"I deserve to buy “insert item here” because I work hard and I deserve it."
We hear this one all of the time. It comes from an immature attitude and one that will lead you into a place where you have a whole lot of stuff that you don’t need and a lifestyle that will eventually have you living in your son’s basement! Believe me, I am not advocating that you never buy something that you “want” but make it part of your plan. Saving a little bit of money from each paycheck will start adding up quickly. Take some of your windfall cash (tax returns and gift money) and stash away half of it and blow the rest.
"I’m young. I can start saving money later."
Another immature statement! Start when you are young and enjoy the mathematical explosion of compound interest. I have review chart after chart for saving money and every single one of them show that starting a lifestyle of saving money early in life will bring you financial freedom. Save $2,000 a year beginning at age 20 and do it for 6 years – never save another dime – and you will have more than $1,000,000 by the time you are 65! The problem is that “life” happens and we tend to dip into that money for “stuff” and it never makes it until we retire. Start young and begin a lifestyle of savings.
"I don’t make enough money to save anything."
If you have a job and earn a paycheck, you can start saving some money. Start small and put back $5 from each paycheck. You won’t even miss $5! Suddenly you will look at your account and realize that you have a few hundred dollars. Work up to a little more and start putting back 15% of each check. Slowly and gradually, you will amass a small fortune.
How nice would it be to not have to worry about money? YOU are your greatest obstacle. Step out of the way and change the way you are doing things now and learn to save a few bucks! You will be glad that you did.
mah
Tuesday, November 2, 2010
Monday, October 25, 2010
Eating Away at Your Savings
I am constantly amazed at the number of people that we talk to that say, “We make good money, but I have no idea where it all goes.”
Before ever looking at their checkbook or at their bank statement, I can almost always say, “You eat at restaurants too much” and be correct.
Managing a budget is not an easy process – it is, quite frankly, a difficult task. Little expenses get in your way and keep you from meeting your financial goals. Eating in restaurants can be a “deal breaker” and one that nibbles (sorry for the pun) away at your budget, your goals and your plans.
Let’s say that over the course of a quarter, you eat a meal at a restaurant 3 times a week and spend $10 per meal – that is more than $350 each quarter and more than $1,400 per year! It is surprising to see how quickly it all adds up. By eating at restaurants, you could easily destroy your savings goal and obliterate your financial security in a few short months.
What options do you have? I am not advocating that you eat ramen noodles at every meal. And I am not advocating that you stop spending money on food or never enjoy time at your favorite restaurant. Within your budget, you should have a SPECIFIC dollar amount that you are willing to spend monthly on food. This category should include money spent at the grocery store to stock up your own kitchen and on meals that you eat away from home. Set a goal and then stick to it. Don’t go over that dollar amount and live within your plan. If this amount isn’t enough – it is YOUR plan! Change it and make it work.
Another way to beat this budget buster is to plan ahead. If you know that you are working late hours, plan ahead and be prepared. Avoid a quick impulsive trip through McDonald's and make sure that you have “sandwich fixins” in the fridge. Pack a lunch a few days a week and stock your cabinets with quick and easy meal options. A little bit of planning will help you to avoid spending money on this expensive non-essential.
Watching where you are spending your food budget is one of the quickest and easiest ways to save a few bucks within your budget. Make a few changes, and you will add several hundred dollars to your budget each month and help you to achieve your financial goals much quicker.
Don’t let food eat away at your financial successes!
Before ever looking at their checkbook or at their bank statement, I can almost always say, “You eat at restaurants too much” and be correct.
Managing a budget is not an easy process – it is, quite frankly, a difficult task. Little expenses get in your way and keep you from meeting your financial goals. Eating in restaurants can be a “deal breaker” and one that nibbles (sorry for the pun) away at your budget, your goals and your plans.
Let’s say that over the course of a quarter, you eat a meal at a restaurant 3 times a week and spend $10 per meal – that is more than $350 each quarter and more than $1,400 per year! It is surprising to see how quickly it all adds up. By eating at restaurants, you could easily destroy your savings goal and obliterate your financial security in a few short months.
What options do you have? I am not advocating that you eat ramen noodles at every meal. And I am not advocating that you stop spending money on food or never enjoy time at your favorite restaurant. Within your budget, you should have a SPECIFIC dollar amount that you are willing to spend monthly on food. This category should include money spent at the grocery store to stock up your own kitchen and on meals that you eat away from home. Set a goal and then stick to it. Don’t go over that dollar amount and live within your plan. If this amount isn’t enough – it is YOUR plan! Change it and make it work.
Another way to beat this budget buster is to plan ahead. If you know that you are working late hours, plan ahead and be prepared. Avoid a quick impulsive trip through McDonald's and make sure that you have “sandwich fixins” in the fridge. Pack a lunch a few days a week and stock your cabinets with quick and easy meal options. A little bit of planning will help you to avoid spending money on this expensive non-essential.
Watching where you are spending your food budget is one of the quickest and easiest ways to save a few bucks within your budget. Make a few changes, and you will add several hundred dollars to your budget each month and help you to achieve your financial goals much quicker.
Don’t let food eat away at your financial successes!
Monday, September 13, 2010
Four Steps to Financial Success
Over the course of the last several years, my wife and I have spent time with more than 120 families as they have walked through the steps of achieving their own Financial Peace. Here are four steps that I believe will help any family move farther down the road!
1. Get a Plan and Write It Down. A dream is just a dream until you write it down and then it becomes a goal! Every family that we meet with WANTS to improve their financial situation but seldom do they take the initiative to put a plan together, write it down and work together to accomplish the goals! We follow Dave Ramsey’s proven principles of giving every dollar a name by spending it first on paper and on purpose before the month even begins. Write the plan down – your memory isn’t that good!
2. Start Out Slowly. About once every six months, I get motivated to get back to the gym. I write down my workout, head to the gym and always work out too hard too fast! I don’t have enough patience to do it systematically – I want results immediately and see a difference after my first visit. Working your budget is the same process. You must work slowly and methodically in order to win. You didn’t get into this shape overnight, and you won’t work your way out of it quickly. If you try to take shortcuts, you are setting yourself up for disappointment. Get a plan, and stick to it.
3. Go Crazy and Get Intense. I am sure that you have heard the old saying: “If you always do what you always did, you will always get what you always got.” In order to be successful, you must change your behaviors and get a little crazy about it. What stuff can you cut out of your budget that you don’t really need? Can you live without a telephone landline for a while? Do you really need all of those cable channels? Pack a lunch. Eat dinner at home. Do it for a while, and see what a difference it makes. My wife and I have “Crazy Months” where we do anything and everything we can do to save money. What can you do with the money you saved? Pay down a bill? Save a little extra for Christmas gifts? Go crazy and see what can happen if you work together!
4. Get Support. Achieving personal financial success is about 20% head knowledge and about 80% behavioral change. People “know” what they need to do but seldom take the steps necessary to implement the new behaviors. You may need to grab some support to help you make the behavioral changes necessary to get you where you want to go. That is where The Sacks Group can step in and offer some assistance. We have programs specifically designed to help you stay on track. Worried that it will cost too much? Our first consultation is ALWAYS free, and our services are month-to-month – NO lengthy contracts. We want you to be successful, and we want you to win without feeling the constraints of a long-term agreement.
1. Get a Plan and Write It Down. A dream is just a dream until you write it down and then it becomes a goal! Every family that we meet with WANTS to improve their financial situation but seldom do they take the initiative to put a plan together, write it down and work together to accomplish the goals! We follow Dave Ramsey’s proven principles of giving every dollar a name by spending it first on paper and on purpose before the month even begins. Write the plan down – your memory isn’t that good!
2. Start Out Slowly. About once every six months, I get motivated to get back to the gym. I write down my workout, head to the gym and always work out too hard too fast! I don’t have enough patience to do it systematically – I want results immediately and see a difference after my first visit. Working your budget is the same process. You must work slowly and methodically in order to win. You didn’t get into this shape overnight, and you won’t work your way out of it quickly. If you try to take shortcuts, you are setting yourself up for disappointment. Get a plan, and stick to it.
3. Go Crazy and Get Intense. I am sure that you have heard the old saying: “If you always do what you always did, you will always get what you always got.” In order to be successful, you must change your behaviors and get a little crazy about it. What stuff can you cut out of your budget that you don’t really need? Can you live without a telephone landline for a while? Do you really need all of those cable channels? Pack a lunch. Eat dinner at home. Do it for a while, and see what a difference it makes. My wife and I have “Crazy Months” where we do anything and everything we can do to save money. What can you do with the money you saved? Pay down a bill? Save a little extra for Christmas gifts? Go crazy and see what can happen if you work together!
4. Get Support. Achieving personal financial success is about 20% head knowledge and about 80% behavioral change. People “know” what they need to do but seldom take the steps necessary to implement the new behaviors. You may need to grab some support to help you make the behavioral changes necessary to get you where you want to go. That is where The Sacks Group can step in and offer some assistance. We have programs specifically designed to help you stay on track. Worried that it will cost too much? Our first consultation is ALWAYS free, and our services are month-to-month – NO lengthy contracts. We want you to be successful, and we want you to win without feeling the constraints of a long-term agreement.
Wednesday, September 8, 2010
Losing Pounds of Debt
A recent report issued by the U.S. Consumer Study of Debt found that many Americans spend a large part of their day worrying about debt. Over 21 percent of consumers worry about how they will pay of their debt between 4 to 10 hours a day. The majority of consumers – 54 percent – worry about it between 1 and 3 hours a day.
High debt can create long hours of anxiety for most people, but there is a way to reduce and even eliminate those hours of angst over money troubles. Rather than throwing in the towel, you can choose to start from where you are and move forward. It’s kind of like losing weight. The past is the past. You can’t go back and change your bad decisions; you can only go forward to shed those unwanted pounds of debt.
While you are reducing your debt (calories), don’t let the rough spots drag you down so far that you can’t stick to the plan. If you hit a pothole as you are driving down the street, you don’t pull to the side of the road and quit driving! You have made it through some rough spots and now is the time to keep on going – forward!
Even if you have made a lot of past mistakes (and who hasn’t?), there are plenty of opportunities to make things right! Start out by making a conscious decision to change your behaviors. You’ve heard the old saying, “If you always do what you always did, you will always get what you always got.” The saying holds true for how you handle your finances. You won’t improve your situation until you try something different.
I bet you are saying, “This all sounds so good, but I have no idea where to start.” The first step toward recovery is admitting that you want things to change, and with that admission, you need to find some help. That is where we come in!
The Sacks Group has been in business since 1985, helping consumers and small-business owners find new solutions to life’s problems and struggles. Contact us today for a FREE one-hour consultation. We understand and can provide you with some direction.
www.BudgetingYourFinances.net
High debt can create long hours of anxiety for most people, but there is a way to reduce and even eliminate those hours of angst over money troubles. Rather than throwing in the towel, you can choose to start from where you are and move forward. It’s kind of like losing weight. The past is the past. You can’t go back and change your bad decisions; you can only go forward to shed those unwanted pounds of debt.
While you are reducing your debt (calories), don’t let the rough spots drag you down so far that you can’t stick to the plan. If you hit a pothole as you are driving down the street, you don’t pull to the side of the road and quit driving! You have made it through some rough spots and now is the time to keep on going – forward!
Even if you have made a lot of past mistakes (and who hasn’t?), there are plenty of opportunities to make things right! Start out by making a conscious decision to change your behaviors. You’ve heard the old saying, “If you always do what you always did, you will always get what you always got.” The saying holds true for how you handle your finances. You won’t improve your situation until you try something different.
I bet you are saying, “This all sounds so good, but I have no idea where to start.” The first step toward recovery is admitting that you want things to change, and with that admission, you need to find some help. That is where we come in!
The Sacks Group has been in business since 1985, helping consumers and small-business owners find new solutions to life’s problems and struggles. Contact us today for a FREE one-hour consultation. We understand and can provide you with some direction.
www.BudgetingYourFinances.net
Monday, August 30, 2010
The Dangerous Allure of a Clean Slate
A new report in the Wall Street Journal finds that as the economic recession squeezed consumers, credit card companies, who usually do the squeezing, are getting squeezed a bit themselves. As a result, credit card companies are more willing now to settle consumer’s credit debt for a percentage of the actual debt, spurring many consumers to hire debt settlement companies to negotiate a lower comprehensive payment with their credit card firms.
In fact, the U.S. Consumer Study on Debt reveals that 5.13 million consumers have enrolled in such services, and The Association of Settlement Companies reported their industry helped settle more than $1 billion in consumer debt last year.
As I read these statistics and information, I wondered to myself how many of these families have REALLY made a decision to change the way that they handle their finances. The allure of settling debt for a lower amount or filing bankruptcy to erase past debts is enticing and can provide a tremendous sense of relief –- a clean slate, a do-over, a way to start fresh. All of these things sound great, but this will only be accomplished if you make a commitment to handle things differently the next time around.
As you contemplate the possibility of bankruptcy or debt settlement, I urge you to consider an alternative. Why? Because, the allure of a clean slate can be dangerous! If you are not committed to changing your habits of creating overwhelming debt, you will fall right back into the same trap again. I promise you that it will take some extra effort but, well worth it as you dig yourself out of the mess that you have created.
Look at the possibility of creating a real working lifestyle budget and sticking to the plan of attack. The Compass Project offers a program that will hold your family accountable to a budget -– one that YOU create, not us! You make the budget, and we help you stick to it.
Sound like a good alternative? Contact us today for a Free One Hour Consultation.
www.BudgetingYourFinances.net
In fact, the U.S. Consumer Study on Debt reveals that 5.13 million consumers have enrolled in such services, and The Association of Settlement Companies reported their industry helped settle more than $1 billion in consumer debt last year.
As I read these statistics and information, I wondered to myself how many of these families have REALLY made a decision to change the way that they handle their finances. The allure of settling debt for a lower amount or filing bankruptcy to erase past debts is enticing and can provide a tremendous sense of relief –- a clean slate, a do-over, a way to start fresh. All of these things sound great, but this will only be accomplished if you make a commitment to handle things differently the next time around.
As you contemplate the possibility of bankruptcy or debt settlement, I urge you to consider an alternative. Why? Because, the allure of a clean slate can be dangerous! If you are not committed to changing your habits of creating overwhelming debt, you will fall right back into the same trap again. I promise you that it will take some extra effort but, well worth it as you dig yourself out of the mess that you have created.
Look at the possibility of creating a real working lifestyle budget and sticking to the plan of attack. The Compass Project offers a program that will hold your family accountable to a budget -– one that YOU create, not us! You make the budget, and we help you stick to it.
Sound like a good alternative? Contact us today for a Free One Hour Consultation.
www.BudgetingYourFinances.net
Thursday, August 26, 2010
Over Your Head!
After a nice dinner last night, I lumbered into the family room to catch the last couple innings of the baseball game. I eased back onto the couch, sipping away at my big glass of sweet tea when I was sickened by a commercial on TV!
The commercial showed several people as they were test driving a new car…each couple exclaimed, “Nice price” as they talked about the low monthly payment …. “Nice price”? Seriously? They were talking about the monthly PAYMENT not the PRICE of the car.
This kind of thinking is exactly what put thousands of families into financial crisis. Our society is now based upon determining if we can “make the payment” each month instead of seeing if we can afford to pay for it. There is a huge difference in the two methods of thinking and determining how items are purchased.
Our friends have new stuff, our neighbors have new stuff, and we all want more and more stuff. Let’s just take a look and see if we can squeeze another payment into our monthly budget and go get us some more stuff!
Wait a minute! You don’t have a budget in place? You’re not even sure what amount you spend monthly on gas, food and living expenses? Do you have a plan for your monthly income and expenses? Or did you sit down one desperate Sunday evening and scrawl one out on a yellow tablet. After the bills arrived in Monday’s mail, you tore it up and threw it away it because it didn’t work – right? Am I close? Sound familiar?
Thousands of families are in the exact same situation – right now! Many will never reach out for help because of embarrassment, fear or anger. “Just a little more in the paycheck, and we can pull out of this mess” – right? Trust me, a little pay increase will only give you cushion for a couple of months until you go right back to your old habits. You’ve got to do an about face – turn around and change the way that you handle your finances and try something different.
We hear this same story over and over and over again. Family after family who has tried desperately to get back on track but kept finding themselves with no money left at the end of the month.
Simply put, you need a plan – something REAL and something SIMPLE. It does not have to be an elaborate, 36 column spreadsheet with color graphics to make it work for you. Just a PLAN!
Do you find it hard to get started? Call us for a one-hour free consultation today, and get your family started on the real road to recovery and financial health. We know that you feel like the water is going over your head and you are drowning under a pile of bills. You can’t do it alone. We are here to help. We care, and we understand.
www.BudgetingYourFinances.net
The commercial showed several people as they were test driving a new car…each couple exclaimed, “Nice price” as they talked about the low monthly payment …. “Nice price”? Seriously? They were talking about the monthly PAYMENT not the PRICE of the car.
This kind of thinking is exactly what put thousands of families into financial crisis. Our society is now based upon determining if we can “make the payment” each month instead of seeing if we can afford to pay for it. There is a huge difference in the two methods of thinking and determining how items are purchased.
Our friends have new stuff, our neighbors have new stuff, and we all want more and more stuff. Let’s just take a look and see if we can squeeze another payment into our monthly budget and go get us some more stuff!
Wait a minute! You don’t have a budget in place? You’re not even sure what amount you spend monthly on gas, food and living expenses? Do you have a plan for your monthly income and expenses? Or did you sit down one desperate Sunday evening and scrawl one out on a yellow tablet. After the bills arrived in Monday’s mail, you tore it up and threw it away it because it didn’t work – right? Am I close? Sound familiar?
Thousands of families are in the exact same situation – right now! Many will never reach out for help because of embarrassment, fear or anger. “Just a little more in the paycheck, and we can pull out of this mess” – right? Trust me, a little pay increase will only give you cushion for a couple of months until you go right back to your old habits. You’ve got to do an about face – turn around and change the way that you handle your finances and try something different.
We hear this same story over and over and over again. Family after family who has tried desperately to get back on track but kept finding themselves with no money left at the end of the month.
Simply put, you need a plan – something REAL and something SIMPLE. It does not have to be an elaborate, 36 column spreadsheet with color graphics to make it work for you. Just a PLAN!
Do you find it hard to get started? Call us for a one-hour free consultation today, and get your family started on the real road to recovery and financial health. We know that you feel like the water is going over your head and you are drowning under a pile of bills. You can’t do it alone. We are here to help. We care, and we understand.
www.BudgetingYourFinances.net
Monday, August 2, 2010
Beware of the Bottom Feeders!
With record high unemployment, compounded with foreclosures and bankruptcies, there is no doubt that we are living in desperate times. But the old adage: “desperate times calls for desperate measures” seems to be getting people in trouble with their money lately.
I have spoken to a dozen people in the last week who have all said the same thing to me: "I have never been in this position before." Each of them have been unemployed for several months, their unemployment is about to run out, they are living on their last dime, and they are trying to figure out a way to save their car, house and marriage.
They are in a desperate situation and are beginning to turn to what we at The Sacks Group consider the bottom feeders of the financial industry.
You know the companies that I mean. We pass several of them every single day but dare not mention them. The payday and title loan franchises. In our circle of friends, we may even believe that they "serve their place in our society" to help the less fortunate among us. But if this is the place you think you need to turn when you are feeling desperate – please beware!
These title loan establishments and paycheck loan places are popping up all over the place lately. They are in almost every strip center -- right next to the nail salons. They represent where our society and our economy has landed – in an unregulated, desperate place where people "hoc" their car title or paycheck for enough money to make it through the end of the month.
These places charge astronomical interest rates. A recent article in the St. Louis Post-Dispatch shared the plight a St. Louis woman, aged 65, who was broke, and the rent was due. After deciding a car-title loan was her only option, she borrowed $800. (see "Loan wording circumvents law" in the Aug. 1, 2010, issue)
She's paid back close to four times that much, but she hasn't reduced the loan's principal. Although she stopped making payments — "I've paid enough already," she insisted — she fears the lender will seize her car.
Lenders like the one that she used skirt around the laws and regulations to avoid the restrictions placed upon title loan establishments. Instead these businesses utilize the "less restrictive" rules of consumer finance. These rules allow them to roll these loans over and over again to place individuals into a vicious cycle that never ends.
If life happens, and you feel that you have no other place to turn, make sure that you understand the contract in full. Ask lots of questions. In fact, since there's so much competition in the business, shop around. Don't be embarrassed ... whatever your situation is they've probably seen worse.
If you find yourself in a place where you have never been before, beware of the bottom feeders and know the rules (or lack of them) under which they play.
I have spoken to a dozen people in the last week who have all said the same thing to me: "I have never been in this position before." Each of them have been unemployed for several months, their unemployment is about to run out, they are living on their last dime, and they are trying to figure out a way to save their car, house and marriage.
They are in a desperate situation and are beginning to turn to what we at The Sacks Group consider the bottom feeders of the financial industry.
You know the companies that I mean. We pass several of them every single day but dare not mention them. The payday and title loan franchises. In our circle of friends, we may even believe that they "serve their place in our society" to help the less fortunate among us. But if this is the place you think you need to turn when you are feeling desperate – please beware!
These title loan establishments and paycheck loan places are popping up all over the place lately. They are in almost every strip center -- right next to the nail salons. They represent where our society and our economy has landed – in an unregulated, desperate place where people "hoc" their car title or paycheck for enough money to make it through the end of the month.
These places charge astronomical interest rates. A recent article in the St. Louis Post-Dispatch shared the plight a St. Louis woman, aged 65, who was broke, and the rent was due. After deciding a car-title loan was her only option, she borrowed $800. (see "Loan wording circumvents law" in the Aug. 1, 2010, issue)
She's paid back close to four times that much, but she hasn't reduced the loan's principal. Although she stopped making payments — "I've paid enough already," she insisted — she fears the lender will seize her car.
Lenders like the one that she used skirt around the laws and regulations to avoid the restrictions placed upon title loan establishments. Instead these businesses utilize the "less restrictive" rules of consumer finance. These rules allow them to roll these loans over and over again to place individuals into a vicious cycle that never ends.
If life happens, and you feel that you have no other place to turn, make sure that you understand the contract in full. Ask lots of questions. In fact, since there's so much competition in the business, shop around. Don't be embarrassed ... whatever your situation is they've probably seen worse.
If you find yourself in a place where you have never been before, beware of the bottom feeders and know the rules (or lack of them) under which they play.
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