to other teens.

How to Put Yourself First

Use money and time in ways that are fulfilling in the present and helpful for the future. What specific actions you take may differ from your friends but might include:
  1. Earning a college degree
  2. Learning something new or bettering current skills
  3. Writing a book or authoring a blog
These are all ways to use your talents and money for long-term benefit, rather using money to satisfy immediate and short-lived desires.

Don’t Confuse Stuff and Status With What’s Important

Recently, my oldest son taught me a lesson about money and values. Like many parents, I have always thought that teaching kids to be unmaterialistic is best accomplished by sending them on service projects or mission trips in which they serve impoverished families. The reasoning is that teens will realize how rich they are in comparison to less fortunate others. Then they will be grateful and frugal. For example, my teenage sons have spent at least one week performing home repairs for near-penniless people referred by the Department of Social Services.

But seeing the poor live with little doesn't necessarily translate into feeling rich with less stuff.

My epiphany came during spring break, after my oldest returned from a community-wide, church-sponsored event called the 30-hour famine. He seemed elated, having enjoyed hanging out with friends, meeting new people, and teaming with a few other kids to win the organizer's version of the "Amazing Race." Listening to his experiences made me realize that being happy with less is not the goal of financial wisdom (though this ability is helpful); instead, it's valuing what's really important, like friendships, community camaraderie, and yourself, independent of the stuff you've accumulated and the status that stuff may confer.

How to Know What's Important

Spend time on the activities you enjoy, the things that will make you a better person, and the people you like to be around. Use your priorities to motivate you to do more with fewer resources, not to be stingy but to express your style like Syretha says.

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Written by Julie Rains and published on Wise Bread. Read more articles from Wise Bread.






More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/51017-timeless-money-lessons-teens.html Slow and Steady Wins the Debt Race http://www.yourbrandplan.com/forum/personal-finance/50962-slow-steady-wins-debt-race.html Fri, 11 May 2012 15:09:06 GMT Image: http://static2.killeraces.com/files/fruganomics/imagecache/250w/blog-images/4680102985_9943b53fb2_z.jpg (http://www.yourbrandplan.com/slow-and-steady-wins-the-debt-race) When I woke up to the reality of having $20,000 of credit card debt, I had to face this hard truth...


When I woke up to the reality of having $20,000 of credit card debt, I had to face this hard truth — I didn’t get into debt overnight, so I’m probably not going to get out of debt overnight.

In fact, it took me four and a half years to pay off my debt. There were plenty of times throughout that journey when I wished there was some easy way to just wipe it all out. But there was no easy way. I don’t recall ever considering bankruptcy. I racked up all that debt. I needed to pay it all off.

So I did. Slowly. Month after month, I sent big checks to creditors, paying dearly for trips I had taken long ago and restaurant meals I no longer remembered.

Today, with the perspective that time brings, and with lots of experience helping others struggling with debt, I honestly believe that the slow and steady way out of debt is the best way. (See also: How to Start Fighting Debt — Today)

The Danger of Fixing Symptoms

For many people buried under a mountain of debt, bankruptcy looks appealing. A quick way to end the pain.

However, according to a paper published by the Bankruptcy Data Project, a Harvard University-based research group that has studied bankruptcy for over twenty years, one year after filing for bankruptcy, one in four filers were struggling to pay routine bills, and one in three said their overall financial situation was similar to or worse than when they filed.

Tossing your debt overboard may feel good for the moment. However, for many people, ditching debt without addressing the underlying causes often turns out to provide only short-term relief.

Lasting Changes Require Changes of the Heart

When I was blindly digging my way into debt, I saw buying stuff as the route to feeling good about myself. I bought things I couldn’t afford in order to tell the world I was somebody.

I also saw carrying a balance on credit cards as normal behavior. How else did most people get by?

I probably could have learned some helpful new behaviors around money without changing these attitudes — how to use a budget, how to set up an emergency fund, and the like. But without a serious attitude adjustment, I doubt I would have been interested. Or, if I did start dabbling in new habits, they probably wouldn’t have lasted very long.

A psychiatrist friend tells me that attitudes and behaviors work in circular fashion to bring about change. Behavioral changes tend to alter our attitudes, and attitudinal changes tend to alter our behavior. However, they don’t usually happen on the same schedule. While we may be able to force ourselves into some short-term behavioral changes, attitudinal changes take time. You can’t just slap on a new conviction like cologne.

Getting on the Slow Track

To be sure, getting out of debt requires behavioral changes. You need to stop going any further into debt. You also need to gather the facts. How much debt do you have? Write it all down, and add it all up. Create a cash flow plan (AKA, a budget). Then start rolling a debt snowball.

However, getting and staying out of debt also requires the slower work of heart change. Start by taking a close look at your financial attitudes. Are there any ways of thinking that have contributed to your debt? Have you been buying things you can’t afford in order to feel better about yourself, like I did?

Acknowledging those attitudes is the first step toward changing them.

One of the key attitudinal factors that helped me turn things around was accepting responsibility for my debts. The credit card companies didn’t manipulate me into carrying balances on my cards. My parents didn’t fail me in some way.

It wasn’t about beating myself up about my debts; it was about acknowledging the truth. I was responsible for my debts.

To be sure, some people with debt problems have gotten into financial trouble by way of horrendous life circumstances. A divorce, an extended period of unemployment, catastrophic medical bills. I don’t mean to be insensitive to any of that. But it’s been my experience that when a person with debt owns their role in the debt — and most people with debt played at least some role — they have a far greater chance of getting and staying out of debt.

If you have a lot of debt and you’re just beginning the process of getting out from under, I’m sure the idea that it may take several years doesn’t sound the least bit appealing. However, I’m thankful to have taken the long way out. It took time to change my money-related attitudes and cultivate some healthy financial habits. Since paying off the last of my debts some 15 years ago, I have carried no debt other than a reasonable mortgage.

I firmly believe that taking the slow road was the key to making changes that have stuck.

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Written by Matt Bell and published on Wise Bread. Read more articles from Wise Bread.






More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/50962-slow-steady-wins-debt-race.html Ramit Sethi: How much should a man spend on an engagement ring? http://www.yourbrandplan.com/forum/personal-finance/50955-ramit-sethi-how-much-should-man-spend-engagement-ring.html Fri, 11 May 2012 15:09:06 GMT Here’s one of my favorite money and gender questions: How much should a man spend on an engagement ring? Out of curiosity, I once asked this at the dinner table, and my entire family put their forks down and stared at me. Not good. I like this question because it highlights the gap between rational... Here’s one of my favorite money and gender questions: How much should a man spend on an engagement ring? Out of curiosity, I once asked this at the dinner table, and my entire family put their forks down and stared at me. Not good. I like this question because it highlights the gap between rational [...]



More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/50955-ramit-sethi-how-much-should-man-spend-engagement-ring.html Young and Debt-Free http://www.yourbrandplan.com/forum/personal-finance/50865-young-debt-free.html Wed, 09 May 2012 11:38:45 GMT Dave -WE'RE DEBT FREE! My wife and I just paid off the last of our debt - $7,500 in just 2 1/2 months ($2,000 in a car loan and $5,500 in student debt). We just sent in the last payment on the student loan tonight and are SO EXCITED! We kicked that old lady to the curb!The best part is that we heard your story early in our lives - I'm 26 and my wife is 25. Both of us grew up in houses with debt as a regular fixture, so it was a big goal for both of us to be out of debt. I graduated from college almost a year and a half ago, and my wife graduated the year before me. However, she has been a stay-at-home mom since our son was born over a year ago. These principles work, even with only one parent working!Thanks for encouraging us to live within our means. We don't have a cable subscription bill (we rarely watch TV), and neither of us has a fancy new cell phone. We rarely go out to eat, and don't have a new wardrobe. But, we're DEBT FREE!We recommend our friends and family to your program. We just recently lent some friends The Total Money Makeover and they are already talking about "gazelle intensity." As well, we've introduced our parents, and both of them are working on their own money makeovers. Thanks for all that you do. You've made a great difference for us.

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/50865-young-debt-free.html Debt free at 31 http://www.yourbrandplan.com/forum/personal-finance/50864-debt-free-31-a.html Wed, 09 May 2012 11:38:45 GMT My wife and I are both 31 and are completely debt free. 18 months ago we had approx. $17000 in car debt, $82000 in house debt and opened our own construction company. We've been attacking the debt and last month we made our final house payment. We bought another vehicle and 2 work trailers along the way (which are also paid off now). Our total debt that was paid off was $114,000.

More... ]]> Personal Finance RSS FEED-from consistent brands http://www.yourbrandplan.com/forum/personal-finance/50864-debt-free-31-a.html