Here is an excellent rent Vs own calculator that can help you make an informed decision about how to spend your housing budget. Home ownership is a dream when you can afford it and can quickly turn into a nightmare when you can’t.
Home maintenance must be part of your budget and saved in your Momentum Account.
Keeping up with the Jones’ is a real thing. Your neighbors are will likely become your friends and your social reference so beware of moving into a neighborhood where your neighbors earn substantially more money than you do. Keeping up can lead to consumer debt.
Green with Envy by Shira Boss is a wonderful look into the lives and checkbooks of our neighbors.
A survey of 10,000 employees who took a personal finance class reported:
89% were using a written budget to manage their money in the future.
91% felt more confident about their financial futures.
94% stated the personal finance class had been beneficial to them.
95% were establishing an emergency fund
98% recommended personal finance education to fellow employees.
Team members who aren’t worried about their personal finances are far less likely to have unplanned absences. They are better able to engage and concentrate while at work.
Their productivity and loyalty increases, while their stress and money problems decrease.
So why wouldn’t you want to help your team members through tough financial situations? Not only are you helping your workers, but you’re also helping the company as a whole.
You may be asking yourself, “Does this really work?” “Can I really get out of debt?”
Check out these testimonial emails I received from a alumni of Creating True Financial Independence.
Date: Fri, 21 Aug 2009
Hey Matt . . .I wanted to give a quick status update. I took your class back in February . . . at this time last year, I owed just over $43,000 on two credit cards and a loan.
I just paid off one of the credit cards and now my debt is just over $31,000 !!! Its been hard work, but I am making headway. Still playing with the budget, but I think I have found a system that works for an irregular business income plan.
Thanks so much for the class and the shift in perspective! I am not sure when I will have everything paid off, but I am heading in that direction and am hoping by May of 2011 I will be debt-free!! I tell people about your class when/where I can. I hope that it still works for you! Take good care and be well.
With less debt,
M
Then on Friday I received the following update.
Date: Fri, 9 July 2010
Hey Matt, This is M again.
I wanted to piggy back on an email I sent you last august. At that point my debt was just over $31,000. Today, i can proudly tell you that my debt is $13, 576.14 ! I think that I can get it all paid off before my goal of May, 2011. I feel great about this.
Thank you so much for that class. Feel free to pass this story on to your classes if you want.
How would you like to take a $2,400 family vacation next 4th of July?
Sounds pretty good right? The average cost of a family vacation is about $1,600; so an extra $800 is icing on the cake.
And you may be thinking, “How could I afford vacation like that?”
I’ve got the answer. Stop going out to lunch every workday!
The Cost of Eating Lunch Out
An average lunch out cost about $10. Over a single month you’ll save $200 just by bringing your lunch. Multiply that by 12 months and you’ve got $2,400.
It’s time to change your vacation plans if you see any of these red flags. And by change your vacation plans I mean – plan a less costly vacation.
These are by no means all of the possible budgeting red flags, but they are common. If you notice that
You are unable to pay cash for your vacation – using a credit card is borrowing money.
You don’t yet have a minimum of a $1,000 emergency fund.
Going on vacation will cause you to stop paying extra on your debt payoff.
Then it’s time to go back to the planning stage so that you can design a vacation that you can truly afford.
I understand that it’s important to rejuvenate by taking time off from work even if you are focused on getting out o debt. However, ignoring these red flags can make it even harder to get out of debt.
Some of the ways to reduce the cost of your vacation are to:
Stay closer to home to reduce the cost of getting there.
Reduce the number of days you’ll be away from home.
Stay home and be a tourist in your own town.
If you watch for these red flags and adjust accordingly your vacation will be relaxing and fun instead of financially stressful.
My First National Bank of Durango debit card was compromised along with up to 5,000 other cards that we part of the Heartland Payment Systems data theft.
What to do if your debt card has been declined?
Contact your bank immediately to determine the reason.
Review your account transactions to determine if there have been any fraudulent charges.
Dispute any fraudulent transactions – the bank will put the money back into your account. Just like with a credit card you are not liable for fraudulent charges.
If there has been fraud, close the card and destroy it. Have your bank reorder a new debit card. Request a rush order to be placed if you have an urgent need for the card. The bank may charge a $50 rush fee and you may be able to get them to waive the fee.
