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.”
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Deuteronomy
28:12
NLT‬‬
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http://bible.com/116/deu.28.12.nlt‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

I believe in your journey to….

A Debt Free Me

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July 5, 2017

Items in italics are direct quotes from the articles below

http://www.businessinsider.com/signs-youll-never-be-rich-2016-4/

Contrary to popular belief, “Everyone has the same opportunity to acquire wealth,” says self-made millionaire Steve Siebold. But is wealth in the cards for you? To help you evaluate that, we’ve rounded up nine red flags to watch out for. While no one can predict the future, the following choices most likely won’t accelerate your path to riches. The 9 signs you’ll never be rich are: you put too much emphasis on saving – and not enough on earning, you haven’t started investing, you’re content with a steady paycheck, you buy things you can’t afford, you’re pursuing someone else’s dreams – not your own, you rarely step outside of your comfort zone, you don’t have goals for your money, you spend first and save what’s left over, and you believe getting rich is out of your reach. It’s important to save money to invest, however at some point you must take action and begin to focus on earning. “The masses are so focused on clipping coupons and living frugally they miss major opportunities,” Siebold writes. It’s important to not focus on losing money, but to focus on making it work hard for you. Some experts say that “it’s not about how much money you make, it’s about how much you keep,” but this shouldn’t be an excuse to disregard earning completely. To keep money, you have to earn it in the first place. A common thread among millionaires is that they develop multiple streams of income and have smart savings habits. It’s important to start investing today. It’s true the earlier you invest, the more the power of compound interest can help you, but also keep in mind that taking action is one of the most important steps. Your average person is content with being paid for their time vs. a rich person will wait to be paid based on results. Another important factor is if you’re living above your means then the unnecessary luxury items could be hindering your ability to build wealth. “When you pursue someone else’s dreams or goals, you may eventually become unhappy with your chosen profession,” he writes in “Change Your Habits, Change Your Life.” “Your performance and compensation will reflect it. You will eke out a living, struggling financially. You simply won’t have the passion that is necessary for success to happen.” You must be willing to step out of your comfort zone, and by doing this step, you’ll in time grow into a new level of personal success. Everything worthwhile in life is uphill. Rich people want to attain wealth and set attainable measurable goals. Put it down on paper and go after it. If you want to get rich, pay yourself first. “What most people do when they earn a dollar is pay everyone else first,” self-made millionaire David Bach writes in “The Automatic Millionaire.” “They pay the landlord, the credit card company, the telephone company, the government, and on and on.” Rather than spending and then saving whatever is leftover, save first. Set aside at least 10% of your gross income and make the process automatic, Bach emphasizes. That way, you’ll never even see the money and you’ll learn to live without it. Finally, what you personally think is critical. Your thoughts are words, and your words are powerful because they do become flesh. You live in an abundant world and you’re blessed with unique gifts, and perspective. Use your life to create massive value for those around you. Blessed are the problem solvers, so go find some problems to solve.

http://www.marketwatch.com/story/charles-barkley-just-say-no-to-friends-and-family-who-ask-for-money-2017-07-01

NBA great Charles Barkley has some sound advice for rookies: Don’t give your money away to family and friends. “The first thing you do is learn how to save your money ’cause your family and friends are the worst people to spend your money. It has been that way for a long time. Barkley estimates that 60% or 70% of professional athletes go broke, “and 90% of the time it is because of family and friends.” “You have to learn to say the magic word: no,” Barkley recommends. “I do not owe you anything. If I want to do something for family, I’ll do it — but I do not have to keep them on payroll and support them their entire life. I lost a lot of family and friends because of that, and it was money well spent getting rid of them.” It’s not easy to say no, however there are moments when you want to take inventory of the situation and then weigh the consequences of saying yes. If you don’t stand for something, then you’ll fall for everything. Personally, I measure my yes and no against my value system which is the Bible. I also will consult with my wife and closest friends on issues that could involve a no. If it’s a financial decision then I talk with my wife even if I know the answer will be yes out of mutual respect and trust. Sometimes you can’t trust your own judgement so seek wise counsel.

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 STOP WISHING , START DOING – Powerful Motivation from the Success Archive 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: February Snapshot

This month I celebrated my first full month living with my wife. We were fortunate enough to go to the marriage conference together at the last minute, and I was thankful that we did. Our apartment is starting to look like a home, and my wife has begun studying to take her test to be licensed as a registered nurse. This month especially is filled not just with numbers and budgeting but faith also. Faith in things not yet seen and having the will to continue to do a good work regardless of the outcome. I have the opportunity for a new position at my job and having to rely on something greater than myself to handle these new responsibilities. Either way when I get paid my process remains the same and I look to use my self-lending principle whenever I can.

I’m looking to sell as many plans as possible not just to reduce debt, but to also help protect people. My thought process remains the same: increase income, and lower expenses, look for income producing assets, and build wealth to leave a legacy. Over the next few months you should see my debt reduce significantly. My wife and I have talked about using a consolidation loan to consolidate and reduce the payments on my two installment loans which should free up more cash flow. The only drawback of an installment or term loan is the payments are set for the term of the loan unless you can convince the loan officer to re-amortize the debt.

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: Retrain your Mind from the Be Inspired YouTube channel

Month End: January Snapshot


This month, I said I do and till death do us part to my best friend and my love. I’ll be honest! The wedding process is stressful. If you plan on doing an actual wedding that involves a venue and family, then you will spend money and you will at some point get frustrated. My wife and I are very low maintenance and low-key people, but even we found ourselves exhausted both emotionally and mentally when all was said and done. I’ve moved out of my parents’ home and into an apartment. I’ve had plenty of guy roommates, but now is the first time I’ve ever lived with a female. We’re growing used to living together, and as she gets accustomed to my quirks, and tendencies, every day I’m more and more thankful to God that she is in my life. She said yes to this mess.

At month end, she’s currently not working, and we’re living primarily off her medical retirement and a portion of my income, but thankfully we are both open about our finances and operate our business together. I’ve helped her sign on a new associate for her business, and I’m truly looking forward to what this new year will bring. Due to our honeymoon, I paid a little less than normal on my debt, but the important thing to remember is: if you are in debt, do not miss your payments, and do not let them go 30 days past due. Find a way to make money to pay your debt obligations. If you got yourself in this mess in the first place, it’s your responsibility to get out of it.

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.

The rich ruleth over the poor, and the borrower is servant to the lender.
https://bible.com/1/pro.22.7.kjv

I believe in your journey to….

A Debt Free Me

Here’s this month’s video

January 4, 2017

www.investopedia.com/articles/personal-finance/012616/4-best-countries-retiring-asia.asp

Do you have your sights set on retiring in Asia? Not long ago, Investopedia profiled the 10 Best Countries to Retire to in 2016. Now we’ve narrowed our focus to Asia and have asked the expert editors, writers and on-the-ground reporters at Live and Invest Overseas to tell us what they consider the four best destinations for retirement in Asia. Two of their choices, Malaysia and Thailand, made their list of the top 12 places to retire in 2016, and the other two, Vietnam and the Philippines, are countries they consider “up and comers” that may hit the charts next year. The city of George Town, Malaysia is a top pick for retirees. George Town has plenty of museums, jungle parks with secluded beaches, first rate healthcare, and good public transportation. Plus, the cost of living is low. No need to feel like a “walking wallet” in George Town or the rest of Malaysia; foreigners pay the same prices as locals for goods and services. A 900-square-foot apartment in an “expensive” part of George Town will cost about $480 per month; to hire someone to help keep the apartment clean, under $4 an hour.  Thailand is known for its beautiful beaches, laid back culture, and low cost of living. The author recommends Chiang Mai as a city to visit. Thailand requires a visa for long-term residents (see Getting a Retirement Visa in Thailand), but that’s no problem since the government recently rewrote the rules to provide several attractive residency options. Vietnam also offers a low affordable cost of living and is also one of the best places to retire. However, healthcare in Hanoi is excellent, but in certain areas it’s not as easily accessible. The cost of living in the Philippines is one of the lowest in the world. The tropical island of Cebu is another choice for retirees, and Makati, a safe part of Manila, has access to everything a retiree would want – good shopping, excellent healthcare, proximity to beaches and outdoor activities plus the expected big-city cultural features. Makati is also considered an excellent market for real estate investment. Even if you do retire in one of these countries, be sure to have an emergency fund that will cover trips back to the United States, and for true emergencies. The best way to create an emergency fund is by creating a budget, and the self-lending principle. To start your new year differently, feel free to go to the contact me section

http://www.marketwatch.com/story/these-are-the-67-most-important-investors-of-all-time-2016-05-23

I analyzed the birth dates of the most important investors of all time. Ten observations were made. This is an incomplete list. It does not include any early financiers like J.P. Morgan, no chief strategists like Abby Joseph Cohen, and no Fed chairman like Alan Greenspan. What it does include is traders, investors, hedge fund managers, Nobel laureates, economists, and early pioneers of portfolio management. Some of these people never managed money, but had a huge influence on how we think about investing, like Daniel Kahneman or Robert Shiller, for example. The author provides a chart and here are a few noticeable highlights. Baby boomers dominate this list, every person on this list is extremely smart, and there’s not a lot of diversity in this group. The article includes the names of the 67 most important investors, and they’re worth doing a little more research on.

If you need are interested in creating a budget, then contact me for a financial checkup in the contact me section.

For this week, I’ve included The Key to Wealth: Pay Yourself First from Jack Canfield 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