Are you in a financial rut?  Do you need some motivation to get you back on your feet and move forward?  Perhaps you’ve been trying to build and emergency fund this year and emergencies pop up as quickly as you deposit money into your savings account.  Or, perhaps you’ve paid off all your debt and can’t seem to find the drive and motivation required to move onto your next goal.

Pressing onward isn’t easy, but must be done to accomplish your financial goals.   Here are 20 tips to fire up your turbo charger, avoid distractions and stay on track!

20 Tips To Turbo Charge Your Financial Goals

1. Forget what is behind. We’ve all experienced financial blunders and made mistakes.  Stop beating yourself up over them!  You can’t change what is in the past, but you can impact today and tomorrow.
2. Move forward to what is ahead. Know why your blunders and mistakes occurred and make sure you’ve dealt with the root cause.  Next, step forward and take action on fixing the issue, i.e., getting on a plan to get out of debt.
3. Learn from mistakes. Never forget your mistakes and why you made them.  Forgetting mistakes results in repeating them over again.  Were you tempted to purchase something on credit without the cash to purchase?  Did you act on the temptation?  Do you regret it because you’re now making a monthly payment with high interest?  Figure out what caused you to act and get it corrected.
4. Celebrate along the way. As you make progress, learn to take the time to celebrate.  There are many steps and goals along the journey.  It’s a long road, so don’t forget to celebrate the wins and include family and friends.
5. Find a way to give back. As you step forward, some will be a step behind.  Don’t forget what allowed you to move forward and share with others what got you there.  I’ve found that helping others along the way helps learn and become more motivated towards my own journey.
6. Ignore the naysayers. Many will question your methods and ask why.  Dave Ramsey always says that people will think you’re strange and that usually means you’re starting to do things right!  The bottom line is that it really doesn’t matter what others think or say.  It’s you underlying values and reasons for the goal that make the difference.
7. Watch the horizon closely. Keep an eye out for things that can pull you off track to achieving your goals.  A car that starts making funny noises, an older washer and dryer can all be things that could be on the edge of costing you money.  If you think about them and can plan for them, you can avoid emergency spending.
8. Educate yourself. Learn from others and best practices.  A great way to learn is to follow some personal finance blogs, or subscribe to a personal finance publication.  I always like to investigate and explore information that is available based on my current goal.
9. Invest the right amount of time. Getting better at playing a sport takes practices.  Improving grades requires studying.  Improving your personal finances takes investment of time in managing your money, but also in learning.  Investing a little bit of time each day adds up to a large return over time.
10. Don’t go at it alone. Make sure you’re using wise counselors along the way.  Even if you’re not in trouble, it’s a good idea to find someone who can hold you accountable to your plan (other than yourself) and provide you counsel based on their experience or area of expertise.
11. Realize when it’s time to go to plan B. Paying off debt is important, but if you sense your job might be in jeopardy pausing debt pay off to further build your emergency fund may be required.  The point is that you need to have a plan, but have the flexibility to change your plan based on circumstances.
12. Reflect often to maintain focus. It doesn’t do any good to lose sight of your plan.  Once your plan for savings or debt reduction is in place, you need to review it often to make sure you’re following it.  Understand things that have caused you to move off track and take corrective action to mitigate the risk of them occurring again in the future.
13. Make sure your visions have goals and your goals have plans. If your vision is to become financially free, determine the goals to get there.  Build a plan to achieve each goal.  If you don’t have any action steps to take to achieve your goal, you’re going to have a hard time taking a step forward.
14. Make it a community affair. When it comes to getting out of debt or overcoming past financial blunders remember there are many people out there trying to do the same thing.  Hello!  We’ve all made mistakes.  Connect with a community of people who are traveling the same road and share the same passion.
15. Find your motivation in God’s word. The Bible is full of financial guidance and financial principles.  There are over 2300 scriptures in the Bible related to finances.  Feel down or lost about your money?  Seek guidance and find peace and security in God’s money design.
16. Don’t talk about it, be about it. Finally, we’ve all spent time talking about everything we need to do.  Stop talking about it and take action.  Talking is great when there is action to follow it up.  Talking without action is just a waste of breath.
17. Take a break. If all you’ve done lately is talk about money and personal finance, drop the subject for a while.  Perhaps you’re burned out and your spouse is too!  You’re spouse will probably appreciate it and it’ll help you rest your mind.  Schedule the time to talk about your next objective when it’s a neutral time, there are no distractions and you can think clearly.
18. Brainstorm a solution. Not sure where to do?  Play a brainstorming game.  Spend 10 minutes writing every single (unfiltered) thought or potential solution to your challenge on sticky notes.  Tip:  find some friends and family to participate along with you.  Put all the stick notes on the wall when time is up and organize them based on what seems realistic and achievable.  Pick the top 2-3 and create action steps associated with them.
19. Listen to others talk about their situation. A few times a week I’ll listen to the Dave Ramsey Show.  Nothing gets me more motivated than hearing people talk about challenges and Dave Ramsey directing them to the right path.  Its powerful hearing so many people talk about how they want to become debt free and overcome their financial struggles.
20. Tell someone else about what you plan to do. There is something about making a public commitment.  It helps us live up to our word and avoid the situation of having to tell someone you didn’t do what you said you were going to do.  So, if you say to your friend you’re going to start a spending plan this month, or get out of debt in one year, be prepared for a follow up question in the near future asking you where you are with your goal!

Now go out there and make it happen!

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20 Tips To Press Onward Towards Your Financial Goals

With the recent extension of the homebuyers tax credit and expansion to include a current homeowner tax credit, there is probably going to be a lot of people in the market for a new house.  These credits are yet another way people can benefit from economic weakness.  If you are in the market for a new house you might want to question one piece of conventional wisdom.

It is not uncommon to hear real estate agents or other financial professionals advise that you avoid owning the most expensive home on your block.  The theory is that people who are looking for a house that costs $200,000 won’t be looking in a neighborhood where the average house is $180,000.  Therefore, you will not be able to sell the house for what it is worth – $200,000.

2 Reasons Why You Should Buy the Most Expensive House in Your Neighborhood

The Value of the Home Reflects the Purchase Price

Assuming you are not the first owner of the home (who theoretically paid what the home was worth) you should be able to buy the home for less than it is ‘worth’.  Let’s assume that the real estate professionals are right and this particular home would sell for $200,000 if it was in a nicer neighborhood.  Still, you can only sell it for $180,000 in this neighborhood.  This means you have bought a more valuable home for less than is is ‘worth’. So it will not be a loss when you sell a more valuable home for less than it is ‘worth’. While you live in the home you can enjoy what is possibly a bigger house for less money than if you bought it elsewhere.  Sounds good to me.  But what about when you go to resell it?  Yes, when you sell you might get less than ‘it is worth’, but just remember you didn’t pay for what it is ‘worth’ in the first place.

Peer Pressure: Staying Down With the Joneses

If you have ever lived in a community where the Joneses have less than you, you know it is much easier (and financially healthier) to keep down with the Joneses than to try and keep up with them.

A recent Dear Abby column bore the title “Not keeping up with Joneses has hardships.”  A lady from Ohio wrote expressing her concern about trying to keep up with her more affluent neighbors.  Abby wrote back and told the lady to suck it up (I think she used the phrase work on your self-esteem).  A follow-up letter was written by a lady who signed her letter “Gets It”.  She wrote:

I don’t think you fully understand what it’s like to live this way [in a community where you don’t have as much as your neighbors].  We’re the underdogs in a snooty community.  Reevaluating priorities and working on self-esteem are important.  But they do not negate how we feel when our kids ask, “Why don’t we have a yard like everyone else?”  Or when the PTA moms snub us because of where we live.” Wyoming Tribune, Tuesday, July 21, 2009.

Living in a neighborhood you can’t afford (as determined by your budget category percentages) means you will plant more flowers than you can afford, pay a lawn service company more than you have, and buy extra big birthday gifts just to appear wealthy.  For this reason, living in a more expensive home in a cheaper neighborhood could just save you money in the long run. There’s just not so much pressure from the Joneses.

It is much easier and financially healthier to keep down with the Joneses than to try and keep up with them.

If you are going to change how you live, shop, conduct yourself, care for your property, and spend money just because of your neighbors, then you should buy a home in a cheaper neighborhood.  Envy is a very costly vice.  Move to a place where you are at the top (economically) of your neighborhood, not the bottom.  It removes all the pressure to keep up.

Need Proof? Remember the College Days

Remember back when you were a broke college student?  Because I did an 84 hour Master’s Degree those school years lasted about seven years.  In college, when my wife and I were first married we lived in a smoke infested apartment in what we called the “ghetto” (York, Nebraska does not have any official ghettos, but if it did, this would be one!).  The apartment was dysfunctional in many ways.  We were unable to control our own temperature and our oven was too small to hold our pans.  But, being full time students it was what we could afford.  Every Tuesday we would traipse down to Wendy’s for .99 cent all you can eat chili.  The middle class got fries and the upper-class topped up with a coke and fries in addition to the chili.  In that college community no one had money so no one suggested anything extravagant.  That is the value of living in a community with a similar standard of living – the pressure from peers is removed.  I would always rather be a better off person in the midst of the poor than to be the poor person in the midst of the wealthy.

How has your choice of neighborhood impacted your spending?

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2 Compelling Reasons To Buy The Most Expensive House In Your Neighborhood

If you’re a first time homebuyer and you thought that you might be out of time when it came to getting the $8000 refundable tax credit, think again!  On Friday the Obama administration signed into law the Worker, Homeownership, and Business Assistance Act of 2009 which extends the $8000 refundable tax credit through the end of June of 2010.    If you had given up looking for a house, it may be time to restart your search!

$8000 First Time Home-buyer Tax Credit Extended

The new law was agreed upon by Congress last week, and then signed into law by President Obama at the end of the week.   The extension of the tax credit does mean that there are a few changes in the provisions, including higher income limits, age restrictions and limits on home values.

• The credit is available for homes that go under contract by April 30, 2010 and close by June 30, 2010.
• First-time buyers (those who have not owned a home for three years) can continue to claim an $8,000 credit.
• Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (an increase in income limits)
• Homes that cost more than $800,000 aren’t eligible for the credit.
• You must be 18 years old to claim the credit.
• Credit is available for primary residences only (no vacation homes)

$6500 Move-Up Homebuyer Tax Credit Passed

In addition to the first time homebuyer bill being extended, Congress also decided to expand the incentives for homebuyers by allowing some current owners to take part as well. Current homeowners can now buy a new home and receive a $6500 tax credit.  Details of the new incentives here:  $6500 homebuyer tax credit.

What do you think of the tax credit being extended?  Are you relieved because you just missed the deadline before?  Are you upset because you’re against the credits?  Tell us your thoughts on the tax credit extension and expansion in the comments below.

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$8000 First Time Homebuyer Tax Credit Extension: Take Advantage Of Incentives Through June 30th, 2010

Last week I wrote about how congress was attempting once again to pass an extension of the $8000 first time homebuyer tax credit.  There had been several false starts to get an extension passed as the senate and congress weren’t able to agree on amounts of credits, whether to extend the credits at all, and whether it should be expanded to include current homeowners.

Earlier this week congress was finally able to come to an agreement on an extension of the $8000 first time homebuyer tax credit, and in addition, they added on a new $6500 tax credit for people who already own a home. This morning President Obama is expected to sign into law the Worker, Homeownership, and Business Assistance Act of 2009 that expands the popular homebuyers tax credit and extends unemployment benefits.

$6500 Homebuyer Tax Credit For Move-Up Buyers Added

For many people the most exciting news is that there will now be a tax credit for current homeowners.   The tax credit for move-up buyers will take effect after the date of enactment
(when the bill is signed).  Unfortunately for those who have already bought a house it doesn’t seem to be retroactive.

• The credit is available for homes that go under contract by April 30, 2010 and close by June 30th, 2010.
• Current homeowners can claim a $6,500 credit as long as the property they are vacating has been their primary residence for at least five consecutive years out of the last eight years.
• Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (these are higher limits than before)
• Homes that cost more than $800,000 aren’t eligible for the credit.
• $6500 tax credit is not retroactive.  (from the language of the bill: “shall apply to residences purchased after the date of the enactment of this Act.”)

So to all those people who have been sitting on the sidelines hoping for a tax credit for current homeowners , some of you are in luck.  Because of the language of the bill a lot of people are still excluded (myself included), but there are still a lot of folks who will now be jumping into the home shopping game.

Will the new $6500 tax credit push  you to start looking for a new home?  Would you consider moving if there wasn’t a tax credit?  Do you think it will have an appreciable effect on the economy and the real estate market?

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$6500 Homebuyer Tax Credit For Current Homeowners Signed Into Law Today. Is It Retroactive?

One of the most important things when it comes to personal finance is taking control of your money, instead of allowing it to control you. You need to track your monthly income and expenses, and give every dollar a name and a job. All income should be assigned to an expense category, or to a saving category. Every penny. If you allow your excess income to remain unassigned, it will disappear, I guarantee it. (I know from personal experience.)

Budgeting Programs To Help Track Your Money

Tracking your family budget is becoming easier all the time as new software options appear on the market every day. Here’s a giant list of some of the best budgeting options available.  Some programs are free, some have free trials, and some do cost money.  Both Mac and Windows programs are included.

Desktop And Online Applications

• Ace Money Lite: A freeware personal finance manager.
• Buddi: A personal finance and budgeting program.
• Budget5000: Plan your personal budget, track spending
• Budget Ace: A monthly personal budgeting program.
• Budget Simple: A free, easy to use online budget
• Budgeting Spending Plan: A budgeting guideline that shows amounts you should spend in certain categories.
• BudgetPulse: Organize your cash flow, expenses and bank accounts in one place.
• Budget Tracker: A feature rich money management tool.
• Buxfer.com: Easy online money management.
• Cashbox for Mac OS: Track your personal accounts and analyze and categorize your spending habits.
• Cha-Ching: Easy and flexible personal finance software Mac OS.
• Dave Ramsey’s Personal Finance Software: Straight from the folks at DaveRamsey.com
• Financial Envelope Software: An envelope based budgeting software.
• Fortora Fresh Finance: People friendly finance management.
• Geezeo.com: A set of free online financial tools to help you reach your goals.
• GnuCash: A personal and small-business financial-accounting software.
• iBank for Mac: A slick looking financial manager with a ton of features.
• iCash: A personal finance manager for Mac and Windows.
• JGnash Personal Finance: A free personal finance manager with many of the same features as commercially-available software.
• JustBudget: A free online web application to manage your personal budget.
• Liquid Ledger: Mac OS personal finance manager.
• Microsoft Money: This is the main software that we use at our house, although it is no longer being supported. If you’re just getting started, you may want to choose something else.
• Mint.com: Easy to use and full featured online money manager that allows you to check all your accounts in one place. Includes budgeting and saving tools.
• MiShell Budget Calendar: Take control of your finances with this easy to use, intuitive software that shows all transactions in an easy-to-understand calendar format.
• Moneydance Personal Finance Manager: Organize your finances, manage your budget, track your portfolio, or just automatically balance your checkbook. Moneydance can do it all.
• Moneystrands: Free money manager that  automatically pulls together data from your bank, credit card and investment accounts to provide an accurate, up-to-date picture of your financial life.
• Moneytrackin’: free online webapp that allows you to track all your expenses and income easily.
• MoneyWell: Mac OS envelope budgeting.
• Mvelopes: An online personal finance and spending management system based on the envelope system.
• MySpendingPlan: Free online budgeting software and planning tools.
• NeoBudget: An online budget system that uses the envelope method to help you track your spending habits and stick to a budget.
• Out Of The Dark: Online personal budget.
• Pear Budget: A simple budgeting and expense tracking service.
• Piggy Budget: Track your spending without complicated accounting.
• PLCash: PLCash is a platform-independent personal financial program.
• Pocketsmith.com: The unique forward-focus of PocketSmith tells you what sticking to budget means for the future of your money. It is a crystal ball for your bank accounts.  Very cool!
• Quicken: Great desktop application that does it all.
• Quicken Online: Free, full featured and easy money management – online.  Also works and syncs with the Quicken Iphone App. (Quicken Online to be merged with Mint.com next year)
• Rich Or Poor: Track income, expenses, assets, liabilities, and much more
• SimpleD Budget: Free Windows application for personal financial management.
• Squirrel for Mac: A personal finance application for Mac OS X.
• Snowmint Creative Budget: Manage your money to get out and stay out of debt.
• Wesabe.com: Online money management service that has a variety of financial tools.
• Yodlee MoneyCenter: Free online money manager to track spending, pay bills and more.
• You Need A Budget : One of the more popular personal finance programs in the personal finance blogosphere, YNAB is highly recommended.  Save 10% by using coupon code (expires Nov. 30th, 2009): biblemoney
  

Excel Budget Templates

• Budget Spread:  Spreadsheet from gatherlittlebylittle.com
• Budget Spreadsheet: Spreadsheet from MrsMicah.com
• Dave Ramsey Allocated Spending Spreadsheet: Spreadsheet from angus65.com
• Enemy of Debt Budget: Spreadsheet from EnemyOfDebt.com
• Financial Snapshot & Budget: Spreadsheet from BudgetsAreSexy.com
• Google Docs Budget Templates: A bunch of usable budget templates.
• Punch Debt In The Face Budget:  Spreadsheet from PunchDebtInTheFace.com
• Vertex42 Budgets And Calculators: Budgets and a variety of other excel calculators.
• Windows Excel Templates: A variety of excel budget spreadsheets are available here.
• Zero Based Budget: Spreadsheet from ratestate.com

Iphone And Ipod Touch Apps

• Bank Of America App:  If you have accounts with BoA like I do, this may come in handy. Includes bank and ATM locator that uses Iphone’s GPS.
• Bill Minder: Track recurring bills, mark bills as being paid or unpaid, and manage payment info.
• Bloomberg Mobile: Mobile version of Bloomberg’s financial news, stock info, etc.
• Cha-Ching for Iphone: Mobile version of the Cha-Ching Mac OS personal finance manager.
• Chase Finance: If you have an account with Chase, this is their online banking app.
• Daily Finance: Money news, stock quotes, stock market news, etc.
• Day Bank: App that allows you to track daily spending.
• iBank Mobile:  iPhone app that lets you keep track of your day-to-day spending and account balances on the go.
• iBearMoney: An intuitive personal finance manager.
• Mint.com Iphone App: Great app for always knowing where you are with your finances – gives you a complete picture of all your accounts.
• Moneystrands Mobile: Mobile version of the online application above.
• My Money: Multi-account financial tracker.
• Pay Off Debt:  This app is dedicated to helping you run your debt snowball.
• Pennies App: An expense tracker that helps you track your spending against budget goals.
• PocketMoney: a full featured budgeting and account tracking tool.
• QuickBank: A simple multi-account financial management application featuring a tabbed interface.
• Quicken Online Mobile: Syncs with the Quicken online financial tools mentioned above.
• Save Benjis:  App that helps you compare prices and find the best deal on what you’re shopping for.
• Spend:  Simple application that allows you to track your budget. Also includes a free version.
• Splash Money: Full checkbook and finance tracking tool.
• Squirrel for Iphone: Mobile version of the MacOS personal finance application above.

So there you go.  There is no shortage of options when it comes to personal finance tracking and budget software.   There really is no excuse for not doing a budget.  So why not get started today?

Do you have a favorite personal finance software – either online, desktop or mobile?  If you do, let us know about it (and leave a link) in the comments.  We’ll add it to the list!

*some links may include affiliate links.

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The Great Big List Of 75 Budgeting Tools, Finance Softwares And Iphone Money Apps

This post is about gaining perspective on money management and financial stewardship.  I enjoy finding new ways to gain a wise financial steward’s perspective on money.  I hope this particular one will encourage the new financial steward, perhaps be a wake up call for some and a reminder for the more seasoned stewards among us.

I’ve always been a believer it’s not how much money you make, but how you handle or manage the money that you make.  I think it’s easy to get caught up in the race of working more to earn more in order to have what many might think is a better way of life.  It’s just exhausting to think about for me because I know I could never work hard enough for what would never be enough.

A Million Dollars. Is It Attainable?

For example, a lot of people think about making a million dollars in their lifetime. To be a millionaire has always been the label that says “I’m financially free.”  Many in society view the millionaire as a person who can buy almost anything they want.  The thought is they drive fancy cars and live in the nicest houses.

The Millionaire Next Door, by Thomas Stanley gave many people a different view of the millionaire for the first time.  All of the sudden a millionaire could be the person next to you driving the Ford F150 pick up and wearing average clothes.  We learned the millionaire next door was different than the one seen on TV and movies.  This millionaire manages money wisely versus the one fueled by materialistic desires and dreams.

I told myself some time ago to never depend on another pay raise.  Having that perspective, I’m only left with managing wisely what I’ve been blessed with today in order to meet our family’s financial objectives.  I realize even if I don’t have a million dollars, I can still be financially free and prosperous as long as I have a Biblical perspective on money management.

However, the truth is that most people will make a million dollars in their lifetime, even if they don’t increase their income by another dime!  How?  Well, let’s think about it for a moment.

If someone were making $20,000 per year at the age of 25, they will have grossed a million dollars by the time they are 75.  Many people make more than $20,000 dollars per year.  Let’s increase that to $50,000 which would then take someone 20 years to gross a million dollars.  A person who is 30 today and making $50,000 per year will have grossed a million dollars by the time they are 50!

According to Mary Hunt in her book, “How to Debt Proof Your Marriage”, we are all becoming millionaires!

The truth is that you are becoming millionaires right now.  You’re receiving your wealth in installments, a portion every payday.

I felt like I had just won the lottery and gained new perspective after reading that comment from her book.  Even if I don’t make another dime, I’ll probably gross a million dollars in this lifetime which is all paid to me in installments.

What Will You Do With Your Million Dollars?

So I ask the question; what will you do with your million dollars?  Think about if you were to give 10% of your gross income, save 10% of your gross income, and live on the remaining 80%.  You would be able to save $100,000 and give $100,000 in your lifetime!  I think for most it could be stretched even further, but you get the point.

Most people would never dream of being able to give or save these large amounts of money.  But if we look at our situation with new perspective, perhaps the million dollar installment perspective, we just might do it!

Imagine a world in which everyone would save or invest $100,000 in their lifetime?  The average net worth of our nation would increase and people would be able to invest more of their time as well as provide gifts to others.  Think about the impact to churches, ministries and non-profits; it is indescribable.

Many wonder why they should have a budget or a spending plan to guide them each month.  Fundamentally, it’s to help perform wise money management and to achieve financial goals.  But, largely, it’s so that meaningful decisions can be made regarding the use of the money which has been entrusted to our care which are our monthly installments.

So again, I think at the end of the day it’s not about making more money or dreaming of a future of more cash than we know what to do with; such as society’s view of the millionaire.  Rather, it’s how we plan to manage our monthly million dollar installments and keep them from dwindling away.

What do you think about the monthly million dollar installment perspective?  Let us know your thoughts in the comments!

Photo by Suburban Dollar.

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How Do You Plan To Manage Your Million Dollars?

The pursuit of wealth is one of the greatest illusions of our time.  We think we will be wealthy when we come to a place in our lives when we can do whatever we want with money.  One might imagine this to be the freedom illustrated by the phrase “financial peace”.  Wealth, however, will never be attained if it is defined as getting everything you want, because when you get what you want, you will just want more.  While money can fulfill needs (and thus provide fulfillment) money can never buy happiness.  I believe a person will only be able to consider themselves wealthy when they are satisfied with what they have today.

The apostle Paul writes:

I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. (Philippians 4:12 NIV)

Observations about contentment:

1. Contentment is learned and thus contentment is process.  Are you becoming content?
2. When you are content, when circumstances change you do not.
3. Both the well fed and hungry are susceptible to a lack of contentment.

Here are some stats from the book Your Money and Your Brain by Jason Zweig

A survey of 800 people with a net worth of at least $500,000 found that 19% of them agreed with the statement, “Having enough money is a constant worry in my life.”  But among those who are worth at least $10 million, 33% felt that way.

I love the following quote from philosopher Arthur Schopenhauer

Wealth is “like seawater: the more you drink, the thirstier you become.”

As a result of these and similar surveys and my own personal experience, here is what I believe wealth is:

Wealth is a decision fostered by an attitude of self-control.  Wealth is experienced when a person has the ability to be content with God’s blessings.

If you are looking for an external measurement for wealth it will never come.

Wealth requires looking beyond the bank account.

The wealth we experience on this earth is about so much more than money.  If you are just trying to build wealth like crazy, you will never get enough.  If you are defining wealth in terms of acquisition of currency, it will be so hard to ever feel satisfied.  Each day take time look around and see your loved ones so you can be reminded of how blessed you are.

Wealth is the ability to choose to focus your life on the truly important things. Someone might make a lot more money in their life time, but in return be burdened by meetings, appointments, and obligations – this is not wealth.  Wealth is the flexibility to be involved in the things that really matter in life.

Though I might not have as much as others in the bank, I feel like the richest man in the world because I am surrounded by a family that loves me, and I’m involved in a ministry that helps people.

Post written by Craig Ford.

How have you learned to be content?  How do you define wealth?  What are some of your greatest treasures?

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Wealth And Contentment: Two Peas In A Pod

As I continue my search to find the best high yield savings accounts for our family, one that keeps showing up on my radar and that seems to have an extremely strong reputation is the online savings accounts from HSBC Direct.

HSBC Direct doesn’t have branches, the accounts are online only – but it is a part of HSBC Bank USA, N.A., which has close to 470 branches in the U.S., and HSBC Group, with more than 9,500 offices worldwide.   With more than 395,000 no fee ATM machines in the US alone, you should never be too far from a place to access your money easily.  This alone is a huge advantage of HSBC over many online banks, which often don’t have such an extensive network of brick and mortar banks or ATM machines.  In addition, it’s one of the largest financial companies in the world, so you can be assured that it’s a stable company that isn’t going to fold in the middle of the night.

Some of the high points for the HSBC Direct Online Savings Accounts:

When it comes to rates, features and customer service, HSBC is consistently among the top performers.

• 1.35% APY – As of 11/2/09, one of the highest savings rate in the country.
• No monthly fees. No fees for ATM use or funds transfers.
• No minimum balance requirement.
• Open an account with only $1 to start.
• Don’t have to open a checking account with HSBC.
• Will manage your account on HSBCdirect.com instead of at a branch.
• Access to 24/7 customer support, ranked “Best Customer Service in 2006” by Kiplinger’s Personal Finance magazine.
• Your money’s FDIC-insured to the maximum permitted by law.
• Your banking is done in a secure online environment.
• Money Magazine named HSBC Direct “Best of Breed” in 2007.

Signing Up For An Account With HSBC Direct

Signing up for a new account with HSBC Direct is a simple and pain free process.  On their site they claim it will take only 10 minutes for new customers, or 2 minutes for customers with existing accounts. I think it actually takes a little longer than that.  So what will you have to do?

1. Complete the application.  You’re going to need to enter your name, address,driver’s license number, SSN, date of birth, etc.
2. Set up your external account, and transfer at least 1 dollar to open the account. HSBC Direct will send two trial deposits to the linked checking account.
3. You will receive your Customer ID and a password in two separate letters which will be mailed to the address you provided when you signed up for the account. You should also receive your HSBC Direct ATM card. You’lll need your ATM card and the PIN number to create a security key, after which you will have full access to your HSBC Direct account.

As you can tell, security is important to HSBC Direct.  Because of that the account opening process may take a bit longer than some others.  Yes, the initial part will only take 10 minutes, but having full access to the account and its features will take a few days.  I think the added security is worth it, however.

Other Account Options With HSBC Direct

HSBC Direct has other account options besides the online savings account.   In addition they have online payment accounts (like a checking account) and online CDs that have rates somewhere in the middle to top of the pack.  Definitely worthy options if you are looking for those types of accounts as well.

Conclusion On HSBC Direct Online Savings Account

HSBC Direct has consistently been seen as one of the top online savings accounts, being rated highly in both customer service and in rates and features.  While their rates aren’t the highest right now, they are a bank I’d put at the top of my list because of their combination of their features, their  extensive ATM network, international access, and financial stability of their parent company.

What do you think of HSBC Direct? Do you have an account with them, and have you been happy with their service, features and the accessibility of their ATMs and branches? Let us know your thoughts about HSBC Direct in the comments.

Find the best bank rates and best online savings accounts on our bank rates page!

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HSBC Direct Bank Review: Online High Yield Savings Account

For some time we’ve been talking about the first time homebuyers tax credit that was passed as a part of the 2009 Economic Stimulus Package. As we mentioned a short time ago, if you haven’t already put in a contract on a house and set up your closing for before November 30th, you most likely are already too late to receive the original first time homebuyer check.

This week there has been some movement on talks for extending the current tax credit out until next year, and then making a new provision that would allow  current homeowners to take advantage as well – to the tune of a $6500 tax credit.  The cost of the tax credits? Somewhere in the ballpark of $10.8 billion.

Extension Of The $8000 Tax Credit

The current first time homebuyer tax credit is going to be running out on November 20th, 2009.  Many feel that it has had a positive stimulative effect on our economy, and they would like to keep the train rolling.  Now there is some indication that they may get their wish. The New York Times reports that Senators from both parties have reached an agreement to extend the tax credit:

Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev…..

If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers.

So they hope to extend the current $8000 tax credit for first time buyers, while at the same time offering  a new tax credit for current homebuyers of $6500.    Some provisions of the new bill:

• The credit is available for homes that go under contract by April 30, 2010 and close within 60 days after that.
• It will be attached to a bill to extend unemployment benefits.  (NOW PASSED!)
• First-time buyers (those who have not owned a home for three years) can continue to claim an $8,000 credit.
• Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (higher limits than before)
• Homes that cost more than $800,000 aren’t eligible for the credit.
• You must be 18 years old to claim the credit.
• Credit is available for primary residences only (no vacation homes)
• The proposal will include anti-fraud measures, including minimum age requirements and additional authorities for the IRS.  (there have been problems for the current credit with fraud.)

New $6500 Homebuyer Tax Credit For Current Homeowners (Not Retroactive)

In addition to extending the current credit and adding some new anti-fraud measures, the new bill would update the tax credit to include “move-up buyers”, in other words, people who already own a home. This is certainly going to be popular with a lot of people that were holding off upgrading their home because they weren’t included in the credit previously.

So what criteria do current homeowners have to meet to get the $6500 credit?

• The credit is available for homes that go under contract by April 30, 2010 and close within 60 days after that.
• Current homeowners can claim a $6,500 credit as long as the property they are vacating has been their primary residence for at least five consecutive years out of the last eight.
• Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (higher limits than before)
• Homes that cost more than $800,000 aren’t eligible for the credit.
• $6500 tax credit is not retroactive.  (from the language of the bill: “shall apply to residences purchased after the date of the enactment of this Act.”

Since my wife and I have only owned our  home for 3 years, we wouldn’t be eligible.   That’s all right, our current home will do just fine for a few more years.

Update:  11/5/2009 – The bill has passed both the house and the senate.  Now it only needs the president’s signature.

Are you considering becoming a first time homebuyer, or upgrading your current  home because of the tax credit?   Do you think that the credit will artificially re-inflate the real estate bubble? Is the credit a good idea to begin with?

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Senators Agree To Extend First Time Homebuyer Tax Credit And Allow Up To $6500 Tax Credit For Current Homeowners

This is a guest post from Debt Free Hispanic over at http://www.debtfreehispanic.com. You can read more of his inspiring posts by checking out his site, or subscribing to his RSS feed here.

Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. 2 Corinthians 9:6 (NIV)

Today, I’m Debt Free Hispanic, but in 2005 I was just a Hispanic that had $20,000 of debt.

Building A FICO Score And Piling Up Debt

How did this happen?

The same way it happened to so many Americans. I fell into a trap and believed the myth that buying on credit was what wealthy people did and I wanted to be just like them. I tried so hard to rack up credit so that I wasn’t a ghost in the credit industry. It’s true, I went into a CarMax dealership to purchase a vehicle.   After putting down a large down payment  I couldn’t get a loan for the remaining balance of the car because as the guy running my credit put it, I was a “ghost” in the system.  I didn’t have enough credit history out there to show that I would pay the money back. This is called a credit rating and a FICO score. After that day I decided to buy as much as I could to bring my score up.

I figured since I was attending college and I didn’t have the finances to pay for it that I would put my school tuition from a private University on school loans through Wells Fargo and that would bring my credit rating up. I had a Mitsubishi Galant and one day after school I noticed I was missing a hubcap. Well I couldn’t drive around like that so I went to Discount Tires and bought new alloy rims and tires on credit. By this time I was $20,000 in debt and was about to finish college and was working 20hrs/week making $6/hour. This was not a fun time in my life.

Getting A Wake-Up Call

One day reality set in when my minimum payments were not paying down the balance and the opposite was happening, the balance was growing every month. During a Thanksgiving dinner my brother told me about a guy named Dave Ramsey. After listening to the show, I purchased his book on CD and listened to it within two days.  I’ve since listened to the book about 10 times and next year (2010) I will attend my 4th Total Money Makeover Live Event here in Dallas, TX.

After listening to the book for the first time, I was determined to get out of debt. I was hungry for financial discipline and for somebody to set me straight. I am also a Believer and the scriptures about the rich ruling over the poor and how the borrower is slave to the lender made me madder about debt. I told myself I was no longer going to be a slave and little by little I loosened the chains that the banks have put on me.

From then on every month I gave my wife (girlfriend at the time) a number that was the key to unlock my chains. The first number was $20,000. I sold almost everything I had on eBay, baseball jerseys, textbooks, clothes; you name it I sold it. I sold so much stuff on eBay they sent me a certificate for selling at least $2,000 consistently for 2-3 months.

The key number was getting lower and lower and I was starting to pay off my debts. $16,000 became $14,000 the next month. Then, after graduating college, I received a full-time job and with my first month of pay, I paid off $3,000. Every month I was paying off $2,000 from my school debt. Within a year I paid off $20,000 of debt. I remember emailing my wife when the key number was $0 and my chains were gone, I had been set free.

I called Wells Fargo and asked that all my accounts be closed and to send me proof in writing that they had been. Within two weeks I received 10 notes from banks saying that my accounts had been paid in full and that they were now closed.

I did it.

I became debt free and from then on, I knew I was going to change my family tree and I was going to help other people do the same.

Building Wealth And Living Debt Free

The next year I started building wealth like no other time in my life. I had four roommates and my monthly rent was $350, bills included. For a bachelor wanting to build wealth, this was very encouraging. I saved up and bought a HUD home in November 2006 and spend $4K fixing it. Two month later I bought an engagement ring and ask my girlfriend to marry me.  Her dad said he would let me marry her when the ring was paid off.   After showing him the receipt we began making wedding plans.

Today my wife is working towards a PhD in Organizational leadership and we are paying cash for her school expenses. I graduated from grad school with a Masters in Management, a degree that was paid for this time in cash. We now use cash to do whatever we want to do in life because at one point in our lives, we were living like no one else. Our story has just begun and I’m glad that my wife and I started out debt free. Her debt was only $1,000 so that was paid off right away. We each put 15% of our income in 403b’s and Roth IRA’s.

I now write about money on Debt Free Hispanic (http://www.debtfreehispanic.com). This is a blog about personal finance from a Hispanic perspective. It is in English, although many people associate the word Hispanic and assume Spanish speaking. I write about ways to save money and pay down debt. Since our income will make us wealthy, I talk about how to free it up by paying down personal debt. I am also frugal in my thinking and I like to share my ideas with my readers. I’m a Dave Ramsey fan and my wife and I were able to scream “I’M DEBT FREEEEEEEE” on his show. You can hear the call on my blog.   Click Here To Hear The MP3

Join me in becoming debt free and the good stewards that God intended us to be.

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This Blogger Fell Into The FICO Trap, But Saw The Light And Became Debt Free