Month End: April Snapshot

At the end of April, I’m truly amazed at what can happen in just a month. While having dinner at a Mexican restaurant one night, my sweet wife and I came into agreement about taking a bold and risky move. I made a withdrawal from savings to pay to zero the SVF line of credit. Although this line is my debt, it was on my wife’s credit, and I didn’t want it to impact her credit anymore. The plan is to not just replenish the line of credit to what it was, but to charge myself a high enough interest that will not only put the self lending principle to practical use, but recover the interest that would be in the savings account even if it hadn’t been removed from the account. The way you can achieve this goal is by charging yourself an interest at least 5 times or more high than the current interest rate of your savings account. For example, the current interest rate in one of my savings accounts is 2.25% annual percentage yield, so I’m charging myself 15% (6.67 times) and calculated payments based off a 12 month term so I have a minimum payment that is manageable, and if necessary I can stretch the term by 24 months for more cash flow. Your maximum term when using the self-lending principle is 24 months. Anything longer than two years lowers your commitment to finishing what you start.

Paying off this line of credit was also necessary, because we needed to get a new car. Our cars were over ten years old, and we had maximized the usage out of each car. We know how to take care of our cars, and I noticed that more and more money was being poured into her car. It’s in a situation like this one, that I think it’s a good time to look for a new car. We decided to get an SUV, because this type of car would be good for the day we begin to have a family for the sake of transporting children, groceries, and other necessities. Thankfully my, father-in-law was able to find a fantastic deal on a 2018 Ford Escape. Personally, I didn’t want that kind of vehicle, but the car had less than 1000 miles on it because it was used by the dealer only. It was a mid-level SUV, but it had extra amenities on it that added to its overall value. I liked that the vehicle had Bluetooth capability for hands free driving, it had the necessary storage space for groceries, and it had overall better gas mileage than my car and her car. However the most important point is that we were able to get the car at half its MSRP (Manufacturer’s Suggested Retail Price), and have purchased on a 5 year loan at an interest rate less than 5% for a monthly payment of less than $300.00 This flexible term and payment will give us the ability to consider home ownership and at the same time not hurt our budget. Our overall net income or disposable income is still high enough that we can still stay on track on paying off our existing debt. Once my debit is paid off, I can easily switch gears to go after this car loan.

When you are considering a major purchase such as a vehicle or home ownership, you need to look at it from as many different levels as possible. Not just the personal intangible features, but just as important, the financial impact it has on your budget. For me a major purchase is anything that I can’t pay cash for and or it’s $5,000+. In my opinion, some don’t have $5,000 in liquidity easily available to make a purchase. When making a major purchase that may involve getting a loan, ask yourself: Can you truly afford it? Keep in mind that having a good credit score will help you get a loan at an interest rate that will be more in line with your budget. If you have poor credit history, then you could end up paying more in interest over time. Knowing your bottom line is critical and having a peace about your decision will prevent buyer’s remorse.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need me to check your financial pulse then, contact me.

Also, learn more about how I use the self-lending principle through contacting me

This month’s video is Kevin Hart FIGURING IT ALL OUT (This will change the way you think!) from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy
28:12
NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Advertisements

Month End: February Snapshot


At the end of February, all my credit cards have been paid to zero. After discussion with my wife, and explaining the benefits of the installment loan, I got a $9,000 installment loan, and used $1,840 which is a combination of my normal debt reduction payments plus an extra amount to pay all my credit cards to zero. This moment is the 1st since my early 20’s that I’ve been able to pay my credit card debt to zero. I thank God for this moment, and even shared the zero balances with my wife in celebration.

In previous blog posts, I’ve talked about the benefits of using an installment loan to consolidate debt. My wife understandably had her reservations with me getting into more debt, so let me clarify the specific conditions in which using an installment loan for debt consolidation is ideal in my opinion.

  1. Your interest rate is going to be lower than the rate you are paying on your credit cards
  2. You can have control of the term of the loan (36 months, 48 months, or 60 months)
    1. This control is important, because the longer the term the lower your payment will be.
  3. There is no origination fee, or it is financed into the loan.
    1. If there is an origination fee, it will affect your monthly payment amount
  4. Make sure your payment amount will be the same or lower than what you’re currently paying and when it will be to fit in your budget

In my situation there was no origination fee, the payment would be less than what I normally pay on my debt around the 15th of month, and I had enough credit card debt paid down that this would fit with my debt free plan and even accelerate it. I would recommend that you not take out multiple installment consolidate credit card debt if you don’t have the discipline to not use your credit cards and know how the installment loan payment will affect your monthly cash flow. Remember that with installment loans the payments are fixed, however installment loans may improve your credit score, because they have a different weight on to the credit bureaus vs. (credit card) open/revolving credit. Based on this re-structure, I should be able to pay off the lines of credit by the end of this year, and hopefully pay off the installment loan by next year.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through contacting me

This month’s video is The Greatest Motivational Video for Success & Gym – VALOR – 35 Minute Motivation Speeches from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy
28:12
NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Month End: September Snapshot


I turned 38 this year…Looking back I never expected to be so far behind in my life as compared to others. A lot of the people I went to high school with are married with children, and some are very successful in their careers. I look at my parents and remember where they were at my age, and honestly it discourages me. Comparison can do more harm than good. Even when comparing yourself against others who are attempting to achieve common goals like being debt free. All you can do is stay on your path and stick to your strategy. Everyone’s life, circumstances, and finances are different. That’s why it’s important to have a budget, or some form of knowing how much is coming in, and how much is going out. What is your bottom line number?

I’m focusing through the end of the year on paying down my other credit card debt. I’m continuing to pay just the about the minimum payment to at least reduce my principal balance on the debt above. Remember to look at your credit card statements to not just see your interest rate but also, to see how long it would take you to pay off your balance if you pay just the minimum payment. Also, your interest rate could change if the Federal Reserve raises interest rates. Don’t compare yourself with others and continue step by step toward being debt free.

If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

This month’s video is Dana White – From $0 To $7 Billion | One Of Most Compelling Speeches! from the Mulligan Brothers YouTube channel.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy 28:12 NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

November 11, 2017

Items in italics are direct quotes from the articles below

http://www.businessinsider.com/neuroscientists-advice-for-saving-money-transformed-my-finances-2017-11

After years of feeling as though my finances controlled me and not the other way around, I’m happy to report I have found the solution in the wisdom of a neuroscientist. Perhaps the insight can help you, too. Budgeting is about making fewer choices to maximize happiness I first met Moran Cerf, a neuroscientist who teaches marketing at Northwestern University, over the summer. We chatted about the ways people make poor decisions and how they could make smarter ones. The conversation was so interesting that I wanted to meet again. A few months later, we convened on the second floor of a Whole Foods to delve yet again into the depths of decision-making. He brought up the topic of personal finance and how to create the perfect budget. Cerf argues that decision-making is mentally draining. Having to make several small choices can exhaust our ability to make bigger decisions. When it comes to money, Cerf says the smartest way to budget is to find the timeline that works for you. The author would go on to create a weekly budget and that turned out to work best for him. When it comes to budgeting, find the process that will work best for you, and be sure to do it frequently. I personally will run my budget every Friday, and I’ve set it up, so I can forecast where I will be 11 months from now. I’ll also look at my budget as I feel the need to. It’s important to have a routine that you will stick to, so it becomes automatic for you. It’s about knowing how much you will have and having the freedom to decide what to do next.

http://www.businessinsider.com/shaq-financial-advice-for-nba-players-money-personal-finance-investing-tips-million-savings-contract-2017-11

With career earnings that totaled $292 million, Shaquille O’Neal currently ranks as the third-highest-paid player in NBA history. We asked Shaq what financial advice he gives young NBA players who want to hang on to their fortunes. Shaq stopped by Business Insider to talk about his collaboration with home security technology company Ring, to raise awareness about how homeowners can better protect their property this holiday season. Shaq recently kicked off a campaign with Ring’s CEO Jamie Siminoff around protecting holiday package deliveries – specifically as National Package Protection Day approaches on Nov. 29. The article has a transcript from the video. Basically, Shaq advises the athlete to cut the earning of the contract in half and save it, or if they’re more aggressive cut that in half and only spend 25%. In other words, if you have a $100 million-dollar contract, save 75% and spend the other 25% spend however you want to spend it. Most athletes that come into the League think about the money they receive now and don’t plan for the future. ESPN 30 for 30 did a great documentary called Broke which examines the spending habits of athletes. Financial education isn’t taught in schools so it’s important to find competent and wise mentors to learn from. I always tell them “Don’t think about what’s going on now. Think about what has to happen in the future.” I never spent, like, an NBA check like my first four years. Then, when I got married and had kids, all that changes, but that’s, to simplify it for them because, you know, a lot of people don’t have the business mind or the business tact, so you have to break it down in their language. So, I would say save 75%, and this 25%, do whatever you want to do with it. Take care of your family — boom, bam. House, apartment, car – but don’t ever do more than this. If you’re thinking about your legacy, consider it at least two to three generations deep. In other words, you’re thinking at least the next 100 years, will what you have be able to provide for that kind of future? If not, what are you teaching your children and children’s children, so they can thrive and not just survive the world to come.

This week, I’ve included A Brief Guide To Life – Jordan Peterson | Depression & Success (LIFE CHANGING) from the Mulligan Brothers YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.”

Proverbs 28:26 MSG

 

Month End: October Snapshot


Make sure you don’t try to pay off your debt on your own. This month was rather frustrating for me, and I feel like my debt reduction is too slow. Always remember that being debt free can be a slow process. When you feel overwhelmed, stop, breathe deeply, and close your eyes. Do these three steps over and over again. With your eyes closed, imagine being debt free and feel it with all your heart, mind, and strength.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Deuteronomy 28:12 NLT‬‬
‬‬‬‬‬‬‬‬‬‬‬‬‬‬

http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: The Power of Habit – One of the most Motivational Talks Ever from the Video Advice YouTube channel.

August 12, 2017

Items in italics are direct quotes from the articles below

http://www.investopedia.com/articles/personal-finance/080716/debt-avalanche-vs-debt-snowball-which-best-you.asp

Paying off debt is no easy task, but it will bring financial freedom. There are two distinct methods to pay off debt: the debt avalanche way and the debt snowball way. While both are useful strategies to get debt out of your life, one method might be easier for you to stick with and make a bigger impact on your debt repayment. Here’s how to find out which debt repayment method is best for you. The debt avalanche involves paying extra money towards the debt with the highest interest rate, and the debt snowball involves paying the smallest debt amount first and working your way up.

Using the debt avalanche to pay off debt will save you the most money in interest payments. For example, if you have $3,000 extra to devote to debt repayment each month, then the debt avalanche method will make your money go the furthest. Imagine that you have the following debts:

  • $10,000 credit card debt at 18.99%
  • $9,000 car loan at 3.00%
  • $15,000 student loan at 4.50%

In this scenario, the avalanche method would have you pay off your credit card debt first, then allow you to pay off your remaining debt in 11 months, paying a total of $1,011.60 in interest. The snowball method would have you tackle the car loan first, becoming debt-free in 11 months, but you would have paid $1,514.97 in interest. Just by switching the order of your debts, you can save hundreds of dollars in interest payments. For individuals with larger amounts of debt, the avalanche method can also reduce the time it takes to pay off the debt by a few months. The snowball method builds the motivation on your debt repayment. It’s important to remember that paying back debt is not exciting, and it can feel like a very long journey, so you can ask yourself which is the best method? If you are serious about tackling your debt, then pick which method is best for your own situation and personality. The best method is the one that you stick to. If you are a person that needs more motivation to pay off debt, then stick with the debt snowball method. Find or create the best method for you, but even more importantly commit to getting out of this consumer debt. When you complete this journey, you will essence give yourself a raise. Also, as you’re getting out of debt go ahead and take the extra money and grow your assets.
https://www.cnbc.com/2017/07/31/marcus-lemonis-the-2-essential-reasons-you-should-buy-a-home.html

To own or not to own? For lots of Americans, that is the question. Homeownership can be a tricky subject. Some experts argue it’s the expense that never stops taking, while others venture that not owning a home is “the single biggest mistake” young Americans are making. Serial entrepreneur and host of CNBC’s “The Profit” Marcus Lemonis comes down in favor of owning, or taking steps towards owning, the place you called home. Lemonis says that planning to own a home is beneficial even before you’re in the position to buy, because it forces individuals to think hard about saving for the future and presents a crystal clear goal. Though he notes that real estate prices in some markets make homeownership out of the question for some who might like to buy, he says there are two key reasons to consider planning to purchase property: The two key reasons are attention to budgeting and the sense of accomplishment. “In order to buy a home,” Lemonis tells CNBC Make It, “you need to have a down payment, in order to have a down payment you need to budget properly, in order to budget properly you have to buy one pair of shoes and not three pairs of shoes. It teaches you a form of moderation.” That outlook on moderation, Lemonis argues, can be applied to purchases of any size in any phase of life. To save for a down payment, you need to have a budget, and more importantly a level of self-control when it comes to your spending. I suggest having an accountability person, who you give permission to help increase your ability to save. Studies show that it takes 21 days to form a habit. Contact me and I’ll show you my process of how to accelerate your savings and at the same time budget. “I remember going into my home the first night,” he says. “It had no furniture in it, and I didn’t care. The sense of pride and accomplishment that I had about saving $23,600 was a big deal.” The financial lessons learned from homeownership, combined with the self-esteem earned through saving a down payment and the sense of security that comes from owning the place where you live, Lemonis argues, is a powerful combination. “Where we lay our heads down at night,” he says, “is important.” Owning a home will cause a lot of unexpected expenses so it’s important to properly manage your finances to both increase your income and lower your expenses for paying down or off your mortgage. Remember that real estate has value. There is only so much earth so even if the house loses value, the real estate underneath it may still hold value. As you increase your income and lower expenses, look to create income producing assets that will pay the mortgage for you. Create a system to follow and even more importantly commit to doing it.

 

If you are interested in creating a budget, then contact me for a financial checkup in the contact me section. Also, learn more about the self-lending principle in the mustard seed section.

This week, I’ve included Watch this WHEN YOU FEEL LAZY – Intense Motivation for Ending Laziness from the Video Advice YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.”

Proverbs 28:26 MSG

Month End: May Snapshot


Thankfully this month, I paid off the Prosper loan, and now I’m focusing solely on the credit card balances. Remember that paying off your debts will give you a raise. Without debt, you will be able to experience your true take home pay (gross profit). Having a budget, will help you know how much your disposable income will be, and your disposable income is how you will build wealth. Mind your own personal investment portfolio. As you pay down debt, look for ways to increase income. I’ll plan on taking advantage of the loan balance transfer offers to reduce my personal line of credit to pay for emergency expenses and look for income producing opportunities. My wife is preparing to interview and will start working in the field that she loves starting next month. I believe you should do what you love and do it with excellence. If it’s possible to do what you love and generate income from it, then leverage the internet to reach as many people as possible. If it’s not possible to generate income from what you love, then let it be your motivator to do your profession with excellence. Our time is finite, but our impact can be eternal.

Over the next few months, my goal will be to reduce either credit card balance by $1000. By year end, my goal is to position myself to be able to make $1000 debt payments toward my debt via my job, and businesses. Some of the new habits I’ve adopted is listening to motivational videos, and relaxation videos through YouTube. However, for me, my core foundation remains the same, prayer, the Word, and worship. What’s your 1st response when things go right or wrong?

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy28:12NLT‬‬
http://bible.com/116/deu.28.12.nlt
‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: THROUGH HARD TIMES – Powerful Motivational Video 2017 | PART I from the Motversity YouTube channel.