lighthouse-coaching.com

Taking Charge

2011-12-23T12:02:00.001-05:00

In our Workplace Financial Literacy series better known as Taking Charge of your Finances, we spend some time talking about goals. In it we have a talking point that reads, “Your direction will determine your destination”. We are confident that this is never truer than dealing with your current financial situation.

If your situation a going the wrong way, meaning you are living above your means, your destination should be pretty clear. Divorce, bankruptcy and job loss are just a few “destinations” you will find yourself.

I hope that you will take a step back and see the direction you are heading. If you don’t like the destination it is never to late to change. Looking for some inspiration, check out our UPCOMING EVENTS page for area events that may have what you need. Want a professional to talk with CONTACT US we are here to serve.

Nothing is FREE With a Loan

2011-12-20T13:28:00.000-05:00

I say this because at my lunch appointment the other day a business associate of mine begins to talk about his recent refinance experience (keep in mind he has no idea about my affiliation to Lighthouse) and how his personal friend, VP of a local bank got him a 3.85%. I was interested but unlike most people it was not because of the rate he received but how and why he came to believe that he got such a good deal.

I nod excitedly so to bait him into giving more info and he gladly does. It turns out that his wife and him were not exactly looking to refinance but they had just talked about needing a cosmetic home improvement. It just so happened that this friend the VP at the local bank called and mentioned that they could get this improvement for FREE if they refinance into a 30 year mortgage. So they paid for the work ($14,000) lowered their interest rate and the best thing according to him is that the monthly payment stayed the EXACT same, hence they got the floors for free.

Now my associate is stuck with at mortgage payment for another 30 years and will be paying 3.85% on this improvement for 30 years as well. What he should have been advised is that a 15 year mortgage would have a monthly cost of close to his old payment but rather than the $14,000 addition to the loan they could have saved $100,000 or more by going to the 15 year structure.

Good advise is to talk to at least 3 mortgage professionals before you decide on what to do with your financing. Buying a house or refinancing is often the largest single investment most people will make and should not be done with emotion but rather logic.

Top 10 Shopping mistakes at Christmas

2011-12-14T14:20:00.002-05:00

Top 10 Shopping mistakes at Christmas

We’ve all paid “stupid tax”—making costly decisions with zeros on the end. A lot of those decisions happen when we’re caught up in the emotion of the Christmas season and procrastinate a little too long.

Make this year different!

Here are the top 10 Christmas shopping mistakes and how you can act differently:

Not prioritizing. Instead of getting stressed out with all the parties, baking and shopping, in addition to your normal daily life, set some priorities before you’re bombarded with a million requests. Think about which things are “must do” and which are “would be nice to do.” It’s all right to say no to keep yourself sane. Shopping for gifts is more fun when you’re not completely stressed out. 

Not using a budget. Before you make a gift list and head to the mall, set aside a reasonable amount of money for gifts. Make a commitment that you won’t add $20 to the fund every week just because you saw something cute that your niece would love.

Using credit cards. Once you have your budget finalized, stay away from credit cards! You will still spend 12-18% more if you use plastic, and you’ll be paying it off come 2009! Doesn’t paying with cash sound more freeing than having a credit card balance looming over your head? You bet. 

Buying for everyone. Do you really need to buy gifts for every family member and friend you have? That can get overwhelming and expensive for everyone. Talk with them and work toward an agreement to draw names for gifts or donate money to a common cause. 

Not listening. Listen to the hints your loved ones drop about what they need or want this year. Maybe your Aunt Sally mentioned that she would love someone to help her in the garden, or Cousin Bob keeps losing guitar picks. A thoughtful gift like this will mean a lot. 

Not having a thought-out list on paper.  If you think you can spend time in “Christmas retail world” without getting distracted by all the shiny toys, you’re in for a big surprise! You’ll be more likely to buy impulsively if you do it that way. Write down what each person you’re buying for would like and stick to the list. Stay focused!  

Not shopping around. “Shopping around” doesn’t mean you have to spend 24 extra hours running from store to store to save 10 cents. Take a look at your gift list and do some comparative price-checking online before you head out into the retail and traffic madness. This will save you money, time and stress! 

Waiting until the last minute. Procrastination is not the most appealing gift out there. Don’t find yourself stressed out on Christmas Eve just because you didn’t invest a little bit of time to plan.  

Forgetting to plan for next year. Throughout the next year, look for outrageous sales on things your loved ones will need. If you time the sales just right and clip some coupons, you could land a major discount on something you were going to buy in a few months for a birthday or wedding gift. Remember to have a list and budget for this, too. 

Forgetting why we celebrate. If this season becomes all about shopping and gifts, you’ve missed the whole point. People—not things—matter. The miraculous birth of a baby who changed the world is what matters. 

Budgeting for Christmas

2011-11-28T23:14:00.000-05:00

Has Christmas ever surprised you? How about that statement on the 3^rd for January? Ever found yourself regretting this time of year instead of enjoying it with family and friends? If this so than pay attention to the following 5 steps that will insure you have a Merry Christmas.

Action 1

Budget, by that I mean take the time and download our free budget from our website. Budget Link. A budget is the most important part of any financial planning process. At Lighthouse we believe in 8 Disciples that will lead you financial independence. Discipline 1 is the Budget and can be applied to our Christmas planning. A few important things to consider are your total available cash to spend, who will you be buying for and finally how much will you spend on each person. Remember budgeting 101 you can’t spend money you don’t have.

Action 2

Plan, not just plan by having a budget but plan how you will shop for those on your Christmas list. This is important because if you are like most people you will blindly shop for random persons only to find yourself returning home with stuff for own closet. A great technic is to pick out a couple of persons on your list and head out for them. Allowing yourself to focus on only a couple of task will help you be more successful in sticking to the budget.

Action 3

Communication. What does this have to do with Christmas budgeting? Plenty, just let me tell you how talking with others has put the fun back in Christmas. You see, the idea that we have to get everyone something for the holidays because they want and are planning on giving us something is just not true. Talk to your family and friends about gifts. Let them know that you would like to present them with something but do not want anything in return. Or if finances are tight let them know that your Christmas envelope is being deposited into a retirement account, college funding, used to pay down the house or pay off some debt. You never know you may just inspire someone to live debt free.

Action 4

Avoid the crowds has more to do with the psychological weight that shopping can have on a persons spending habits. Ever find yourself buying something just to get out of the store? My favorite is the false deal. Just because it seems that everyone else wants or thinks something is a deal doesn’t mean it is. Some tips to avoid the crowds….How about shopping online, before noon (best on the week days) or try less traveled locations ie. Avoid shopping malls or outlets.

Action 5

No credit cards you are only delaying the payment and paying more for the product. Stores have been heavy with the extra discounts to those who use their credit cards when making purchases. Trust me when say that they make money when you use your department store card. More and more of our clients have larger department store debt than car payments. A very successful line when presented with the question at the checkout “If you sign up for a credit card today we can give you 15% off?” Simply say no thank you with a smile and ask if they have any other way of receiving such a discount.

Hope these actions can help as you journey out to do your Christmas shopping this year. If you have any suggestions or some actions that you have found to work for you please share we would love to hear.

A New Old Trend

2011-10-28T09:31:00.002-04:00

There is a new trend of an old problem I am seeing in my office every week, parents with adult children who are in tough financial situations. We are seeing more twenty something’s being brought into our office at the request or insistence of their parents. Many times these young adults have gotten themselves in a ton of debt with student loans, car loans, credit card loans and debt associated with moving out on their own. As the parent of two twenty somethings, I feel their pain. We have watched one of our sons make tough financial choices that have had dire economic consequences. I am sure I would have made some of the same mistakes back in the day if credit was as easily available to me then as it is today to them.

As parents, we want to help them or even fix their problems so they don’t have to feel so bad or suffer through such pain. Again, I know how you feel and have bailed out our son several times only to see him continue to make poor decisions and get back into financial troubles. I also have seen many parents bring their adult kids into our office and pay for financial coaching only to see the child go back to their old ways.

As mean and evil as this must sound, as parents we must encourage and equip our kids to make lifestyle changes but not take on their burdens and enable them. They have to want to change because it is good for them and they see the benefit not because we want it for them. In the short term it is really harder for us to step back and let them feel the full weight of their decisions and the actions that follow them than to step in and fix the problem by writing a check or taking over car payments for them. In the long run, they learn more and change both their attitude and behavior toward debt. There is also a pride a confidence issue that they pick up as they dig their way out of the financial hole they put themselves into. If we step in and circumvent their consequences, they never learn and move on to make even bigger mistakes. We want to through them a life preserver so they can save themselves, not jump in and rescue them and possibly be involved in a double drowning.

Parents love your adult children well. Teach them and inspire them to do thing correctly concerning finances but don’t fix finances for them. It will only delay and magnify the pain they must go through to grow into the adult you raised them to be.

Normal No More

2011-10-24T11:52:00.000-04:00

Recently my wife and I have been asked to share that we are paid off $56,000 and are debt free except for the house in front of the entire congregation at our church. At first we felt uncomfortable in doing so. I mean from the people I see here at Lighthouse our story is not nearly as dramatic. At Lighthouse we have couples who have gone into debt from events like illness, loss of job, death of a family member, addictions, or even those that have been a victim of crime. They have clawed and battled their way back in a much more inspirational way. The truth is most people have not gone into debt in such a way. I know that was not how it happened to us.

A few days later it started to make sense we were normal. If you don’t believe that we were normal these stats can help like 55% of the US population lives paycheck to paycheck, the average student loan debt is 14K or the average car payment today is almost $400 a month. It was normal to have debt and normal to live paycheck to paycheck. What makes it uncomfortable is that we now have to stand up and tell people that we are weird!

So we are going to do this and we are now excited about it. Not that we have an exciting story to share, we kind of just let the debt happen to us because that’s what we thought was normal. We are excited to reach out to all of those other normal couples and share with them how good it feels to be weird.

Taking Charge of your own Personal Finances

2011-10-19T11:08:00.000-04:00

Today I came across a great quote by the author Jack Canfield and it made me think as I saw all the people protesting on Wall Street with promises of taking it to other cities. The quote is as follows:

“There is only one person responsible for the quality of the life you live. That person is you. If you want to be successful, you have to take 100 percent responsibility for everything that you experience in your life. This includes the level of your achievement, the results you produce, the quality of your relationships, the state of your health and physical fitness, you income, your debts, your feelings-----Everything!... You have to give up all your excuses.”

I agree with almost everything Jack is saying here with the exception that bad things can and do happen to us that are outside of our control. I think he makes a great point. Why don’t each of us including the people protesting on Wall Street, stop and take responsibility for ourselves. If my economy stinks, I need to work on my economy.

Where do you start to fix your personal economy? Why not start at your own home. Just think of it, if each one of us would take some time, effort and training to work on our own economy and fix our little world at home, what would it look like?

I would start with where I was, if it were me (and it was me back in 1998-1999 when I hit bottom).

I would take a snapshot of my financial life. First I would write down how much money I would be bringing home. Next, I would write down a budget of my monthly expenses including my rent, insurance, utilities, food, clothing, eating out, medical, car repair and more. I would spend every dollar on paper on purpose before the month started. I would then subtract my total from my estimated budget from my total income coming in the door. This would then give me a number I could use for paying off debt, savings, emergency funding or funding for short and long-term priorities.

Lets say, my cost of living exceeded my income, what then? Time to adjust. I could choose to increase my income (work extra hours or a part time job), tighten up my budget, sell something of value or contact each of my creditors to ask for better rates and lower payments. The choice is mine. There is no bail out program for me or you out there. Wall Street is not my problem or my solution. I need to spend less than I make, that is my problem. This is a touch choice but it is an option I have. I may not have chosen to loose my job, but I can chose to work 40 hours a week looking for a new one or starting a side business or working evening to help pay the bills.

Personally we did this six years ago. We were over $265,000 in debt including a house, car, camper and consumer debt (credit cards). Over the next 5 years we worked extra, tightened up the budget, sold lots of stuff and paid off all our debt. This included our home

This was such a great feeling but it was only the first step. The next step is what I call the world changer. Once you get your personal economy going in the right direction, and I am not talking about starting after you become totally debt free, start sharing your journey and teaching others. We have spent the last five years leading small groups through a program called Financial Peace University at our local Church. If each person would just help three people a year who would help three people a year, who would help three people a year. You know where this ends don’t you?

Over the next decade we could help educate, equip and inspire one street, one neighborhood, and one city at a time. No longer would we be paying all this interest rates to the big banks owned by wall street, we would be saving money and paying cash and helping local charities.

So if you want to make a statement about the economy to Wall Street, start at home and take care of your own personal economy and then go help a neighbor, relative or friend do the same. It works every time, spend less than you make and you have money to save, give and buy what you want. Lets go punish those big guys on Wall Street by taking responsibility for your own personal finances.

Back to the Basics

2011-10-04T11:18:00.001-04:00

Everyday get get several calls from people asking all kinds of financial advise. Dave should we borrow against our 401K to pay off credit cards, Dave should we refinance our home and use the extra to pay off student loans, Dave what investments should I start to buy now that I have paid off my student loan after 13 years. This was just today. To each person who ever calls, I ask them "tell me about your monthly budget"? To which without an exception each says, I don't have one but I know what my bills are and I make more that I spend and you only help people who have financial crisis. This is true. I get the to serve people who are behind in their bills usually due to something that happened to them such as a medical situation, a change in job status or some other crisis. I also get to work with the other 55% of America who live paycheck to paycheck who are tired of working and having nothing to show for it after years but debt and stuff. I also get the pleasure to work with people who are doing Ok to well financially but want to do better.

The bottom line is we see it all. Personal finance is pretty simple, save 10%, give away 10% and live on 80%. The simplest thing everyone must do or nothing else matters is to develop a good working monthly budget. Wealth is not about income, there are many bankrupt people who make more than $100,000 a year. Wealth is about paying attention to your money and telling it what to do instead of wondering what happened to it. Each of the three people I talked with today were in debt and wanted help but did not and did not have a budget. No solid financial plan can bring you success and peace without a written budget. Please visit our website at www.lighthouse-coaching.com to download a free budget worksheet. If you need help implementing the budget stop in for a free 45 minute consultation.

What credit really gives you?

2011-09-21T10:59:00.001-04:00

Good question, let’s see….does credit gives you power? Maybe it gives you security? How about problems? Of the three questions I have seen the latter to be true.

I am sure people like to argue that credit will give you power. These are probably the same people that are using credit to buy stuff they don’t need to impress people they don’t like. The power received by credit lacks a foundation. Proverbs 22:7 says “The borrower is always slave to the lender”. I fail to see how being a slave creates power.

Here is a good one…credit gives you security. More like FALSE security. Do you really want to fall into debt so that you can have peace of mind? Is that peace of mind? Maybe you would rather work hard for a month or two and save $1000 to fund your emergency fund. I see this happen fast with the clients we work with. Generally buy 6 weeks the emergency fund is complete and they can begin to attack step 2 paying off debt or step 3 saving 3 to 6 months of income, aka REAL security

Have you ever really read this before in a 12pt font?

2011-09-18T21:25:00.001-04:00

See your Cardmember Agreement. Your Cardmember Agreement contains all the terms of your Account.

Lost or stolen cards. Report immediately!

What To Do If You Think You Find A Mistake On Your Statement
If you think there is an error on your statement, write to us at:

· Account information: Your name and account number.

· Dollar amount: The dollar amount of the suspected error.

· Description of Problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a mistake.

     You must contact us within 60 days after the error appeared on your statement.
     You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question.
     While we investigate whether or not there has been an error, the following are true:

· We cannot try to collect the amount in question, or report you as delinquent on that amount.

· The charge in question may remain on your statement, and we may continue to charge you interest on that amount. But, if we determine that we made a mistake, you will not have to pay the amount in question or any interest or other fees related to that amount.

· While you do not have to pay the amount in question, you are responsible for the remainder of your balance.

· We can apply any unpaid amount against your credit limit.

Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with your credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the purchase.
To use this right, all of the following must be true:

1. The purchase must have been made in your home state or within 100 miles of your current mailing address, and the purchase price must have been more than $50. (Note: Neither of these are necessary if your purchase was based on an advertisement we mailed to you, or if we own the company that sold you the goods or services.)

2. You must have used your credit card for the purchase. Purchases made with cash advances from an ATM or with a check that accesses your credit card account do not qualify.

3. You must not yet have fully paid for the purchase.

If all of the criteria above are met and you are still dissatisfied with the purchase, contact us in writing at:
While we investigate, the same rules apply to the disputed amount as discussed above. After we finish our investigation, we will tell you our decision. At that point, if we think you owe an amount and you do not pay we may report you as delinquent.

Payments. Send only your payment and the top portion of this statement in the envelope provided. Do not send cash. By sending your check as described above, you authorize us to use information on your check to make an electronic fund transfer from your account at the financial institution indicated on your check or to process the payment as a check transaction. If payment is processed as an electronic fund transfer, the transfer will be for the amount of the check. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

The processing of your payment may be delayed if you send cash, correspondence or other items with your payment, if you send the payment to any other address or if you use an envelope other than the one provided. Payments received in proper form at our processing facility by 5PM local time on any day will be credited to your Account as of that day. Payments received at our processing facility after 5PM local time will be credited to your Account as of the next day. If you have misplaced your envelope, send your payment to delivery. If your payment is returned unpaid, we reserve the right to resubmit it as an electronic debit.

You can pay your minimum payment or a greater amount over the telephone, and you can set up automatic payments. Call us at You will need this statement and your bank account information. You must ensure that sufficient funds are available in your bank account, and all transactions must comply with U.S. law. You will be asked to provide the first 5 digits of your account statement zip code. By entering those numbers as your electronic signature, you will be agreeing to this authorization to allow us and your bank to deduct each payment you authorize from your bank account, and to initiate debit or credit entries to your bank account, as applicable, to correct an error in the processing of such payment. You must tell us the amount of each payment or you can select an amount such as the Minimum Payment Due or the New Balance on each statement. You can cancel a payment; however we must receive notice at least three business days in advance of the scheduled payment. You may notify us by phone at or by mail at the address listed in the previous paragraph. If your payments vary in amount, we will tell you on each monthly statement when your payment will be made and how much it will be. Your automatic payment amount may be less than indicated on the monthly statement based on credits or payments applied during the billing cycle.

Credit Reporting. We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your Account may be reflected in your credit report. We normally report the status and payment history of your Account to credit reporting agencies each month. If you believe that our report is inaccurate or incomplete, please write us at the following address: unt number.

Paying Interest: We begin to impose Interest Charges on all transactions from the Transaction Date for the transaction shown on your billing statement, unless a transaction is posted to your Account after the close of the billing period in which it occurs, in which case we begin to impose interest charges on that transaction from the first day of the billing period in which it is posted to your Account. We continue to impose Interest Charges until the date you pay your entire New Balance shown on your billing statement by making payments or receiving credits. If you paid the New Balance on your previous billing statement by the Payment Due Date shown on that billing statement, we will not impose Interest Charges on new purchases, that is, purchases first appearing on the current billing statement, or any portion of a new purchase, paid by the Payment Due Date on your current billing statement. We call this the "grace period." It is not less than 25 days. There is no grace period on balance transfers or cash advances. As more fully described in the section titled "How We Apply Payments," we generally apply payments to your Account based on the APR applicable to the balance of each transaction category. This means that if you do not pay the New Balance on the current billing statement by the Payment Due Date shown on that billing statement, then, depending on the amount of your payment and the APRs on other balances, you may not get a grace period on new purchases.

Minimum Interest Charge. We will charge you a minimum Interest Charge of $.50 for any billing period in which Interest Charges of less than $.50 would otherwise be imposed.

Annual Fee. If your Account has an annual fee, it will be billed at the beginning of each anniversary year your Account is open. The amount of the fee appears on the statement when the fee is billed. The annual fee is not refundable unless you notify us that you wish to close your Account within 30 days of the mailing or delivery date of the statement on which the fee is billed. You will receive this refund even if you use your Card during that period.

How We Calculate Interest Charges - Daily Balance Method (including current transactions): We figure Interest Charges for each billing period. To do this:

· We calculate your Interest Charges separately for each balance subject to different terms (for example, standard purchases, standard cash advances and each purchase, balance transfer and cash advance balance subject to promotional terms). We refer to these balances as transaction categories.

· We figure the "daily balance" for each transaction category. To get the "daily balance" we take the beginning balance for each day, add any new transactions and fees and any Interest Charges accrued on the previous day's daily balance. We then subtract any credits and payments and make other adjustments (including those adjustments required in the section titled "Paying Interest"). In calculating the daily balance for the first day of the billing period, we consider the "previous day's daily balance" to have been your balance on the last day of your previous billing period. This gives us the daily balance for each transaction category.

· We figure the Interest Charges on your Account by multiplying the daily balance for each transaction category by its daily periodic rate, for each day in the billing period.

· The total Interest Charges for the billing period are the sum of the daily Interest Charges for each transaction category for each day during that billing period.

When we calculate daily balances, we add a new transaction as of the Transaction Date shown on your billing statement, unless the transaction is posted to your Account after the close of the billing period in which it occurs, in which case the transaction will be added to the daily balance as of the first day of the billing period in which it is posted to your Account. All fees charged to your Account are added to the standard purchase transaction category with the exception of Cash Advance Fees which are added to the applicable cash advance transaction category and Balance Transfer Fees which are added to the applicable balance transfer transaction category.

Foreign Currency Fee: 2% of the U.S. dollar amount of each purchase made in a foreign currency.

Penalty APRs: Each time you fail to make a payment when due, we may, in accordance with applicable law, (i) terminate the availability of any introductory/promotional APRs on new transactions, and (ii) increase your APRs for new transactions to variable Penalty APRs which will be determined by adding up to an additional 5 percentage points to the otherwise applicable APR. Your Penalty APR is determined based on your creditworthiness and other factors such as your current APRs, and your account history. If your APRs for new transactions are increased for a late payment, the Penalty APRs may apply indefinitely.

For TDD (Telecommunications Device for the Deaf) assistance,

Teamwork

2011-08-29T14:06:00.002-04:00

As the old proverb goes “two heads are better than one”. This is very true when it comes to your personal financial situation. If you are married it is very important to get on the same page with your spouse about your finances. This means that both parties are involved in the budget or the decision making process. Often only one will make all the financial decisions leaving the other to wonder why resources are so tight.

If you are single finding an accountability partner is crucial to the success of your budget and financial plan. This partner will not only be able to question some of your decision making but be able to view your situation from a different perspective.

Personally my wife and I are always talking about our finances. We talk about how to spend our resources, what to spend them on, how to invest them and much more. I feel it is the key to our success financially because we are constantly in discussion on how to make it better. Often it is a struggle but it is much easier paddling upstream when we paddle in the same direction.

Download our Personal Budget forms for free

Would you rather?

2011-08-29T11:54:00.000-04:00

You think you can out earn your stupidity? Some can but according to bankruptcy rates I think the majority of us can’t. So let’s play a little game of would you rather. Below are two links to budgets of hypothetical families of 4. One will be the Jones ($144,000 annual take home) and the other the Smiths ($72,000 annual take home). Their incomes are very different but would you rather be in the Jones’s or the Smith’s situation?

Smith and Jones budget link

What steps will you take to change your situation?

Things to do before paying down debt

2011-07-26T11:19:00.000-04:00

I know what you are thinking, the first thing you should do before paying down debt is to take out more debt and go on a vacation because the next 5 years of your life are going to be miserable. Not exactly, if by miserable you mean stress free then sign me up. From what I gather on the streets, in my office and all over the news people don’t like debt. But I will continually have conversations with people who feel that their debt is a “tool”. The conversation turns to “good” debt verses “bad” debt. I will leave this for another blog but really “good” debt???

Back to the topic at hand and please consider the following actions to take before you begin to pay down your debt.

1. Have an emergency savings of at least $1000 to protect you from going further in debt

2. Debt snowball, avalanche, highest interest or largest amount it does not really matter what your strategy is rather you have a plan of attack that works.

3. Talk to creditors to lower interest rate to help you pay down debt faster

4. Get on a budget

5. Keep saving, don’t forget that life still happens and only a savings account can keep you from going back into debt.

Download our budget form here for free

A time to sell

2011-07-22T09:55:00.000-04:00

If you are in debt, like a majority of us are, now is a great time to sell some stuff. The dog days of summer are upon us and the early spring cleaning garage sales have come and gone. What better way to pay down some debt or begin to fund that back to school envelope with some good old fashion selling of junk. As the saying goes “one man’s trash is another man’s treasure”. Here are 5 ideas on how to successfully sell some junk:

Leave the price tags off. The truth is that we often devalue the “junk” we are selling. Simply ask what they would like to pay. If it is a ridiculously low offer laugh and say no thanks.

Go in with the neighbors. A neighborhood sale is much more effective in bringing the masses to your sale. It also will allow for a shared cost in time and money on the marketing of the event.

No need to pay for advertising. Social media is a great way to create a buzz for your event for free. Also checkout craigslist, www.yardsalesearch.com, and some local newspapers that offer free advertising.

Place your big ticket items in the front. This way you can lure those that drive by with the items that they are looking for ie. Lawn mower, tractor, bikes…..

Have fun! People go to sale events not just for the deals but for something to do. It is also fact that people will buy from others they like so your ability to entertain them will help drive up your sales.

Take Action

2011-06-27T19:07:00.001-04:00

When you walk into our offices at Lighthouse Coaching the first thing you may see is a white board with the words TAKE ACTION on it. We originally put this white board up so that we could write a quote of the week on it. As the weeks went by and the more people we would see the common theme was that people will not do anything about a bad situation until it may be too late. Even after the problem is identified it is a struggle for a person to make a change. However, IF the change can produce an immediate result than something will be done. But the truth is most of the time the right thing to do is not the easiest nor is it the quickest but ACTION must be taken. How about you dream first? Then take that dream and cast a vision for the future. With that vision lets set some goals, long and short. With this in place let’s TAKE ACTION! If you need a goal setting worksheet download for free HERE

Common Problem, Easy Fix

2011-06-27T19:06:00.001-04:00

As our experience in Person Financial Coaching grows we have started to see trends in the causes of most financial hardships in marriages. Far from the following comments to be scientific in but purely from the thousands of hours spent coaching couples in how to deal with their finances.

So let’s talk about the most common issue at hand, when one partner has no clue about the bills. This seems to be very old fashion way of handling the finances? With most couples it is the wife that is left with the burden of paying the bills. It is lumped in with all the other household duties, not to mention the fact that she also is working a full or part time job.

Common scenario…… he works and makes and average 40 to 60k, she works and makes 20 to 40k. Combined income pretty decent and above the local norm. However, credit card debt is growing and cards are maxed out. Why? Because they have not always made this type of income but they have been living on that income for years. While the income went up so did the spending, bring them to the point today where the credit cards can no longer hide the truth…..They spend more than they make!

The fault is to be shared and is not to be placed on the person paying the bills. Ignorance is not a defense. Your household should be run like a business and as CEO of your household no financial decision should pass without your approval. Not so that you can be a dictator but rather so that the burden of finances does not fall on the person you love the most.

95% of Lighthouse coaching sessions begin with how couples should communicate with each other over the budget. If you find yourself in this situation download our BUDGET form or setup a time for a free consultation

Starting young

2011-05-23T15:36:00.002-04:00

Credit card companies for years have promoted the “glamor” of credit cards to our nation’s youth. Design your own card, favorite sports team, free hat, or ease of use are regular techniques that guide unsuspecting minds to debt. Today’s high school graduate even college grad has had little if any formal education about consumer debt. In fact, I would argue that the most information persons under 24 years of age receive about credit cards comes from the companies selling them. What if drug dealers educated your kids about the effect of drugs? Maybe a bit over the top, but consider the ramification of debt on a persons well-being, and you will agree that debt has no place in a person’s life.

No More Debt

2011-05-19T22:34:00.000-04:00

Not a big fan when it comes to talking about negative topics, but in this case unfortunately the truth hurts. What is true, how about some of these numbers:

· Average credit card debt per household with credit card debt: $14,743

· 609.8 million credit cards held by U.S. consumers.

· Average APR on new credit card offer: 14.83 percent

· Total U.S. revolving debt (98 percent of which is made up of credit card debt): $796.1 billion, as of March 2011

· Total U.S. consumer debt: $2.43 trillion, as of March 2011

· U.S. credit card 60-day delinquency rate: 3.23 percent.

· Discussing credit card debt is highly taboo. The topics at the top of the list of things that people say they are very or somewhat unlikely to talk openly about with someone they just met were: The amount of credit card debt (81 percent); details of your love life (81 percent); your salary (77 percent); the amount you pay for your monthly mortgage or rent (72 percent); your health problems (62 percent); your weight (50 percent).

What positive can we take from this if any? It is not necessarily a good thing but if you look at this just know that you are not alone. That millions of Americans are in the same place you are and some much worse. However, there is a way out, be it slow, but a way out. Stay up to date on the blog as the next couple of weeks we will dig deeper into how to escape the prison that is consumer debt.

How to Successfully Lower your Credit Card Interest Rate

2011-04-20T15:24:00.001-04:00

I had to think about if I was going to post this blog for a long time. The dangerous thing is that sometimes the high interest rates are stopping people from using credit. If I were to share how to lower these rates, would people then start using more credit? I have seen people with very low rates with the most amount of debt. They were excited about the interest rate but not about the total debt. Just lowering your rate will not save you money. Having a budget and changing your behaviors toward money is the only way to get out of debt.

Stop spending on Credit Card

How is this going to lower your rate? Directly it will not do anything, but if you do not put anything on the card and you pay money toward the card every month the debt will get smaller. 30% of a zero balance is still 0!

Budget

By budget, I also mean set your priorities. You are going to need to keep up with the house payment, food and clothing, transportation and emergency fund (so you don’t need credit). Whatever money is leftover is what you pay toward your credit card debt.

Integrity

Just because some of their practices may lack this does not mean that you have to.

Open communication

Now that you have your budget and a grasp on your priorities a phone call to each company will help. You don’t need to threaten them with not paying just ask them for information. Asking them “What is it that I can do to lower my interest rate?” will go far. Too often they are being told what they should do for us. It is refreshing for the person on the other end to hear someone be proactive. They may even tell you that you need to miss a payment before they will lower your rate! You must then decide what it best for you. Remember to always capture who it is you talked to and at what time. If any agreement with rate or payments have been changed you must obtain these in writing before you proceed with sending payment. Stay tuned to the blog for more to come…..or visit www.lighthouse-coaching.com for more ideas and strategies.

Where Does the Money Go?

2011-04-08T13:53:00.001-04:00

The power of savings!

2011-03-28T17:27:00.000-04:00

Close your eyes and imagine yourself with a $1000 in a savings account. What if you had no other debt other than your house? Now add 3 to 6 months of income to that savings account. Think this is impossible? It isn’t, it is just not normal. A recent Harris poll showed that 1 out of 3 Americans age 18 to 33 do NOT have a personal savings. Oh, and 53% have zero for retirement. If you want to be different then start saving. If you want to make better decisions, then start saving. That’s right, you will make better choices if you are not in debt and have 3 to 6 months of savings piled up. So maybe we lack the statistical data to back this up, but follow me for a second.

Couple A has no savings and a few thousand in credit card debt, along with two student loan payments and two car payments. Oh, and they have a mortgage and some medical bills from the birth of their first child.

Couple B has 3 to 6 months of savings and only a mortgage.

Even writing Couple B’s scenario was less complicated. However, Couple B did not just end up in this position they made some difficult choices to pay down these debts that Couple A has and started to save.

Now let’s look at how each couple may come to a decision based on what we know.

Questions:

Can we afford a babysitter?

What if a car breaks down?

What if I loathe my job?

What if one gets laid off?

What about retirement savings?

You see no matter the situation you would much rather be in Couple B’s position. Your choices my not be any easier than if you were Couple A but how much better will your decisions be?

The game we play

2011-03-15T15:46:00.000-04:00

How far will we go just to perceive that we are saving money? I find myself amazed by this all the time. I see people use credit cards and justify it because the card has “rewards”. I see people use credit cards to buy gift cards in $50 increments just to receive “rewards”. I see them sign up for specific retail brand credit cards to get even more “rewards” or they shop at a certain places….STOP! I could go on but I will save you from the confusion.

The problem with all this personal financial wittiness is that….YOU ARE SPENDING MORE! If you are spending more money, they must be making more money. Who is receiving the “rewards”? Understand that credit card companies are excellent at marketing. They make money when you use their card. Credit card companies and businesses know you spend more money with plastic. Would Walmart allow for credit cards if it hurt their profits?

The average debt of a household with a credit card is $16,000.....wow!

Did you know that McDonald’s average sale went for $4.50 to $7.00 the day they implemented credit cards. Good for McDonalds

Did you know that on average consumers pay 12 to 18% more when they use plastic...show me a credit card that can “reward” you 18%....for some reason it hurts a little more to break the $20 or $50 than swipe the card.

Visit our website www.lighthouse-coaching.com to learn more about what you can do.

Tax return season

2011-02-25T16:01:00.002-05:00

For all Americans this is tax season. However, most Americans will have over withheld their federal income taxes. We won’t dive into why overpaying is not a smart financial plan today but we will talk about what your plans are with this return. If you are like a third of those who are getting a tax return you will be paying down your high interest credit card debt. This is good right? Wrong.

Emergency Fund Before you spend or invest a dime of your tax return do something different and create a $1000 emergency fund. This fund will allow you to stop using your credit card so that you can actually pay it off.

Budget Make sure you have a plan aka. budget before you pay down anything. The idea of a budget is that by having one you will not have debt next year and your return (if you have one) will be used for a more productive opportunity.

Debt Reduction Plan Let’s keep it simple Check out this video Debt Snowball

What to look for when searching for a professional

2011-02-21T13:54:00.000-05:00

There is a lot to be said about working with a professional. Most of us think that we can save money by doing our own taxes or painting the house our self. The truth is that a professional is just what we need. Hiring a person does have a price but if you hire a professional they will be well worth their price and the good ones will provide value that far out exceeds any cost. So the question that we need to ask is what do we look for when hiring a true professional?

Here are 2 suggested criteria to look for….

Experience/qualifications

I list this one first not because it is the most important. Of the 5, experience and qualifications should be treated simply as a quick question and answer. Understand that the person has the right license or has permission to practice in the state that you live.

Referred by a person you trust

Go ahead and ask people that you know about professionals that they have used in the past. Referrals are what any good professional seek. In order to be referred they must have provided value that exceeds the client’s expectations. How much more comfortable are you in purchasing car insurance if you know just how helpful the agent has been to your friend?

Remember these are suggestions; you may be considering a person with limited experience and that’s ok...as long as they have and do the following three.

Heart of a teacher

Having the heart of a teacher means that the professional will take his or her time in educating you on the services or goods to be provided. They will not speak over your head, rather they bring the info to you and will not proceed through the selling process without your understanding. They will be easy to ask questions to and excited about finding or giving you the answers that you need.

Passionate

Extremely important and easy to spot. Important because with passion comes knowledge. Think of that passionate sports fan and how they know everything about their team. What if you accountant had that enthusiasm about doing your taxes? Can that sports fan hide is passion? Not a chance. The same can be said about a person that is passionate about what they do. One meeting with them and you will see that they love what they do and would love to use their talents to help you.

Servant

I saved the best for last. Yes, any person that is a professional in the sales industry must serve you, but too often sales people will sell you rather than serve you. A serving sells professional will ask you many questions. You will be able to see that his or her interest is tied to your satisfaction, not in the sale. The “Sale” is a result, not an objective to a servant. It is a great feeling knowing that you have bought a good or service for someone that was looking at you as a person rather than an objective.

5 Principles For Negotiating

2011-02-10T20:36:00.001-05:00

If you want to save money then negotiating is a must. Here are some simple principles to remember as you negotiate your way to a successful budget:

Everything is negotiable

Yes, everything. Some items may be more difficult to reach an agreement on, but searching for the products or services that can be easily negotiated may be a talent of its own. Some helpful tips would be looking for display items, open boxes, out of season, surplus, used, end of month, or private seller or business.

Silence

We could all use a little more of this, but in negotiating, oftentimes the party opposite you will hint at a preferred price or will talk themselves into a price that will work for both of you. Keeping quiet can be intimidating for the sales person and productive for you.

It must be a win-win

If you are only out to get a “steal” then you may be insulting every sales person you encounter. Remember a sales person is human and has a family to feed just like you. He or she wants to sell you their product or service and should be compensated fairly for it. There is a difference between challenging a sales representative and bullying them.

Be able to walk away

One of the hardest things to do is to say “NO”, especially if you are emotionally tied to the item or service. Having the walking power will keep your price relevant. If the sales person knows that you will not walk away you can forget about the price coming down.

Knowledge

It is not always easy to have more knowledge than the sales person that is helping you, but understanding what it is that you want will make for a smooth transaction. Do your research before you buy! It will also help you recognize if you are working a professional during your buying process.

Now you are armed with some info. Remember these and you will find negotiating to be FUN!