As I went out to my mailbox to retrieve some mail, I received a flyer from a new rent-to-own establishment in a nearby town. Normally I pitch these ads from people who take advantage of those who have little money and even less financial knowledge. I'm not sure why, but I started reading this particular ad. I had always heard that these businesses took advantage of people by promising things people "needed" for "easy weekly or monthly payments." I never realized how immoral these businesses were. For example, you could purchase a new iPad for "only" 19.99 a week for 104 weeks! I mean, what a deal! This makes sense if you really "need" an iPad right? That's right folks! For only $2079, you can buy a $500 iPad!
Or maybe you don't need the latest tech thing. You are looking for a washer and dryer. well, you're in luck! It just so happens another rent-to-own establishment will sell you a washer and dryer for only 69.99 a month over 18 months! In this case, you can buy an $800 washer and dryer combo for the price of $1259!
These ripoffs are keeping so many people from where they could be. These people prey on people's feelings of jealousy and entitlement. They neglect to tell people that if someone saves that $20 a week, they could buy an iPad for that $500, without payments, in less than 6 months. Or that by saving that $70 a month, they could purchase that $800 washer and dryer with cash in under a year.
In order to drive these shysters out of business, we need to have the discipline to wait. Hebrews 12:11 reminds us that though discipline seems unpleasant, it produces righteous fruit.
Friday, February 11, 2011
Friday, December 24, 2010
Budgeting is a Team Sport!
When preparing your budget, it is important to remember that at least one other pair of eyes needs to look over your budget. There are several reasons for this. First, another point of view may notice something that needs budgeted for. You may have missed the need to budget for car repairs, or for the furniture needing replaced. This should be your spouse if you are married, or somone you know is good with finances as a single person.
Another reason, if you are married, to have your spouse look over your budget is to enhance the unity in your marriage. If you develop a budget and tell your spouse that the budget is done, you make your spouse feelcontrolled, rather than part of a team. Once you complete the first draft of your budget, your spouse then looks it over and gets to make changes to it! This keeps the budget from being the budget "I made" to the one "we came up with."
Another reason, if you are married, to have your spouse look over your budget is to enhance the unity in your marriage. If you develop a budget and tell your spouse that the budget is done, you make your spouse feelcontrolled, rather than part of a team. Once you complete the first draft of your budget, your spouse then looks it over and gets to make changes to it! This keeps the budget from being the budget "I made" to the one "we came up with."
Wednesday, December 22, 2010
The Paradox of Giving
As we are in the time of year when we celebrate he birth of Christ, I would like to speak about giving. When Jesus came to earth, He was the greatest gift ever bestowed on mankind. Today, we give gifts as a tradition.
What does giving have to do with managing money? More than you may think. There is a tremendous link between generosity and prosperity. No, I am not talking about sending a hundred dollars to a TV preacher expecting back $10,000. What I am saying is that we need to treat our money as it is. It is not our money. It is truly God's money, and He has entrusted us with a certain amount. The reason I am so passionate about saving and managing money correctly is because it's is not mine to use as I please. It is my Lord's money, and I must manage it in a way that pleases Him.
In his Financial Peace University course, Dave Ramsey explains how rather than grasping the money in our possession, we need to carry it with an open hand. The rationale behind this change in attitude is that while no money can leave your hand while it is clinched tightly in your fist, neither can any more enter. In Dickens' A Christmas Carol, Ebenezer Scrooge is introduced as " a squeezing, wrenching, grasping scraping, clutching covetous old sinner!" This is the attitude of someone who won't be generous with their resources.
When you hold money with an open hand, it's true some may leave, but it also the only way that money can come to you.
What are some practical ways to live generously? Here are just a few ideas. How about the next time you go out to a sit-down restaurant, like Cracker Barrel or Bob Evans, why not leave at least a 100% tip? If you hear about a couple trying to adopt, either donate to help them, or organize a fundraiser to help with adoption costs. Just last week, someone dropped five checks wrapped up in a one-dollar bill. The five checks were written out for $20,000...each.
These are just a couple of ideas. If you can think of grander ideas than these, go for it! You just need to make generosity a way of life.
What does giving have to do with managing money? More than you may think. There is a tremendous link between generosity and prosperity. No, I am not talking about sending a hundred dollars to a TV preacher expecting back $10,000. What I am saying is that we need to treat our money as it is. It is not our money. It is truly God's money, and He has entrusted us with a certain amount. The reason I am so passionate about saving and managing money correctly is because it's is not mine to use as I please. It is my Lord's money, and I must manage it in a way that pleases Him.
In his Financial Peace University course, Dave Ramsey explains how rather than grasping the money in our possession, we need to carry it with an open hand. The rationale behind this change in attitude is that while no money can leave your hand while it is clinched tightly in your fist, neither can any more enter. In Dickens' A Christmas Carol, Ebenezer Scrooge is introduced as " a squeezing, wrenching, grasping scraping, clutching covetous old sinner!" This is the attitude of someone who won't be generous with their resources.
When you hold money with an open hand, it's true some may leave, but it also the only way that money can come to you.
What are some practical ways to live generously? Here are just a few ideas. How about the next time you go out to a sit-down restaurant, like Cracker Barrel or Bob Evans, why not leave at least a 100% tip? If you hear about a couple trying to adopt, either donate to help them, or organize a fundraiser to help with adoption costs. Just last week, someone dropped five checks wrapped up in a one-dollar bill. The five checks were written out for $20,000...each.
These are just a couple of ideas. If you can think of grander ideas than these, go for it! You just need to make generosity a way of life.
Friday, October 1, 2010
It's Gonna Rain!
This past Sunday night, I started leading Dave Ramsey's Financial Peace University at our church. The lesson was the importance of saving. I know, I know, this is a familiar road, but it's also major highway that must be taken when getting to our financial destination.
I cannot stress the importance of saving up for when emergencies come across your life. How many of us had parents or grandparents who admonished us to save up for a rainy day?
I'm not some doom and gloom guy, but we all know that cars break down, medical bills can get high, appliances need replaced, kids need trips to the emergency room, and layoffs happen. Life has this habit of happening, and usually, in combination within a short time frame.
I'm not saying you need to save for the sake of beating you over the head. I'm saying you need to save now, so when life does happen, you can have at least some sense of peace that what you're going through can be dealt with and not lead to financial stress.
I cannot stress the importance of saving up for when emergencies come across your life. How many of us had parents or grandparents who admonished us to save up for a rainy day?
I'm not some doom and gloom guy, but we all know that cars break down, medical bills can get high, appliances need replaced, kids need trips to the emergency room, and layoffs happen. Life has this habit of happening, and usually, in combination within a short time frame.
I'm not saying you need to save for the sake of beating you over the head. I'm saying you need to save now, so when life does happen, you can have at least some sense of peace that what you're going through can be dealt with and not lead to financial stress.
Sunday, July 18, 2010
Budgeting Software
I've been harping about getting on a budget for some time. For those who would like to start on a budget, there's a link at the bottom of the blog to use Dave Ramsey's starter version of his Gazelle budgeting software. Enjoy.
Tuesday, July 13, 2010
Can't Plan To Use What You Don't Have
After the last entry on planning your cash flow, some of you might be thinking, "That's great, but I've got too much month at the end of the money! In fact, I can't even pay everyone!" For those of you, I know how that feels. I've been there. In fact, if anyone needs to have a budget, it's you!
First, you need to prioritize who gets what out of your money. The top priorities are food, shelter, utilities, clothing and transportation. Don't eat every other day to make sure Discover gets paid. Don't get behind on your rent or mortgage to stay current with your student loan.
Once you take care of the top priorities, then you pay off the unsecured debts with what you have left. This can be handled a couple of different ways. One is to prorate your payments based upon what remains. Another is to simply make a list of who you owe. Just pay people until the money runs out. Those remaining will get placed at the top of next month's list. if you like working with forms, you can find some samples at daveramsey.com, as well as his books.
I would like to give you a couple of reminders. First, you are morally and legally obligated to pay legitimate debts. This is not an option.
Second, if you are in collections, do not let collector's intimidate you. They cannot call whenever they want, say whatever they want, or threaten whatever they want. Study the Federal Fair Debt Collections Act, passed in 1977, the same year as the Fair Credit Reporting Act. This law states exactly what a collector can and cannot do.
Just stick with it and you will get out of this hole.
First, you need to prioritize who gets what out of your money. The top priorities are food, shelter, utilities, clothing and transportation. Don't eat every other day to make sure Discover gets paid. Don't get behind on your rent or mortgage to stay current with your student loan.
Once you take care of the top priorities, then you pay off the unsecured debts with what you have left. This can be handled a couple of different ways. One is to prorate your payments based upon what remains. Another is to simply make a list of who you owe. Just pay people until the money runs out. Those remaining will get placed at the top of next month's list. if you like working with forms, you can find some samples at daveramsey.com, as well as his books.
I would like to give you a couple of reminders. First, you are morally and legally obligated to pay legitimate debts. This is not an option.
Second, if you are in collections, do not let collector's intimidate you. They cannot call whenever they want, say whatever they want, or threaten whatever they want. Study the Federal Fair Debt Collections Act, passed in 1977, the same year as the Fair Credit Reporting Act. This law states exactly what a collector can and cannot do.
Just stick with it and you will get out of this hole.
Thursday, June 10, 2010
Plan it Out and Write it Down!
You knew it was coming. I write about managing your money, so, in the back of you're mind, you had to know this topic was coming up. If not, you are living in denial.
If you want to manage your money, instead of having it manage you, you need to have a written budget. Now, don't go running off to Mommy to snitch on me that I said the "B" word. A budget is not something to cause you to assume the fetal position. If that word scares you, call it a "cash flow plan" or "a spending plan." I don't care what you call it, but you have to do it!
A budget does not have to be scary. The first time I went through Financial Peace University, Dave Ramsey quoted author John Maxwell's definition of a budget as "telling your money where to go, instead of wondering where it went." Your budget is simply a flowchart to show you where your money is going.
There are two aspects of youer budget. First it should be planned ahead of time. Whether you do your budget Annually, weekly, or somewhere in between, you need to do it ahead of time. I recommend doing a monthly budget. A monthly budget is good, bcause each month is different. The expenses in March will not be the same as December's expenses. So, before you get you first paycheck each month, plan out how you are going to spend this month's income.
Second, a budget should be a written plan. It needs to be written down. You need to have a hard copy of your budget that can be easily referred to. This way, you can say, this is my budget, and I will stick to it. Now, before the hands start going up, I will be dealing with some budgetary objections in my next few entries. but remember to plan your expenses and to write it down.
If you want to manage your money, instead of having it manage you, you need to have a written budget. Now, don't go running off to Mommy to snitch on me that I said the "B" word. A budget is not something to cause you to assume the fetal position. If that word scares you, call it a "cash flow plan" or "a spending plan." I don't care what you call it, but you have to do it!
A budget does not have to be scary. The first time I went through Financial Peace University, Dave Ramsey quoted author John Maxwell's definition of a budget as "telling your money where to go, instead of wondering where it went." Your budget is simply a flowchart to show you where your money is going.
There are two aspects of youer budget. First it should be planned ahead of time. Whether you do your budget Annually, weekly, or somewhere in between, you need to do it ahead of time. I recommend doing a monthly budget. A monthly budget is good, bcause each month is different. The expenses in March will not be the same as December's expenses. So, before you get you first paycheck each month, plan out how you are going to spend this month's income.
Second, a budget should be a written plan. It needs to be written down. You need to have a hard copy of your budget that can be easily referred to. This way, you can say, this is my budget, and I will stick to it. Now, before the hands start going up, I will be dealing with some budgetary objections in my next few entries. but remember to plan your expenses and to write it down.
Subscribe to:
Posts (Atom)