Archive for the ‘Debt Free’ category

Review of Financial Peace University

August 12th, 2010

: Image by aJ GAZMEN ツ GucciBeaR via Flickr

Today, I received this message from a friend and thought I’d answer it here.

Hey Matt,I thought I remembered that you had been doing something with Dave Ramsey… I was curious as to your thoughts on his program, etc.
L.

Dear L,

Yes, I helped pilot Financial Peace University at First National Bank of Durango. It’s the class that helped Cheri, my wife, and I pay off $165,000 in debt and save $20,000 in 15 months.

For us it was an amazing and transformational class. It offers sound advice on how to get out of debt.

Financial Peace University (FPU) is a 13 week class taught primarily though churches by volunteer class organizers. The cost of FPU is about $100.

Each class in 2 hours long an consists of watching a Dave Ramsey DVD and then small group discussion.

To review FPU I’ll offer Pro’s and Con’s and how my class Creating True Financial Independence differs.

FPU Pro’s:

Material is easy to follow
It’s works if you commit to change your behavior

FPU Con’s

Dave Ramsey is an Evangelical Christian and he quotes Bible verses (may be a con depending on your views)
13 consecutive weeks is a big commitment
Many of the lessons don’t apply specifically to getting out of debt
Success of the discussion portion depends on a volunteer facilitator
Dave’s big goal is for you to become Mega Rich
The 13th week is all about tithing to the church (again depends on your views)

How Creating True Financial Independence is different from FPU.

No religious agenda
Class is 4 weeks instead of 13 weeks
Class is focused on helping you succeed at getting out of debt
Class incorporates concepts from many other books and teachings
Class is taught by me; a professional coach and facilitator who has successfully gotten out and stayed out of debt.
A personal finance coach is available outside of class to answer your individual questions.
My goal is for you to live your dreams and for most people that does not involve becoming Mega Rich.

I hope this helps you understand Financial Peace University and my class Creating True Financial Independence.

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Posted in Budgeting, Debt Free, Dreams, FPU, Financial Independence, Financial Peace University, Personal Finance Class

Found Money, 3 things you must do

August 10th, 2010

: Image by Idaho Lottery via Flickr

Found money is any money that comes to you unexpectedly…money you did not necessarily earn as Jimmy Buffett would say. And there are 3 things you must do every time you are lucky enough to fine some money.

I’ll start by describing what you should not do. A volunteer firefighter in Colorado won a $1.2 million home in Maryland. After selling the home and paying the taxes the found money amounted to about $200,000.

So what did she and her husband do with their found money? They took $50,000 and bought a new truck, paid off some debt and saved the rest.

$50,000 for a new truck. Not a good choice. The truck will go down in value fastest in the first years of ownership. I would have suggested buying a 2 year-old, low mileage truck.
Paid off some debt. I would have suggested paying off all debt.
Saved the rest. Good and I would suggest it go in an emergency fund.

The 3 things you must do when you get found money are:

Establish a $1000 emergency fund.
Catch up on any past due bills and if there are none then use it to pay off debt.
If you have no debt, other than a mortgage, then use it build your emergency fund to equal 3 to 6 months of living expenses.

Following these 3 steps make sure you are on the path to financial independence.

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Posted in Debt Free, Dreams, Financial Independence, Financial Stress, Income, Saving

Tags: Debt Money Money Management Personal Finance

7 reasons NOT to send your kids to college

August 2nd, 2010

: Image by brixton via Flickr

This is a very interesting prospective – I don’t agree totally. However, the best college education is the one you can afford to get without borrowing.

Check out 7 Reasons Not to Send Your Kids to College featured on Daily Finance

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Posted in Cost of College, Debt Free, Financial Stress

Tags: Financial Aid Higher education

Resume + Credit Report = Hired

July 23rd, 2010

: Image by alancleaver_2000 via Flickr

Now more than ever companies are evaluating the credit reports of job candidates. But why?

Because personal finance stress causes employees to waste up to 20 hours per month worrying about their money problems at work.

What about the current employees? Their personal finances may be in disarray too.

You could:

Do nothing – except that impacts your business
Pay employees more – except that won’t change anything

Or better yet… you could begin a systematic plan for personal finance coaching. With a class like Creating True Financial Independence.

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.

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Posted in Credit Reports, Debt Free, Employment, Financial Stress, Personal Finance Class

Testimonial: Thank you so much for that class

July 12th, 2010

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.

With even less debt,

M

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Posted in Debt Free, Dreams, Personal Finance Class, Testimonial