http://moneyplansos.com Helping everyday Americans Pay Attention, Not Interest Wed, 22 May 2013 04:21:27 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.1 Does it feel like you've been doing everything you've been told about managing money and credit but are getting nowhere? This is the show for anyone who is serious about becoming debt free, Dave Ramsey style! If you are like the millions of people who want to know how to live on a simple budget or wondered why their credit score is so important then join us in a journey to get you out of debt, help you avoid the manipulative messages from those trying to get to your money, and discover how ZERO is actually the perfect credit score! Steve Stewart has been answering your call for help with a simple moneyplan for almost 10 years. As America's Personal Finance Architect and Dave Ramsey Trained Financial Coach, he teaches everyday Americans how to Pay Attention, Not Interest. Want to learn how to budget or what is YNAB? How to live without credit cards? How does becoming debt free effect my credit score? Steve MoneyPlanSOS Stewart no Steve Stewart © 2012 Stop being broke! Pay attention, not interest. debt free, credit cards, credit score, Dave Ramsey, YNAB, money, finance, wealth, PerkStreet, Zac Bissonnette, student loans, financial planning, ethical finance http://www.moneyplansos.com/wp-content/uploads/powerpress/MPSOS_Podcast_coverart_144x144_RSS2_in_PowerPress.jpg http://moneyplansos.com/category/podcast/ TV-G St. Louis, MO Weekly Subscribe with PodnovaSubscribe with NewsGatorSubscribe with NetvibesSubscribe with PageflakesSubscribe with My Yahoo!Subscribe with ODEOSubscribe with GoogleSubscribe with PlusmoSubscribe with The Free DictionarySubscribe with Bitty BrowserSubscribe with Live.comSubscribe with Excite MIXSubscribe with WebwagSubscribe with Podcast ReadySubscribe with WikioSubscribe with Daily Rotation http://feedproxy.google.com/~r/mpsos/~3/dIM2X1kVuxU/ http://moneyplansos.com/dave-ramsey-says-saving-100-a-month-can-make-you-a-millionaire-mpsos109/#comments Thu, 16 May 2013 04:19:00 +0000 Steve Stewart http://moneyplansos.com/?p=5733 http://moneyplansos.com/dave-ramsey-says-saving-100-a-month-can-make-you-a-millionaire-mpsos109/feed/ 1 Dave Ramsey Tweeted "Saving 100 dollars per month from age 25 to age 65 at 12 percent growth will turn into 1.176 million dollars - This Tweet caused a lot of uproar in the financial community. - To get to the bottom of this OG from the Stacking Benj... Dave Ramsey Tweeted "Saving 100 dollars per month from age 25 to age 65 at 12 percent growth will turn into 1.176 million dollars This Tweet caused a lot of uproar in the financial community. To get to the bottom of this OG from the Stacking Benjamins podcast shares his thoughts about: Average equity returns over the past 20 years Average investor returns over the past 20 years Studies that show that investor behavior doesn't make 12% The average investor can retire if they save some money every month OG also shares two of his sources for this information: A Dalbar study: Quantitative Analysis of Investor Behavior 2013  Wall Street Journal article: Small Investors Flee Stock You can also read an in-depth article about saving 100 a month  at MillionaireNetWorth.com. This is where I share details about my $100 a month experiment. Steve MoneyPlanSOS Stewart no 26:18 Dave Ramsey Tweeted &#8220;Saving 100 dollars per month from age 25 to age 65 at 12 percent growth will turn into 1.176 million dollars This Tweet caused a lot of uproar in the financial community....<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/dIM2X1kVuxU" height="1" width="1"/>http://moneyplansos.com/dave-ramsey-says-saving-100-a-month-can-make-you-a-millionaire-mpsos109/http://traffic.libsyn.com/moneyplansos/Dave_Ramsey_says_save_100_dollars_a_month_to_become_a_millionaire_-_MPSOS109.mp3 http://feedproxy.google.com/~r/mpsos/~3/ihdtc-GLDzk/ http://moneyplansos.com/how-much-you-should-have-in-an-emergency-fund-mpsos108-podcast/#comments Thu, 09 May 2013 23:40:38 +0000 Steve Stewart http://www.moneyplansos.com/?p=5721 http://moneyplansos.com/how-much-you-should-have-in-an-emergency-fund-mpsos108-podcast/feed/ 2 Do you know how much you should have in an Emergency Fund? Dave Ramsey recommends having a 3 to 6 month worth of liquid savings in case the unthinkable were to happen. Serious illness, sudden loss of income, Do you know how much you should have in an Emergency Fund? Dave Ramsey recommends having a 3 to 6 month worth of liquid savings in case the unthinkable were to happen. Serious illness, sudden loss of income, or expensive unpredictable events can take a... Steve MoneyPlanSOS Stewart no 24:11 Do you know how much you should have in an Emergency Fund? Dave Ramsey recommends having a 3 to 6 month worth of liquid savings in case the unthinkable were to happen. Serious illness, sudden loss of...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/ihdtc-GLDzk" height="1" width="1"/>http://moneyplansos.com/how-much-you-should-have-in-an-emergency-fund-mpsos108-podcast/http://traffic.libsyn.com/moneyplansos/How_Much_In_Emergency_Funds_-_MPSOS108_podcast.mp3 http://feedproxy.google.com/~r/mpsos/~3/_rkN-pU5lLs/ http://moneyplansos.com/money-for-sale-mpsos107-podcast/#comments Thu, 02 May 2013 01:17:26 +0000 Steve Stewart http://www.moneyplansos.com/?p=5697 http://moneyplansos.com/money-for-sale-mpsos107-podcast/feed/ 0 Money for sale! Get it while it's hot! Banks and lenders are offering to sell us money everywhere - and they are telling us it's cheap! - The marketing around selling debt is more prevalent than ever before. Money for sale! Get it while it's hot! Banks and lenders are offering to sell us money everywhere - and they are telling us it's cheap! The marketing around selling debt is more prevalent than ever before. Try turning on the TV or driving down the road without hearing an ad or seeing an billboard for a debt product - you'll never make it. Banks sell money It's not surprising that banks sell money. I can actually appreciate that they are willing to fork over hundreds of thousands of dollars to allow us to buy a house. While I can't classify any debt as being a "good debt", a reasonable mortgage is the only financing we will ever have. Banks also sell credit cards Why are there so many banks selling their brand of credit card? Because it is profitable Think about it: You use their plastic to buy a $600 TV and promise to send them $600.00 back within 30 days. If you do then you have been able to use OPM (Other People's Money). In this situation the credit card company only make between $12.00 to $24.00 on transaction fees they charge to the retailer for processing the payment. Credit cards cost us lots of money Interest payments are what makes mega-banks the most money. In our example of a $600.00 TV purchase, if you don't pay the entire balance back within 30 days - an experience many Americans with revolving credit are all too familiar with - then you will have the opportunity to pay the bank $6.00 or so every month in interest charges and they still get the money charged to the retailer for processing your credit card. Tag on over-the-limit fees, late fees, and other charges and you quickly understand why they operate out of the biggest buildings in the city. Most people promise they will pay their credit card balances off every month. I know from experience that it is rare that a person will NEVER pay interest or some kind of fee. If they avoided it then they are disciplined enough to not even need a credit card. Additional costs behind the money for sale Have you ever had this happen to you: Have you forgotten to make a payment? Back when we had credit cards I filed my wife's card statement in the bill box and kept telling myself "I'll get to it later". The day before it was due I realized I hadn't mailed it in yet. I rushed to the nearest Office Depot and overnighted the check. Expedited shipping isn't free, and it put us back about $16.00. Guess what, it didn't get cashed in time so we were dinged with another $25.00 in late-payment fees. All my wife's savings from frugal shopping that month were washed away in $41.00 worth of stupidity! Banks are not the only ones that have money for sale I can understand the SBA offering business loans. I can also understand why car dealers sell financing for their cars. You don't really think they can operate on the little bit they make by selling you that SUV for $500 over invoice, do you? However, Southwest Airlines, Home Depot, and Victoria's Secret sell credit cards. Seriously, these are huge entities that were built on good service, one-stop shopping for home repair, and really awesome underwear for my wife (respectively and respectfully). What business do these companies have in selling me a credit card with their logo on it? I'm waiting for the day when PetCo gets into the credit card business. The goldfish will die long before the credit card statement even hits the mailbox! The worst money for sale deals It gets even worse with certain markets that have been classified as either a "much needed service" or somehow are classified as "entertainment". I don't have a problem paying money for entertainment - it's the promise that we are supposed to benefit financially from it in some way that makes me want to scream. PayDay loans - a "needed service for the un-banked." If it were a needed service then the government would have voted in a program for this profitable sector - politicians need the good publicity and the votes! Steve MoneyPlanSOS Stewart no 14:29 Money for sale! Get it while it&#8217;s hot! Banks and lenders are offering to sell us money everywhere &#8211; and they are telling us it&#8217;s cheap! The marketing around selling debt is more...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/_rkN-pU5lLs" height="1" width="1"/>http://moneyplansos.com/money-for-sale-mpsos107-podcast/http://traffic.libsyn.com/moneyplansos/Money_For_Sale_-_MPSOS107_podcast.mp3 http://feedproxy.google.com/~r/mpsos/~3/M-0JzqgtCVM/ http://moneyplansos.com/paying-for-a-speeding-ticket-with-emergency-savings-mpsos106/#comments Wed, 24 Apr 2013 05:51:49 +0000 Steve Stewart http://www.moneyplansos.com/?p=5669 http://moneyplansos.com/paying-for-a-speeding-ticket-with-emergency-savings-mpsos106/feed/ 1 Have you ever had one of those weeks when everything went wrong? I’m having one and it might just cause me to pay for my speeding ticket with emergency savings. This week's mishaps: Our stupid backyard fence needed repair Have you ever had one of those weeks when everything went wrong? I’m having one and it might just cause me to pay for my speeding ticket with emergency savings. This week's mishaps: Our stupid backyard fence needed repair My laptop battery stopped working I got me a speeding ticket! (Click to Tweet) These are unplanned expenses that we need to take care of in a timely manner. These pleasant surprises can really derail anyone’s budget. Where do you go to get the money for all this stuff? The Fence: This was unexpected but not a surprise. Two full days of heavy rain caused a few of our fence posts to give. Home repairs are something we know will happen from time to time so it is a monthly savings goal in YNAB every month. It took less than $200 in materials and an entire day after church to take care of the problem. I’ll never get those 7 hours back but I can once again look over the fence and talk to my neighbors like Wilson from Home Improvement. Computer Battery: I unplugged my laptop and brought it upstairs. I could not get it to start. Nooooooo! After some troubleshooting I discovered that the battery was no longer holding a charge. It is a MacBook Pro which does not have a removable battery so I'll be visiting Heaven The Apple Store on Friday. Speeding Ticket: How could this happen? It started off being a sweet deal. I used a “double upgrade” coupon for a rental car. Guess what I got? A sweet, red Ford Mustang! You know what comes with a red Mustang? The opportunity to be picked out of the crowd by the State Patrol. Office Sukis was polite, professional, and efficient in serving me my rights as a tax-paying citizen on a public route - a $175.30 speeding ticket! This type of expense is not in my budget. I have no category for breaking the law, do you? How do I take care of this unexpected expense? This isn’t what I would constitute as an Emergency Fund expense. Or is it? Options for taking care of a speeding ticket Show up for the court date and hope the officer does not in order to dispute the citation Pay the ticket before the date Don’t pay the ticket, don’t show up in court, and risk further penalties like a suspended driver’s license or warrant for my arrest I was driving in 70mph zones for 90 minutes but wasn't *paying attention* when the speed trap limit dropped to 55. My inability to pay attention caused me to lose $175. Ouch! Debt-free options for paying a speeding ticket This is my responsibility – I get to pay this ticket. The due date is early June. This leaves me with another problem: Take it out of emergency savings Pull more money out of the business Take it out of another budget category This is not an emergency so it shouldn't come out of emergency savings. That wouldn't be fair to my family. It's not a business expense and I consider the money in that account as retained earnings (which serves as both a business emergency fund and opportunity-builder). Again, this isn't an emergency and I also do not want to take any money out of that account unnecessarily. My only other option to pay this ticket while remaining debt free (no loan, no credit card, no debt) is to find another budget category to take it out of: YNAB shows that we have built up a good amount in the medical category – what do you think about that? I would feel really guilty taking it out of the car replacement or Christmas funds. I should take it out of our Vacation fund but instead I will likely reduce the amount of money we send to investments this month. However, I promised my wife we would stick to stashing away a certain amount every month for my daughter’s car/college/wedding (in that order please). None of these options are ideal. What do you think I should do? Please leave your thoughts in the Comments section below. Also shared in this episode: This podcast episodes was recorded using BossJock App for iPhone     App for iPad   Steve MoneyPlanSOS Stewart no 12:59 Have you ever had one of those weeks when everything went wrong? I’m having one and it might just cause me to pay for my speeding ticket with emergency savings. This week&#8217;s mishaps: Our stupid...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/M-0JzqgtCVM" height="1" width="1"/>http://moneyplansos.com/paying-for-a-speeding-ticket-with-emergency-savings-mpsos106/http://traffic.libsyn.com/moneyplansos/106_Paying_for_a_Speeding_Ticket_with_Savings.mp3 http://feedproxy.google.com/~r/mpsos/~3/gIQYpoyu_bk/ http://moneyplansos.com/buy-your-next-car-from-the-joneses-mpsos105-podcast/#comments Thu, 18 Apr 2013 14:05:23 +0000 Steve Stewart http://www.moneyplansos.com/?p=5646 http://moneyplansos.com/buy-your-next-car-from-the-joneses-mpsos105-podcast/feed/ 0 We bought my wife's last vehicle from the Joneses.You've heard of the Joneses. They have all the freshest gadgets, the most fashionable clothes, and drive the newest vehicles. - You can get an excellent bargain if you buy your next car from the Jonese... We bought my wife's last vehicle from the Joneses.You've heard of the Joneses. They have all the freshest gadgets, the most fashionable clothes, and drive the newest vehicles. You can get an excellent bargain if you buy your next car from the Joneses without getting a lemon or ruining your finances. We paid just over $23,000 for the SUV in 2006. At the time it only had 12,000 miles on it. The dealer told us it was a recent trade in from a guy who had purchased it new from him 2 years earlier. It had all the bells and whistles in it and was in great condition - everything you would expect from a gently-used  motor vehicle. She turned 100,000 the other day - miles that is.  Regular maintenance and my wife's desire to keep it clean and the dash uncluttered has kept the 'ol girl in great condition. But she has served us greatly and we expect her to continue working hard for the next 100,000 miles. I think we got an excellent deal! The Joneses can't get a great deal when buying new Ahhh. The new car smell. The pitch-black tires. An odometer with less than 50 miles on it. These are all signs of a motor vehicle the Joneses want. However, they will pay a premium for the opportunity to splat the first bug with the windshield: CarsDirect.com stated the average car depreciation rate is roughly 15% and that new cars depreciate 20% the moment you drive them off the lot. A 2014 Chevy Impala starts at $27,535. Drive it off the lot and it becomes worth $22,028. A US Bank auto loan at 2.99% is $494.65 for 60 months. This would only pay the loan balance down to about $17,000. Interest charges on this loan will cost another $2,100 bringing your total expense to just under $30,000 (not including taxes, insurance, repairs, etc...) After 2 years of depreciation the value of this car will drop to $18,723. Ouch. You can get a 2009 Chevy Impala with less than 100,000 miles sells for $6,000 on eBay motors. The Joneses spent that much in car payments the first year alone. Save a monthly car payment for a $3Million car? Experian reports the average car payment is $452 Save that much money for 3 years and you will have $16,272 (not including interest) If you were to invest it in a good mutual fund earning 12% annually you could take out $15,000 every 5 years and buy your next car from the Joneses and still have money left over. Do that for 40 years and  you would still end up with $3.1million. Get a great deal on the Joneses's car with cash Buy used Get an inspection Use a Bill of Sale Negotiate an even better deal by paying with cash The Joneses are about the newest and coolest. Debt allows this type of purchasing to exist without the simple, basic long-term financial planning that causes people to join the Millionaire Net Worth Club. Don't hesitate when the Joneses decide to trade up in car. Help them sell their 2-year old car by taking it off their hands. They get what they wanted, you get what you wanted: A slightly used vehicle that has all the kinks worked out of it at a deal that allows you to remain debt free and continue building wealth. And you got a great deal simply by paying attention, not interest. Steve MoneyPlanSOS Stewart no 17:53 We bought my wife&#8217;s last vehicle from the Joneses.You&#8217;ve heard of the Joneses. They have all the freshest gadgets, the most fashionable clothes, and drive the newest vehicles. You can get...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/gIQYpoyu_bk" height="1" width="1"/>http://moneyplansos.com/buy-your-next-car-from-the-joneses-mpsos105-podcast/http://traffic.libsyn.com/moneyplansos/105_Buy_Your_Next_Car_From_The_Joneses_-_MPSOS105.mp3 http://feedproxy.google.com/~r/mpsos/~3/_4DFngu7_iQ/ http://moneyplansos.com/teaching-kids-about-work-and-money-with-myjobchart-com-mpsos104/#comments Wed, 10 Apr 2013 13:15:55 +0000 Steve Stewart http://www.moneyplansos.com/?p=5625 http://moneyplansos.com/teaching-kids-about-work-and-money-with-myjobchart-com-mpsos104/feed/ 0 MyJobChart.com is the fastest growing website teaching kids about work and money. Gregg Murset, Founder and CEO of MyJobChart.com, believes teaching children early and often is the best way for them to learn how money really works. - He should know, MyJobChart.com is the fastest growing website teaching kids about work and money. Gregg Murset, Founder and CEO of MyJobChart.com, believes teaching children early and often is the best way for them to learn how money really works. He should know, he has six children between the ages of 5 and 15!  Teaching Kids About Work And Money He started a website that gives parents a new way of assigning chores, tracking their completion, and rewarding their children. In this interview we discuss: How we can teach children to work and earn money in the digital age How children can set their own goals and rewards How the process encourages communication between parent and child How MyJobChart.com can help kids learn to save, share, and spend money  Download the app for iPhone, iPad, and iPod Touch Books mentioned in this episode The Demise of Guys: Why Boys Are Struggling and What We Can Do About It The End of Money: Counterfeiters, Preachers, Techies, Dreamers--and the Coming Cashless Society Steve MoneyPlanSOS Stewart no 33:56 MyJobChart.com is the fastest growing website teaching kids about work and money. Gregg Murset, Founder and CEO of MyJobChart.com, believes teaching children early and often is the best way for them...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/_4DFngu7_iQ" height="1" width="1"/>http://moneyplansos.com/teaching-kids-about-work-and-money-with-myjobchart-com-mpsos104/http://traffic.libsyn.com/moneyplansos/104_Teaching_Kids_About_Work_and_Money_With_MyJobChart_-_MPSOS104.mp3 http://feedproxy.google.com/~r/mpsos/~3/1KQUNDFZd7M/ http://moneyplansos.com/4-new-perspectives-for-your-money-mpsos103/#comments Mon, 01 Apr 2013 06:03:48 +0000 Steve Stewart http://www.moneyplansos.com/?p=5556 http://moneyplansos.com/4-new-perspectives-for-your-money-mpsos103/feed/ 0 Car payments, mortgage interest deductions, the morality of money, and who has control of your money: This episode addresses these popular financial topics and we give you a new perspective. - Today's show is brought to you from Jon White, Car payments, mortgage interest deductions, the morality of money, and who has control of your money: This episode addresses these popular financial topics and we give you a new perspective. Today's show is brought to you from Jon White, my pal and comrade from JW's Financial Coaching. He is all about giving you a new perspective on your money by encouraging you to focus on improving YOUR economy, which is the only economy you can control. Today he gives us... Four new perspectives on money When it comes to making changes in how we handle our money, quite often all we need is a new perspective or different way to look at how to do things. That’s because we take a lot of our advice or beliefs on how to handle money from the commercials we watch on TV or the credit card offers we get daily in our mailbox. But once we get a new perspective on how money really does work, it opens up a whole new avenue of ideas, beliefs, and actions. The Mortgage Interest Deduction One of the biggest ways that mortgages are sold to consumers today is that you can deduct the mortgage interest you pay from your income taxes. While that is true, often the tax savings from having a mortgage are overstated and it’s definitely NOT a reason to take out a mortgage in the first place or to keep your mortgage. A tax deduction is not the same as a credit. A deduction allows you to subtract that amount from your income so you don’t pay taxes on it. So for example, if you paid $5,000 in interest and you made $105,000, you will pay taxes on $100,000 ($105,000 less $5,000 in mortgage interest.) So if you are in a 25% tax bracket you will save $1,250 in taxes, not $5,000. In addition, you can deduct your mortgage interest only if you itemize your taxes. Everyone gets to take what the IRS calls a standard deduction ($6,100 for singles and $12,200 for married couples in 2013). But the IRS also allows you to deduct things such as mortgage interest, property taxes, charitable contributions, and state and local taxes, among other things. If all those add up to be greater than the standard deduction you can deduct that. But only 30% of income tax forms itemize, so for most of us the mortgage deduction saves us nothing on taxes! If you do have a mortgage and are paying interest, take the deduction if you qualify, but don't stay in debt just for the tax break. It's a really bad idea, and it actually might not be any benefit to you at all. Car Payments There is a myth out there that car payments are a way of life and that only the upper class can live without them. We believe this myth because that is what we are taught and told so believe it to be fact. For example, how many times have you heard yourself or someone else rationalize a car payment by saying they were "forced" to take one out due to a car breaking down or other emergency. The truth is that we are never forced to take out debt; we choose to do it. A lot of times we choose a car payment for the convenience of not having to drive around town or drive a car that might raise a few eyebrows when you stop at the light. But living without a car payment is possible; Jon and his wife do it and thousands of other families in our situation do it as well. It is isn't always fun driving around in an older car with a lot of miles on it, but it is worth it. Why is that you might ask? It is because a car payment costs us a lot more than just the monthly payment. It would cost Jon's family the ability for his wife to stay home with their son. It would cost them their ability to save for retirement. It would also cost them the ability to save for their child's college because instead of funding his 529 plan they would be making a payment to Toyota, Honda, or whoever they borrowed the money from. It would also add a lot of risk to their lives as it would add another monthly obligation in their budget. I know a lot of us can't imagine not having a car payment and paying for our next car in cash, Steve MoneyPlanSOS Stewart no 24:16 Car payments, mortgage interest deductions, the morality of money, and who has control of your money: This episode addresses these popular financial topics and we give you a new perspective....<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/1KQUNDFZd7M" height="1" width="1"/>http://moneyplansos.com/4-new-perspectives-for-your-money-mpsos103/http://traffic.libsyn.com/moneyplansos/Four_New_Perspectives_For_Your_Money_-_MPSOS103.mp3 http://feedproxy.google.com/~r/mpsos/~3/Y3e6zfkYduQ/ http://moneyplansos.com/people-who-dont-need-to-budget-mpsos102/#comments Fri, 22 Mar 2013 13:50:27 +0000 Steve Stewart http://www.moneyplansos.com/?p=5511 http://moneyplansos.com/people-who-dont-need-to-budget-mpsos102/feed/ 0 Many people can get by without ever doing a budget. Do you qualify as a person that doesn't have to go through this seemingly painful process? The Rich (Financially Independent) Thomas Stanley wrote a book called The Millionaire Next Door. Many people can get by without ever doing a budget. Do you qualify as a person that doesn't have to go through this seemingly painful process? The Rich (Financially Independent) Thomas Stanley wrote a book called The Millionaire Next Door. He int... Steve MoneyPlanSOS Stewart no 18:55 Many people can get by without ever doing a budget. Do you qualify as a person that doesn&#8217;t have to go through this seemingly painful process? The Rich (Financially Independent) Thomas Stanley...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Y3e6zfkYduQ" height="1" width="1"/>http://moneyplansos.com/people-who-dont-need-to-budget-mpsos102/http://traffic.libsyn.com/moneyplansos/102_People_who_dont_need_to_budget_-_MPSOS_102.mp3 http://feedproxy.google.com/~r/mpsos/~3/4lgtHYRFv_c/ http://moneyplansos.com/where-money-and-debt-came-from-mpsos-101/#comments Fri, 15 Mar 2013 06:27:49 +0000 Steve Stewart http://www.moneyplansos.com/?p=5479 http://moneyplansos.com/where-money-and-debt-came-from-mpsos-101/feed/ 0 Have you ever considered where money came from? The basics of all things finance lays in the concept of a centralized currency with variable purchase power. The great news is that it's a very simple subject, Have you ever considered where money came from? The basics of all things finance lays in the concept of a centralized currency with variable purchase power. The great news is that it's a very simple subject, but it has morphed into this horrible set of... Steve MoneyPlanSOS Stewart no 23:56 Have you ever considered where money came from? The basics of all things finance lays in the concept of a centralized currency with variable purchase power. The great news is that it&#8217;s a very...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/4lgtHYRFv_c" height="1" width="1"/>http://moneyplansos.com/where-money-and-debt-came-from-mpsos-101/http://traffic.libsyn.com/moneyplansos/101_How_Money_and_Debt_Started_-_MPSOS_101.mp3 http://feedproxy.google.com/~r/mpsos/~3/Id9j5hI-a7I/ http://moneyplansos.com/episode-100-inspiration-from-listeners-and-special-guest-timm-etters/#comments Fri, 08 Mar 2013 08:10:29 +0000 Steve Stewart http://www.moneyplansos.com/?p=5437 http://moneyplansos.com/episode-100-inspiration-from-listeners-and-special-guest-timm-etters/feed/ 1 Timm Etters joins me in sharing listener's inspirational stories and quotes in the 100th episode of the MoneyPlan SOS podcast! - I also share one of the inspirational people in my life, my best friend Timm. Timm Etters joins me in sharing listener's inspirational stories and quotes in the 100th episode of the MoneyPlan SOS podcast! I also share one of the inspirational people in my life, my best friend Timm. For more about Timm Etters go to the end of this post. Inspirational Quotes from listeners Tony Dungee: "It's about the journey, mine and yours, and the lives we can touch, the legacy we can leave, and the world we can change for the better" sent in by Joshua Brown of BrownsBalancedLife.blogspot.com Jeff Foxworthy: "Find something in life that you love doing. If you make a lot of money - that's a bonus, and if you don't - you still won't hate going to work!" sent in via PersonalFinanceNation.com Maya Angelou: "Do the best you can until you know better. Then when you know better - do better" provided by Tyler Fuller From Letha Martel: My grandmother took care of my sister and I after our mother died; she daily lived her faith in Christ. When ever we kids would complain about helping hoe the garden; or helping with the dishes; etc… she would reply. "It says in the Bible, 'He who will not work, neither shall he eat.'" 2 Thes 3:10 Dave Ramsey: "Not until the pain of the same is greater than the pain of change will you embrace change", a favorite of Jon White of JWFinancialCoaching.com Joel Osteen funny money joke:  A man was talking to God and he asked: God how long is a million years to you? God replied: A million years is like a second to me.  The man thought and then said: God how much is a million dollars to you? God replied: A million dollars is like a penny to me.  The man then said: God will you give me a million dollars? God replied: Sure, give me a second. JenSpiration: "Vanilla ain't a color in the rainbow. If you want to find some awesomeness in life: Avoid normal and take action to do things extra-ordinary" by author Jen McDonough Winston Churchill: "Never give in, never give in, never; never; never; never - in nothing, great or small, large or petty - never give in except to convictions of honor and good sense". "The real measure of your wealth is how much you’d be worth if you lost all your money" - Unknown Tom Hopkins: "If people ask you how you're doing or how business is, just say, "unbelievable!", because it covers it either way!" as per Timm Etters Howard Dayton: "Just as the operator of a complicated piece of machinery studies the manufacturer's manual to learn how to operate it, we need to examine the owner's manual, the Bible, to determine how He wants us to handle His possessions." another great one sent in by Joshua Brown @MrJoshuaBrown Joan Rivers: "People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made." via @PFNation Nike: "Feel the fear and do it anyway". A favorite of Joe Saul-Sehy, aka Average Joe from TheFreeFinancialAdvisor.com & the 2 Guys & Your Money podcast. David Allen: “You can do anything, but you can't do everything” from my friend Michael "TechTalk" Kastler of the TechTalk WRLR podcast. He says "I always remember this when I'm getting overwhelmed, and that you have to be intentional about your actions and choices in life whether it be how you spend your money, your time, or your attention." Ralph Waldo Emerson: "An ounce of action is worth a TON of theory" from Jake Funnell of DoMoneyBetter.com Earl Nightengale: "People with goals succeed because they know where they are going", an excellent quote sent in by Amy Funke of SmarterBucks.com - a debit card that helps you pay down student loans Albert Einstein: "Compound Interest is the 8th wonder of the world. He who understands it, earns it. He who doesn't, pays it." Sent in by @JWFinCoaching George Washington: "It is impossible to rightly govern a nation without God and the Bible" Benjamin Franklin: "He does not possess wealth; it possesses him" via Scott of FocusedIntensityCoaching.com J. Steve MoneyPlanSOS Stewart no 1:00:00 Timm Etters joins me in sharing listener&#8217;s inspirational stories and quotes in the 100th episode of the MoneyPlan SOS podcast! I also share one of the inspirational people in my life, my best...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Id9j5hI-a7I" height="1" width="1"/>http://moneyplansos.com/episode-100-inspiration-from-listeners-and-special-guest-timm-etters/http://traffic.libsyn.com/moneyplansos/100th_Episode_-_Inspiration_from_listeners_and_special_guest_Timm_Etters.mp3 http://feedproxy.google.com/~r/mpsos/~3/B0BsPYIDe8o/ http://moneyplansos.com/sos099-getting-ready-for-zero-debt/#comments Wed, 27 Feb 2013 13:37:50 +0000 Steve Stewart http://www.moneyplansos.com/?p=5410 http://moneyplansos.com/sos099-getting-ready-for-zero-debt/feed/ 3 What if I told you there is new fuel on the fire that works in favor of paying a higher interest debt over paying the smaller balance debt first? Wouldn't that be the best way to get ready for zero debt? - http://youtu.be/w1QCdGhfqNQ What if I told you there is new fuel on the fire that works in favor of paying a higher interest debt over paying the smaller balance debt first? Wouldn't that be the best way to get ready for zero debt? http://youtu.be/w1QCdGhfqNQ Paying off debt is behavioral If paying off debt was only based on the math then we wouldn't have any problem convincing others to eliminate it in the most efficient way possible - highest interest rate debt first. The more you pay down, the less interest you will pay over time. That is why most people promote the "Debt Avalanche" process - it pays off the debt quicker. The problem is that we humans like shiny new things, spoiling ourselves, and are starving for instant gratification. Paying off debt does none of that so we often quit before we are finished. The Debt Snowball process By paying the smallest balance debts first we are able to feel the "quick win" and are encouraged to keep going. Like a child doing their math homework, getting the first answer right will often give them encouragement to work on the second answer. With the debt snowball, the easier answers are the first questions on the math quiz and they become progressively more difficult down the page. For an example on the differences between the Debt Snowball and a Debt Avalanche approach see this post: Highest Interest or Smallest Balance Have fun with debt ReadyForZero gives us a way to stay energized during the long drawn-out process of paying higher interest debt before knocking out the easy ones - and that is the key! If a tool can help you stay focused and encourage you to finish, then you will pay attention then you will pay less interest. It offers a fun way to play with your debts and it's free! Sign up for a free account at ReadyForZero.com, import your debt information, and start paying attention to how much debt you are paying off! Keep motivated at Starbucks Download the free ReadyForZero iPhone app to keep motivated anywhere you are.   Steve MoneyPlanSOS Stewart no 26:13 What if I told you there is new fuel on the fire that works in favor of paying a higher interest debt over paying the smaller balance debt first? Wouldn&#8217;t that be the best way to get ready for...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/B0BsPYIDe8o" height="1" width="1"/>http://moneyplansos.com/sos099-getting-ready-for-zero-debt/http://traffic.libsyn.com/moneyplansos/sos099_Getting_Ready_For_Zero_Debt.mp3 http://feedproxy.google.com/~r/mpsos/~3/eODDWU661UY/ http://moneyplansos.com/sos098-zillow-com-avoid-these-pitfalls-when-buying-a-home/#comments Wed, 20 Feb 2013 06:15:02 +0000 Steve Stewart http://www.moneyplansos.com/?p=5350 http://moneyplansos.com/sos098-zillow-com-avoid-these-pitfalls-when-buying-a-home/feed/ 0 How to Avoid Lending Pitfalls that Will Prevent You from Buying a House - By Tali Wee with Erin Lantz of Zillow - Buying a home for the first time is a major decision that buyers should prepare for in order to make educated choices to protect their i... How to Avoid Lending Pitfalls that Will Prevent You from Buying a House By Tali Wee with Erin Lantz of Zillow Buying a home for the first time is a major decision that buyers should prepare for in order to make educated choices to protect their investments.  Because home values have bottomed out in most areas of the country and interest rates are near record lows, it’s an affordable time to buy.  Before buyers rush to make a purchase, they should be aware of the unexpected pitfalls that may hinder or halt the buying process. 1. Set Reasonable Expectations The best preparatory action for first-time home buyers is to review available homes in their market to get an idea of the market’s value.  Buyers can research their dream homes within their ideal neighborhoods to check current costs.  Next, buyers should get an idea of how much they can afford using Zillow’s mortgage calculator.   Once buyers have an understanding of how much money they are capable of paying each month, they can balance it with the must-have features of their dream homes A common pitfall is that many first-time home buyers have unrealistic expectations for their future homes and how much they can afford.  They often miss several opportunities by making low offers or no offers because of minor home details they don’t love.  An experienced real estate agent can advise their clients to prevent this pitfall.  However, buyers who have a grasp on their market’s value have healthier expectations of competitive offers and are better able to compromise on features of the affordable homes. 2. Reduce Debt-to-Income Ratio Another item that should be reviewed prior to making an offer is the debt-to-income ratio of the buyer.  The debt-to-income ratio (DTI) is the amount of monthly income regularly paid toward debts such as a car payment or student loan.  The DTI maximum requirements vary by loan program and by lender: Conventional: Monthly debt not to exceed 36 percent of income FHA: Not to exceed 43 percent of income VA and USDA: Not to exceed 41 percent These maximums are general guidelines, but in some cases lenders will permit higher DTI ratios when certain compensating factors are present such as very high credit scores or large amount of cash reserves.  The DTI percentage is calculated by adding up all of the buyer’s recurring debt, dividing that total debt by the buyer’s gross monthly income and then multiplying the quotient by 100. (Total Debt ÷ Gross Monthly Income) × 100 = DTI For example, Bob has a $300 car payment, $50 credit card minimum payment, $400 student loan and a $750 rent payment each month totaling $1,500 of recurring monthly debt.  Bob makes $45,000 before taxes each year, or $3,750 each month.  The total debt of $1,500 divided by his monthly income of $3,750 equals 0.4.  Multiply 0.4 by 100 to get a DTI of 40 percent. Because Bob’s DTI is 40 percent and assuming there are no compensating factors, he likely would not qualify for a conventional loan.  This is something to keep in mind for buyers who are expecting to use a specific loan program or who select a property with loan program limitations. 3. Source All Funds One pitfall that may catch first-time home buyers by surprise is that all of their funds must have a paper trail or source.  Lenders will evaluate buyers’ bank statements to specify the source of their income and how their money is managed before approving a loan.  Three red flags for lenders are large cash deposits, regular transfers and gift money.  Buyers should expect their lenders to inquire and should be prepared to provide sourcing for all deposits and transfers, whether it’s a side job, reimbursement or transfer from a relative.  If someone has offered a gift of money to apply toward the down payment, then it must be accompanied by a signed letter stating the money is a gift instead of a loan and must include a bank statement proving the source of the funds, Steve MoneyPlanSOS Stewart no 34:45 How to Avoid Lending Pitfalls that Will Prevent You from Buying a House By Tali Wee with Erin Lantz of Zillow Buying a home for the first time is a major decision that buyers should prepare for in...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/eODDWU661UY" height="1" width="1"/>http://moneyplansos.com/sos098-zillow-com-avoid-these-pitfalls-when-buying-a-home/http://traffic.libsyn.com/moneyplansos/sos098_Zillow.com_-_Avoid_These_Pitfalls_When_Buying_A_Home.mp3 http://feedproxy.google.com/~r/mpsos/~3/ZrhMoabQD0M/ http://moneyplansos.com/sos097-which-fork-would-you-take-interview-with-mandy-knight/#comments Thu, 14 Feb 2013 03:19:57 +0000 Steve Stewart http://www.moneyplansos.com/?p=5327 http://moneyplansos.com/sos097-which-fork-would-you-take-interview-with-mandy-knight/feed/ 2 How much does someone's past affect your relationship? Do you see someone's past failures as a problem or see them as exercises for personal growth? What if that failure was an addiction? Would you make the same decision Mandy did? Blogger, How much does someone's past affect your relationship? Do you see someone's past failures as a problem or see them as exercises for personal growth? What if that failure was an addiction? Would you make the same decision Mandy did? Blogger, mother of three, and wife of an ambitious man Mandy Knight is a mom, wife, and blogger at MoneyMasterMom.com. She has been blogging for less than a year but puts it all out on the table. Her husband, Derek, is the author of FreeAt33.com and is working hard to reach their goal: To be financially independent by the time he turns 33. He and Mandy live on $600 a week, do not have a house payment, and have already built a net worth greater than $650,000. Sounds like a blessed life, right? It is, but it didn't come without some incredible obstacles to conquer. A tremendous turnaround Four weeks after Mandy and Derek met, when he was 23, he shared his history with her. Mandy learned that Derek was addicted to cocaine at age 18. If it had been me on the other side of that dinner table, I would have ran screaming from the restaurant. However, Mandy saw it differently. It didn't seem possible that this awesome, caring, well-adjusted guy with a good job could have had a chemical addiction in his past.  Derek's ability to kick a serious addiction was pretty amazing to her. What Mandy brings to their relationship Mandy has a tendency to be independent, which is both good and bad. Or we could look at it another way too: It is neither bad nor good because they are able to maintain complete honesty and openness knowing full well that these tendencies exist. She is able to take care of herself and their three children but she isn't interested in doing so. They are a team and are chasing their dreams together. Handling finances together Both Mandy and Derek have jobs. It would be easy for them to keep their money separate but they live out of the same joint checking account. They know what their expenses will be and hold themselves accountable by posting their monthly expenses on their blogs. Mandy understands the importance of paying for things and admits they would use cash envelopes if they had credit card debt or didn't have such a good handle on their spending. Anyone can beat their mental monsters If Derek can kick a chemical addiction and Mandy can share everything with her husband then what is our excuse? The problem in my relationship with my wife is, well, ME. My fear of rejection and poor self-esteem is likely doing more harm than good. It keeps me from communicating as openly as I could and sharing as much as I want. Knowing that others have bested their demons means I have nothing to fret about. Mandy Knight's story can teach us that we can all: Benefit from complete and open communication Recognizing there are challenges and work past them together Draw strength from a relationship with God Ask yourself this question: What forks in the road have I taken and where have the led me? Also mentioned in this episode: To see pictures of the Lake Erie house they are remodeling, go to http://moneymastermom.com/dream-home-renovation-demolitio/ Exclusive bonus interview: MoneyMasterMom when she was 1 week old Steve MoneyPlanSOS Stewart no 28:19 How much does someone&#8217;s past affect your relationship? Do you see someone&#8217;s past failures as a problem or see them as exercises for personal growth? What if that failure was an addiction?...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/ZrhMoabQD0M" height="1" width="1"/>http://moneyplansos.com/sos097-which-fork-would-you-take-interview-with-mandy-knight/http://traffic.libsyn.com/moneyplansos/sos097_Which_Fork_Would_You_Take.mp3 http://feedproxy.google.com/~r/mpsos/~3/XRmBCBqhmME/ http://moneyplansos.com/sos096-financial-wealth-and-physical-health-are-identical/#comments Wed, 06 Feb 2013 07:37:40 +0000 Steve Stewart http://www.moneyplansos.com/?p=5286 http://moneyplansos.com/sos096-financial-wealth-and-physical-health-are-identical/feed/ 0 There is a direct correlation between Personal Finance and Physical Fitness. Currency and calories, consumerism and consumption - they all affect how rich and fit we will become. What we take in Eating is a lot like earning money: - The more we eat, There is a direct correlation between Personal Finance and Physical Fitness. Currency and calories, consumerism and consumption - they all affect how rich and fit we will become. What we take in Eating is a lot like earning money: The more we eat, the more energy we can generate. The more we make, the more we can spend. We are the healthiest physically when we eat enough food to enable us to perform the necessary duties to survive and thrive. We are the healthiest financially when we have enough income to cover our expenses, save or invest, and give. What we spend  Exercising is how our body takes the stored energy and uses it to propel us forward on a jogging trail, push us up a flight of stairs, lift things, and get work done. Physical activity can be fun, like participating in a sport, or it can be unpleasant - like carrying laundry baskets up and down stairs. Spending is how we apply our income to obtain the things necessary for survival as well as other things we enjoy. It can be fun, like purchasing a new laptop or the next round at the bar, or it can be unpleasant - like paying bills. What happens when we get out of balance Eating more than your body needs will cause you to become fat. Buying more stuff than you need will cause you to become financially flabby. Exercising without taking in the necessary amount of calories (food) can leave you weak and undernourished. Spending without bringing in the necessary amount of money (income) will leave your wallet undernourished. Unhealthy side effects Too much or too little can cause unhealthy situations. Obesity and heart disease shortens one's lifespan. A high debt-to-income ratio shortens one's ability to live the life they desire. Physical health and financial wealth are interdependent as well. Income opportunities can be limited by physical ailments and physical health can be affected by a stressful financial situation. Start by walking, not fasting I need to improve my physical health by eating less and exercising more. It would be foolish of me to stop eating altogether and run a marathon tomorrow. It would also be stupid of me to just give up and not do anything. Good things come to those who work on their weight. Faster isn't always better. Sometimes the best things are worth waiting for. My wife made a wonderful lamb stew this last weekend. She started prepping it on Friday buy trimming it, seasoning it, and letting it set in the refrigerator overnight. Saturday morning she put all the ingredients in a crock pot and cooked it for about eight hours. There was an unbelievable flavor emanating out of the broth that could never have come from a jar. Taking your time and doing it right often pays the biggest dividends. Become financially healthy A happy medium of income and outgo will cause us to be happy, healthy, and - as Zac Bissonnette would say - better looking than your parents. Start where you are: Don't know where to start? Track your spending for 30 days until you know how much you spend on gas, food, eating out, etc… Already know how much you spend? Budget your income. Stick to your moneyplan and live within your means. Next step? Begin a debt elimination regime! Spend your extra financial calories on paying down debt. Burn it off! No consumer debt? Start investing and building financial wealth. Ready to run a marathon? It's time to buy a house, start a business, or become a philanthropist. Personal finance is not just for uptight nerds or people who love spreadsheets. It's an activity that everyone must participate in if they want to win with money. Not everyone is born with a marathoner's body and many of us don't have the discipline to spend less than we make. However, putting small changes into practice over time will cause positive results and will help you live a life of abundance and financial wellbeing. Steve MoneyPlanSOS Stewart no 9:27 There is a direct correlation between Personal Finance and Physical Fitness. Currency and calories, consumerism and consumption &#8211; they all affect how rich and fit we will become. What we take...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/XRmBCBqhmME" height="1" width="1"/>http://moneyplansos.com/sos096-financial-wealth-and-physical-health-are-identical/http://traffic.libsyn.com/moneyplansos/sos096_Financial_Wealth_and_Physical_Health_are_the_same.mp3 http://feedproxy.google.com/~r/mpsos/~3/37Xibb6ApaQ/ http://moneyplansos.com/sos095-the-credit-card-surcharge-and-responsible-debit-card-practices/#comments Thu, 31 Jan 2013 11:48:37 +0000 Steve Stewart http://www.moneyplansos.com/?p=5270 http://moneyplansos.com/sos095-the-credit-card-surcharge-and-responsible-debit-card-practices/feed/ 7 For those who pay with a credit card, your purchases just got more expensive. - A recent change to Visa and MasterCard regulations removes restrictions on vendors and businesses which allows them to charge consumers a surcharge fee when paying wit... For those who pay with a credit card, your purchases just got more expensive. A recent change to Visa and MasterCard regulations removes restrictions on vendors and businesses which allows them to charge consumers a surcharge fee when paying wit... Steve MoneyPlanSOS Stewart no 27:31 For those who pay with a credit card, your purchases just got more expensive. A recent change to Visa and MasterCard regulations removes restrictions on vendors and businesses which allows them to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/37Xibb6ApaQ" height="1" width="1"/>http://moneyplansos.com/sos095-the-credit-card-surcharge-and-responsible-debit-card-practices/http://traffic.libsyn.com/moneyplansos/sos095_Credit_Card_Surcharges_and_Responsible_Debit_Card_Use.mp3 http://feedproxy.google.com/~r/mpsos/~3/Nv8SDVxWdHs/ http://moneyplansos.com/sos094-understanding-the-1040-tax-form/#comments Fri, 25 Jan 2013 23:59:02 +0000 Steve Stewart http://www.moneyplansos.com/?p=5254 http://moneyplansos.com/sos094-understanding-the-1040-tax-form/feed/ 0 Income tax returns can be difficult. Breaking the 1040 down into sections helped me to understand it better. Why we file taxes on April 15th We need to balance our "tax checkbook" once a year. April 15th has been coined "Tax Day" as this is the deadl... Income tax returns can be difficult. Breaking the 1040 down into sections helped me to understand it better. Why we file taxes on April 15th We need to balance our "tax checkbook" once a year. April 15th has been coined "Tax Day" as this is the deadline that all taxpaying Americans must submit their balanced tax checkbook to the IRS. This allows employers to mail tax withholding and earning statements (better known as W-2s) and the self-employed the time necessary to get their books in order. Form 1040: Two pages to zero When you boil it down, there is only one form that reports your income tax: Form 1040. This two page document collects all your personal data into one place and it tells you whether you get a refund or owe more in taxes. Eight sections to refund There are eight sections that must be completed before calculating a refund: Information For identification and filing purposes only. This has no bearing on your taxes. Filing Status You only need to identify how you will file and then check the appropriate box. Exemptions The exemption section will have a huge impact on the second page. List yourself and all your dependents here and you will see your taxable income go down on Page 2. Income This is the place to be! List all the sources of money that came in during the year like Wages Tips Interest and investment income Social security and Pensions Rental income Annuities (remember, these are taxed at ORDINARY INCOME RATES). Think about it Line 22 is the total of all these sources of money. It is your Gross Income. Take a good look at it, you might get a wake-up later down the form. Adjustments to income  You can reduce the amount of your gross income with qualified Student Loan interest paid Educator expenses (back for 2012!) IRA deductions (similar to the effect of putting money into a 401k) Health Savings Account contributions (HSA) While the first one, Student Loan Interest, isn't good for you, it is good to report on your 1040. The others are wonderful tax saving vehicles! Tax and Credits This section gets a bit wonky. It performed three actions: It reduces taxable income, finds what your total tax liability is, and then reduces the tax liability with non-refundable credits. Should I take the Standard Deduction or the Itemized Deduction? Nearly everyone that files a tax return gets to reduce their taxable income by at least the Standard Deduction. A married couple with an Adjusted Gross Income (AGI) of $100,000 filing their tax return jointly automatically will get to reduce their liability by $11,900. However, if they have qualified expenses and charitable giving that exceeds that amount it would make more sense to Itemize. Example: A married couple pays $5,000 in mortgage interest, $3,000 in real estate taxes, and gave $5,000 to their church (a qualified 501c3). This allows them to reduce their liability by $13,000 instead of the standard deduction of $11,900. Exemptions Here is where it pays to have children (in a tax-benefit sort of way). Each qualified person in the Exemption section from Page 1 of the Form 1040 gets to reduce the tax liability even more by $3,800 each in 2012. The family of four with an AGI of $100,000 reduce the amount that on which their income tax is calculated from the Itemized Deduction ($13,000 - bringing the number down to $87,000) and with personal Exemptions (another $15,200. This brings the amount of income they calculate their tax on to $71,800. Wait, there's more tax adjustments! The tax on $71,800 turns out to be about $8,000. But the Tax and Credits section also allows for non-refundable credits like Retirement Savings Contributions Credit Child Tax Credit Dependent Care Credit These don't reduce the taxable income, THEY REDUCE YOUR TAX! That's pretty powerful stuff! Other Taxes Your guess is as good as mine. We have over 73,000 pages of our tax code to refer to. Steve MoneyPlanSOS Stewart no 23:20 Income tax returns can be difficult. Breaking the 1040 down into sections helped me to understand it better. Why we file taxes on April 15th We need to balance our &#8220;tax checkbook&#8221; once a...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Nv8SDVxWdHs" height="1" width="1"/>http://moneyplansos.com/sos094-understanding-the-1040-tax-form/http://traffic.libsyn.com/moneyplansos/sos094_Understanding_the_1040.mp3 http://feedproxy.google.com/~r/mpsos/~3/8YZ2-C9MLdc/ http://moneyplansos.com/sos093-why-your-paycheck-is-smaller-and-2013-payroll-tax-cuts/#comments Sat, 19 Jan 2013 13:47:42 +0000 Steve Stewart http://www.moneyplansos.com/?p=5168 http://moneyplansos.com/sos093-why-your-paycheck-is-smaller-and-2013-payroll-tax-cuts/feed/ 0 By now we've all heard that Congress averted the Fiscal Cliff. Or did they? - Effective with the first payroll of 2013, there are a number of changes to paychecks for employees. The American Taxpayer Relief Act of 2012 (“Relief Act”) was passed by the... By now we've all heard that Congress averted the Fiscal Cliff. Or did they? Effective with the first payroll of 2013, there are a number of changes to paychecks for employees. The American Taxpayer Relief Act of 2012 (“Relief Act”) was passed by the... Steve MoneyPlanSOS Stewart no 25:00 By now we&#8217;ve all heard that Congress averted the Fiscal Cliff. Or did they? Effective with the first payroll of 2013, there are a number of changes to paychecks for employees. The American...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/8YZ2-C9MLdc" height="1" width="1"/>http://moneyplansos.com/sos093-why-your-paycheck-is-smaller-and-2013-payroll-tax-cuts/http://traffic.libsyn.com/moneyplansos/sos093_Why_your_paycheck_is_smaller_and_2013_Payroll_Tax_changes.mp3 http://feedproxy.google.com/~r/mpsos/~3/zp4cFGIezQQ/ http://moneyplansos.com/sos092-know-where-your-advice-is-coming-from-and-a-rant/#comments Wed, 09 Jan 2013 08:09:53 +0000 Steve Stewart http://www.moneyplansos.com/?p=5114 http://moneyplansos.com/sos092-know-where-your-advice-is-coming-from-and-a-rant/feed/ 12 Jon White shares a story of how someone gave really bad financial advice to a young couple. You can read his post here: http://jwfinancialcoaching.com/who-are-you-taking-your-advice-from/ - He and I agree, Jon White shares a story of how someone gave really bad financial advice to a young couple. You can read his post here: http://jwfinancialcoaching.com/who-are-you-taking-your-advice-from/ He and I agree, there is a lot of advice out there that will lead you to make bad decisions with your money. Jon and I talk about How Financial Coaching is working together on your daily decisions and beliefs about money How there is a ton of miss-information out there that can lead you the wrong way Don't just take someone's word for it, not even ours. Seek good council and decide what is true for you If you spend time listening to personal finance podcasts then I recommend filling your airtime with Jon's shows. He is a trusted resource to help you get a new perspective on your money. I go on a rant One of my jobs is to help you expose manipulative messages from those trying to get to your money. Here are some examples of headlines and articles that go too far in trying to get your attention: Helaine Olen's article: Retirement: Election No-show A local newsmagazine in the mail. The headline read: "Which of these 7 Health Problems do you have?" Wow. I don't feel sick but maybe I've got something. The sales-pitch (I mean subject line) in this message from my bank: Or this irresponsible advice Liz Weston answers a question from the father of a debt-free college grad that has a paid-for car with $8,000 in savings and a job how to buy a house. The grad wants to buy a foreclosure but the bank says she doesn't have a credit score. She advises the grad to Keep charging on her credit card every month Use no more than 30% or so of the credit limit Pay it off in full every month That's all fine-and-dandy. It's the traditional advice of a person who wants to help someone build their credit score. It's a more complicated way than paying cash because she is supposed to "use no more than 30% of the limit" - I don't want to have to constantly be doing THAT math every time I swipe and there are many more down-sides than up. Just miss one payment and tell me credit cards are a good idea. Then she goes on to say "To speed things along, the dad might consider adding his daughter as an authorized user on one of his credit cards". So now we're tying our adult child to her parents again. Hmmmmm. But here is what gets me the most heated: Liz Weston says "Get a second credit card because having a couple in the mix can really help or consider getting a small installment loan." WHAT???!!!! Driving a young, debt free and impressionable girl into debt? Is this really the only advice we can give her? Why wasn't the caller informed about alternatives methods to buy this house? Why is being debt free and staying that way so darn wrong? Selling you something Here it comes. I'm going to sell you something. You knew it was only a matter of time. I'm putting my money where my loud mouth is and doing the next giveaway. I have to sell you something though: The idea that I can get you on the right path to financial peace. If you believe I can help then listen to the entire episode for details. If you aren't convinced I have the right plan for you then you need to go over to the 720 Credit Score website where they will sell you a credit score building program for $1,000, or offer you four easy payments of $297. Trust me, I can do much more for you for a lot less than that. Where are you getting your advice from? Thank you for reading the entire post. Within my articles and audio recordings (podcasts) you know where I'm coming from. You also know who I "run around with": Jon White from JWFinancialCoaching.com Brad Chaffee from EnemyOfDebt.com and BradChaffee.net Dave Ramsey (yep, I'm Certified). I'm proud to be associated with each one. So, where are you getting your financial advice from? I can answer your call for help with a simple moneyplan, you just need to pick up the phone.   Steve MoneyPlanSOS Stewart no 43:37 Jon White shares a story of how someone gave really bad financial advice to a young couple. You can read his post here: http://jwfinancialcoaching.com/who-are-you-taking-your-advice-from/ He and I...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/zp4cFGIezQQ" height="1" width="1"/>http://moneyplansos.com/sos092-know-where-your-advice-is-coming-from-and-a-rant/http://traffic.libsyn.com/moneyplansos/sos092_Know_Where_Your_Advice_Comes_From.mp3 http://feedproxy.google.com/~r/mpsos/~3/HTDjkHHCPRI/ http://moneyplansos.com/sos091-get-out-of-debt-with-the-debt-movement-interview-with-financial-soldier-jeff-rose/#comments Wed, 02 Jan 2013 06:02:12 +0000 Steve Stewart http://www.moneyplansos.com/?p=5079 http://moneyplansos.com/sos091-get-out-of-debt-with-the-debt-movement-interview-with-financial-soldier-jeff-rose/feed/ 1 Financial Soldier, Jeff Rose, is starting another movement in 2013. He is leading the Debt Squad into a battle with debt and we are taking no prisoners. - In this interview he shares how he came up with the idea, the goal, Financial Soldier, Jeff Rose, is starting another movement in 2013. He is leading the Debt Squad into a battle with debt and we are taking no prisoners. In this interview he shares how he came up with the idea, the goal, and what he expects will happen in the next 90 days. The Debt Movement A resource for those who want to pay off debt. DebtMovement.com will be putting a huge dent in the pile of consumer debt in America. The Mission Help Americans pay off $10 million of their debt in 90 days. Got credit card debt? Eliminate it! Car loans? Obliterate them! Student Loan? Terminate it! Weapons Available The weapons depot at DebtMovement.com also serves as command center with: Support from ReadyForZero.com Community and forums Debt scholarships Specialized Financial Education Big-name Financial Bloggers Newsletters There will also be some Google Hangouts for troops to participate in. Join the battle Yours truly has been drafted into The Debt Squad and I have reported to duty. Become a Debt Movement Patriot: Sign up for the newsletter Get your personal plan with a free ReadyForZero account Monitor communications via Facebook, Twitter, and Google+ Watch videos on YouTube Your support and participation is appreciated. Also mentioned in this post: The Life Aware movement video by Kevin Hunsperger that I though was hilarious! Here is my profile for the Debt Squad:     Steve MoneyPlanSOS Stewart no 27:11 Financial Soldier, Jeff Rose, is starting another movement in 2013. He is leading the Debt Squad into a battle with debt and we are taking no prisoners. In this interview he shares how he came up...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/HTDjkHHCPRI" height="1" width="1"/>http://moneyplansos.com/sos091-get-out-of-debt-with-the-debt-movement-interview-with-financial-soldier-jeff-rose/http://traffic.libsyn.com/moneyplansos/sos091_Get_Out_Of_Debt_with_the_Debt_Movement_Interview_with_Financial_Soldier_Jeff_Rose.mp3 http://feedproxy.google.com/~r/mpsos/~3/m5gHpdkSGgE/ http://moneyplansos.com/sos090-how-saving-taxes-with-a-401k-works/#comments Fri, 28 Dec 2012 13:14:43 +0000 Steve Stewart http://www.moneyplansos.com/?p=5008 http://moneyplansos.com/sos090-how-saving-taxes-with-a-401k-works/feed/ 0 Putting money in a 401k is a smart tax-saving money move. The Government allows us to sock away up to $17,000 of our hard-earned pay and not pay income tax on it (up to $17,500 in 2013). The money in the account grows without making you pay taxes like ... Putting money in a 401k is a smart tax-saving money move. The Government allows us to sock away up to $17,000 of our hard-earned pay and not pay income tax on it (up to $17,500 in 2013). The money in the account grows without making you pay taxes like a regular investment-type account would, you just have to pay taxes as you start to withdraw money out of the account at retirement. In this audio lesson I use the example of a married couple, we'll call them Joe and Suzy. To make it easy we pretend they have no kids, no other deductions and he is the bread-winner making $50,000 a year (paid every other Friday). This would put them in the 15% tax bracket (thru 2012). The American that doesn't save into a 401k or IRA Joe would pay $7,500 in income taxes, leaving them $42,500 and no 401k savings. The American that saves 3% of their income in a 401k Each paycheck Joe takes $57.69 and has it automatically put into the 401k account. This reduces his take-home pay, but not by as much as you would think. Reducing their take-home pay to put money into savings means they have $41,225 to live off of. Joe may have put $57.69 into the 401k every-other week but he only reduced his take-home pay by $49.03. That is because the money that is going into the 401k is pre-taxed. They enjoy lower taxes while putting money into savings. The American that gets a match at work If Joe's employer matches his 401k contributions then he still enjoys saving on taxes. Instead of saving $1,500 into his retirement plan he will have $3,000 by the end of the year. That's a deal! Could you live on $100 less a month in order to save $3,000 a year? Talk with your employer's benefits department to see if they have a 401k and take advantage of it! Your employer wants you to and it is a smart money move. If you are just getting started There are other things to take into account when saving for retirement. What if you don't have a 401k at work or they don't offer a match? You have other options to consider. Listen to another audio lesson about selecting retirement saving options I recommend getting expert advice when making these decisions. Contact me if you want to expand your knowledge on how saving for retirement will effect your taxes, monthly budget, debt elimination plan, and outlook for your future. It would be my honor to help you! Steve MoneyPlanSOS Stewart no 15:00 Putting money in a 401k is a smart tax-saving money move. The Government allows us to sock away up to $17,000 of our hard-earned pay and not pay income tax on it (up to $17,500 in 2013). The money in...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/m5gHpdkSGgE" height="1" width="1"/>http://moneyplansos.com/sos090-how-saving-taxes-with-a-401k-works/http://traffic.libsyn.com/moneyplansos/sos090_Saving_taxes_with_a_401k.mp3 http://feedproxy.google.com/~r/mpsos/~3/VDM1tj3SNAI/ http://moneyplansos.com/sos089-save-1-percent-more-in-2013/#comments Fri, 21 Dec 2012 14:27:55 +0000 Steve Stewart http://www.moneyplansos.com/?p=4969 http://moneyplansos.com/sos089-save-1-percent-more-in-2013/feed/ 2 Certified Financial Planner and IRS Enrolled Agent, Jim Blankenship, is the owner and author of FinancialDucksInARow.com, a blog that focuses on taxes, retirement planning, and Social Security. - He saw the savings rates as being too low to enable Ame... Certified Financial Planner and IRS Enrolled Agent, Jim Blankenship, is the owner and author of FinancialDucksInARow.com, a blog that focuses on taxes, retirement planning, and Social Security. He saw the savings rates as being too low to enable Americans to retire when they wanted to or that they didn't have enough when they needed to. This caused him to reach out to his fellow bloggers to promote the idea of saving just 1% more in 2013 and to increase that amount by another 1% in subsequent years. Q: What do you see as the biggest obstacle that keeps people from saving money in retirement accounts? Jim: The biggest obstacle is inertia. We haven't been saving so we want to continue doing what we have been doing which is spending all of our paycheck and not thinking about the future. Changing that habit and putting money aside is like the old fable about setting resources aside for the wintertime. Q: Where can someone "find money" to save for retirement? Jim: Some of the posts written for this initiative suggested Save money on groceries by using coupons "The Latte Factor" of cutting out expensive coffees Increasing car insurance deductibles There are a lot of different ways to become a little more frugal in order to save just 1% more Q: What can a Gen-Y'er do today to greatly increase their chances of retiring a millionaire? Jim: The first thing is to not focus on a specific number. One million may not be enough by the time they retire. The point is to start with the small steps. The point is to start off with the small steps. Begin setting money aside now. It doesn't have that much of an impact on your take-home pay and one of the greatest factors is starting early. Q: How realistic is it to only start with 1 percent? Jim: It's very realistic. I put an example in my blogpost showing how someone earning $30,000 could set aside 1% with a 1-to-1 match. This resulted in the individual wound up with $600 set aside by the end of the year and it only cost them $5.00 a paycheck. Read Jim's post: Add your first 1% to your 401k Jim Blankenship and I also discuss: Many companies automatically enroll new hires into their 401k plan, removing the first obstacle of getting started Beginning with a Target Date fund How often to revisit the investments How successful 401k savings has been for retirees Your Action Step Contact your HR Manager or visit your retirement plan's website to increase your 401k participation by 1% next year. If you have a ROTH IRA or traditional retirement plan then make a conscious effort to send more every month. That is what I will be doing in 2013. Other blogs promoting the initiative A video tv segment from Laura Scharr: Preparing for Retirement From Paula Hogan: 6 Ways to Add Another 1% of Income to Retirement Savings in 2013 From Kevin O’Reilly: From TwentySomething to Millionaire From Tom Batterman: Take the 1% Challenge in 2013!!! From Dana Anspach: Can You Spare A Penny? From Steve Doster: The Easy Way to Become a Millionaire From Nancy Anderson: Save 1% More for Retirement in 2013 From Kathy Stearns: Do the 1% in 2013! From Ken Weingarten: The 1% Challenge (Should you dare to accept) From Richard Feight: The 1% Challenge! From John Hunter: Save What You Can, Increase Savings as You Can Do So From Emily Guy Birken: Increase your savings rate by 1% From Jonathan White: Ways to increase your retirement contributions 1% in 2013 From Alan Moore: Financial Challenge – Should You Choose To Accept It From Ann Minnium: Gifts That Matter From Laura Scharr: In Crisis: Personal Savings- Here Are Six Steps to Improve Your Retirement Security From yours truly: Add Your First 1% to Your 401(k) From Steve Stewart: Seriously. What’s 1 percent gonna do? From Theresa Chen Wan: Saving for Retirement: The 1% Challenge for 2013 From Mike Piper: Investing Blog Roundup: Saving 1% More Steve MoneyPlanSOS Stewart no 23:12 Certified Financial Planner and IRS Enrolled Agent, Jim Blankenship, is the owner and author of FinancialDucksInARow.com, a blog that focuses on taxes, retirement planning, and Social Security. He...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/VDM1tj3SNAI" height="1" width="1"/>http://moneyplansos.com/sos089-save-1-percent-more-in-2013/http://traffic.libsyn.com/moneyplansos/sos089_Save_1_Percent_More_in_2013.mp3 http://feedproxy.google.com/~r/mpsos/~3/PPE33E-z68s/ http://moneyplansos.com/sos088-no-more-mortgage-counting-the-months/#comments Fri, 14 Dec 2012 19:18:39 +0000 Steve Stewart http://www.moneyplansos.com/?p=4921 http://moneyplansos.com/sos088-no-more-mortgage-counting-the-months/feed/ 1 I'm so stinkin' excited! We have only 38 months left on our mortgage. - What happens when I throw a little bit extra every month towards the principal? The scales tip towards paying less in interest and more towards a complete debt free date in the St... I'm so stinkin' excited! We have only 38 months left on our mortgage. What happens when I throw a little bit extra every month towards the principal? The scales tip towards paying less in interest and more towards a complete debt free date in the Stewart household, that's what! It isn't like credit cards When you pay down the balance of your credit card debt it reduces the minimum monthly payment they require next month. For example: Minimum payments on a $10,000 card at 12% interest: First month's minimum payment is $400 $300 goes towards the balance, $100 is wasted in interest charges Second month's minimum payment of $388 is based on the reduced balance of $9,700 $291 goes towards the balance, $97 is paid in interest In 10 years your minimum payment is $15 and you still owe $229.71! Minimum payments is maintaining debt, and maintaining the bank's quality of life - not yours! Mortgage payments are more like uneven scales Every month you pay down a little principle (the balance owed) and pay less interest. The amount of interest to be charged every month can be forecast at the closing so the payment is set for the life of the loan. This payment of principle and interest never changes. For example: A $200,000 mortgage for 30 years at 4.375% (not including taxes and insurance) has a payment of $1,000: The first payment is $1,000 $270 goes towards principal reduction, $730 is interest The second month's payment is still $1,000 $271 goes towards principal reduction, $729 is interest 10 years later the payment is still $1,000 $583 is principle, $415 is interest I talk more about this in How to turn $100 into $120 in mortgage principle reduction I can almost see the day we are completely debt free! Just below the bottom of my excel spreadsheet is our final payoff date. It's hiding like a little kid saying "you can't see me". I can't help but play with the numbers to uncover the sneaky little prankster! Our complete debt free date comes in a $402.71 payment on March 1, 2016. If I make an extra principal payment this month of $340 it will eliminate the need to make that last payment! Check this out: $100 a month for the next 13 months will allow us to have a mortgage burning party on New Year's Eve 2015. WOW! What the heck are we going to do without a house payment? I know what I want to do, but we aren't quite there yet. It would be a good idea to stick to our financial plan of: Staying debt free (except the mortgage) Keeping more than three months of expenses in our emergency fund Continuing to save for our retirement Putting money away for our daughter's car, college, and wedding (in that order please) There's less stress, a feeling of purpose, and... It's going to happen whether I do anything about it or not Regardless of what I do, this house is going to be paid off as long as we make the payment. That's all I can ask for. Stick to our plan, Steve, and things are going to turn out just fine. I traditionally receive a little money for Christmas to spend on myself. What do I want more? Get a gadget? Buy some clothes? Or to pay down my mortgage? What do you think? Please leave your comments below this exciting chart! Steve MoneyPlanSOS Stewart no 19:27 I&#8217;m so stinkin&#8217; excited! We have only 38 months left on our mortgage. What happens when I throw a little bit extra every month towards the principal? The scales tip towards paying less in...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/PPE33E-z68s" height="1" width="1"/>http://moneyplansos.com/sos088-no-more-mortgage-counting-the-months/http://traffic.libsyn.com/moneyplansos/sos088_No_More_Mortgage_counting_the_months.mp3 http://feedproxy.google.com/~r/mpsos/~3/Uo8X9SrN2Ks/ http://moneyplansos.com/sos087-smart-moves-for-a-christmas-bonus/#comments Thu, 06 Dec 2012 04:06:28 +0000 Steve Stewart http://www.moneyplansos.com/?p=4896 http://moneyplansos.com/sos087-smart-moves-for-a-christmas-bonus/feed/ 3 What is the best thing to do with a Christmas Bonus? It depends on your current financial situation. - There are only three things you can do with money: Spend it, save it or give it. We need to do a little of all three. - What is the best thing to do with a Christmas Bonus? It depends on your current financial situation. There are only three things you can do with money: Spend it, save it or give it. We need to do a little of all three. Let us use an example of a $10,000 bonus check. While everyone's situation is different, I would recommend some of the following smart moves : No debt (other than a mortgage) and a good income Spend a bunch, save a bunch, give a bunch (3/3/3) Spending: It might be a good time to get new tires or replace that old suit you are just about to outgrow from all the Christmas cookies you are about to eat. You have no debt so you should already have some fun built into your budget. Making a smart move with the bonus will keep you from having to save for new tires and increases your cash-flow for the up-coming months. Saving: Invest for retirement or, to a lesser degree, put it towards one of your savings goals if it will finish it off. Giving: I would at least tithe on it and like the idea of giving the rest to a favorite charity. Better yet, give it to someone in need. That's a wonderful Christmas gift!   No debt but a low income Spend some, save a bunch, give some (20/70/10) Spending: Blow it on fun. $2,000 is just under what the average American spends on a summer vacation. I think you can have some responsible fun with two grand. Maybe this will help get your house down to 80% of value and get rid of the PMI or help to refi the house at a better interest rate. Saving: What could you put $7,000 towards? A downpayment on a house? Kid's college? Retirement is always a good idea. At least make sure you have 3-6 months worth of living expenses in the bank for emergencies. Giving: The minimum I would recommend is that you tithe (if you are a believer). Giving is good for the soul. Oh, and don't forget to be smart about it and take the tax deduction.   Tons of debt with a high income Use a bunch, save some, and give some (80/10/10) Spending: You could take 80% and blow it but I would recommend using it to kill off some debt! $8,000 will go a long way in car loans or credit card debt. I would recommend using the Debt Snowball method of paying off the lowest balance debts first. However, I wouldn't call you stupid if you were to use it on a higher interest rate debt if it could knock it out completely. Merry Christmas Saving: Make sure you have at least $1,000 in the bank. Because you are a high-income earner you may want to have a little bit more in there, just in case the fiscal cliff hits your household. Giving: Again, I would recommend tithing. Whether it's better to do it this year or next year to take advantage of the tax deduction depends on how big of an income you earn next year as deductions phase out as earning levels increase. Tons of debt with a low income Save enough, give some, use the rest (First $1,000, then 10%, then the rest) Saving: This should be a priority. Save $1,000 for emergencies. You might already have ten $100 bills in your sock drawer but I would recommend taking another $1,000 and putting it away for those unexpected expenses. Reevaluate the extra emergency savings amount after April 15th. Why did I pick that day? The date is a great mental reminder to review your financial situation and you will make a smarter decision with the money after the holidays have passed and you aren't suffering from a Visa headache. Giving: Don't forget to tithe. Spending: Same as a high-income earner with tons of debt: Budget 80% of this blessing towards getting some debt off your balance sheet! No regrets Before you make your move, consider what would be best for you in 2013. This money can be a blessing or a curse, which one is up to you. What are some of the smart moves you've made with your Christmas Bonus? Steve MoneyPlanSOS Stewart no 21:18 What is the best thing to do with a Christmas Bonus? It depends on your current financial situation. There are only three things you can do with money: Spend it, save it or give it. We need to do a...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Uo8X9SrN2Ks" height="1" width="1"/>http://moneyplansos.com/sos087-smart-moves-for-a-christmas-bonus/http://traffic.libsyn.com/moneyplansos/sos087_Smart_Moves_for_a_Christmas_Bonus.mp3 http://feedproxy.google.com/~r/mpsos/~3/1RfWuFD_Wjs/ http://moneyplansos.com/sos086-ynab-super-user-and-fascinating-facts-about-powerball/#comments Thu, 29 Nov 2012 06:29:48 +0000 Steve Stewart http://www.moneyplansos.com/?p=4852 http://moneyplansos.com/sos086-ynab-super-user-and-fascinating-facts-about-powerball/feed/ 1 Interview with a YNAB super-user You Need A Budget, an incredibly flexible and easy-to-use software application, started as an excel spreadsheet. Steve Mudie remembers those days as he started using it back in the early days of YNAB. - Interview with a YNAB super-user You Need A Budget, an incredibly flexible and easy-to-use software application, started as an excel spreadsheet. Steve Mudie remembers those days as he started using it back in the early days of YNAB. After filing for bankruptcy, Steve Mudie discovered Dave Ramsey. He realized the importance of keeping to a budget and tried a number of budget systems but never "got it" until he heard YNAB's 4 rules. At that point Steve frequented the forums and helped other users until he was hired as YNAB's Customer Happiness Guru.  He granted me an interview and we pull the winner's name from the YNAB for Christmas giveaway. Question Steve Mudie answered: You were a user before ever going to work for YNAB. How did that come to be? What makes YNAB different from other budget programs or an excel spreadsheet? When do you find yourself entering transactions into YNAB? Do you use the mobile app? It's a pain to reconcile bank statements. Do you still important to reconcile bank statements? If someone is still using their plastic crutches (credit cards), how do they manage that within YNAB? You are intricately involved with YNAB users, what is the #1 thing a new user should know before starting to use YNAB? To get YOUR questions answered, visit You Need A Budget.com/Support. You'll probably get an answer from Steve Mudie. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did you hear? There was another huge lottery. Yep. PowerBall, about $550 million. The odds of winning a PowerBall Lottery 80% of players don't choose their own Powerball number You are 25 times more likely to win an Academy Award You are 3 times more likely to die from a falling coconut! You are 7 times more likely to die from fireworks Skip Garibaldi, a professor of mathematics at Emory University in Atlanta was quoted as saying you are "way more likely to die from flesh-eating bacteria" Garibaldi notes that even the best physicians, equipped with the most up-to-date equipment, can't predict the timing of a child's birth with much accuracy. "But let's suppose, however, that your doctor managed to predict the day, the hour, the minute and the second your baby would be born," Garibaldi says. The doctor's uncanny prediction would be "at least 100 times" more likely than your winning a PowerBall drawing. Well…. I did it again. I spent my lottery money on my Roth IRA. I think my odds of becoming a millionaire before retirement are really good! Try YNAB free for 34 days (no credit card needed!)   Steve MoneyPlanSOS Stewart no 24:38 Interview with a YNAB super-user You Need A Budget, an incredibly flexible and easy-to-use software application, started as an excel spreadsheet. Steve Mudie remembers those days as he started using...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/1RfWuFD_Wjs" height="1" width="1"/>http://moneyplansos.com/sos086-ynab-super-user-and-fascinating-facts-about-powerball/http://traffic.libsyn.com/moneyplansos/sos086_YNAB_super-user_and_facts_about_Powerball_Lotto.mp3 http://feedproxy.google.com/~r/mpsos/~3/QxV44I7WQ4M/ http://moneyplansos.com/sos085-how-to-have-a-stress-free-holiday/#comments Fri, 23 Nov 2012 08:46:28 +0000 Steve Stewart http://www.moneyplansos.com/?p=4804 http://moneyplansos.com/sos085-how-to-have-a-stress-free-holiday/feed/ 0 Professional Organizer Diana Luetkemeyer joins us again to share tips on how to have a stress free holiday. How do we handle the added responsibilities during the holiday season? Write down your favorite 3 holiday tasks Professional Organizer Diana Luetkemeyer joins us again to share tips on how to have a stress free holiday. How do we handle the added responsibilities during the holiday season? Write down your favorite 3 holiday tasks Write down least favorite 3 holiday tasks Delegate least favorite to others (hire someone or ask family to help) How can we enjoy the holidays without feeling stressed? Plan ahead Schedule tasks & events on your calendar Spend some time on yourself With everything else that is going on, how can we enjoy the holiday meal? Prepare side dishes in advance Have family/guests provide side dish(es) Allow others to help How does one prepare for overnight guests? Walk into the room and look for things you would want if staying overnight: Lamp with proper lighting Alarm clock so guests can set their own wake-up time De-clutter the closet Well-light hallway to the bathroom Also, be clear on how long your guests are going to stay After the holidays, where should we start in getting my holiday decorations organized for storage? Gather all the decorations in one area Determine which should be discarded (broken decorations) or donated because you won't be using them again Wrap ornaments in wrapping paper from the gifts received (repurposed) Use egg cartons to protect smaller ornaments What are the best ways to store Christmas decorations? Use bins for closet or attic storage Clear bins allow you to see what the contents are Group like-kind decorations together Organize them by room (dining room, front hallway, etc) She also talks about: "Buy Nothing Day" How long do we keep the original packaging from gifts? How do we keep from having credit card bills to pay off in January? Steve MoneyPlanSOS Stewart no 27:50 Professional Organizer Diana Luetkemeyer joins us again to share tips on how to have a stress free holiday. How do we handle the added responsibilities during the holiday season? Write down your...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/QxV44I7WQ4M" height="1" width="1"/>http://moneyplansos.com/sos085-how-to-have-a-stress-free-holiday/http://traffic.libsyn.com/moneyplansos/sos085_Ways_to_have_a_stress_free_holiday.mp3 http://feedproxy.google.com/~r/mpsos/~3/M-BTRVmLzrg/ http://moneyplansos.com/sos084-advisors-compliance-and-average-joe-comes-out/#comments Thu, 15 Nov 2012 05:44:05 +0000 Steve Stewart http://www.moneyplansos.com/?p=4780 http://moneyplansos.com/sos084-advisors-compliance-and-average-joe-comes-out/feed/ 0 Joe Saul-Sehy is a recovering Financial Planner. Currently, he is the co-host of the 2 Guys and Your Money podcast, COO & chief bottle washer at TheFreeFinancialAdvisor.com, and was the Channel 7 WXYZ-TV "Money Man" in a previous life. - Joe Saul-Sehy is a recovering Financial Planner. Currently, he is the co-host of the 2 Guys and Your Money podcast, COO & chief bottle washer at TheFreeFinancialAdvisor.com, and was the Channel 7 WXYZ-TV "Money Man" in a previous life. He joins us today to talk about Financial Advisors and Compliance. Compliance makes sure Advisors: Aren't doing something illegal Not doing something immoral Not embarrassing the firm on the letterhead Requirements include: Following rules governed by FINRA Retaining a record of all phone calls and emails Making copies of all emails Filing a paper copy of any advice given to clients So many rules on the books Officer of Supervisory Jurisdiction (OSJ) is like the Sheriff. They perform periodic audits. The reason most Financial Advisors aren't fond of OSJs is because there are so many rules to follow that there wouldn't be enough time to serve even a handful of clients. Average Joe likens it to a Police Officer: There are so many rules on the books that they can find something wrong with your car. This is both good and bad While this creates a ton of extra work for Financial Advisors, it protect the clients from having a Bernie Maddoff experience. It also protects Advisors from misunderstandings from disgruntled clients. However, it also could protect the investment firm from prosecution, not necessarily the advisor. Also mentioned in this episode: The sliced fruit episode The episode where I use the sliced fruit joke to catch Joe off guard  Meet Average Joe:   Steve MoneyPlanSOS Stewart no 29:44 Joe Saul-Sehy is a recovering Financial Planner. Currently, he is the co-host of the 2 Guys and Your Money podcast, COO &#38; chief bottle washer at TheFreeFinancialAdvisor.com, and was the Channel 7...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/M-BTRVmLzrg" height="1" width="1"/>http://moneyplansos.com/sos084-advisors-compliance-and-average-joe-comes-out/http://traffic.libsyn.com/moneyplansos/sos084_Advisors_Compliance_and_Average_Joe_comes_out.mp3 http://feedproxy.google.com/~r/mpsos/~3/JpPwhKOB4OU/ http://moneyplansos.com/sos083-reasons-for-giving/#comments Fri, 09 Nov 2012 17:31:29 +0000 Steve Stewart http://www.moneyplansos.com/?p=4733 http://moneyplansos.com/sos083-reasons-for-giving/feed/ 1 3 reasons cause us to give: Our Heart At the center of our spirit is this reason to give just because we want to. Giving for the following reasons isn't rational: People we care about Charities we believe in Events that tug at you (9-11, 3 reasons cause us to give: Our Heart At the center of our spirit is this reason to give just because we want to. Giving for the following reasons isn't rational: People we care about Charities we believe in Events that tug at you (9-11, Katrina, Sandy, etc...) The effect of giving from the heart is it makes us feel good. Tax savings Who wouldn't want to be able to save on their taxes when they give? As long as we follow the rules of the IRS we can deduct certain types of gifts from our income (most can be found on Federal Form Schedule A). Giving of these resources is rational and more strategic than emotional: Money to your local church or non-profits like WRLR-FM, home of TechTalk by Michael Kastler) Items like clothing to GoodWill or other charitable collection organizations Time volunteering, although the tax savings is minimal and will be found in mileage to a location and possibly other supplies necessary to do the job. The effect of giving for tax savings makes us feel like we did something smart. Exchange We exchange our giving in order to get something or because we have to. This type of giving isn't from the heart and it isn't even smart: Giving in the name of someone else's benefit - like my wife's company highly encouraging her to donate to the United Way Fundraisers - for the sole purpose that we can win a prize Obligation - the feeling we have to reciprocate a gift The effect of giving because of Exchange is we feel manipulated or are trying to get something out of the action. The true meaning of giving While saving on taxes is a good financial choice, the net benefit doesn't make sense. Exchanging a possession in order to get something else is more like trading that giving. The best technical definition I have heard about giving is "Freely transferring the possession of something to someone". Hand it over and let it go. A gift should be made to make someone else's life happier, healthier, and better. Real "giving" is not rational. It shouldn't be   Steve MoneyPlanSOS Stewart no 18:30 3 reasons cause us to give: Our Heart At the center of our spirit is this reason to give just because we want to. Giving for the following reasons isn&#8217;t rational: People we care about Charities...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/JpPwhKOB4OU" height="1" width="1"/>http://moneyplansos.com/sos083-reasons-for-giving/http://traffic.libsyn.com/moneyplansos/sos083_Reasons_for_giving.mp3 http://feedproxy.google.com/~r/mpsos/~3/CZGEgjyqAdU/ http://moneyplansos.com/sos082-understanding-negotiation-and-dealing-with-conflict/#comments Fri, 02 Nov 2012 02:32:19 +0000 Steve Stewart http://www.moneyplansos.com/?p=4707 http://moneyplansos.com/sos082-understanding-negotiation-and-dealing-with-conflict/feed/ 2 Dave Hilton offers helpful tips for negotiating and dealing with conflict. He should know, he has a masters degree in Dispute Resolution. Known as The Financial Conflict Coach, he helps people effectively resolve conflicts with their finances. Dave Hilton offers helpful tips for negotiating and dealing with conflict. He should know, he has a masters degree in Dispute Resolution. Known as The Financial Conflict Coach, he helps people effectively resolve conflicts with their finances. Negotiation is a strategic communication process to get a deal done or solve a problem Conflict is neither good nor bad It can bring about positive change or negative change. As an example: If the United States didn't have a conflict with England then our nation would have never been founded. Is there ever a time when negotiation isn't useful? To determine whether or not a negotiation will be useful or even necessary, sit down and determine if you value the relationship with that person, business, organization, etc. If you do value the relationship, be prepared to spend more time negotiating or compromising your position. Tips for better negotiations: Remember that the other person could use negotiation tactics against you Anchor the negotiation by stating the first term/offer Use the "If I, then you" linkage Have patience The YNAB Minute: Deleting old budget categories Want to clean up your budget list? There is a simple procedure to follow to ensure the information isn't lost and you don't screw up your budget. Example: We deleted our "deck replacement" category and re-assigned the entries into another category that is used. Dave Hilton's recommended reading on negotiation: Steve MoneyPlanSOS Stewart no 31:49 Dave Hilton offers helpful tips for negotiating and dealing with conflict. He should know, he has a masters degree in Dispute Resolution. Known as The Financial Conflict Coach, he helps people...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/CZGEgjyqAdU" height="1" width="1"/>http://moneyplansos.com/sos082-understanding-negotiation-and-dealing-with-conflict/http://traffic.libsyn.com/moneyplansos/sos082_Understanding_negotiation_and_dealing_with_conflict_with_Financial_Conflict_Coach_Dave_Hilton.mp3 http://feedproxy.google.com/~r/mpsos/~3/pN28ogvRMNk/ http://moneyplansos.com/sos081-things-debt-settlement-companies-wont-tell-you/#comments Thu, 25 Oct 2012 05:05:22 +0000 Steve Stewart http://www.moneyplansos.com/?p=4685 http://moneyplansos.com/sos081-things-debt-settlement-companies-wont-tell-you/feed/ 0 The purpose of a Debt Settlement company is to help consumers deal with collectors. They often promise to negotiate better interest rates and a reduction in the amount owed, but what they don't tell you should scare you. - The purpose of a Debt Settlement company is to help consumers deal with collectors. They often promise to negotiate better interest rates and a reduction in the amount owed, but what they don't tell you should scare you. Michael Bovee is the founder of ConsumerRecoveryNetwork.com. His company educates consumers and helps Americans negotiate settlements on their debt. He released a 10-minute video called the "5 things debt settlement companies won't tell you" where he shares his knowledge of what the debt settlement industry doesn't want you to know: Some of your creditors refuse to work with us We have to wait for some accounts to charge-off before trying to settle You can settle debts on your own and sometimes get a better deal If we (debt settlement companies) weren't charging you such high fees, you could actually be out of debt faster While you are a good fit for our program, bankruptcy may still be a better, less expensive option To follow the video series: http://www.youtube.com/user/DebtBytes To follow Michael on Twitter: http://Twitter.com/DebtBytes The YNAB Minute - iPhone CloudSync in the middle of a field? The iPhone app for YNAB is a great extension to the desktop version. It allows you to enter transactions before you even leave the store! Did you know you can use the CloudSync function even when you don't have an internet connection? Use the iPhone Personal Hotspot setting to create a wi-fi connection that your computer can use to tether the devices together. As long as the iPhone has cell phone connection you can sync - even in the middle of a field! Enter the YNAB for Christmas giveaway before Black Friday 2012! Steve MoneyPlanSOS Stewart no 43:21 The purpose of a Debt Settlement company is to help consumers deal with collectors. They often promise to negotiate better interest rates and a reduction in the amount owed, but what they don&#8217;t...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/pN28ogvRMNk" height="1" width="1"/>http://moneyplansos.com/sos081-things-debt-settlement-companies-wont-tell-you/http://traffic.libsyn.com/moneyplansos/sos081_Things_Debt_Settlement_Companies_Wont_Tell_You.mp3 http://feedproxy.google.com/~r/mpsos/~3/si5RyI3iXYY/ http://moneyplansos.com/sos080-debt-solutions-and-bankruptcy-with-emily-chase-smith/#comments Thu, 18 Oct 2012 12:15:28 +0000 Steve Stewart http://www.moneyplansos.com/?p=4664 http://moneyplansos.com/sos080-debt-solutions-and-bankruptcy-with-emily-chase-smith/feed/ 1 This is a touchy subject for me to cover. I believe there are other options to solving money problems before considering wiping the slate clean by declaring Bankruptcy. Bankruptcy or Debt Settlement? Emily Chase Smith is a Debt Solutions Attorney tha... This is a touchy subject for me to cover. I believe there are other options to solving money problems before considering wiping the slate clean by declaring Bankruptcy. Bankruptcy or Debt Settlement? Emily Chase Smith is a Debt Solutions Attorney that started by practicing bankruptcy law. Emily knows bankruptcy is not always the solution and she helps people determine what their best debt solution is. Who's afraid of the big bad bankruptcy wolf? Americans no longer have a stigma towards bankruptcy. Our society, our media, even our government has made Bankruptcy more mainstream and acceptable. Too many financial plans are built with the "safety net of BK", and many go charging through life thinking they could always fall back on this legal process when things get tough. Things you should know about bankruptcy It is Federal Law Every State has a median income you must be under to be able to file for a Chapter 7 Bankruptcy Creditors will push their "drugs" on you because you can't file again for 7 years Seek good counsel Emily Chase Smith says the #1 thing anyone can do to avoid filing bankruptcy is to find good counsel. Learn about your options and take steps to better your situation before giving up the fight. More about Emily Chase Smith Podcast: Big Dumb Stupid Debt Follow her on Twitter: @DumbStupidDebt Book and DIY Course: No More Midnight Money Sweats   Steve MoneyPlanSOS Stewart no 25:38 This is a touchy subject for me to cover. I believe there are other options to solving money problems before considering wiping the slate clean by declaring Bankruptcy. Bankruptcy or Debt Settlement?...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/si5RyI3iXYY" height="1" width="1"/>http://moneyplansos.com/sos080-debt-solutions-and-bankruptcy-with-emily-chase-smith/http://traffic.libsyn.com/moneyplansos/sos080_Bankruptcy_and_Debt_Solutions_with_Emily_Chase_Smith.mp3 http://feedproxy.google.com/~r/mpsos/~3/ZZJefsjA3u4/ http://moneyplansos.com/sos079-when-to-push-pause-on-your-total-money-makeover/#comments Fri, 12 Oct 2012 01:49:03 +0000 Steve Stewart http://www.moneyplansos.com/?p=4647 http://moneyplansos.com/sos079-when-to-push-pause-on-your-total-money-makeover/feed/ 0 The Total Money Makeover was written by New York Times bestseller and nationally syndicated radio host Dave Ramsey. The book lays out a process on how to get out of debt and save for the future. It consists of seven goals he calls "The Baby Steps" and ... The Total Money Makeover was written by New York Times bestseller and nationally syndicated radio host Dave Ramsey. The book lays out a process on how to get out of debt and save for the future. It consists of seven goals he calls "The Baby Steps" and the idea is to lay out a plan that is simple to understand while working through the process of financial independence. Dave Ramsey's Baby Steps $1,000 saved as a Baby Emergency Fund Use the Debt Snowball Method to eliminate debt 3-6 months of expenses saved 15% invested into retirement plans Save for kid's college Pay off the house early Build wealth & give a bunch of it away! Dave Ramsey's Baby Steps are laid out in an order that should be followed. However, it has an ebb & flow. Like a car that normally moves forward, sometimes you need to slow down, stop, or even go in reverse. When to push Pause There are situations that will cause you to push pause on working the Baby Steps. It should be noted that these pauses are for a short period of time, certainly less than 9 months: Pregnancy Looming layoff Move to another location When to push Stop Other circumstances may knock you off track. This will cause you to stop working towards completing the current step and could knock you back a Baby Step or two: Car accident or major health issue Unemployment Miscalculation on tax withholding Baby Step 3b By completing Baby Step 3 you have increased cash-flow and more options for what to do with your money. After all, you have more money to manage because so much of it used to go towards monthly debt payments. This may allow the creation for a subsection of Baby Step 3b. These are detours one could choose to make if the situation warrants: Build up a downpayment for a home Save up money to get out of a house that is underwater Open a small business The stupid deck Each pause will postpone reaching the overall goal of complete financial independence. However, we can be certain of one thing: Life is constantly changing. Recently I got frustrated because we had to push pause on Baby Step 5 in order to replace a stupid deck. That frustration can instantly turn into a feeling of failure, which could cause me to want to quit. Remaining focused on working the plan, on reaching Baby Step 7, always brings me back in line. I didn't fail, we only needed to take a break. I actually enjoy my new stupid deck. Would I feel the same way if I used debt and had to write a check for it each month? Half the battle Sticking to a financial plan is difficult. It takes a long time to build wealth, especially if debt is involved. Getting started and working the plan, even for a few months, will bring you so much closer to the ultimate goal than the average American who is content with two car payments and monthly credit card debt. However, that's only half the battle. The other half is getting back in the game after being benched by an unexpected event. Don't quit. Be encouraged  by the fact that you are on the right path to taking care of your family, your future, and your financial freedom. Steve MoneyPlanSOS Stewart no 24:45 The Total Money Makeover was written by New York Times bestseller and nationally syndicated radio host Dave Ramsey. The book lays out a process on how to get out of debt and save for the future. It...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/ZZJefsjA3u4" height="1" width="1"/>http://moneyplansos.com/sos079-when-to-push-pause-on-your-total-money-makeover/http://traffic.libsyn.com/moneyplansos/sos079_When_To_Push_Pause_On_Your_Total_Money_Makeover.mp3 http://feedproxy.google.com/~r/mpsos/~3/9yQPYGutJS0/ http://moneyplansos.com/sos078-highest-interest-rate-or-lowest-balance/#comments Thu, 04 Oct 2012 03:41:18 +0000 Steve Stewart http://www.moneyplansos.com/?p=4608 http://moneyplansos.com/sos078-highest-interest-rate-or-lowest-balance/feed/ 7 Which account balances should consumers pay off first to become debt free? This is a question that polarizes camps from different sides. If you had $300 extra each month to apply towards debt elimination you would want to follow the process that works... Which account balances should consumers pay off first to become debt free? This is a question that polarizes camps from different sides. If you had $300 extra each month to apply towards debt elimination you would want to follow the process that works the best. There are two popular beliefs: Pay extra on the highest interest rate first Pay extra on the lowest balance first Pay extra on the Highest Interest Rate This process is most efficient. Interest is charged on the outstanding loan balances, so sending $300 extra to a 19% credit card will charge less interest next month than applying the extra to a 3% car loan. Less interest is a good thing. Pay extra on the Lowest Balance This method is not mathematically as efficient as the Highest Interest Rate process. It requires extra payments to be applied towards the debt with the lowest payoff balance, not necessarily a debt that charges interest at a higher percentage. This is more commonly known as the Debt Snowball Method. They both work in theory, but which one works best? Two researchers from Northwestern University, David Gal and Blakeley B. McShane, obtained access to a unique data set that gave precise information as to how 6,000 people finally eliminated their credit card debt. Researcher Gal said: "We found that closing debt accounts, independent of the dollar balances of the closed accounts, predicted successful debt elimination at any point in the debt settlement program" The survey says... Reducing balances or paying less interest were not the leading factors of success, it was getting the accounts closed! Accomplishing little goals motivates people to continue in a process that appears to be working, like checking things off a To-Do list. The sad truth is that Americans aren't diligent enough to stick through a process that will cause them to pay less penalties (interest). The good news is the Debt Snowball Method has a better success rate of keeping people in the game - all the way to the finish line! A visual representation of how it feels Using an awesome excel spreadsheet from Vertex42 we can compare the differences between the two methods and see the true net effect. This couple has a New Year's Resolution to start the process of paying off $45,035 in debt after the ball drops in Times Square. They have $1,200 a month to put towards their goal, $261.77 of which is used to attack their six debts after the $938.23 in minimum payments. Doing it by the numbers Following the traditional advice, this couple would pay their minimums and then apply all their extra money towards their highest interest debt - a 22.99% credit card. Continuing this process every month will give them their first win (paying off the card) in nine months. Once it is gone they can take the minimum payment of $48.69 and the extra $261.77 and apply it to the next debt on their list - their "Chasing" credit card. This debt will be eliminated in another twelve months (a total of 21 months after beginning the process). Keep attacking the debt in this manner and they will have the last debts paid off in July 2016 and have paid $5,228.07 in interest charges. The math doesn't work! If your goal is to pay the least amount of interest, then staying out of debt completely is the best way! However, most Americans accept debt as a way of life until they get a wake-up call when they get laid off, someone dies or is born, or they realize retirement is on the horizon. Math alone does not get people out of debt, people sticking to a plan get out of debt. Staying motivated is the key Consider this: The couple will hit their first win in only four months by paying extra towards their smallest debt. Whew! Wouldn't that feel good? Now they have the extra cash-flow to attack the next smallest debt and the second one is knocked out in another eight months. They are more likely to continue the process because they feel they are making progress. Side effects Steve MoneyPlanSOS Stewart no 33:05 Which account balances should consumers pay off first to become debt free? This is a question that polarizes camps from different sides. If you had $300 extra each month to apply towards debt...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/9yQPYGutJS0" height="1" width="1"/>http://moneyplansos.com/sos078-highest-interest-rate-or-lowest-balance/http://traffic.libsyn.com/moneyplansos/sos078_Scientifically_Proven_Debt_Snowball_Method.mp3 http://feedproxy.google.com/~r/mpsos/~3/HeKiZlqQIiU/ http://moneyplansos.com/sos077-income-plus-budget-plus-envelopes-equals-emergency-fund/#comments Thu, 27 Sep 2012 11:24:23 +0000 Steve Stewart http://www.moneyplansos.com/?p=4589 http://moneyplansos.com/sos077-income-plus-budget-plus-envelopes-equals-emergency-fund/feed/ 2 Income + Budget + Envelopes = Emergency Fund How important is an emergency fund? It is the #1 priority after feeding your family. - What constitutes an emergency fund? It needs to be actual money, not a HELOC or credit cards. Income + Budget + Envelopes = Emergency Fund How important is an emergency fund? It is the #1 priority after feeding your family. What constitutes an emergency fund? It needs to be actual money, not a HELOC or credit cards. Put a thousand dollars or more into the bank and you will be ready for life's small surprises. How can you reach this extremely important financial goal? The nerd in me explains it in this mathematical formula: Income: 3 low-cost, quick-start, income-producing ideas For Sale Sign (pg 32) $0 Kettle Corn (pg 25) $500-1,000 Pressure Washing & Sealing (pg 83) $800-$1,000 BONUS from Brent Pittman at OnTargetCoach.com - Garden and Urban Garden sitting. Use your green thumb for neighbors who want someone to look over the vegetables in their back yard while they go on vacation. Budget: 3 techniques for a working MoneyPlan The Zac Bissonnette method: Automate bills, savings, and then debt repayment. The rest is yours to spend Zero Based Budget or The Absolute Simplest Budget That Works YNAB: The flexible plan Envelopes: 3 that help control spending Groceries Clothing Entertainment How the Envelope System Works Take the budgeted amount for that category out of the bank Place the money in the envelope Take only that envelope with you when you plan to spend it on the intended category ONLY spend money from that envelope on things that belong to that category Do not spend more than the envelope (you can't, you don't have the cash) Combine Income + Budget + Envelopes with Ways to Save Cash Fast and you will QUICKLY be ready for life's little mishaps with an Emergency Fund! Steve MoneyPlanSOS Stewart no 24:10 Income + Budget + Envelopes = Emergency Fund How important is an emergency fund? It is the #1 priority after feeding your family. What constitutes an emergency fund? It needs to be actual money, not...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/HeKiZlqQIiU" height="1" width="1"/>http://moneyplansos.com/sos077-income-plus-budget-plus-envelopes-equals-emergency-fund/http://traffic.libsyn.com/moneyplansos/sos077_Income_plus_Budget_plus_Envelopes_equals_Emergency_Fund.mp3 http://feedproxy.google.com/~r/mpsos/~3/MU8mrwS_ZpU/ http://moneyplansos.com/sos076-quick-wins-to-save-money-fast-that-last-podcast-episode/#comments Thu, 20 Sep 2012 05:35:59 +0000 Steve Stewart http://www.moneyplansos.com/?p=4554 http://moneyplansos.com/sos076-quick-wins-to-save-money-fast-that-last-podcast-episode/feed/ 2 As a financial coach I am constantly trying to give clients quick wins on saving cash fast. Increasing income isn't as quick as we want it to be. Garage sales are great for getting money fast but the effects on finances is fleeting. - As a financial coach I am constantly trying to give clients quick wins on saving cash fast. Increasing income isn't as quick as we want it to be. Garage sales are great for getting money fast but the effects on finances is fleeting. In the first of our 4 part series "Financial Fitness", recorded while on my new FitDesk, here are a five ways to save money fast that last: Cut to basic or eliminate duplication We've all been told to cut the cable TV when things get tight. That is a good option but have you considered how much is wasted by having a data plan for a smart phone AND internet bundled at home with your cable bill? Three possible options for cutting back in this area: Cut the data plan from your smart phone and use free wi-fi areas instead Cut the internet at home and tether your internet through your smart phone Cut the TV all-together and use a digital converter Create a shopping list How many times have I walked into a grocery store for 2-3 items and walked out with a dozen? Oh, you too? So many people can testify that walking into a grocery store with a list saved them money instantly by keeping them on budget. Keep a coin jar This is a quick way for us to save money without even noticing. Simply keep a jar or jug near your closet, laundry basket, or wherever you get out of your day clothes and toss in all of your loose change. This is one way we save for vacations and other savings goals - you'd be surprised how much 2 lbs of assorted change can turn into at the bank! Auto-deposit Making deposits automatically from your paycheck has become so commonplace that most people forget that they are saving money. Just like putting money into a 401k, you can start shoveling cash into a savings account without batting an eye. Imagine having $50 repeatedly rifled into the savings account at your bank every payday. You would have over $1,000 by Christmas! Adjust tax withholding If you get large tax refunds then stop it now and get debt reducing cash home fast! There is no point in leaving money in the government's coffers when you could be using it to pay off 18.99% credit card debt or even a 4.99% car loan. Instant savings right there buddy! What ideas can you share? Give us your brilliant cash-saving tips in the comment section below this post. Here is a post mentioned during the show: 100 little steps for saving money by TheSimpleDollar The YNAB Minute Reports: Beautiful, customizable, incredible. Drill down by category, by payee, and generate a Net Worth Statement. Try it for FREE by using my affiliate link MoneyPlanSOS.com/YNAB This episode sponsored in part by FitDesk; The way I burn calories, not time.   Steve MoneyPlanSOS Stewart no 20:48 As a financial coach I am constantly trying to give clients quick wins on saving cash fast. Increasing income isn&#8217;t as quick as we want it to be. Garage sales are great for getting money fast...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/MU8mrwS_ZpU" height="1" width="1"/>http://moneyplansos.com/sos076-quick-wins-to-save-money-fast-that-last-podcast-episode/http://traffic.libsyn.com/moneyplansos/sos076_Financial_Fitness_-_Quick_wins_to_save_money_fast.mp3 http://feedproxy.google.com/~r/mpsos/~3/y13mU-hcrB0/ http://moneyplansos.com/sos075-no-debt-no-credit-and-no-problems-at-fincon12/#comments Wed, 12 Sep 2012 07:44:42 +0000 Steve Stewart http://www.moneyplansos.com/?p=4534 http://moneyplansos.com/sos075-no-debt-no-credit-and-no-problems-at-fincon12/feed/ 2 Got 5 minutes? That's all I need to show you how to live debt-free and not have to worry about your credit score. You can have no debt, no credit, and have no problems - even for a house! - Listen to the audio (click the play button at the top of this... Got 5 minutes? That's all I need to show you how to live debt-free and not have to worry about your credit score. You can have no debt, no credit, and have no problems - even for a house! Listen to the audio (click the play button at the top of this post). To watch the 5-minute video performance click here. Ignite: A Spark An Ignite Spark is a fast-paced, 5 minute presentation which allows the speaker only 15 seconds before his next slide advances automatically. There is no room for error and many unprepared (or drunk) presenters have been "challenged" when realizing they are way behind and the slides keep movin' on and on and on... No Debt, No Credit, No Problems That was the title of my presentation. Everyone wants to be debt free but so few of us try to live a debt-free lifestyle in a room full of Financial Bloggers (more about the conference below). In 5 minutes I bust the myths that say Debit cards aren't safe I need credit cards for the reward points You have to have a credit card to travel It is possible to have a car without a payment You need to "build your FICO score" You can't buy a house without a credit score Click here to listen to an extended audio version of my presentation  http://youtu.be/w7hmV7hvoNA Here's the problem: Fair Isaac Corporation (FICO) isn't fair The components of the FICO score IS ALL BASED ON DEBT: Why must I borrow money and pay interest in order to buy a house? I understand banks want us to show how credit-worthy we can be, but credit scores do not measure normal monthly payments. Your rent, electric bill, or cell phone payment do not help your credit score one ioda. However, miss one of these payments and your credit score will be dinged! The Fair Isaac credit score isn't really fair is it. eCredable to the rescue In the video I explain that you can save up to pay for things like vacations, a car, and even a house - no debt allowed! But if you are like me and you can't save up enough to buy a house outright then you can buy a house without a credit score. It's a service called eCredable. FinCon12 (St. Louis represents!) Many of the biggest names in this specialized group were there: PTMoney (the host), JMoney (BudgetsAreSexy.com), PunchDebtInTheFace, Thousandaire, and some big names from St. Louis including Bob Lotich from ChristianPF, named one of the Top 20 PF Bloggers Plutus Award winner Mike Piper from ObliviousInvestor.com Rising star Jenny from TheJennyPincher.com Jeff Rose from GoodFinancialCents.com (OK, he's 3 hours from St. Louis but we are his nearest major airport) Click here for a complete list of the top PF Bloggers I was most excited to meet... A long-time friend and brother-from-another-mother Brad Chaffee. He is known as the Enemy Of Debt and he is AWESOME! I wrote a post when he finished paying off his debt (includes link to the video) Among the others I was excited to meet or had met were Dave Hilton from DebtBlackHole.com, previous guest Carrie from CarefulCents.com, another previous guest Ashley from MoneyTalksCoach.com, as well as Jesse Mecham and Steve Mudie from YNAB. Guest speakers included Ramit Sethi and Liz Weston. I'm going back again next year, and I'm bringing my budgets with me! Finally: The YNAB Minute Think you may have entered something wrong in the checkbook register of YNAB? Click on the questionable budget Outflow to see every transaction that is included in that total. Give YNAB a try free for 34 days Steve MoneyPlanSOS Stewart no 27:04 Got 5 minutes? That&#8217;s all I need to show you how to live debt-free and not have to worry about your credit score. You can have no debt, no credit, and have no problems &#8211; even for a house!...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/y13mU-hcrB0" height="1" width="1"/>http://moneyplansos.com/sos075-no-debt-no-credit-and-no-problems-at-fincon12/http://traffic.libsyn.com/moneyplansos/sos075_No_Debt_No_Credit_No_Problems.mp3 http://feedproxy.google.com/~r/mpsos/~3/o_p11skd9NA/ http://moneyplansos.com/sos074-where-minimalism-fits-into-personal-finance/#comments Fri, 07 Sep 2012 00:08:22 +0000 Steve Stewart http://www.moneyplansos.com/?p=4508 http://moneyplansos.com/sos074-where-minimalism-fits-into-personal-finance/feed/ 1 What does Minimalism have to do with personal finance? Find out as I interview a Minimalist who is living with less, which enables him to live on less. - Robert Wall from UntitledMinimalism.com and the host of Minimalism For The Rest Of Us, What does Minimalism have to do with personal finance? Find out as I interview a Minimalist who is living with less, which enables him to live on less. Robert Wall from UntitledMinimalism.com and the host of Minimalism For The Rest Of Us, a podcast that features interviews for the average person who wants to apply some of the principles of Minimalism. He shares his experiences and knowledge on the subject and we dive in to discuss: What is the definition of Minimalism How does someone become a Minimalist How does Minimalism effect finances I also ask him if a true Minimalist would have:  A pot, a pan, AND a George Foreman grill A bike AND an exercise machine A deep freezer More than 2 suits A collection of love letters from High School An attic (on purpose) A job at Hobby Lobby A wine rack China (the dinnerware) A Velveeta cheese box with the complete collection of 1980's trading cards from Star Wars AND Battlestar Galactica  Also mentioned in the episode: Joshua Becker - BecomingMinimalist.com Courtney Carver - BeMoreWithLess.com Joanne Wright - SimplyBeingMum.com Jenny McCutcheon - ExConsumer.com For more from Robert Wall, visit his blog UntitledMinimalism.com or follow him @MinimalBlogger on Twitter The YNAB Minute I'll never be in overdraft with You Need A Budget! Steve MoneyPlanSOS Stewart no 45:55 What does Minimalism have to do with personal finance? Find out as I interview a Minimalist who is living with less, which enables him to live on less. Robert Wall from UntitledMinimalism.com and the...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/o_p11skd9NA" height="1" width="1"/>http://moneyplansos.com/sos074-where-minimalism-fits-into-personal-finance/http://traffic.libsyn.com/moneyplansos/sos074_Where_Minimalism_fits_into_Personal_Finance.mp3 http://feedproxy.google.com/~r/mpsos/~3/_XtagZiEfLs/ http://moneyplansos.com/sos073-rolling-credit-card-debt-into-a-mortgage/#comments Thu, 30 Aug 2012 09:34:50 +0000 Steve Stewart http://www.moneyplansos.com/?p=4475 http://moneyplansos.com/sos073-rolling-credit-card-debt-into-a-mortgage/feed/ 1 Saving interest by rolling credit card debt into a mortgage sounds like a great idea, but does it really make cents? - I use the following scenario: A couple has a house worth $215,000, owes only $200,000 but has $15,000 in credit card debt at 19.99%. Saving interest by rolling credit card debt into a mortgage sounds like a great idea, but does it really make cents? I use the following scenario: A couple has a house worth $215,000, owes only $200,000 but has $15,000 in credit card debt at 19.99%. They are going to refinance the mortgage to get a 3.5% rate but does it make sense for them to take out the $15,000 in home equity to pay off the cards? 30 years is a long time Over the life of a 30 year mortgage the borrowers will pay $123,311 in interest for a $200,000 mortgage or $132,559 for a $215,000 - saving over $9,000 in interest. Extending the term Paying a lower interest rate doesn't save money when you are paying more interest over a longer period of time. While $15,000 on a 19.99% credit card will take 15 years to pay off it will only cost $2,500 more in interest than rolling it into a 30 year mortgage at 3.5%. Extending the length of the loan is like driving slower to work: You still burn about the same amount of gasoline and get frustrated because it's taking forever! You are diluting home equity By rolling $15,000 in credit card debt into the refi, you will pay $6,500 more in interest and still be behind $9,400 in home equity after 15 years. Amortization vs Minimum Payments Mortgages: Every traditional fixed-rate mortgage will require the same monthly payment (principal and interest portion only). When you pay down the balance, the amount of interest generated for the next month is less. For example: If your monthly mortgage payment (not including taxes and insurance) on a $200,000 mortgage is $900.00 and $315 goes towards the principal then you end up paying the rest, $585, to interest. However, the interest that is calculated for the next month is on the newly-reduced balance of $199,685 ($200,000 - $315 = $199,685). So the interest portion of the next month's payment is reduced by $1 to $584 and the principal portion is now $1 more ($316). Credit Cards: Minimum payments are based on a percentage of the balance. The minimum payment for a $15,000 credit card will be $600. Pay it down to $5,000 and the bank will only ask for a minimum payment of $200. You are more likely to only send the minimum - and stay in debt longer - when you aren't on a debt elimination plan. The pain: Paying only the minimum payment on a $15,000 card at 19.99% will take over 15 years to pay off. That's pain, not a plan. A better option If you were willing to pay $65 more each month for a $215,000 mortgage payment, why not stick with the $200,000 refi and apply the $65 to the credit cards every month? This will cause the credit card to be paid off 11 years sooner and save $6,600 in interest.   YNAB Minute: A Handy-Dandy Calculator Built right into YNAB is a little calculator that helps you do math but also helps you input a monthly savings goal for non-monthly expenses. Example: You pay $363.18 in car insurance every 6 months. Using the calculator in the drop-down menu of the "Outflow" column calculates the monthly savings goal and inputs it into the budgeting cell automatically. Go to MoneyPlanSOS.com/YNAB for your free trial. Steve MoneyPlanSOS Stewart no 20:25 Saving interest by rolling credit card debt into a mortgage sounds like a great idea, but does it really make cents? I use the following scenario: A couple has a house worth $215,000, owes only...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/_XtagZiEfLs" height="1" width="1"/>http://moneyplansos.com/sos073-rolling-credit-card-debt-into-a-mortgage/http://traffic.libsyn.com/moneyplansos/sos073_Rolling_credit_card_debt_into_a_mortgage.mp3 http://feedproxy.google.com/~r/mpsos/~3/iSG2BSEeb4w/ http://moneyplansos.com/sos072-the-math-behind-whole-life-and-term-insurance/#comments Tue, 21 Aug 2012 01:12:59 +0000 Steve Stewart http://www.moneyplansos.com/?p=4448 http://moneyplansos.com/sos072-the-math-behind-whole-life-and-term-insurance/feed/ 4 This episode is my contribution to the #LifeAWARE Life Insurance Movement started by Jeff Rose at GoodFinancialCents.com. - Life Insurance is a necessity for anyone who is married and especially someone who has children. This episode is my contribution to the #LifeAWARE Life Insurance Movement started by Jeff Rose at GoodFinancialCents.com. Life Insurance is a necessity for anyone who is married and especially someone who has children. The choices between one type o... Steve MoneyPlanSOS Stewart no 24:33 This episode is my contribution to the #LifeAWARE Life Insurance Movement started by Jeff Rose at GoodFinancialCents.com. Life Insurance is a necessity for anyone who is married and especially...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/iSG2BSEeb4w" height="1" width="1"/>http://moneyplansos.com/sos072-the-math-behind-whole-life-and-term-insurance/http://traffic.libsyn.com/moneyplansos/sos072_The_Math_behind_Whole_Life_and_Term_Life_Insurance.mp3 http://feedproxy.google.com/~r/mpsos/~3/759w9FeTF-c/ http://moneyplansos.com/sos071-questions-you-must-ask-a-financial-advisor-before-hiring-one/#comments Thu, 09 Aug 2012 03:40:17 +0000 Steve Stewart http://www.moneyplansos.com/?p=4391 http://moneyplansos.com/sos071-questions-you-must-ask-a-financial-advisor-before-hiring-one/feed/ 1 Scott Plaskett, CFP at IronShield.ca, takes time away from his busy schedule of helping people plan for their future and retirement to explain the various ways that Financial Planners get paid: Commission based Fee Only Fee based - Scott Plaskett, CFP at IronShield.ca, takes time away from his busy schedule of helping people plan for their future and retirement to explain the various ways that Financial Planners get paid: Commission based Fee Only Fee based We also take time to discuss the 12 Key Questions You Must Ask A Financial Planner Before You Hire One, a report he makes available on his website. Here are a few of the highlights: Ask if they charge fees for their services Ask if they sell products as well as provide advice Ask the advisor if they are going to work with you personally or with one of their assistants once the initial plan is implemented. Ask how often you can expect to get together to review the plan Ask to see their Letter of Engagement. Don't know what that is? Then listen to the interview (click the player above) To download the report and find out more about Scott Plaskett: Visit http://IronShield.ca For more about the Key to Retirement podcast visit http://ironshield.ca/category/podcast For more about Fee Based Financial Planning Mastery podcast: http://feebasedfinancialplanningmastery.com/   New segment: The YNAB Minute Each episode I will share a tip or trick in YNAB, the awesome budgeting and checkbook tracking software program from YouNeedABudget.com. Using YNAB caused me to abandon my Excel spreadsheet for a number of reasons. One is that it automatically arranges transactions in chronological order. That may not sound like a big deal to you, but for a guy who used to match up his Excel budget with a printed copy of his bank statement, this helps me save time. Try YNAB for yourself for 34 days with no risk. It's a different animal, but not far from the Zero Based budgeting that has helped so many people get out of debt and save money. Steve MoneyPlanSOS Stewart no 48:58 Scott Plaskett, CFP at IronShield.ca, takes time away from his busy schedule of helping people plan for their future and retirement to explain the various ways that Financial Planners get paid:...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/759w9FeTF-c" height="1" width="1"/>http://moneyplansos.com/sos071-questions-you-must-ask-a-financial-advisor-before-hiring-one/http://traffic.libsyn.com/moneyplansos/sos071_Questions_to_ask_a_Financial_Planner_before_you_hire_one.mp3 http://feedproxy.google.com/~r/mpsos/~3/7LpVH9czaz8/ http://moneyplansos.com/sos070-chris-hogan-and-coordinating-fpu/#comments Wed, 01 Aug 2012 05:40:51 +0000 Steve Stewart http://www.moneyplansos.com/?p=4373 http://moneyplansos.com/sos070-chris-hogan-and-coordinating-fpu/feed/ 1 Chris Hogan is a Speaker and Financial & Business Coach working for Dave Ramsey's company. He travels the country speaking to corporate events, churches, and associations on the topics of money, leadership, and life. Chris Hogan is a Speaker and Financial & Business Coach working for Dave Ramsey's company. He travels the country speaking to corporate events, churches, and associations on the topics of money, leadership, and life. His mantra is the he loves to educate, encourage, and empower people. Chris Hogan's background He started his young adult life as a professional football player before moving into the consumer finance world. His first job was as a collector so he saw the effects of money on people who didn't have a plan. He then moved in to mainstream banking where he began to see the same issues but with people who had more money and more debt. He progressed into private client banking where he worked with pro athletes, entertainers, and higher net-worth individuals. Still, he saw people struggling because they didn't have a plan. Chris tells us about what Financial Peace University is FPU is God's way of dealing with money. It's a class that helps people finally begin to understand some of the areas they've always had questions or struggled with. It is the best program out there for people to get a game plan together and activate that plan. It helps people understand the heart of how to win! Recent changes to the Financial Peace University course The class has changed from a 13 week series to a 9 week class and the 2 hour classes will now be only 90 minutes long. The DVD lessons will include guest speakers for additional knowledge. There are also 2 bonus lessons that FPU Students can watch from the comfort of their own home. Course benefits Anyone can attend: Single, Married, Divorced, Christian, non-Christian, rich and poor It is a lifetime membership. If you have already taken FPU and want to attend you only need to register with the location. You don't have to get a kit but you could order a new one at a discounted rate. Families who graduate pay off $5,300 in debt and save $2,700 in the first 90 days - that's an $8,000 financial turnaround in 90 days. It is the best class out there because it gives you the information and the real-world application. Money fights are the #1 reason for divorce. Financial Peace University helps people put the weapons down and shows you how to make family the priority and focus. Who can be a FPU coordinator Anyone can be a coordinator if they have the heart to help someone. They don't have to be debt free themselves They do need to be onboard with the lessons of FPU and its principles Three steps to coordinating a class Arrange for a facility that will allow your class to watch DVDs Contact a FPU advisor at DaveRamsey.com/FPU to help you sign up, order kits, give ideas, and walk with you through the 9 week class. Show up and lead! Chris Hogan's Mission (and blog) Chris Hogan 360 website Contact Chris for speaking opportunities Chris Hogan on Twitter Dave Ramsey's Speakers Group   Other resources mentioned in this episode CORE Financial Wellness - A FPU program offered to a business's employees Military FPU - Gives "Readiness" a whole new meaning The new FPU kit Unboxing video Text MPSOS to the number 50500 to receive all my contact information Steve MoneyPlanSOS Stewart no 33:48 Chris Hogan is a Speaker and Financial &#38; Business Coach working for Dave Ramsey&#8217;s company. He travels the country speaking to corporate events, churches, and associations on the topics of...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/7LpVH9czaz8" height="1" width="1"/>http://moneyplansos.com/sos070-chris-hogan-and-coordinating-fpu/http://traffic.libsyn.com/moneyplansos/sos070_Chris_Hogan_and_Coordinating_FPU.mp3 http://feedproxy.google.com/~r/mpsos/~3/nROy7CHYV0I/ http://moneyplansos.com/sos069-recovering-from-id-theft-with-zander-insurance/#comments Thu, 26 Jul 2012 05:32:02 +0000 Steve Stewart http://www.moneyplansos.com/?p=4333 http://moneyplansos.com/sos069-recovering-from-id-theft-with-zander-insurance/feed/ 0 Identity theft is on the rise according to the Federal Trade Commission.  - 11.6 million people became victims of ID theft in 2011 alone - an increase of 13% over 2010! The real problem with ID Theft Banks are familiar with bank fraud and Visa and M... Identity theft is on the rise according to the Federal Trade Commission.  11.6 million people became victims of ID theft in 2011 alone - an increase of 13% over 2010! The real problem with ID Theft Banks are familiar with bank fraud and Visa and Master Card have Zero Liability protection policies in place to help consumers. But what happens when Government documents are compromised, or utility fraud, or someone uses your ID to file for unemployment claims? The burden is laid on your back to deal with them and you can plan on spending hours upon hours cleaning up your good name. What will you do? Diane Sacks - Vice President of Marketing & ID Theft Protection at Zander Insurance, explains how their ID Theft Protection plan is different from others - and better! Not only does she give us tips on how to save money by monitoring our credit reports ourselves but she tells us " The biggest benefit is we take over all the work to restore somebody's identity when they become a victim " - Diane Sacks I don't have to do anything other than call them? Sign me up! How much does ID Theft Protection cost? Individuals: $75 a year (or $6.75 a month) A family, including all dependents: $145 a year (or $12.90 a month) Diane's Top 3 ID Fraud suggestions: Limit what you keep in your wallet: Only carry necessary items in your wallet such as your Driver's License, your Debit card. Use unique passwords username and passwords for all your online accounts. Look at (Monitor) your credit reports every 4 months. Watch this video of me getting my credit report online for free using AnnualCreditReport.com  Get more great information from the MoneyPlan SOS Newsletter Audiobook Giveaway: Platform: Get noticed in a noisy world - enter until Sunday August 12, 2012   Steve MoneyPlanSOS Stewart no 35:30 Identity theft is on the rise according to the Federal Trade Commission.  11.6 million people became victims of ID theft in 2011 alone &#8211; an increase of 13% over 2010! The real problem with ID...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/nROy7CHYV0I" height="1" width="1"/>http://moneyplansos.com/sos069-recovering-from-id-theft-with-zander-insurance/http://traffic.libsyn.com/moneyplansos/sos069_Recovering_from_ID_Theft_with_Zander_Insurance.mp3 http://feedproxy.google.com/~r/mpsos/~3/v_nqU9fGc1E/ http://moneyplansos.com/sos068-lifelock-id-theft-protection-and-credit-monitoring/#comments Fri, 20 Jul 2012 05:35:13 +0000 Steve Stewart http://www.moneyplansos.com/?p=4311 http://moneyplansos.com/sos068-lifelock-id-theft-protection-and-credit-monitoring/feed/ 2 Tami Nealy is a Senior Director of Corporate Communications with LifeLock.com, a company that monitors your information for signs that your identity may have been compromised and offers some solutions on how they can help victims. Tami Nealy is a Senior Director of Corporate Communications with LifeLock.com, a company that monitors your information for signs that your identity may have been compromised and offers some solutions on how they can help victims. Your identity is your name and any other unique identifier Examples are: Name and Social Security number Name and date of birth Name and address The 5 Points of Protection in a LifeLock membership Monitoring: LifeLock looks for applications for credit and asks you to verifiy if they were opened by you Scanning: LifeLock scans websites, including sites that sell people's personal information, to see if your information is out there Responding: Their resolution team works with you to resolve any ID theft issues. Guarantee: LifeLock pays for legal fees and certain expenses in resolving you ID theft problems Tracking your credit score: Another thing LifeLock monitors to detect if identity theft is occurring What LifeLock costs LifeLock (basic): $10 a month or $110 annually per person LifeLock Ultimate: $25 a month or $275 annually per person LifeLock for Minors: $2.50 per month or $25 annually per child Top 3 things to do to protect your identity before going on vacation Inform your credit card companies that you will be going on vacation so they do not shut down you card by accident and they can contact you if any charges show up elsewhere. Do not announce that you are on vacation before or during vacation away from home. Be careful when using open wi-fi access points such as restaurants and hotels. Educating consumers and law enforcement LifeLock also has a partnership with the FBI Law Enforcement Executive Development Association (FBILEETA.org) to offer education to law enforcement officials with the goal to create tips and recommendations that educate consumers to prevent identity theft or to work more closely with law enforcement to capture those identity thieves. How to check your credit report for free http://youtu.be/R0iwXPAol_U Steve MoneyPlanSOS Stewart no 31:58 Tami Nealy is a Senior Director of Corporate Communications with LifeLock.com, a company that monitors your information for signs that your identity may have been compromised and offers some...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/v_nqU9fGc1E" height="1" width="1"/>http://moneyplansos.com/sos068-lifelock-id-theft-protection-and-credit-monitoring/http://traffic.libsyn.com/moneyplansos/sos068_LifeLock_ID_Theft_Protection.mp3 http://feedproxy.google.com/~r/mpsos/~3/88iIhv3tzhQ/ http://moneyplansos.com/sos067-how-long-do-we-keep-this-stuff/#comments Thu, 12 Jul 2012 14:50:08 +0000 Steve Stewart http://www.moneyplansos.com/?p=4281 http://moneyplansos.com/sos067-how-long-do-we-keep-this-stuff/feed/ 1 Diana Luetkemeyer, Professional Organizer from FreedomOrganization.com, helps us organize our paperwork at home. How long so we keep tax returns? Where should we store important documents? What in the world should I do with all these digital pictures? Diana Luetkemeyer, Professional Organizer from FreedomOrganization.com, helps us organize our paperwork at home. How long so we keep tax returns? Where should we store important documents? What in the world should I do with all these digital pictures? Diana explains the benefits of how organization helps her deal with stress and how she helps others who just don't have the time to keep things organized. Some of the highlights: Get all the paperwork in one area Decide what to file, toss, or decide what are the "action items" Use Online BillPay (usually free with your local bank) to reduce paperwork Don't use a safety deposit box for souvenir items Printed copies of photos are the best backup How long to keep paperwork: Monthly bills: 1 year Tax returns: 7 years or longer Real Estate receipts and documentation: Forever Retirement/Investment: Quarterly until year-end statement arrives Paystubs: During the year until W-2 arrives You can find a complete list of these items in her post How Much and How Long? Financial Paper Retention Guidelines Cool products to help protect, store, and organize: The Vital Records PortaVault system (coupon) Shutterfly (store photos online for free) Creative Memories The PictureKeeper digital photo storage   Steve MoneyPlanSOS Stewart no 29:47 Diana Luetkemeyer, Professional Organizer from FreedomOrganization.com, helps us organize our paperwork at home. How long so we keep tax returns? Where should we store important documents? What in...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/88iIhv3tzhQ" height="1" width="1"/>http://moneyplansos.com/sos067-how-long-do-we-keep-this-stuff/http://traffic.libsyn.com/moneyplansos/sos067_How_long_do_we_keep_this_stuff.mp3 http://feedproxy.google.com/~r/mpsos/~3/I2vDwDhxB7w/ http://moneyplansos.com/sos066-tips-for-savings-up-and-paying-for-vacation/#comments Wed, 20 Jun 2012 06:57:17 +0000 Steve Stewart http://www.moneyplansos.com/?p=4202 http://moneyplansos.com/sos066-tips-for-savings-up-and-paying-for-vacation/feed/ 0 Simple ways to save money without making crazy life sacrifices. Feel free to add to the list in the comments section below! Pizza night Create your own dinner and a movie experience that is fun and on-the-cheap: - Simple ways to save money without making crazy life sacrifices. Feel free to add to the list in the comments section below! Pizza night Create your own dinner and a movie experience that is fun and on-the-cheap: Heat up a frozen pizza at home but with your favorite fresh toppings Rent a movie (RedBox is less than $2.00) Popcorn with soda for a family of 4 doesn't cost more than a single share of FB stock! Get a Coin Jug Trick yourself into saving Label a big jar or jug "Vacation" Throw all loose change into it during the year Turn in the coins and may be surprised at how much you have at the end of the year Room with a fridge If you are going to a destination location for vacation (like the beach) then get a room with a fridge. Fill it with breakfast or lunch items in order to stay away from the buffet Buy fruit for the room for snack time Save tons of money by making sandwiches in your room instead of eating at a restaurant Take a shuttle or taxi Why rent a car for a week if you’ll be in the same place most of the time? Hotel shuttles can often get you where you want to go It can be cheaper and they come with a designated driver! Drink Water Drinks at restaurants are overpriced, not to mention full of sugar Convince the kids to join in by offering them $1.00 to drink water It saves you money on the overall bill (not to mention the tip!) and gives the kids their own money to spend while on vacation Redeem membership points Use points earned from hotel and airlines - not with Credit Card points. Why not? Here's the example I use in the video. This hotel room (in video) would cost $1,000 for a 5 day stay. Points required would be 25,000 points per night, or 125,000 points for those 5 days. In order to earn that many points with a credit card that "rewards you" with 1 point per $1.00 spent you'd need to run $125,000 in purchases through your debt product! I don't know how much you earn in a year but can you run $125,000 through a credit card to pay for a vacation?  If you could why wouldn't you just save money instead? http://youtu.be/3sRjVxg8vk0 To add insult to injury: Studies have shown more than 67% of reward points go unredeemed Average debt on credit cards is $6,576 It would be easier to make it a line item in your budget. Put away $250 a month and you'll have $3,000 for a yearly family vacation. YNAB budget software makes it easy Get a PerkStreet checking account and earn cash-back by using their Debit card! Turn points into gas gift cards Redeem various clubs (airline, hotel, etc) into gas cards you can use on vacation Use Points.com to transfer points into one club where you can redeem Exchange gift cards at http://PlasticJungle.com Carrie from CarefulCents.com wrote a great article about unused gift cards Mentioned in the show: My Route 66 roadtrip Day #1 - I'm on Vacation! Day #2 - The Long and Winding Road Day #3 - Route 77 Day #4 - Air, Water, and Dirt Day #5 - Detours Day #6 - Mechanical Problems, sort of... Day #7 - Bridges Day #8 - Bonus day! Route Recap Steve MoneyPlanSOS Stewart no 34:14 Simple ways to save money without making crazy life sacrifices. Feel free to add to the list in the comments section below! Pizza night Create your own dinner and a movie experience that is fun and...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/I2vDwDhxB7w" height="1" width="1"/>http://moneyplansos.com/sos066-tips-for-savings-up-and-paying-for-vacation/http://traffic.libsyn.com/moneyplansos/sos066_Tips_for_Saving_up_and_Paying_for_Vacation.mp3 http://feedproxy.google.com/~r/mpsos/~3/GtQgPPQ9rxk/ http://moneyplansos.com/sos065-how-to-be-richer-smarter-and-better-looking-with-zac-bissonnette/#comments Tue, 12 Jun 2012 10:55:01 +0000 Steve Stewart http://www.moneyplansos.com/?p=4154 http://moneyplansos.com/sos065-how-to-be-richer-smarter-and-better-looking-with-zac-bissonnette/feed/ 1 Zac Bissonnette, author of the incredible book Debt Free U, talks about his newest release "How To Be Richer, Smarter, and Better Looking Than Your Parents". He wrote the book with one simple question in mind Zac Bissonnette, author of the incredible book Debt Free U, talks about his newest release "How To Be Richer, Smarter, and Better Looking Than Your Parents". He wrote the book with one simple question in mind What should young people do with their money in order to have the best possible life today and for the rest of their life? Zac shares his experiences and what he learned from the incredible amount of behavioral and statistical studies quoted throughout the book. For example: It is more important to be satisfied with your choice of career than annual salary. The more TV you watch, the fatter, poorer, and stupider you get. When paying with a credit card people tend to buy food that are less-healthy. On average, people who receive $25 in cash back rewards spend $79 more a month and increase their debt by $191 in 3 months Used cars are an excellent value as they do not break down as often as they used to An Executive from Morgan-Chase is carrying a credit card made from $15,000 in materials! Listener questions featured in this episode: This question Joshua Brown from Brown's Balanced Life How much insurance does a single person need? Jen McDonough from TheIronJen.com asks Zac: How do you recommend we reach out to younger adults about the subject of money? Lacey from Donation-Can.com wants to know: What does the Military offer the college bound? Feel free to comment below. Also mentioned in this episode: To watch my Amazon video-review, or to order "How To Be Richer, Smarter, and Better Looking Than Your Parents" on Kindle or in paperback, visit http://MoneyPlanSOS.com/Zac As mentioned, I was a guest on the JW Financial Coaching podcast. We talk about why it is so beneficial to stay invested in the market for a long period of time: Deacon Bradley from LifeStoked.com, Jon White from JWFinancialCoaching.com and I "Hangout", a 30-minute video where we explain "How to balance investing in yourself with saving for retirement". http://youtu.be/4D2ntf2AwVY The MoneyPlan SOS Podcast was recommended in Steve Julien's new book "A Debt Free You", available in Kindle and paperback on Amazon. Psssst - check out the bottom of page 52. Do you know the secret hash-tag? Tweet it to me @MoneyPlanSOS Thanks for being a listener! Steve MoneyPlanSOS Stewart no 44:24 Zac Bissonnette, author of the incredible book Debt Free U, talks about his newest release &#8220;How To Be Richer, Smarter, and Better Looking Than Your Parents&#8220;. He wrote the book with one...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/GtQgPPQ9rxk" height="1" width="1"/>http://moneyplansos.com/sos065-how-to-be-richer-smarter-and-better-looking-with-zac-bissonnette/http://traffic.libsyn.com/moneyplansos/sos065_How_To_Be_Richer_Smarter_and_Better_Looking.mp3 http://feedproxy.google.com/~r/mpsos/~3/hXvKkpb0OHk/ http://moneyplansos.com/sos064-dave-ramseys-new-fpu/#comments Wed, 06 Jun 2012 05:54:43 +0000 Steve Stewart http://www.moneyplansos.com/?p=4142 http://moneyplansos.com/sos064-dave-ramseys-new-fpu/feed/ 2 Dave Ramsey announced changes to the Financial Peace University (FPU) course in a live webinar on June 5th, 2012. Not only have the videos been re-recorded but the curriculum has some exciting new changes: Changes to FPU Dave Ramsey announced changes to the Financial Peace University (FPU) course in a live webinar on June 5th, 2012. Not only have the videos been re-recorded but the curriculum has some exciting new changes: Changes to FPU Will now be a 9-week course, replacing the 13-week series Classes will last 90 minutes instead of 120 Greater emphasis on the Zero-based budget "Those Financial Peace University graduates who continued to do a Zero Based Budget paid off 23% more debt and saved 21% more money than those that did any other kind of budget or didn't do a budget" Additions to FPU 2 online lessons Question Cards to get discussions going in class More Biblical scripture woven into the lessons "You are going to hear me talk about the Bible and quote scripture more than you've ever heard" Dave said in the webinar. Three new speakers Rachel Cruze, Speaker to the youth of America Jon Acuff, author of Quitter: Closing the Gap between your Day Job and your Dream Job Chris Hogan, ROCK STAR and DEBT CRUSHER! The new kits are available to order but will not ship until August 1st. Visit DaveRamsey.com/FPU for more details. If you missed the webinar, catch the FPU Sneak Peek replay Steve MoneyPlanSOS Stewart no 18:58 Dave Ramsey announced changes to the Financial Peace University (FPU) course in a live webinar on June 5th, 2012. Not only have the videos been re-recorded but the curriculum has some exciting new...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/hXvKkpb0OHk" height="1" width="1"/>http://moneyplansos.com/sos064-dave-ramseys-new-fpu/http://traffic.libsyn.com/moneyplansos/sos064_Dave_Ramseys_New_FPU.mp3 http://feedproxy.google.com/~r/mpsos/~3/yFh_4ZAWGU0/ http://moneyplansos.com/sos063-a-theoretical-budget/#comments Fri, 25 May 2012 07:43:54 +0000 Steve Stewart http://www.moneyplansos.com/?p=4124 http://moneyplansos.com/sos063-a-theoretical-budget/feed/ 0 This theoretical budget shows where opportunities lie for an average American couple making the average monthly take-home pay and making minimum payments on the typical debts. To follow along, download the Theoretic Budget - Debt vs Debt Free. - This theoretical budget shows where opportunities lie for an average American couple making the average monthly take-home pay and making minimum payments on the typical debts. To follow along, download the Theoretic Budget - Debt vs Debt Free. Also mentioned in this episode: Recommended Percentages podcast episode #49 The Recommended Percentage spreadsheet in Excel How to make your ID harder to steal podcast episode #62 Want to be a part of the show? I'm looking for energetic, fun, and dedicated listeners to record their MoneyPlan SOS shout-out. Use your computer, your iPhone, whatever you have to record yourself saying "This is _______ from ________ and you are listening to Steve Stewart on the MoneyPlan SOS podcast, teaching everyday Americans how to Pay Attention, Not Interest." Send your submission to Steve@MoneyPlanSOS.com or call in to the MPSOS listener voicemail line: 312-373-0767. A submission is not a guarantee that it will be on the show, but there is a good chance it will be used in a future project that is in the works. Steve MoneyPlanSOS Stewart no 24:37 This theoretical budget shows where opportunities lie for an average American couple making the average monthly take-home pay and making minimum payments on the typical debts. To follow along,...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/yFh_4ZAWGU0" height="1" width="1"/>http://moneyplansos.com/sos063-a-theoretical-budget/http://traffic.libsyn.com/moneyplansos/063_A_Theoretical_Budget.mp3 http://feedproxy.google.com/~r/mpsos/~3/oYN_jVP8_iE/ http://moneyplansos.com/sos062-using-a-break-even-analysis-for-lower-insurance-and-higher-deductibles/#comments Thu, 17 May 2012 12:25:15 +0000 Steve Stewart http://www.moneyplansos.com/?p=4099 http://moneyplansos.com/sos062-using-a-break-even-analysis-for-lower-insurance-and-higher-deductibles/feed/ 0 I used a "Break Even Formula" to see if refinancing our house would make sense when closing costs could be recovered by the interest saved on the loan. Keith Bunn from CavUSFinancialCoaching sent in this question: I used a "Break Even Formula" to see if refinancing our house would make sense when closing costs could be recovered by the interest saved on the loan. Keith Bunn from CavUSFinancialCoaching sent in this question: I listened to podcast episode #36 "Should I Refi" and am wondering if we can use that same math formula for insurance? Tell me if I have the math right... these are made up numbers. Car insurance example $1920  current annual payment - $1000  competitor's annual rate = $920  saving per year Would the Break Even formula work here? $1920 / $920 = 2.08 years you would have to go to break even, right? And what would be the mathematical formula if someone took on more responsibly (insurance wise) to lower their premiums? How does someone figure out how many years they have to go without an accident in order for the increased responsibility to make sense? When to use a Break Even Analysis A break even analysis works best when calculating variables in debts, loan payoff dates, or assessing the exposure to risk. Answering the car insurance example Car insurance is an expense so a break even calculation doesn't really need to be performed. For example: A married couple uses Company A for their cable and spends $150 a month. The learn that they can get a comparable service from Company B for $100. In this case they are saving $50 a month instantly. There is no break even point, thus no analysis is necessary. We could, however, say that the couple is getting 3 months of cable for the price of 2 (3x $100 a month is the same as 2X $150 a month, getting an additional month for the same price). In other words, if you can get the same coverage for less by switching to Geico then go for it. Lower insurance, higher deductible One way to save on insurance is to raise the deductible. A deductible is the "first dollars" that are used to pay for a bill (medical, auto, home, etc...) and the policy owner (you) is usually the one responsible to pay the "first dollars". This allows the insurance company to share the risk with you, and keep costs down. Increasing the deductible means increasing your risk and decreasing the insurance company's risk. This will most certainly mean lower premiums for you. But how do you know if taking on more risk is a good decision? The Break Even Formula A simple equation: Additional risk / divided by savings = equals Break Even For example: Joe Smith pays $1,200 a year to cover his $15,000 truck with a $1,000 deductible. He learns he can save $400 a year by raising the deductible to $4,000. In other words, he's taking on an additional $3,000 of risk to save $400 in annual premiums. $3,000 (additional risk) / $400 (premium savings) = 7.5 years He would have to go 7.5 years without backing into a pole or hitting someone's parked car just to break even. That's a lot of risk, especially when you consider that the truck might not even be worth $4,000 at the end of 7.5 years. (That was a joke) It's not just for refinancing anymore The Break Even analysis works for refinancing a home, car, even debt consolidation. Anywhere that will cost you money or time when changing terms or providers. Also mentioned in Episode 62: 5 ways to cut expenses on The Worst of the Free Financial Advisor: Episode 8 Be a part of the MoneyPlan SOS podcast - I am asking podcast listeners to send in their "shout out", similar to Dustin Hartler's (used in this episode) for possible replay during the show. Here's the suggested script: "This is ____ from _____ and you are listening to Steve Stewart on the MoneyPlan SOS Podcast - helping everyday Americans pay attention, not interest". Record it on your computer, iPhone, or call into the MPSOS hotline 312-373-0767 and leave it as a voicemail. The joke: What is the difference between someone that says "I have a degree IN ____" vs "I have a degree FROM _____"? About $20,000 to $40,000 in additional tuition expenses.   Steve MoneyPlanSOS Stewart no 12:52 I used a &#8220;Break Even Formula&#8221; to see if refinancing our house would make sense when closing costs could be recovered by the interest saved on the loan. Keith Bunn from...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/oYN_jVP8_iE" height="1" width="1"/>http://moneyplansos.com/sos062-using-a-break-even-analysis-for-lower-insurance-and-higher-deductibles/http://traffic.libsyn.com/moneyplansos/sos062_The_Break_Even_Analysis.mp3 http://feedproxy.google.com/~r/mpsos/~3/MrImi4lFcE0/ http://moneyplansos.com/sos061-how-to-make-your-id-harder-to-steal/#comments Fri, 11 May 2012 04:42:26 +0000 Steve Stewart http://www.moneyplansos.com/?p=4075 http://moneyplansos.com/sos061-how-to-make-your-id-harder-to-steal/feed/ 2 Identity theft is running rampant in our nation. Here are 8 tips on how to make your ID harder to steal. Never give someone access to your accounts Keep user names or passwords for online accounts to yourself Identity theft is running rampant in our nation. Here are 8 tips on how to make your ID harder to steal. Never give someone access to your accounts Keep user names or passwords for online accounts to yourself Don't let someone else "borrow" your card or be an authorized user NEVER tell anyone your debit card's PIN number Keep your computer clean Check for viruses Use a firewall at home Use a VPN when in public. Spotflux.com is a free program for Windows and Mac Don't click on web links Don't let them get through your firewall with a "Is this you in the picture" or "someone is  saying nasty things about you on Twitter" Verify with the person who sent the message that they indeed sent you a message Tear off address labels Remove labels from mail and packages Shred blank application Remove all inserts from magazines and catalogs that may contain your address Get a PO Box Have mail saved for you in a place more secure than a metal box on your curb This could also make it more difficult for someone to find your address Ensures you place outgoing mail in approved locales only Opt-out Reduce the amount of mail (and the amount of labels to shred) Keeps unnecessary and tempting offers away from your eyes Official site: http://OptOutPreScreen.com For a video-tutorial, visit MoneyPlanSOS.com/Opt-Out Freeze credit reports Nobody can see your report, even you Cost is $5-$10 per report Experian http://www.experian.com/consumer/security_freeze.html Transunion http://www.transunion.com/personal-credit/credit-disputes/credit-freezes.page Equifax https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp Don't fill out "Enter-to-win" stuff You are more susceptible to phishing and scams when entering dozens of giveaways, unless you keep track of every one that you complete. These steps can not guarantee your ID will never be stolen - how many times have you used your debit or credit card and the cashier never even looked to see if the back was signed? But following these common-sense tips can help make your ID harder for someone to steal. Bonus material: For those who subscribe to my ummmm, newsletter??? will get some bonus content in the next release: What to do if your ID is has been stolen. Note for those who listen or subscribe to the email after May 22nd, 2012: You can still get this information - even if it's 2014. Go ahead and subscribe to the newsletter: http://MoneyPlanSOS.com/Newsletter, then send me a message (email Steve@MoneyPlanSOS.com or call/text 636-373-4818) and ask for the "What to do if you ID has been stolen"  newsletter. Be sure to include your email address so I can find you in the newsletter subscriber's database and shoot it out to you straight-away. Steve MoneyPlanSOS Stewart no 26:06 Identity theft is running rampant in our nation. Here are 8 tips on how to make your ID harder to steal. Never give someone access to your accounts Keep user names or passwords for online accounts to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/MrImi4lFcE0" height="1" width="1"/>http://moneyplansos.com/sos061-how-to-make-your-id-harder-to-steal/http://traffic.libsyn.com/moneyplansos/sos061_How_to_make_your_ID_harder_to_steal.mp3 http://feedproxy.google.com/~r/mpsos/~3/v5YcEQk4Oi8/ http://moneyplansos.com/sos060-to-invest-or-not-to-invest/#comments Wed, 02 May 2012 06:31:50 +0000 Steve Stewart http://www.moneyplansos.com/?p=4066 http://moneyplansos.com/sos060-to-invest-or-not-to-invest/feed/ 1 A MoneyPlanSOS podcast listener sent in a question about investing while in debt. He makes a great case study for us to examine if there is a one-size-fits-all get-out-of-debt plan, or not? Letter from a future investor: Steve, A MoneyPlanSOS podcast listener sent in a question about investing while in debt. He makes a great case study for us to examine if there is a one-size-fits-all get-out-of-debt plan, or not? Letter from a future investor: Steve, I listen to your podcast and I love the show!  There's always something new to learn about money. I have a question about whether I should invest in a retirement account or pay down debt.  My wife has some student loan debt (which we are just now beginning to pay on) and we do have a car payment (4 more years).  There isn't any credit card debt or mortgage (we rent) so we don't have any other debt. The student loan debt will take quite a long time to pay off (likely 10 years) since we can't afford to pay much over the required monthly payment.  Is it wise to begin saving what little money we have left each month on a retirement account (likely a Roth IRA) or use it to pay down the loan debt and wait another 10 years for the student loans to be paid off and invest more money at that time? I know you teach paying down the debt as fast as possible but you've also said that setting aside money in a retirement account early is best due to the compounding interest.  Is one always better than the other or does it depend on the situation? Again I love the show and would appreciate any advice you could give me. Thanks, "Joe" The 12 steps to building a house of financial freedom You probably already know the answer, but let's walk through the 12 steps to financial freedom, or at least the steps that take us up to where they can invest: Work Plan Give Pay for necessities Save $1,000 Pay for some "wants" Pay off all non-mortgage debt Save 3-6 months of expenses Save for short-term goals Invest wisely Pay off the house Build wealth Don't give up your options by keeping debt Making the commitment to only pay the minimum for 10  years is a difficult commitment. You lose options when keeping debt around - no matter how good the interest rate. What if you had a job loss or a spouse wanted to stay home with the kids? Those options are gone with thousands of dollars of debt. You already knew my answer Hi "Joe", I love that you are paying attention. Now for some of the advice that will help you keep from paying interest:  The choices you make today can erase the choices you made in the past (car & student loan), but it will take hard work and money. If you don't attack the consumer debt first then it will be very difficult to make progress on anything (diluting your wealth by staying in debt). It would also be great to have $0 debt in case you guys have a career change that involves a move or children or medical event or... (get the picture). Yes, it is better to start investing young but you have already committed your future earnings for the college degree and a vehicle. In other words, the decisions you made in the past have already answered your question. My advice is to take whatever you can to pay off the car and the student loan. If you have 4 years left on the car then it may be too expensive of a vehicle for your family. Why not consider selling the car, even if that means losing a little on it, buying a cheaper get-around-car with cash until you get this mess cleaned up and throw everything you have at the student loan? No car payment means more money to attack the student loan and get out of it quickly - very quickly! It sounds like you two are young (under 30?) so you have PLENTY of time to save for retirement. And without any debt you will be able to save some real money, not just a measly 1-3% as the typical American would. Don't be normal, be weird - that's what millionaires are. Holla from the Impala segment: Reasons to stop saving for retirement while in debt 5. Increasing your take-home pay will help fund an emergency account and keep you from accruing more debt. 4. The focused-intensity will get you out of debt faster 3. Steve MoneyPlanSOS Stewart no 26:42 A MoneyPlanSOS podcast listener sent in a question about investing while in debt. He makes a great case study for us to examine if there is a one-size-fits-all get-out-of-debt plan, or not? Letter...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/v5YcEQk4Oi8" height="1" width="1"/>http://moneyplansos.com/sos060-to-invest-or-not-to-invest/http://traffic.libsyn.com/moneyplansos/sos060_To_Invest_or_Not_to_Invest.mp3 http://feedproxy.google.com/~r/mpsos/~3/zHY4E3UZ7JU/ http://moneyplansos.com/financial-literacy-month-2012-april-30-continued-financial-education/#comments Mon, 30 Apr 2012 16:10:48 +0000 Steve Stewart http://www.moneyplansos.com/?p=4058 http://moneyplansos.com/financial-literacy-month-2012-april-30-continued-financial-education/feed/ 0 What would we do if there was no financial education programs? There are thousands of bloggers, books, and financial literacy classes available, we just need to take advantage of these great...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/zHY4E3UZ7JU" height="1" width="1"/>http://moneyplansos.com/financial-literacy-month-2012-april-30-continued-financial-education/ http://feedproxy.google.com/~r/mpsos/~3/PrIjp_SA-8A/ http://moneyplansos.com/sos059-financial-products-that-keep-the-middle-class-middle-class/#comments Sat, 21 Apr 2012 10:59:38 +0000 Steve Stewart http://www.moneyplansos.com/?p=4017 http://moneyplansos.com/sos059-financial-products-that-keep-the-middle-class-middle-class/feed/ 7 There are more financial products out there than there are players in professional baseball. Many are good for our financial lives but some are bad. - The following products cause a false sense of security, zap money from our cashflow, There are more financial products out there than there are players in professional baseball. Many are good for our financial lives but some are bad. The following products cause a false sense of security, zap money from our cashflow, or rob us of the ability to take care of ourselves. Instead of financial products that derail us on our journey to wealth we should be thinking about buying into mutual funds, saving accounts, paid for real estate, and other things that increase our net worth and don't keep us middle class.  Financing Furniture "90 days same as cash" is one of the common advertising lines from furniture and electronic stores. Clever financing options are designed to get you in the door, dangle the carrot in front of you, and close the sale by getting you to sign a contract that will convert into back-charged interest if not paid off by a certain date. I learned that if I could get the money together in 90 days, why wouldn't I wait 3 months and pay cash? Car payments The most expensive thing we buy other than a house is a vehicle. Gasoline, oil changes, and new tires increase the convenience of our freedom to hit the road whenever we want but also impact our wallet. Pack on the top of that a car payment and you will see an incredible amount of your monthly budget being eaten up by transportation. A $20,000 car financed at 3.99% for 60 months will charge you about $2,500 in interest. Student Loans You may not have started out in the Middle Class and hopefully your are making a good living in your choice of career. Even with a good income you are more likely to remain in the middle class when a chunk of your monthly cash-flow is used to make payments for a degree earned years ago. If you have student loans then it would behove you to have them paid off early to free up money to purchase other financial products like saving accounts or mutual funds. Lottery tickets Taking unrealistic chances for riches has never been a good financial plan. The chances of hitting the right numbers for the Mega-Million are 1 in 175,000,000. That's not a very promising statistic. I took my budgeted lottery money and spent it on something else - my Roth IRA. The statistic are really good that I will become a millionaire before I retire. I did the math. Social Security Kind of like the lottery but without the possibility of a windfall - a sense that eventually the money will come in and everything will be OK. People are more at ease about saving for their own retirement because we believe Social Security will be there if we don't have enough. Examine the Social Security statement you receive in the mail and consider how much the expected $1,900 or so will be worth when you reach age 65. Not much. Too big of a house There is an argument for renting over buying: Monthly rent is usually cheaper than having mortgage payment of the same amount because a renter doesn't have to deal with repairing appliances, replacing a roof, or paying a plumber to fix a leaky pipe. However, paid-for real estate is a great line item on any net worth statement. What can keep someone in the middle class is a house that is too big for their monthly budget. A good rule of thumb is to have a house payment that is no more than 25% of take-home pay, or 30-32% if taxes and insurance (escrow) is included. Anything more than that makes paying saving for retirement, college, even vacation much more difficult. It could greatly slow down building net worth. Credit Scores When was the last time YOU used your credit score? Never. The bank may have checked your score or an insurance agent but consumers do not use their scores. Credit score lending is a quick and easy way to evaluate your credit worthiness and determine the amount of money or the interest rate they will lend you. It's a loan officer's job to lend money, so you're already "in" when you walk in the door. So a credit score can qualify you for a good rate or DISQUALIFY YOU FROM THE BEST RATE. Steve MoneyPlanSOS Stewart no 29:15 There are more financial products out there than there are players in professional baseball. Many are good for our financial lives but some are bad. The following products cause a false sense of...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/PrIjp_SA-8A" height="1" width="1"/>http://moneyplansos.com/sos059-financial-products-that-keep-the-middle-class-middle-class/http://traffic.libsyn.com/moneyplansos/sos059_Financial_Products_that_keep_the_Middle_Class_Middle_Class.mp3 http://feedproxy.google.com/~r/mpsos/~3/M_t5QfCVIvM/ http://moneyplansos.com/sos058-is-couponing-worth-the-time/#comments Sat, 14 Apr 2012 18:46:00 +0000 Steve Stewart http://www.moneyplansos.com/?p=3916 http://moneyplansos.com/sos058-is-couponing-worth-the-time/feed/ 0 Jenny Kerr from TheJennyPincher.com shares her experiences with couponing. Couponing is not just cutting pieces of paper out of your local ads, it involves shopping, travel, and seeking out great values to help you stretch your dollar. Jenny Kerr from TheJennyPincher.com shares her experiences with couponing. Couponing is not just cutting pieces of paper out of your local ads, it involves shopping, travel, and seeking out great values to help you stretch your dollar. It can become more about the Deals Jenny started extreme couponing a few years ago, even while she was unemployed! She tells her story of how couponing started to become an addiction and was more about scoring a "deal" than it was saving money. She even donated many of the items she "scored" to food pantries and rescue shelters. That is very generous from a single person on a budget. How you know it's more than being frugal At one point Jenny it was taking 4-5 hours a day of her life to couponing. She was searching the internet for savings, getting the mailman to deliver extra copies of the local ads, travelling to the stores, and of course the time spent with a pair of scissors. But coupons are totally worth it, right? There can be great savings from clipping coupons. You have to answer the following three questions to yourself to see if the money savings is worth the cost of time clipping coupons. How much time does it take each week? Could I be doing something better with my time? What is my return? What am I getting out of it? The Time Value video Watch the "Time value of couponing" video Jenny produced for Financial Literacy Month 2012. How to find out more from Jenny Find out more about Jenny and how she helps educate single women get out of debt and build wealth by visiting TheJennyPincher.com. You can also sign up for her newsletter and get great money-saving ideas, budgeting techniques, and tips on Recipe Wendesdays. Yum! Also mentioned in this podcast: Saving for vacation: A 90 second video performed by Jackie Walter's daughter showing how one spouse wants to go on vacation now but the other wants to save up and pay for it. REALLY CUTE! A Newsletter? Did you know I have a, uhhhh, newsletter? It really isn't a newsletter but you can sign up to get special tips, announcements, and other weird thoughts that I have on an irregular basis. I promise not to spam you, I don't have enough time to send these things out on a regular basis! Sign up here or go to MoneyPlanSOS.com/Newsletter Steve MoneyPlanSOS Stewart no 29:41 Jenny Kerr from TheJennyPincher.com shares her experiences with couponing. Couponing is not just cutting pieces of paper out of your local ads, it involves shopping, travel, and seeking out great...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/M_t5QfCVIvM" height="1" width="1"/>http://moneyplansos.com/sos058-is-couponing-worth-the-time/http://traffic.libsyn.com/moneyplansos/sos058_Is_couponing_worth_the_time.mp3 http://feedproxy.google.com/~r/mpsos/~3/O4g8AzRCMDU/ http://moneyplansos.com/sos057-perkstreet-a-checking-account-with-rewards/#comments Mon, 09 Apr 2012 04:19:23 +0000 Steve Stewart http://www.moneyplansos.com/?p=3855 http://moneyplansos.com/sos057-perkstreet-a-checking-account-with-rewards/feed/ 0 PerkStreet is a relatively new financial product that's doing everything right: It's a checking account with a debit card that allows you to earn rewards on things you already and the same zero-liability protection major credit cards have. PerkStreet is a relatively new financial product that's doing everything right: It's a checking account with a debit card that allows you to earn rewards on things you already and the same zero-liability protection major credit cards have. I asked the founder and CEO of PerkStreet Financial to share all the great things that are happening at PerkStreet.com. Interview with CEO Dan O'Malley SOS: Who is Dan O'Malley? Mr. O'Malley: I am a long-time financial services executive and an entrepreneur as well as a father and a husband. What I really care about as a person is being able to improve lives. I think at the end of the day it's what we all care about and that's why I started PerkStreet with the rest of our team. There is such an incredible opportunity right now in banking to change how people relate to their money. We're at a fulcrum point right now and we got started with PerkStreet because we thought we could change the industry, change lives, and build a great company at the same time and it's been a lot of fun. SOS: How long has PerkStreet been around? Mr. O'Malley: We founded the company in 2008 and formally launched the business in 2009-2010. For the past 2 years we've been growing very quickly. SOS: What is PerkStreet and what makes it different from other banks? Mr. O'Malley: Our checking accounts are what we call "Personal Profit Engines". We let our customers earn an incredible amount of cash back by banking the way they were already going to bank and buying what they were already going to buy. How it works is you earn cash back for buying things with our debit card, for setting savings goals, for automating finances, for doing things that are smart. You don't earn cash back for things that will get you into trouble and into debt which is typically what a bank wants you to do. That's what makes us different. We let Americans earn cash and improve their financial lives without ever having to worry about getting in to financial trouble. It's liberating, it's exciting, and it's exactly what the industry needs right now. SOS: PerkStreet is like using your local bank but has ATMs all over the nation instead of physical banks, is that correct? Mr. O'Malley: That's right. How we are able to give people such an incredible amount of cash back is by not building branches. Think about it, when was the last time you had to physically walk into a branch - there is no need for it any more. What we do is very similar to how Amazon has changed the way people buy books and music among other things. When you get rid of the branches and locations you can give people an incredible deal. So we have built the best direct checking account in the world. SOS: How does PerkStreet make money? Mr. O'Malley: The ways we make money are the same ways your typical bank is going to make money. Whenever you use our debit card to make a transaction, we make money from that. We get paid a portion of the transaction from the merchant for facilitating the payment. We also make money off holding your money for you and selling other services like wire transfers or selling books of checks and things like that. SOS: Can you share a success story of how PerkStreet has helped one of your customers? Mr. O'Malley: Yes. We ran a promotion once to have people tell us how PerkStreet has made a difference in their lives. The videos and pictures and emails that people sent us within the first 10 hours of launching it were amazing. One is the story of a family that had a tremendous amount of credit card debt. They were really struggling to get out from underneath it and they were trying to work through how they were going to build some momentum behind paying it off. What we were able to help them do is start the momentum growing by giving cash back. I forget the exact amount but it was over $500 in their first year with us and that was the catalyst they needed to end up paying off more than $10,000 worth of debt. Steve MoneyPlanSOS Stewart no 29:23 PerkStreet is a relatively new financial product that&#8217;s doing everything right: It&#8217;s a checking account with a debit card that allows you to earn rewards on things you already and the...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/O4g8AzRCMDU" height="1" width="1"/>http://moneyplansos.com/sos057-perkstreet-a-checking-account-with-rewards/http://traffic.libsyn.com/moneyplansos/sos057_Perkstreet_A_checking_account_with_rewards.mp3 http://feedproxy.google.com/~r/mpsos/~3/N79VaK2lTwc/ http://moneyplansos.com/sos056-jeff-rose-starts-a-roth-ira-movement/#comments Fri, 30 Mar 2012 12:04:21 +0000 Steve Stewart http://www.moneyplansos.com/?p=3793 http://moneyplansos.com/sos056-jeff-rose-starts-a-roth-ira-movement/feed/ 6 Jeff Rose, Certified Financial Planner from GoodFinancialCents, started a Roth IRA Movement. - He shares his story of speaking to a group of youth that have never heard of this wonderful investing option and how he got over 140 bloggers to talk about ... Jeff Rose, Certified Financial Planner from GoodFinancialCents, started a Roth IRA Movement. He shares his story of speaking to a group of youth that have never heard of this wonderful investing option and how he got over 140 bloggers to talk about it. You can find links to ALL the posts at GoodFinancialCents.com (http://www.goodfinancialcents.com/roth-ira-account-movement) Here are some of his favorites: House Of Rose (Jeff's Wife's blog) - I Opened my first IRA at age 22 Money Infant  - 99 problems but a ROTH ain't one ChaCha Chronicles  - Roth IRA Movement (what the what?) Happy Homeowner  - Whitney Houston song titles can teach you everything you need to know about the ROTH IRA I also share my thoughts about ROTHs: Saving for retirement is important I was blessed to start saving a little bit into a 401k in my late 20's. (I wish there was a ROTH IRA option back then). It wasn't much but it was a start. I also didn't know anything about investments so I'm sure I could have done much better. Someone like Jeff Rose could help you select the types of mutual funds you need when deciding to save for your "golden years". But it isn't just which mutual funds to pick, it's how you save the money too because taxation plays a huge part in how you save for retirement. How saving for retirement works Let's start with how a retirement account works. Any qualified retirement account is tax-favored, meaning there are tax breaks. Otherwise it would be a normal investment account and you'd put money that has already been taxed into an account and you would pay taxes on interest, dividends, and the growth when you take the money out. What's really powerful about saving for retirement is the compounding effect. When your account receives interest payments or dividend you want to leave the money there. Let the growth in the account help to grow more money. The dollars grow pennies, when there are enough pennies that make up another dollar, the new dollar starts to grow pennies of it's own, and the cycle continues. Taxes at the end Most retirement accounts, 401k, 403b, Traditional IRAs, SIMPLE IRAs, etc, have a tax benefit at the beginning. That is to say you are allowed to deduct the amount of money you put into these accounts from your gross income, saving you from paying taxes on the money you put in. For example: You start saving $100 in a growth stock mutual fund at age 20. In 1 year you would have put away $1,200 and will deduct that from your taxable income. Let's pretend your income is $50,000. By saving $1,200 in IRAs or 401ks you would be taxed on $48,800, not $50,000. I like to use the example of a Tree. You open an account. You don't pay taxes on the seed. You continue to water the little tree with non-taxed water so it will grow big and strong. You don't pay any taxes on the money (so long as you leave it in there) until you take it out at retirement. Many believe you will be in a lower tax-bracket at retirement and will pay lower taxes so they promote this as a good financial move. I am trying to make people wealthy enough be in the highest tax bracket - meaning they are filthy rich! Taxes at the beginning Now comes the ROTH (Roth IRA or Roth 401k). Here you have to pay taxes on the money you put in, or with our example you would pay taxes on the seed and the water. Here's the beauty of the ROTH. That money has already been taxed. They can't tax it again! By paying taxes on the $100 a month, 12x a year, 480x in 40 years, you will have paid taxes on $48,000 and be able to pick from your $1.176million dollar tree anytime you want (in retirement) without paying another dime in income tax. In most cases you can have the exact same investments in either a Traditional IRA or ROTH IRA, so it really comes down to fees and whether you want to pay taxes on the $48,000 seed or pay taxes on the $1.76million tree. Wanna pay taxes like the rich? Pay for the seed, not the tree! Win $5, Steve MoneyPlanSOS Stewart no 33:53 Jeff Rose, Certified Financial Planner from GoodFinancialCents, started a Roth IRA Movement. He shares his story of speaking to a group of youth that have never heard of this wonderful investing...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/N79VaK2lTwc" height="1" width="1"/>http://moneyplansos.com/sos056-jeff-rose-starts-a-roth-ira-movement/http://traffic.libsyn.com/moneyplansos/sos056_Jeff_Rose_starts_a_ROTH_IRA_Movement.mp3 http://feedproxy.google.com/~r/mpsos/~3/Va1Up40Dlns/ http://moneyplansos.com/sos055-forgiving-student-loans-hr-4170/#comments Wed, 21 Mar 2012 22:40:04 +0000 Steve Stewart http://www.moneyplansos.com/?p=3774 http://moneyplansos.com/sos055-forgiving-student-loans-hr-4170/feed/ 5 Zac Bissonnette, Jon White, Jackie Walters, and Brent Pittman were gracious enough to spend time in helping me understand the Student Loan Forgiveness Act of 2012 that is being put in front of Congress. Thanks to Deacon Bradley from LifeStoked. Zac Bissonnette, Jon White, Jackie Walters, and Brent Pittman were gracious enough to spend time in helping me understand the Student Loan Forgiveness Act of 2012 that is being put in front of Congress. Thanks to Deacon Bradley from LifeStoked.com for making us aware of this! Will the Student Loan Forgiveness Act of 2012 work? The idea is to give student borrowers some relief and forgiveness, which is a wonderful gesture. My guests and I address specific aspects about this Act and we discuss how this could work, and how it won't. Highlights discussed from the Student Loan Forgiveness Act: The 10/10 Standard: Make payments equal to 10% of discretionary income for 10 years and the balance will be forgiven Cap the interest rate on Federal student loans at 3.4% Converting private student loans into the Federal program Changing the Public Service Loan Forgiveness requirement from 10 years to 5 for working in public service positions such as teaching, firefighting, and medicine in underserved communities Jump-starting the economy: Allowing millions of Americans the leeway in their budgets to buy homes, start businesses, and creating jobs Help those who experience illness, unemployment, and divorce. Yes, divorce The biggest question of it all: WHO'S GOING TO PAY FOR THIS? My opinion This is a wonderful gesture, but it can't pass. That's not to say that it couldn't pass, I'm saying this shouldn't pass because it will do what the bailout programs did for our economy a few years ago: Nothing except save couple companies and put America into MORE debt. Guests on this episode and links: Jackie Walters - TheBudgetWorks.com Jon White - JWFinancialCoaching.com Brent Pittman - OnTargetCoach.com Zac Bissonnette, Author of Debt Free U Bonus audio! Zac Bissonnette exclusive! The never before told story of how he got CNN to drop a stupid video from their website. Zac Bissonnette Bonus - CNN pulls video Steve MoneyPlanSOS Stewart no 55:30 Zac Bissonnette, Jon White, Jackie Walters, and Brent Pittman were gracious enough to spend time in helping me understand the Student Loan Forgiveness Act of 2012 that is being put in front of...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Va1Up40Dlns" height="1" width="1"/>http://moneyplansos.com/sos055-forgiving-student-loans-hr-4170/http://traffic.libsyn.com/moneyplansos/055_Forgiving_Student_Loans.mp3 http://feedproxy.google.com/~r/mpsos/~3/Dou05wOumTs/ http://moneyplansos.com/sos054-which-tax-prep-software-should-i-use/#comments Wed, 14 Mar 2012 05:01:28 +0000 Steve Stewart http://www.moneyplansos.com/?p=3714 http://moneyplansos.com/sos054-which-tax-prep-software-should-i-use/feed/ 8 Carrie Smith, CB and PFB Carrie Smith is a Certified bookkeeper (CB) specializing in small business accounting and has been doing so for over a decade. She is also a Personal Finance Blogger and has written articles for Yahoo!Finance, PerkStreet, Carrie Smith, CB and PFB Carrie Smith is a Certified bookkeeper (CB) specializing in small business accounting and has been doing so for over a decade. She is also a Personal Finance Blogger and has written articles for Yahoo!Finance, PerkStreet, and is on a mission to have a guest post on other blogs once a month throughout 2012. (This interview will be counted as one of those, isn't that cool?) Another skill is tax preparation, which she has experience in working with H&R Block for four years (how cute, she's even wearing H&R Block green in the photo). She explains the benefits between the different versions of H&R Block tax software you see on the pallets at BestBuy and Office Depot: Basic: That's what it is, basic! The least expensive box on the shelf but doesn't have the options for reporting things like mortgage interest or business income. Deluxe: A French word for "extra special". OK, seriously. This version includes a Schedule A for Itemizing (mortgage interest, real estate taxes, donations, etc) and the sale of stocks and bonds. Premium: The most expensive gas at the pump. It is also more than 3x as expensive as the Basic version. The benefits of this tax software is that includes the worksheets to help the self-employed and those who have rental income. Premium & Business: This one help when you are takin' care of business. S-corps and LLCs, payroll and vehicle depreciation, some pretty complicated stuff that you could hire a professional for instead and save yourself some aspirin. Can I prepare my taxes without paying someone or using software? I asked Carrie why we should use a tax software package or a professional rather than preparing taxes by hand (the old pencil and paper way). She reminds us that it is very difficult to keep up with the tax law changes from year to year. We could miss a lot of deductions that the software walks us through. Online or stand-alone tax software packages walk you through nearly all the scenarios that could apply to an American household. Save money You could save money by preparing taxes yourself with software and by knowing which version to buy. Each version of H&R Block At Home comes with Audit Support and one free e-file (Federal return only). There is also the option to save more money by only purchasing the Federal software (download without State).  Bonus Video: My download experience I purchased my copy of H&R Block At Home: Premium version and recorded the entire transaction. Click on the photo below to find shortcuts to her site and see how easy the entire transaction was. PS - Wear your tax t-shirt before starting.     Connect with CarefulCents Careful Cents Blog:  http://www.carefulcents.com/  Twitter:  http://twitter.com/carefulcents Pinterest:  http://pinterest.com/carefulcents/  Facebook: http://facebook.com/carefulcents Steve MoneyPlanSOS Stewart no 32:25 Carrie Smith, CB and PFB Carrie Smith is a Certified bookkeeper (CB) specializing in small business accounting and has been doing so for over a decade. She is also a Personal Finance Blogger and has...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Dou05wOumTs" height="1" width="1"/>http://moneyplansos.com/sos054-which-tax-prep-software-should-i-use/http://traffic.libsyn.com/moneyplansos/sos054_Which_Tax_Prep_Software_should_I_use.mp3 http://feedproxy.google.com/~r/mpsos/~3/9Rc8tHspdhI/ http://moneyplansos.com/sos053-understanding-ynab-with-jesse-mecham/#comments Thu, 08 Mar 2012 03:54:30 +0000 Steve Stewart http://www.moneyplansos.com/?p=3692 http://moneyplansos.com/sos053-understanding-ynab-with-jesse-mecham/feed/ 2 Jesse Mecham is the founder of YNAB - You Need A Budget. He shares his story of how YNAB became more than a spreadsheet and has turned into an elegant, beautiful piece of software with a flexible method of budgeting that is very interesting and only ha... Jesse Mecham is the founder of YNAB - You Need A Budget. He shares his story of how YNAB became more than a spreadsheet and has turned into an elegant, beautiful piece of software with a flexible method of budgeting that is very interesting and only has 4 rules. Questions Jesse answers: Who is Jesse Mecham What caused him to create YNAB? How did YNAB become a business? How many people does YNAB employ? What does budgeting mean in YNAB terms? The YNAB process (Four Rules) Give every Dollar a Job Save for a rainy day Roll with the punches Stop living paycheck-to-paycheck You've never budgeted like this That is the slogan Jesse uses at the end of each of his podcast episodes and it is true. Using this month's income to budget next month's expenses is a bit different than zero-based budgeting and having an emergency fund. It allows you to be flexible and to be able to cash-flow any unexpected expenses on-the-fly. Example of how YNAB Buffering works: Imagine you have an envelope with $1,000 in it. Three words are written on the outside of the envelope: For Next Month. When the month begins you take the money out of the envelope and allocate it (spend it) and as you get paid throughout the month you put money into the For Next Month envelope. It's a permanent cushion so long as you never overspend your categories by any large margins. YNAB Looking Forward Not only are they constantly upgrading the software but they are developing a way for YNAB to be in the cloud. This means greater communication between your iPhone and the software and it allows for up-to-date information to be available almost instantly. If your wife spends money at the grocery store, you will see it in YNAB at home. If you pick something up on the way to work, YNAB will track that. Now, if it could just balance my checkbook for me automatically… Links to more information about YNAB Free Trial and webinars: http://YNAB.com YNAB the Book: http://YNAB.com/Method/the-book Facebook: http://Facebook.com/iYNAB Twitter: http://Twitter.com/YNAB   Steve MoneyPlanSOS Stewart no 38:02 Jesse Mecham is the founder of YNAB &#8211; You Need A Budget. He shares his story of how YNAB became more than a spreadsheet and has turned into an elegant, beautiful piece of software with a...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/9Rc8tHspdhI" height="1" width="1"/>http://moneyplansos.com/sos053-understanding-ynab-with-jesse-mecham/http://traffic.libsyn.com/moneyplansos/sos053_Understanding_YNAB_with_Jesse_Mecham.mp3 http://feedproxy.google.com/~r/mpsos/~3/iX2L5mpzlR4/ http://moneyplansos.com/sos052-8-terms-to-understand-when-investing-in-mutual-funds/#comments Thu, 01 Mar 2012 07:37:35 +0000 Steve Stewart http://www.moneyplansos.com/?p=3657 http://moneyplansos.com/sos052-8-terms-to-understand-when-investing-in-mutual-funds/feed/ 0 Diversification Owning a few shares of a bunch of different companies. You could buy 200 shares of Microsoft or you could buy a couple shares of a bunch of different companies. Think of it this way: If you put all your eggs in one basket and drop it t... Diversification Owning a few shares of a bunch of different companies. You could buy 200 shares of Microsoft or you could buy a couple shares of a bunch of different companies. Think of it this way: If you put all your eggs in one basket and drop it then you lose all you've lost everything but if you distribute your eggs into a number of different baskets then dropping one basket doesn't cost you much. This is what a Mutual Fund does, it lets you buy a bunch of different stocks with a bunch of different people. Risk Tolerance This is your personal outlook on loss. How much could you stand to lose before it became too much for you? Don't invest in a hot stock if it will keep you up at night because you are worried that it went down 10 cents yesterday. Knowing how much risk you are willing to take before investing is extremely important. Dividends The purpose of dividends is to share the profits with shareholders. Example: I own 12 shares of Boeing stock. Every quarter they share their profits with me. It isn't very much, around $18.00 a year, but that's because I don't own much. The real power comes from reinvesting the dividends. Re-invest When dividends are issued you have two options: Cash the check or re-invest. In my example of 12 shares of Boeing, I could simply deposit the money in my checking account or I could use that money to buy another share of Boeing stock. I chose to re-invest because of the power of compounding. Compound Interest/Growth Think of a fly-wheel: Once the wheel starts turning then it is easier to turn it more and the wheel goes faster. Another example would be peddling a bike: It takes more energy to get a bike to start moving but once you get going it doesn't require much more of your energy to make it go faster. This is similar to how Compound Interest works. Another example would be: You put $5,000.00 into savings that earns 1% a year ($50.00). At the end of one year you would have a total of $5,050.00. Allow that money to compound again and your $5,050.00 would grow $50.50, giving you a total of $5,100.50. The next year your investment would grow $51.00, giving you a new total of $5,151.50. Let that money ride without adding anything to it and you will have $5,468.43 in 10 years and $7,370.61 in 40 years! That's compounding interest. Expenses I won't go into detail about expenses, these are simply the cost of buying or managing the account. Capital Gains Tax No discussion about investing would be complete without addressing taxation. You must understand Capital Gains tax. Currently, capital gains are taxed at a maximum of 15%. In other words, if your mutual fund realized a gain of $1,000 last year then you would pay $150 in income tax. Realized Did you ever have something happen and then later you "realized" what it was? The same term can be used when describing profits from shares of stocks that you earn interest or income from, including dividends. Receiving income, interest, or dividends from an investment portfolio must be "realized" and included in your income tax return. Note: You do not realize capital gains from investments such as 401k, ROTH IRA, or similar accounts with tax-deferred status. Mutual funds are an easy way to put money away for the future, are less risky than single stocks, and have a history of much greater growth than bonds. Holla From The Char-GRRRR Steve MoneyPlanSOS Stewart no Diversification Owning a few shares of a bunch of different companies. You could buy 200 shares of Microsoft or you could buy a couple shares of a bunch of different companies. Think of it this way:...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/iX2L5mpzlR4" height="1" width="1"/>http://moneyplansos.com/sos052-8-terms-to-understand-when-investing-in-mutual-funds/http://traffic.libsyn.com/moneyplansos/sos052_8_Terms_to_understand_when_investing.mp3 http://feedproxy.google.com/~r/mpsos/~3/fhZidN6o3WI/ http://moneyplansos.com/sos051-earn-points-and-miles-without-credit-cards/#comments Fri, 24 Feb 2012 06:52:00 +0000 Steve Stewart http://www.moneyplansos.com/?p=3635 http://moneyplansos.com/sos051-earn-points-and-miles-without-credit-cards/feed/ 1 One thing that happens when traveling a lot is we tend to grow a large collection of reward memberships: Car rentals, airlines, hotel programs, there are all kinds of ways to collect points or earn rewards. Free stuff is great, right? - One thing that happens when traveling a lot is we tend to grow a large collection of reward memberships: Car rentals, airlines, hotel programs, there are all kinds of ways to collect points or earn rewards. Free stuff is great, right? Why they offer... Steve MoneyPlanSOS Stewart no 23:44 One thing that happens when traveling a lot is we tend to grow a large collection of reward memberships: Car rentals, airlines, hotel programs, there are all kinds of ways to collect points or earn...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/fhZidN6o3WI" height="1" width="1"/>http://moneyplansos.com/sos051-earn-points-and-miles-without-credit-cards/http://traffic.libsyn.com/moneyplansos/sos051_Earn_Points_and_Rewards_without_Credit_Cards.mp3 http://feedproxy.google.com/~r/mpsos/~3/9SVkhfVqcgQ/ http://moneyplansos.com/sos050-who-cares-what-dave-ramsey-says/#comments Sat, 18 Feb 2012 18:17:07 +0000 Steve Stewart http://www.moneyplansos.com/?p=3583 http://moneyplansos.com/sos050-who-cares-what-dave-ramsey-says/feed/ 5 I'm a HUGE Dave Ramsey fan. I listen to all three hours of the radio show, occasionally volunteer at live events, and I'm the only individual in Missouri who is Certified to teach the Financial Peace University Workplace Edition along with completing h... I'm a HUGE Dave Ramsey fan. I listen to all three hours of the radio show, occasionally volunteer at live events, and I'm the only individual in Missouri who is Certified to teach the Financial Peace University Workplace Edition along with completing his Counselor Training course. I like to show off my picture with him in his studio. Oh, and did I mention I have a hobby blog called DaveRamseyFan.com? When I first heard the Dave Ramsey show I was driving through Southern Illinois about a decade ago (before iPods, podcasts, and I can't remember having a CD player in that car). I stumbled upon a radio station about to go to a commercial break. The DJ was playing the Rippingtons, a jazz group I liked, so I decided to stick around after the break. When the commercials were over the DJ started playing a song by Heart. The Rippingtons and Heart on the same station? Now THAT'S variety! But the DJ kept talking and I suddenly realized he wasn't a DJ, he was a talk radio show host. I almost changed the station but this redneck on the radio reminded me of a guy I used to listen to in the late 1990's, Bruce Williams, so I stuck around. Dave Ramsey is no Bruce Williams At first I thought he was just some southern shock-jock saying crazy things to get the listeners upset and riled up, kind of like a clean Howard Stern. Cut up your credit cards? Pay off the car early? That stuff doesn't work Mr. Ramsey, or so I thought at the time. I kept listening, checked out resources on his website, and found out that he was right - ABOUT EVERYTHING. Now I'm a sold out Dave Ramsey fan. So what's up with the title of this episode? PLEASE don't ever start a sentence with "Dave Ramsey says...". Who cares what Dave Ramsey says? You'd be a fool to buy every get-rich-quick idea on midnight cable or to believe that what you hear on the news is a true representation of what life looks like in every city. You need to learn about these things for yourself. Don't ever say "Steve Stewart Says" either I hope this podcast doesn't TELL you how to live but that it shows you how money really works, kind of like taking a shop class consisting of Excel spreadsheets. You could get by without listening to my show or ever taking a  financial literacy course, but if you want to speak into someone's life with authority and a true knowledge about personal finance then you need to learn. What you can do to learn without 4-years of college Take a financial literacy course. April if Financial Literacy month, maybe you can find a free class being offered in your state such as Money Smart Week offered by the Federal Reserve Bank of Chicago. Read some books. I recommend the Millionaire Next Door, the Total Money Makeover (no surprise there), or a fun one called The Wealthy Barber. There are a bunch of great ones I recommend in the "SOS Library" page of my website. Of course you could always take Dave Ramsey's Counselor Training. You can read about some of my experiences in a series of blogposts or go to DaveRamsey.com. Top 50 Money Topic Checklist Download the Future Financial Minister Top 50 Money Topic Checklist to see how much you already know about personal finance issues. This is not a test, there is no score. This is just for you! Also, Holla From The Impala: Do you balance your checkbook? I balance my checkbook the old-fashioned way. How do you balance your checkbook? I would love to hear what you and how it has helped you catch fraudulent charges or mistakes like the ones I have. Steve MoneyPlanSOS Stewart no 20:25 I&#8217;m a HUGE Dave Ramsey fan. I listen to all three hours of the radio show, occasionally volunteer at live events, and I&#8217;m the only individual in Missouri who is Certified to teach the...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/9SVkhfVqcgQ" height="1" width="1"/>http://moneyplansos.com/sos050-who-cares-what-dave-ramsey-says/http://traffic.libsyn.com/moneyplansos/sos050_Who_Cares_What_Dave_Ramsey_Says.mp3 http://feedproxy.google.com/~r/mpsos/~3/uWuu24r1A1M/ http://moneyplansos.com/sos049-recommended-percentages/#comments Thu, 09 Feb 2012 05:44:02 +0000 Steve Stewart http://www.moneyplansos.com/?p=3557 http://moneyplansos.com/sos049-recommended-percentages/feed/ 2 This is a great exercise to see if there are any financial anomalies in your house that are out of whack. The spreadsheet (Recommended Percentage spreadsheet) includes high and low percentages recommended for 11 categories. This is a great exercise to see if there are any financial anomalies in your house that are out of whack. The spreadsheet (Recommended Percentage spreadsheet) includes high and low percentages recommended for 11 categories. How do you compare to someone who is debt free? Follow the instructions in this episode to find out. Note: This is not for budgeting, it is a tool only to be used in comparing each of the generalized categories to recommended percentages. And, of course, your mileage may vary. How to use the Recommended Percentage Spreadsheet Enter your expected take-home pay in the first yellow box at the top. This will formulate all the recommended amounts and percentages for you in the suggested ranges for each category. Enter the amount you spent for each category last month or what you anticipate to spend this month. Feel free to use round numbers. The spreadsheet automatically calculates Your percentage of income spent (or will spend) on each category (in blue cells) Your amount (over or under) spent versus the high recommend (in orange cells) Your percentage spent over the highest recommended percentage (in orange cells) What if I'm debt free (except the mortgage) I give my recommendation percentages for households that are debt free in the blue cells. You can also see in the green cells. Imagine the increased percentages when the allocated percentage for debt is $0. You could put more into Giving, Saving, or even Fun & Recreation. Now THAT'S something I would highly recommend! Holla From The Impala: Happy Vadertines Day Reminder: I'm goin' back to Cali on February 29th, 2012. I would love to meet you at Lucille's BBQ at 11338 South St in Cerritos, CA around 7pm. Let me know if you are coming! Steve MoneyPlanSOS Stewart no This is a great exercise to see if there are any financial anomalies in your house that are out of whack. The spreadsheet (Recommended Percentage spreadsheet) includes high and low percentages...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/uWuu24r1A1M" height="1" width="1"/>http://moneyplansos.com/sos049-recommended-percentages/http://traffic.libsyn.com/moneyplansos/sos049_Recommended_Percentages.mp3 http://feedproxy.google.com/~r/mpsos/~3/HMnfmvYCVuI/ http://moneyplansos.com/sos048-invest-like-spock/#comments Fri, 03 Feb 2012 23:22:18 +0000 Steve Stewart http://www.moneyplansos.com/?p=3546 http://moneyplansos.com/sos048-invest-like-spock/feed/ 0 Emotions help make most of the decisions with our disposable income. A lot of what we do with our money is based on emotions: We want something, we like something, it sounds good or looks good. Some play  money is alright but what about investing? Emotions help make most of the decisions with our disposable income. A lot of what we do with our money is based on emotions: We want something, we like something, it sounds good or looks good. Some play  money is alright but what about investing? Do you use the same behaviors when deciding to invest? We need to invest like Spock Deciding how, where, and why to invest should not be taken lightly. We need to think logically and look at the data, the facts. Spock from Star Trek is a great example of how to approach investing wisely. He didn't let emotions get into the way of making the right decision and he didn't care how others felt about the choices he made. They were based on facts. There are three things to think about when starting to invest I am not a Financial Planner and don't know much about specific investments. But I do consider these three easy to understand things before investing a dollar into anything. Purpose What is the purpose of the money? Don't just put in the market for the sake of being in the market. You must give the money a purpose. Examples: Retirement, a second home, kid's college Timeline How long before you need to take out the money? Investing is a great way to get a good rate of return when saving money for more than 5 years. Risk Tolerance Listen to me explain how my risk tolerance increases (meaning I was willing to take more risk) when first riding roller coasters. You must know how much you are willing to risk before boarding because once you are on, you are on. You also don't want to jump off too soon. If your risk tolerance is low then you probably want to start with the kiddie Dragon coaster. Don't let the media scare you from the market The media is trying to get your eyeballs. If it bleeds it leads. The weather isn't mostly sunny, it's partly cloudy with a chance of storms on Thursday. You gotta watch that, right? The same is when the stock market drops. You hear more headlines about the bad economy than success stories of the good stuff. Spock would evaluate the data, and here it is Download this spreadsheet and follow along: S&P500 trends Excel The S&P500 lost 8% or more twenty times in the past 100 years. But it GAINED more than 12% fifty times! Did you hear that? It gained more years than it lost! When we take into account multiple year, evening out the waves, we can plainly see that the S&P NEVER LOST MONEY when looking at an average of 5+ years. In fact, the trends average more than 8% or more 91 times out of 100. Granted, these are not inflation-adjusted numbers but you are more likely to win than loose over the long haul. Not so scary anymore, huh? Investing is part of anybody's moneyplan after getting out of debt. Once you fully realize this and see how compound interest and re-invested dividends work you should feel more comfortable in creating a portfolio of investments. When you have a purpose for your extra money, a timeline before you need it, and understand your risk tolerance level you will be able to look at the data and make smart decisions, just like Spock. Also in the show: Holla from the Impala Top 5 ways you know you are a sold-out Dave Ramsey fan Join me on leap-year day! I'm going back to Cali! Come join me at Lucille's in Cerritos, CA on the evening of February 29, 2012. We'll get some BBQ and hang out in the bar area for a while. Right now I am planning on 7pm but this could change (depending on traffic - yikes!) Lucilles in Cerritos is located at 11338 South St and their phone number is 562-916-7427   Steve MoneyPlanSOS Stewart no Emotions help make most of the decisions with our disposable income. A lot of what we do with our money is based on emotions: We want something, we like something, it sounds good or looks good. Some...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/HMnfmvYCVuI" height="1" width="1"/>http://moneyplansos.com/sos048-invest-like-spock/http://traffic.libsyn.com/moneyplansos/sos048_Invest_Like_Spock.mp3 http://feedproxy.google.com/~r/mpsos/~3/FJj-9Hj9rRw/ http://moneyplansos.com/sos047-who-do-you-work-for/#comments Fri, 27 Jan 2012 06:10:03 +0000 Steve Stewart http://www.moneyplansos.com/?p=3503 http://moneyplansos.com/sos047-who-do-you-work-for/feed/ 2 Pretend you work for $20 an hour and wanted to buy a new iPod Touch for $200. You would need to work for 10 hours to make $200, right? What we forgot in the calculation - income taxes Don't forget that income taxes come out of your paycheck. Pretend you work for $20 an hour and wanted to buy a new iPod Touch for $200. You would need to work for 10 hours to make $200, right? What we forgot in the calculation - income taxes Don't forget that income taxes come out of your paycheck. Pretend your effective tax rate (how much taxes you pay) is 20% of your earnings. In this scenario you would bring home $16 after taxes. How much would you need to work in order to buy that iPod? 12.5 hours. Wait, there's more - Sales Tax But you forgot about sales tax. If sales tax is 8% then you would pay $216 for a $200 item, which would mean you would have to work for 13.5 hours. Credit Card debt makes it worse What if you don't pay cash (or debit/check) for the iPod and charged it to a credit card instead? If interest on your card is 12% annually (about 1% a month) then the debt of this gadget will now cost you 13.64 hours of work, AN ADDITIONAL 8 MINUTES JUST FOR THE INTEREST. A "good" interest rate The normal American finances their car. If they finance a $20,000 car with an 8% sales tax at 2.99%, what many would say is a good interest rate, they would have a balance of $21,600. This is the equivalent of 3.36 hours of work for the interest charges of the loan. It will take more than 5 work weeks to cover the interest on a $20,000 car loan. Work for yourself, not for Visa Paying interest costs you future income and valuable, precious time! Making purchases with debt products is a promise to your family that you will be leaving them in order to pay taxes to the government and interest to the banks.   Join the http://Facebook.com/MoneyPlanSOS group Follow me on Twitter.com/MoneyPlanSOS     Steve MoneyPlanSOS Stewart no Pretend you work for $20 an hour and wanted to buy a new iPod Touch for $200. You would need to work for 10 hours to make $200, right? What we forgot in the calculation &#8211; income taxes...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/FJj-9Hj9rRw" height="1" width="1"/>http://moneyplansos.com/sos047-who-do-you-work-for/http://traffic.libsyn.com/moneyplansos/sos047_Who_Do_You_Work_For.mp3 http://feedproxy.google.com/~r/mpsos/~3/A6a3vggN4Uk/ http://moneyplansos.com/sos046-defending-suze-orman/#comments Thu, 19 Jan 2012 03:32:35 +0000 Steve Stewart http://www.moneyplansos.com/?p=3454 http://moneyplansos.com/sos046-defending-suze-orman/feed/ 5 I'm defending Suze Orman, not for her behavior in calling some personal finance bloggers idiots but for something she did with her "Approved Card" that I would love to see other card issuers do. Why am I even talking about this? I'm defending Suze Orman, not for her behavior in calling some personal finance bloggers idiots but for something she did with her "Approved Card" that I would love to see other card issuers do. Why am I even talking about this? Last week Suze Orman released a new financial product, a prepaid card. Because she is a celebrity and is promoting her new product as "The Smart Choice For You" it is the responsibility of financial bloggers, personal finance coaches, and others in the finance industry to know about its features and inform their readers/subscribers. Some PF Bloggers gave their opinions, including my own, and gave our honest opinions. After some exchanges on the internet that were less than favorable, Suze Orman called some of them Idiots. Why defend Suze Orman Suze was blasted for all the fees. Yes, this is a product with lots of fees if you don't use it the way she says to. And many of the "benefits" of the card are things you can (and should) be doing without her card. With that said, she does disclose the fees in a fairly easy-to-find manner on her website. As far as I can tell there are no hidden fees, which allows me to make a fully-informed decision on our own. If other credit cards were as up-front with their fee structure and helped us understand exactly how to use them without getting into trouble then it would be more difficult to hate the credit card industry. Take out the ruckus Take out the emotion, the celebrity endorsement, and the social media ruckus around her using the word "Idiot" and we will see who this card is for: This is a card for a select segment of America who are fans of Suze Orman and will handle this card in exactly the way she says or for the "un-banked", those who are living in our electronic culture but do not have a bank account or credit card. Evaluate things with a critical eye Don't take my word for it, don't take your friends (or enemy's) word for it, take a look for yourself. Evaluate things with a critical eye. Utilize the information presented by others to aid in your research and ask yourself "Is this a product for me?"  You will be better served by your gut feelings than a celebrity endorsement any day of the week. Then you can decide if you "Approve" of this card. How I can support her Regardless of my feelings towards Suze, I can support her in teaching others about managing their debt. She could go farther in helping people eliminate debt from their lives for good and stop being a Hypocrite (blogpost I wrote in 2010), but she is helping people get headed in the right direction. I can support someone who is leading folks downfield towards the endzone, maybe that will allow me to intersect them, change their direction, and get them to the goal posts. Bonus material not in the podcast: The additional coverage of Suze calling bloggers "Idiots" has created more media than if it never had happened. This has gotten us (me included) to talk about it even more, given it free advertising, and segmented a majority of the population. There are now 3 camps: Those who aren't paying attention to any of this (I somewhat envy them) Suze fans who will defend her and do anything she says (Ormanites?) And those who disagreed with (or disliked) Suze from the start and now have new "she called me an Idiot" ammo You probably know which camp I am in, although I will try to act more "Approvingly". More bonus material (mentioned in the podcast): Stewart household budget and checkbook register template I've been using, developing, and improving a spreadsheet for our household that works great for Budgeting AND for tracking spending (checkbook register). I've simplified it and added a couple categories to fit the majority of American households (like car payments) but you need to change it to match YOUR financial life. Download a copy for free go to http://www.moneyplansos.com/Budget2012 Steve MoneyPlanSOS Stewart no I&#8217;m defending Suze Orman, not for her behavior in calling some personal finance bloggers idiots but for something she did with her &#8220;Approved Card&#8221; that I would love to see other...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/A6a3vggN4Uk" height="1" width="1"/>http://moneyplansos.com/sos046-defending-suze-orman/http://traffic.libsyn.com/moneyplansos/sos046_Defending_Suze_Orman.mp3 http://feedproxy.google.com/~r/mpsos/~3/zLOz_ImK8Hw/ http://moneyplansos.com/sos045-setting-goals-part-2/#comments Thu, 12 Jan 2012 14:23:35 +0000 Steve Stewart http://www.moneyplansos.com/?p=3423 http://moneyplansos.com/sos045-setting-goals-part-2/feed/ 1 Jon White continues this week in Part 2 of Setting Financial Goals in 2012. In Part 1 of Setting Goals for 2012 In Episode 44 we discussed taking a look at where you are before you get started: How much do you have in debt, how much in savings, Jon White continues this week in Part 2 of Setting Financial Goals in 2012. In Part 1 of Setting Goals for 2012 In Episode 44 we discussed taking a look at where you are before you get started: How much do you have in debt, how much in savings, and how much income do you have coming in monthly to apply towards your household budget? After getting your debt paid off and having an emergency fund, now you get to enjoy your money! What to do when you have no debt What are some things you have wanted to do but could not because of monthly payments? Things such as vacations, home remodels, and buying newer cars fall into this category. In addition, now is the time to start saving for Tree-tirement. But where do we save for retirement? The two most common ways are through 401(K)’s and IRA’s. Finally, it is one thing to talk about your dreams and goals, but it is another to actually go out and do them. So how do we accomplish our dreams? You must do these things: Write them down so you can be reminded of them everyday Make them specific and measurable Figure out your "Why". Why do you want to reach this goal? Create your MONEYPLAN and set some savings goals. How much do you need to cut from your budget to make this happen? How much do you need to save? How will you save the money? Look at the long-term reward, not the short-term pain. In other words, set your eyes on the goalposts and not the 350 lbs linebacker heading your way Don't let a tackle take you out of the game When you get knocked down on the field, or even get pushed back behind the line of scrimmage, get back up and make another play. If you don't set your eyes on the goal you could get spun around and start heading the wrong way. You could end up like Jim Marshall who took the football and ran it into his own end zone! Don't set resolutions, set goals that are SMART: Specific, Measurable, Attainable, Relevant, and Time-framed. You will reach the endzone for as long as you don't quit. Steve MoneyPlanSOS Stewart no Jon White continues this week in Part 2 of Setting Financial Goals in 2012. In Part 1 of Setting Goals for 2012 In Episode 44 we discussed taking a look at where you are before you get started: How...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/zLOz_ImK8Hw" height="1" width="1"/>http://moneyplansos.com/sos045-setting-goals-part-2/http://traffic.libsyn.com/moneyplansos/sos045_Setting_Goals_Part_2.mp3 http://feedproxy.google.com/~r/mpsos/~3/oUA_n-p7EkY/ http://moneyplansos.com/sos044-setting-goals-with-jon-white/#comments Fri, 06 Jan 2012 05:48:41 +0000 Steve Stewart http://www.moneyplansos.com/?p=3346 http://moneyplansos.com/sos044-setting-goals-with-jon-white/feed/ 1 The first of a 2-part series from Jon White from JWFinancialCoaching.com Resolutions are like the End Zone Most people make resolutions like "I want to lose weight" or "I want to save more money this year". The first of a 2-part series from Jon White from JWFinancialCoaching.com Resolutions are like the End Zone Most people make resolutions like "I want to lose weight" or "I want to save more money this year". Resolutions are like the end zone on a football field, a wide area that we want to reach someday. It may look like it will be easy to get to but we suddenly find obstacles are in the way and we get discouraged when we don't advance very far down the field. We should aim for the Goal Posts In order to be successful we need Goals. Aiming for the goal posts make our efforts more focused, more specific, and it is more difficult to get us off track. The football is always snapped from the center of the field in line with the goal posts, this gives you room to make your moves and avoid getting sidelined! Once you have set your sights on the Goal You know what I'm going to say here: You need to PLAN your way to the goal. Most touchdowns are not made by throwing the football 50 yards into the end zone. They are made by small, strategic movements in the right direction. You can easily see the progress you have made and stay motivated, ultimately reaching the goal! Setting financial goals for 2012 What are your financial goal posts for 2012? Did you promise yourself to pay off some debt, save for emergencies, put more money into your retirement account? How much or how long? What are some smart money-moves we can make to increase our net worth? Jon White, host of JW's Financial Coaching Podcast and the Debt Free Living Podcast, lays out our easy-to-follow strategy to help get you started, no matter what your current financial situation is. Need to pay down debt? This plan is for you. Need to save for emergencies? This plan is for you. Want to save for kid's college? You'll have to wait until next week's release of Part 2 but we've got you covered. This step-by-step plan allows everyone to jump in wherever they are and head for the goal posts! But you have to first get on the field and play, so let's get started! Steve MoneyPlanSOS Stewart no The first of a 2-part series from Jon White from JWFinancialCoaching.com Resolutions are like the End Zone Most people make resolutions like &#8220;I want to lose weight&#8221; or &#8220;I want to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/oUA_n-p7EkY" height="1" width="1"/>http://moneyplansos.com/sos044-setting-goals-with-jon-white/http://traffic.libsyn.com/moneyplansos/sos044_Setting_Goals_with_Jon_White.mp3 http://feedproxy.google.com/~r/mpsos/~3/Juy3_aTepU0/ http://moneyplansos.com/sos043-top-11-of-2011/#comments Fri, 30 Dec 2011 16:19:18 +0000 Steve Stewart http://www.moneyplansos.com/?p=3322 http://moneyplansos.com/sos043-top-11-of-2011/feed/ 1 If you are new or want to revisit MoneyPlanSOS podcast episodes More than a year has passed since the introduction of the MoneyPlanSOS podcast. Here is a list of the Top 11 episodes from 2011: Episode #5: The Absolute Simplest Budget That Works an... If you are new or want to revisit MoneyPlanSOS podcast episodes More than a year has passed since the introduction of the MoneyPlanSOS podcast. Here is a list of the Top 11 episodes from 2011: Episode #5: The Absolute Simplest Budget That Works and the Absolute Simplest Budget In Excel vid-torial Episode #10: Should I Tithe While In Debt and the importance of giving, even while paying off debt Episode #14: Become A Coach with Justin Lukasavige, Dave Ramsey Certified Counselor who wrote a book about becoming a coach Episode #18: Jen and Bob McDonough's Real Life Case Story Episode #22: Living Without Credit Cards Part 4 (also Part 1, Part 2, and Part 3) Episode #24: Zac Bissonnette as guest for this Real Life Case Study Episode #25: Dave Ramsey's Great Recovery Action Steps Episode #30: Glenn and Fredonna's Real Life Case Story, the same couple we featured in Episode #3's Real Life Case Study with Don Current Episode #33: eCredable is Incredible, interview with CEO Steve Ely Episode #36: Should I Refi and all that is involved when considering refinancing your house Episode #39: Open Enrollment series Part 3: 401k or Roth IRA? (also Insurance Options and Cafeteria Plans) Other 2011 highlights for the MoneyPlanSOS website Most Tweeted: Blogpost "10 Things Poor People Say" Blogpost series: Money Is Like...Your Checkbook, Driving a Car, Cereal boxes, Reading Box Scores Financial Literacy Month: Daily 1-minute videos featuring Jeff Kosala from DeliverAwayDebt.com, Jake Stichler from DebtSucksBlog.com, and Brad Chaffee from EnemyOfDebt.com who's video was featured in an article by Kathy Kristof from CBS MoneyWatch.com called "Is Uncle Sam Smarter Than A 5-year old?" Most Commented: Dave Ramsey Says 10 Broke Things Most Downloaded: Podcast #18: Jen and Bob McDonough's Real Life Case Story Jen McDonough wrote a book about how she faced an insurmountable goal of completing the IronMan! The book, called 'Living Beyond Awesome', is available in eBook form from her site or in paperback at Amazon. Vacation Savings videos: A collection of short videos with tips on how to save on, or save for, vacation   Steve MoneyPlanSOS Stewart no If you are new or want to revisit MoneyPlanSOS podcast episodes More than a year has passed since the introduction of the MoneyPlanSOS podcast. Here is a list of the Top 11 episodes from 2011:...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Juy3_aTepU0" height="1" width="1"/>http://moneyplansos.com/sos043-top-11-of-2011/http://traffic.libsyn.com/moneyplansos/sos043_Top_11_of_2011.mp3 http://feedproxy.google.com/~r/mpsos/~3/Nwq6Xqx70Kg/ http://moneyplansos.com/sos042-changing-values-into-valuables/#comments Fri, 23 Dec 2011 14:16:54 +0000 Steve Stewart http://www.moneyplansos.com/?p=3310 http://moneyplansos.com/sos042-changing-values-into-valuables/feed/ 0 We all have things we value One of the things we have to do when building our house of financial freedom open up some windows (share and experience things with others). I call this giving. There are plenty of ways to be a giver. We all have things we value One of the things we have to do when building our house of financial freedom open up some windows (share and experience things with others). I call this giving. There are plenty of ways to be a giver. 5 ways to turn things we value into something valuable for others Give monetary gifts or buy gifts for others with money. This is what most Americans have become accustomed to, and it's the easiest Turn Talents into Acts of Service Volunteer Time Turn your Passion into something Productive Exchange points from rewards programs into gifts for others (kind of like #1) Also: Holla From The Impala Second-guessing myself wishing you a Merry Christmas? Steve MoneyPlanSOS Stewart no We all have things we value One of the things we have to do when building our house of financial freedom open up some windows (share and experience things with others). I call this giving. There are...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Nwq6Xqx70Kg" height="1" width="1"/>http://moneyplansos.com/sos042-changing-values-into-valuables/http://traffic.libsyn.com/moneyplansos/sos042_Changing_Values_Into_Valuables.mp3 http://feedproxy.google.com/~r/mpsos/~3/E92zwRCMVik/ http://moneyplansos.com/sos041-they-need-our-eyeballs/#comments Sat, 17 Dec 2011 07:45:59 +0000 Steve Stewart http://www.moneyplansos.com/?p=3256 http://moneyplansos.com/sos041-they-need-our-eyeballs/feed/ 3 In Episode 40 I shared with you Who I Am and that you can’t believe everything you read (or see on TV). The media does’t make money unless they sell advertising. What do they need for advertisers to pay them money? They need eyeballs. The more readers, In Episode 40 I shared with you Who I Am and that you can’t believe everything you read (or see on TV). The media does’t make money unless they sell advertising. What do they need for advertisers to pay them money? They need eyeballs. The more readers, the more money collected in advertising Why do you think a SuperBowl commercial can cost billions to air when it’s only 15-30 seconds long? The eyeballs. The largest watched TV event each year is the SuperBowl so advertisers know they can get their product in front of millions and millions of eyeballs. How a paper or news source gets our attention So how does a newspaper or news source get our eyeballs? Headlines! Fantastic, extreme, bold headline titles. “If it bleeds, it leads”, the more miserable the scarier, and the more our eyeballs keep reading so we don’t miss something “important”. I don’t read the paper very often and I certainly don’t tune into the nightly news. The majority of it is bad news. Even the weather reports have an air of urgency whenever there is a rain cloud forming over Iowa that “could produce some heavy rains on Wednesday”.  You wouldn’t hire a stock broker whose predictions were as “iffy” as Meteorologist Jim Blow. When I do read When I do read something I have to approach it with critical thinking, with an eye for the “creative writing” in the sentences. Today was one such day. Here’s what I read: Recession Attitudes but Christmas Cheer Spending by Steve Liesman, CNBC.com My thoughts: 53% believe it's a bad time to invest in the market This statement sounds scary, doesn't it? If this is true and the “Buy Low, Sell High” theory of investing still applies then 53% believe stocks are up, overvalued, or that things are going to get really bad, even worse than they have been, in the next 5+ years. So these folks should be saving cash for when they are ready to get into the market. That may mean the other 47% believe it is a good time to invest, that stocks are undervalued or are convinced their investments will be more valuable when they actually pull the money out (in the next 5-45 years). I'd keep investing, and that's what we are doing. This statement sounded rather scary when I first read it. Don't let it deter you from your money plan. Whether the market is good or bad, saving and investing is always a good idea. ...a more reasonable level of inflation next year? Jay Campbell stated "Americans are weary from years of bad economic news and are skeptical that things will improve any time soon. Perhaps because they are looking to create a bright spot, and coupled with expectations for a more reasonable level of inflation next year, consumers across the spectrum have decided to make this a merrier holiday." Seriously? Most Americans do not take into consideration next year’s lowered increase of inflation when doing their Christmas budget this year. But most Americans don’t do a Christmas budget, so inflation or no inflation, people will spend more money if they want to. A cheery outlook indeed. Those expecting wages to rise plan to boost their spending 56% WOW! This one got my eyeballs. I had to go back and read it again. Did my printer make an error? Nope, that's what it says. Is this seriously what respondents to the survey said? If so, here is a comparison between this year's expected spending and what next year would look like if we did spend 56% more on Christmas in 2012: Americans who believe their home prices will increase plan the highest holiday spending In a sign of how critical home prices are to the outlook, Americans who believe their home prices will increase in the next 12 months plan the highest holiday spending of any group.  He's got my attention again. Is this saying that those who think home values will go up will allow them to spend more? What does the value of ones home have to do with spending? But it's right there in black and white. Regardless of what you read Steve MoneyPlanSOS Stewart no In Episode 40 I shared with you Who I Am and that you can’t believe everything you read (or see on TV). The media does’t make money unless they sell advertising. What do they need for advertisers to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/E92zwRCMVik" height="1" width="1"/>http://moneyplansos.com/sos041-they-need-our-eyeballs/http://traffic.libsyn.com/moneyplansos/sos041_They_Want_Our_Eyeballs.mp3 http://feedproxy.google.com/~r/mpsos/~3/Var0lSuMNk8/ http://moneyplansos.com/sos040-who-i-am/#comments Wed, 07 Dec 2011 06:08:00 +0000 Steve Stewart http://www.moneyplansos.com/?p=3226 http://moneyplansos.com/sos040-who-i-am/feed/ 4 I don't really have a story. There was no life-altering event or pre-destined career choice I followed in order to help people with their personal finances. Sorry, no car chases or bungee-jumping in my history caused me decide to do what I do. I don't really have a story. There was no life-altering event or pre-destined career choice I followed in order to help people with their personal finances. Sorry, no car chases or bungee-jumping in my history caused me decide to do what I do. But we like to know about people’s stories, find out who they are, and how they were changed by the experiences they had. This is my attempt to share my story. Who I am Who am I? Your humble servant and Personal Finance Architect! How did I come to be a coach? That is a question I get often from people who want to become a financial coach and/or take Dave Ramsey’s Counselor Training. But before I tell you all about that experience, I feel it is important that you know more about me. What caused this goofy guy to become a financial coach and Mr. “Pay Attention Not Interest”? What forms you Even some of the most inconsequential events in our lives can be lessons that form us into who we are today. I share some of the things I did before helping everyday Americans with their personal finances. For example: Playing with electric trains forces you to learn to plan ahead or the train falls off the ping-pong table it was set up on. Try this (the Who I Am sheet) Download a blank copy of this “Who I Am sheet ” sheet.  On the left side write down all the things you remember doing, “What I Did”. On the right-hand side describe how those things affected you, essentially “What I Learned”. This was the exercise I completed in order to prepare for this episode and it made me realize how much of my past changed me into who I am today. Mentioned in this episode (click on pictures):  What I Wear Post Tree-Tirement: A simple way to show how saving for retirement works Dave Ramsey Reads 10 Broke Things remix Steve MoneyPlanSOS Stewart no I don&#8217;t really have a story. There was no life-altering event or pre-destined career choice I followed in order to help people with their personal finances. Sorry, no car chases or...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/Var0lSuMNk8" height="1" width="1"/>http://moneyplansos.com/sos040-who-i-am/http://traffic.libsyn.com/moneyplansos/sos040_Who_I_Am.mp3 http://feedproxy.google.com/~r/mpsos/~3/6WM5oFdzybk/ http://moneyplansos.com/sos039-open-enrollment-401k-or-ira/#comments Wed, 23 Nov 2011 06:39:15 +0000 Steve Stewart http://www.moneyplansos.com/?p=3146 http://moneyplansos.com/sos039-open-enrollment-401k-or-ira/feed/ 2 Saving for retirement is very important. The first thing is to open an account and the second is to keep putting money in it over a long period of time. Like planting a seed: Opening an account is like planting a seed and continuously funding the acc... Saving for retirement is very important. The first thing is to open an account and the second is to keep putting money in it over a long period of time. Like planting a seed: Opening an account is like planting a seed and continuously funding the account is like watering the seed. Time will cause the seed to grow and sprout branches (diversifying your investments). Over a long period of time you will have a fully-grown tree and be able to live off of the fruit (dividends and interest) that the tree produces, all without having to cut off any branches and cutting back the investment/tree. I produced a short slide-show video that illustrates how saving for retirement works: http:MoneyPlanSOS.com/Tree-tirement (It is also at the bottom of this post). Pre-tax retirement contributions: 401k plans and Traditional IRAs offer you the benefit of saving money pre-tax. The dollars you contribute to the account are not taxed. For example: Joe earns $120,000 and will pay $24,000 in taxes if he is in a 20% tax bracket and take home $96,000. However: Joe decides to save 10% into a pre-tax account ($12,000). He will only pay $21,600 in taxes and bring home $86,400. Pre-tax savings net result: By saving 10% of his earnings in a pre-tax retirement account Joe will bring home $86,400 and have saved $12,000 - a $2,400 advantage over not saving and bringing home $96,000 after taxes! Other retirement saving options: What if your company offers a match? What if they don't? What if the 401k investment options aren't all that great? Are there other options besides a company 401k? The advantages and disadvantages of 401k when compared with other retirement saving options: Advantages of saving money in a ROTH IRA using after-tax dollars: If you save $100 a month for 40 years and earned 12% you will have put $48,000 into an account but have an investment portfolio in excess of $1.176 MILLION dollars! Question: Would you rather pay taxes on your 401k/Traditional IRA growth or pay taxes on the original investment and be able to bring home the $1.176M tax free? I love the idea of tax free money. When there is no match I choose to pay taxes on the seed, not the tree. Also, Holla From The Impala: Top 5 things a FICO score can do for you Steve MoneyPlanSOS Stewart no Saving for retirement is very important. The first thing is to open an account and the second is to keep putting money in it over a long period of time. Like planting a seed: Opening an account is...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/6WM5oFdzybk" height="1" width="1"/>http://moneyplansos.com/sos039-open-enrollment-401k-or-ira/http://traffic.libsyn.com/moneyplansos/sos039_Open_Enrollment_-_401k_or_IRA.mp3 http://feedproxy.google.com/~r/mpsos/~3/OG8V8vMQYeg/ http://moneyplansos.com/sos038-open-enrollment-cafeteria-plans-and-saving-with-fsa/#comments Fri, 18 Nov 2011 16:39:45 +0000 Steve Stewart http://www.moneyplansos.com/?p=3120 http://moneyplansos.com/sos038-open-enrollment-cafeteria-plans-and-saving-with-fsa/feed/ 0 Cafeteria Plans are part of the Section 125 in the IRS code. What that means for you: Only for employees of companies who offer such plans Pre-tax benefit: BOTH employer and employee save on Federal Income taxes and Social Security/Medicare con... Cafeteria Plans are part of the Section 125 in the IRS code. What that means for you: Only for employees of companies who offer such plans Pre-tax benefit: BOTH employer and employee save on Federal Income taxes and Social Security/Medicare contributions with pre-tax deductions from your paycheck Most common uses: Health Care expenses and Dependent Care expenses in a Flexible Spending Account (FSA) Health Care expenses: Many service providers that employers hire to host these accounts offer these of a Debit Card. It's taken right out of your contributions/savings to the plan. You must submit a detailed statement to the service provider to prove the eligibility of the expense within a certain amount of time (often within 30 days). You also have the option to mail in claim forms with receipts as well, and many companies allow you to do all of this online and have the funds deposited into your bank account. The Benefit: Let's use this example: During Open Enrollment you fill out the form and tell your employer you want $1,000 to go into FSA. You get paid every other week so $38.46 comes out of your paycheck BEFORE TAXES ARE TAKEN OUT. In one year you contributed $1,000 to the account, had use of those funds during the year to help pay for doctor prescribed medical expenses, co-pays, hospital expenses, etc. Regardless of your income, $1,000 of your income was not subject to Fed Income Tax and Social Security or Medicare contributions. If you file your taxes and are in a 20% tax bracket (depending on income, dependents, deductions $40K - $140K) you will LEGALLY save $275 in taxes. The money you used from your Flex Spend account contributions you would have paid anyway so this is an excellent way to manage your money wisely. One caveat: It is a use-it-or-lose it plan. You have a couple of months into the next year to send in any receipts proving expenses you use the Debit card for or send in receipts to get manual reimbursement. Dependent Care Expenses: Very similar to the Health Care plan, but used to reimburse you for the following qualified expenses: Child daycare After-school latchkey or Day camp programs Nursery School Nanny meals & lodging expenses You won't be provided with a Debit card for this purpose. However, some service providers allow you to fill out an authorization form that sets you up for automatic reimbursements. All you need to do is upload (or send by mail) the receipts to prove you paid the expenses. What we do: Pay for the expenses out of our personal accounts. Then we simply fill out an on-line claim form, upload the receipts from the day-care, and in a few days the money is deposited into our checking account. The Benefit: Same as with the Health Care expenses: Example: $4,000 into plan ($153.84 per bi-weekly paycheck) will save you $1,106 in taxes! Same caveat: It is a use-it-or-lose it plan. You have a couple of months into the next year to send in any receipts proving the expenses to get reimbursed.   To learn more: For detailed information go to http://www.irs.gov/pub/irs-pdf/p969.pdf and read all about IRS Publication 969, rules governing Health Savings Accounts and other Tax-Favored plans. Or, let me Google that for you: http://lmgtfy.com/?q=irs+cafeteria+plan+dependent+care Other options that may be available to you:   Some companies also provide Parking and Transit plans, and there is even an option for Adoption Assistance: All pre-tax contributions in a similar plan. For more information go to http://www.irs.gov/publications/p15b/index.html  (IRS Publication 15B)   Steve MoneyPlanSOS Stewart no Cafeteria Plans are part of the Section 125 in the IRS code. What that means for you: Only for employees of companies who offer such plans Pre-tax benefit: BOTH employer and employee save on Federal...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/OG8V8vMQYeg" height="1" width="1"/>http://moneyplansos.com/sos038-open-enrollment-cafeteria-plans-and-saving-with-fsa/http://traffic.libsyn.com/moneyplansos/sos038_Open_Enrollment_-_Cafeteria_Plans.mp3 http://feedproxy.google.com/~r/mpsos/~3/sWKxFh_60To/ http://moneyplansos.com/sos037-open-enrollment-insurance-options/#comments Thu, 10 Nov 2011 23:51:26 +0000 Steve Stewart http://www.moneyplansos.com/?p=3099 http://moneyplansos.com/sos037-open-enrollment-insurance-options/feed/ 0 Open Enrollment occurs around this time every year. Packets full of information about employee benefits are filling mailboxes everywhere. We often choose what looks like the best deal but there are other options. Have you looked at the alternatives? - Open Enrollment occurs around this time every year. Packets full of information about employee benefits are filling mailboxes everywhere. We often choose what looks like the best deal but there are other options. Have you looked at the alternatives? Health Insurance: Everyone need health insurance. One uninsured hospital stay can set a family back thousands of dollars. Is an employer-sponsored package the best option for you? Have you considered pricing a policy in the open market? Figures used in the show: The two companies I was able to researched offered Family coverage with medical, dental, and vision from $145 to $355 a month. An online quote from Blue Cross for a $7,000 deductible would cost about $240 a year. Disability Insurance: What would you do if you couldn't work for 2 months? What would happen to your Money Plan if you became permanently disabled. You are more likely to become disabled before age 65 than you are to pass away. How much would it be to get some from your work's benefit program (I would bet it is very inexpensive at your place of employment). Figures used in the show: Coverage for company employees could cost $5 - $15 a month for Long Term Disability Insurance. Private Disability Insurance for someone like me could cost between $40 - $60 a month. Life Insurance: Term life insurance is a must for everyone who earns and income and is not yet debt free with over a couple million dollars. It is inexpensive through work and even less expensive in the open market. Better yet, when you get it yourself you don't have worry about losing coverage between jobs. It is just another way to show your family that you truly care. Examples used in the show:  Company plan - $50K base salary provided free. Can purchase additional coverage of $100K for $120 a year, $200K for $240 a year, and $500K for $600 a year. Open-market 15 Year Level Term: $495 a year Open-market 20 Year Level Term: $660 a year Of course, these quotes are for someone like me and do not reflect the market as a whole, but it does make sense to take a look for yourself: Watch a video that shows how easy it is to check insurance products in the open-market without having to talk to a salesman or give out your name, phone number, or email address: http://www.moneyplansos.com/vid-torial-easy-term-life-quotes/ Feel free to leave comments under the show notes or Tweet the secret MPSOS hash-tag. Twitter.com/MoneyPlanSOS Facebook.com/MoneyPlanSOS Steve MoneyPlanSOS Stewart no Open Enrollment occurs around this time every year. Packets full of information about employee benefits are filling mailboxes everywhere. We often choose what looks like the best deal but there are...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/sWKxFh_60To" height="1" width="1"/>http://moneyplansos.com/sos037-open-enrollment-insurance-options/http://traffic.libsyn.com/moneyplansos/sos037_Open_Enrollment_-_Insurance_Options.mp3 http://feedproxy.google.com/~r/mpsos/~3/VI3J9iEEuQc/ http://moneyplansos.com/sos036-should-i-refi/#comments Fri, 28 Oct 2011 06:22:17 +0000 Steve Stewart http://www.moneyplansos.com/?p=3062 http://moneyplansos.com/sos036-should-i-refi/feed/ 6 Interest rates are so incredibly low that it makes sense for many homeowners to refinance. Do you understand all the options available to you? Do you know all the ins-and-outs when it comes to getting a mortgage? - Interest rates are so incredibly low that it makes sense for many homeowners to refinance. Do you understand all the options available to you? Do you know all the ins-and-outs when it comes to getting a mortgage? It wasn't until this month that refinancing our home's loan made any sense. I found a local bank willing to refi our mortgage with a fixed 3.25% loan. Incredible, isn't it?  But does it truly make sense for us? I've done my homework and investigated all the variables, asked all the questions, and crunched all the numbers. In this episode I will describe how to do a quick estimate to see if it makes sense for you, and some things you may not have thought about when it comes to getting approved for a mortgage or refinance. I also take some time to talk about four of the most popular types of mortgages out there, for first-time home buyers or those who are considering a refi: Adjustable Interest Rate (ARM) A loan with an interest rate that adjusts with an index (such as the CMT or LIBOR). It adjusts at certain intervals and will change your payment. The introductory interest rate is usually better than current market rates for at least the first year and typically will adjust yearly. Balloon Mortgage Picture a balloon with a string. You start at the end of the string and move closer to the balloon with each payment. Example: A 7-year balloon on a 30 year mortgage at 5% for a $200,000 loan. You pay $1,073.64 each month and that gets you a little further up the string towards the balloon. After 7 years you have arrived at the balloon and still owe about $177,000 on the balance. At this point you  must make a decision: You either refinance, allow the bank to adjust the rate to the current market, or sell the house. Interest Only A loan that allows you to pay the interest portion of the loan payment only. After a certain amount of years you begin to pay down on the principal. You don't build any equity, other than your home growing in value at the same time, and I would guess you could do better by renting a home than doing this deal. Sorry, that's just how I feel about it. Fixed Rate An interest rate that is fixed for the life of the loan, usually for a 30, 20, or 15 year term. Simple. Things to take into consideration: Closing costs Money saved by losing rate (reducing the interest rate) Reduced Mortgage Interest Deduction Current value of the home Credit history Type of loan (FHA, VA, or conventional Fannie Mae-type program) Only after you have measured all the risks, done the math, and are in agreement with your spouse (when applicable) can you make an informed decision about refinancing.   Holla From The Impala: Top 5 things that shouldn't work, but do! Mentioned in this episode: Best on-line mortgage calculators: DinkyTown.net Difference between owning and renting: MoneyPlanSOS.com/031 (House Poor Are You) Way to prove your stellar payment history instead of using the FICO credit score: MoneyPlanSOS.com/033 Steve MoneyPlanSOS Stewart no 38:51 Interest rates are so incredibly low that it makes sense for many homeowners to refinance. Do you understand all the options available to you? Do you know all the ins-and-outs when it comes to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/VI3J9iEEuQc" height="1" width="1"/>http://moneyplansos.com/sos036-should-i-refi/http://traffic.libsyn.com/moneyplansos/sos036_Should_I_Re-fi.mp3 http://feedproxy.google.com/~r/mpsos/~3/ZihiuQlDStM/ http://moneyplansos.com/sos035-a-moneyplan-for-kids/#comments Thu, 20 Oct 2011 06:29:25 +0000 Steve Stewart http://www.moneyplansos.com/?p=2986 http://moneyplansos.com/sos035-a-moneyplan-for-kids/feed/ 0 Teaching kids about money is hard. The good news is that it isn't complicated. It can be broken down to four things: The three things you can do with money and how you get some (work). There are only 3 things you can do with money. Teaching kids about money is hard. The good news is that it isn't complicated. It can be broken down to four things: The three things you can do with money and how you get some (work). There are only 3 things you can do with money. This applies for both children and adults: Spend: It is a fact of life that we are going to spend money. Allow your children to make those purchases that you know aren't durable or practical. They will eventually learn what you know, that cheap items are cheap Save: We need to save money. My daughter saves very little but gets excited when she does save because Daddy matches her savings with the same amount. Give: The coolest think you could ever see your kids do. Giving is taking the focus off of ourselves and is really impressive when they start giving their own money. And how do we get the money? Work: You can't spend, save, or give if you don't have any money. You can't get money without work. A cool online reward system for kids: MyJobChart.com The website is awesome for teaching kids to work. You can assign a certain amount of points to be rewarded when they complete their tasks. The points can be divvied up between Spending Savings, or giving. We live in a digital age, so why not entice your children into finishing the job so they get to sign into the website and see how many points they earned? And the coolest thing about MyJobChart.com is your child can place an order for things on Amazon.com! You receive an email showing a reward was redeemed and is waiting for your approval!   Holla From The Impala: Top 5 things we forgot about phones from 30 years ago   If you are interested in teaching others about becoming debt free then feel free to reach: Twitter: MoneyPlanSOS (don't forget the hashtag) Facebook: Facebook.com/MoneyPlanSOS Email: [cryptex]Steve@MoneyPlanSOS.com[cryptex] Phone: 636-373-4818   The blogpost mentioned in the show: The First 10 Things To Do When You Become A Millionaire The Millionaire Next Door: The Surprising Secrets of America's Wealthy (Millionaire Set)     Steve MoneyPlanSOS Stewart no Teaching kids about money is hard. The good news is that it isn&#8217;t complicated. It can be broken down to four things: The three things you can do with money and how you get some (work). There...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/ZihiuQlDStM" height="1" width="1"/>http://moneyplansos.com/sos035-a-moneyplan-for-kids/http://traffic.libsyn.com/moneyplansos/sos035-A_MoneyPlan_For_Kids.mp3 http://feedproxy.google.com/~r/mpsos/~3/5lSktLpB348/ http://moneyplansos.com/sos034-saying-no-to-fico/#comments Wed, 12 Oct 2011 06:38:18 +0000 Steve Stewart http://www.moneyplansos.com/?p=2953 http://moneyplansos.com/sos034-saying-no-to-fico/feed/ 0 I'm Saying No To FICO and working on my Debit Score 5 components of FICO score: 10% Type of credit (debt) 10% New credit (debt) 15% Credit (debt) history 30% How much you owe 35% Debt payment history - I'm Saying No To FICO and working on my Debit Score 5 components of FICO score: 10% Type of credit (debt) 10% New credit (debt) 15% Credit (debt) history 30% How much you owe 35% Debt payment history Each of these components are based on debt. The more you borrow and pay back the better your score, and the more you are likely to pay in interest charges. A bad score typically is one that is below 650. A good score is above 650. I believe the BEST credit score is 0. However, the FICO Score is a one-sided system that only evaluates your debt, history and availability to borrow more and does not take into account how much money you make or how much money you have. Arguments for the continued use of the FICO score that don't hold water: Car Insurance rates: There is statistical evidence that shows that those with low FICO scores are more likely to file a claim, less likely than those with good FICO scores. Unfortunately, it isn't a fair evaluation for those who are living a debt free lifestyle and have a 0 FICO score. Renting an apartment: If you had an apartment to rent, would you rather hire the guy with a 0 FICO score but can show he makes all his payments or the guy with a good FICO score because he is making all his payments on the thousands of dollars of debt he has? The arguments for continuing to use credit to "build your credit score" no longer hold water thanks to eCredable's AMP Credit Report which reports ALL your payments, not just those based on debt. For more information go to http://eCredable.com/MoneyPlanSOS I don't want to improve my Credit score. I'm going to say No to FICO and work on my Debit score. Holla From The Impala: Top 5 signs you are addicted to Credit Cards 5) You use your card everywhere for reward points, even to put air in your tires 4) You show off the design of your cards to everyone you see at your Mom's birthday party 3) Your stack of cards is thicker than your cell phone 2) You have to give each of them a descriptive name just to keep track of them 1) You are convinced that as long as you can use the card and it is not declined that you still have money to spend. Links mentioned in this episode: I've been beaten by a Squirrel: Twitter.com/BuschSquirrel Original written post this episode is based upon: http://www.moneyplansos.com/working-on-my-debit-score/ Interview with Steve Ely, CEO of eCredable: http://MoneyPlanSOS.com/033 For more eCredable information: eCredable.com/MoneyPlanSOS Interesting, unique campfire gear: http://www.grateoutdoorsolutions.com/products-page/   Steve MoneyPlanSOS Stewart no I&#8217;m Saying No To FICO and working on my Debit Score 5 components of FICO score: 10% Type of credit (debt) 10% New credit (debt) 15% Credit (debt) history 30% How much you owe 35% Debt payment...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/5lSktLpB348" height="1" width="1"/>http://moneyplansos.com/sos034-saying-no-to-fico/http://traffic.libsyn.com/moneyplansos/sos034-Saying_No_To_FICO.mp3 http://feedproxy.google.com/~r/mpsos/~3/1KhOnVPrABs/ http://moneyplansos.com/sos033-ecredable-is-incredible/#comments Wed, 05 Oct 2011 03:37:12 +0000 Steve Stewart http://www.moneyplansos.com/?p=2857 http://moneyplansos.com/sos033-ecredable-is-incredible/feed/ 5 Credit Report,eCredable is incredible,FICO/Credit Score,How eCredable helps your credit rating,Improve your credit rating,Interview with eCredable Steve Ely, CEO of eCredable, used to work for Equifax running the Direct Consumer Business. One of the challenges he experienced was they had a very limited scope in terms of how they could help consumers. Consumers really wanted help with financial ad... Steve Ely, CEO of eCredable, used to work for Equifax running the Direct Consumer Business. One of the challenges he experienced was they had a very limited scope in terms of how they could help consumers. Consumers really wanted help with financial advice or with their credit file but that was not what they were there for. Their primary business was to serve companies, not consumers. He left that company to become CEO of a company that does serve consumers and individuals. Introducing eCredable! A service that helps individuals build a true picture of their payment history that every creditor must take into consideration when they use other credit related information to determine your credit worthiness. What is the difference between traditional credit score lending and eCredable? FICO score: A numerical score based upon Amounts Owed (debt), Credit History (from debt products), New Credit (new debt), Type of Credit (debt), and Payment History (on the debt). In summary, borrow a lot of money and pay interest regularly over a long period of time and you will have a great credit score, allowing you to borrow more money, get lots of credit offers in the mail, and be a target for identity theft. eCredable's AMP (All My Payments) Credit Rating: An A - F grade of your true payment history, NOT JUST PAYMENTS MADE ON DEBT PRODUCTS. Your electric bill, rent payment, daycare tuition, the month-to-month type bills most of us have that are never factored into a FICO score. If you have debt, your current payments are taken into consideration when you include that in your eCredable profile. Who can eCredable help that FICO doesn't? Graduates: Starting out their adult life as an individual with bad credit or no credit. Ever try to get a cell phone without a credit history? Ever been turned down for an apartment because of your credit score? Get past dummy lending (getting approval from a FICO score) by showing your AMP Credit Report. Immigrants: Why would you come to this country only to learn you have to incur debt in order to "build their credit"? Individuals that are here legally and don't have a traditional credit history can show that they have a good payment history with eCredable's AMP Report. They can apply for bank accounts, get better rates on car payments (which I don't recommend), even use it when applying for a job with a company who looks at your credit score. People who had bad credit and just can't wait for their FICO score to improve: Why wait for your credit score to "heal"? Use the eCredable Report to get better terms or interest rates when lenders Debt-free lifestyles: Continue to pay the light bill, phone bill, even child care and you will likely qualify for the best rates on car insurance and mortgage rates - even when you have a zero credit score. Build your AMP Credit Report To build your own AMP Credit report, sign up by going to eCredable.com/MoneyPlanSOS Other resources mentioned in this episode: Vid-torial: Annual Credit Report Review Your Credit Report blogpost Equal Credit Opportunity Act: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre15.shtm Blogpost Rewind: I'm working on my Debit Score eCredable Facebook page Follow Steve Ely on Twitter Steve MoneyPlanSOS Stewart no 44:25 Steve Ely, CEO of eCredable, used to work for Equifax running the Direct Consumer Business. One of the challenges he experienced was they had a very limited scope in terms of how they could help...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/1KhOnVPrABs" height="1" width="1"/>http://moneyplansos.com/sos033-ecredable-is-incredible/http://traffic.libsyn.com/moneyplansos/sos033-eCredable_is_Incredible.mp3 http://feedproxy.google.com/~r/mpsos/~3/VZT6DJyHc7U/ http://moneyplansos.com/032-privatizing-social-security-with-ashley-barnett/#comments Wed, 28 Sep 2011 02:52:48 +0000 Steve Stewart http://www.moneyplansos.com/?p=2838 http://moneyplansos.com/032-privatizing-social-security-with-ashley-barnett/feed/ 4 Personalize Social Security,Privatize Social Security,Social Security Ashley Barnett, Personal Finance Blogger from MoneyTalksCoaching.com, shares her thoughts on Social Security. We know the system is broken but what can be done to fix it? She has an idea and she wrote about it in her blogpost "An Argument For Privatizi... Ashley Barnett, Personal Finance Blogger from MoneyTalksCoaching.com, shares her thoughts on Social Security. We know the system is broken but what can be done to fix it? She has an idea and she wrote about it in her blogpost "An Argument For Privatizing Social Security". She talks about who Social Security is for, it's not just for retirees anymore, and how employees only pay 4.2% of the 10.4% paid into FICA (Federal Insurance Contribution Act). To repair the system and maintain it in the current state we can do any one of the three following options: Lower Benefits Increased Taxes Borrow (more debt) I don't like any of those options, so Ashley explains to us the benefits of Privatizing Social Security: Your money stays with you Unused funds can be inherited The government can't reduce or withdraw your benefits Privatizing Social Security sounds scary, doesn't it? Our MoneyTalksCoach guest uses practical math to explain how Funding Private Accounts, even in a conservative investment option, will net someone more money than Social Security ever could.  Sounds like a reasonable solution to me! Do you have suggestions on how we can fix our Social Security problem? Please leave comments below and let's continue the discussion. I would love to get another conversation going for a future podcast episode. Read more of Ashley Barnett's articles on MoneyTalksCoaching.com Follow Ashley on Twitter: @MoneyTalksCoach Email: Ashley@MoneyTalksCoaching.com Steve MoneyPlanSOS Stewart no Ashley Barnett, Personal Finance Blogger from MoneyTalksCoaching.com, shares her thoughts on Social Security. We know the system is broken but what can be done to fix it? She has an idea and she...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/VZT6DJyHc7U" height="1" width="1"/>http://moneyplansos.com/032-privatizing-social-security-with-ashley-barnett/http://traffic.libsyn.com/moneyplansos/sos032_-_Privatizing_Social_Security_with_Ashley_Barnett.mp3 http://feedproxy.google.com/~r/mpsos/~3/z8GaAhMlx3M/ http://moneyplansos.com/sos031-house-poor-are-you/#comments Wed, 07 Sep 2011 05:41:04 +0000 Steve Stewart http://www.moneyplansos.com/?p=2761 http://moneyplansos.com/sos031-house-poor-are-you/feed/ 5 Buying vs Renting,Future Financial Ministers,Home Mortgage,House Poor,House vs Apartment,Rent vs Buy,Renting Versus Buying House Poor Are You? There are some stark differences that I just wanted point out between buying and renting because knowing these differences might just help that first home buyer or someone who is strapped to their house. You see, House Poor Are You? There are some stark differences that I just wanted point out between buying and renting because knowing these differences might just help that first home buyer or someone who is strapped to their house. You see, When someone has too much of their take-home pay going towards household expenses, we call that being "House Poor", and it can be devastating to your financial future. But Owning a home has so many benefits, I don't want to make owning a home sound like a bad thing even though it's a pain in the butt sometimes. Definition of a Renter:  You are considered a "Renter" if you are paying for a place that you do not have a legal position of ownership. This would include signing a lease for an apartment or even a house (which has become more common in the past few years), paying a friend while you crash on his couch for an extended basis. You could be living in a dorm room that your parents are paying for or maybe sharing the expenses with one or two roommates. A typical rental agreement is to pay someone else for the right to stay in their property for a pre-determined amount of time. A security deposit is usually required, often the first month's rent has to be paid in advance, and you need to keep the place neat and clean. Failure to make the monthly rental payment can result in eviction. Typical housing expenses for a Renter: *Monthly rent or lease payment Water Trash pickup Electricity Natural Gas Cable Phone Internet *In many cases property owners include one or more of these utility expenses in the rental payment. Definition of a Home Owner:  In our culture, you can be considered a "Home Owner" even if you have a mortgage. In almost any conversation you have with a friend, co-worker, even on job applications or legal documents, you can be classified as a Home Owner even though the bank holds the title and you repay them for buying the home. A typical mortgage agreement states that the lien-holder, the mortgage company, holds the tile for the property and you must make monthly payments until it is paid off, then you own the home and no longer have to make those monthly payments. You lose that right if you stop paying the payment and the bank forecloses on the property. Typical housing expenses for a Home Owner: Monthly mortgage payment: A portion or this payment goes towards the Principle (loan balance), Mortgage Interest, and Escrow (savings account for property taxes and insurance) PMI: If your original loan amount when purchasing a home is greater than 80% of the value of the house, that is to say if you haven't put down 20% as a downpayment on a house, then you will likely be charged PMI (Private Mortgage Insurance) which, on average, is about $70-$80 per month for every $100,000 borrowed. All utilities (water, trash pickup, natural gas, electricity, cable, internet, phone) Repairs: Water heaters, air conditioners, dripping faucets, leaky roof, holes in walls, aluminum siding, broken windows, etc... Maintenance: Lawnmowers, weed-wakers, weed killer, lawn fertilizer, snow shovels, furnace filters,  the plastic window insulation stuff for winter, paint for the the nursery, paint for the same room when they are 5, and more paint when they become Tweens before they put pin-holes in all the walls when hanging posters and pictures. And finally: Anything else you usually find on a Honey-Do List. The unmeasurable costs: The time spent Mowing the lawn, weeding the flower garden, raking the leaves, shoveling the snow, missing work while waiting for the repair man to arrive, mowing the lawn (Yes, I said it twice because it has to be done every weekend in the spring, summer, & fall!) The net difference between Renting and Buying: The time spent on the maintenance and unexpected repairs when owning a home is almost immeasurable. Imagine the amount of free time to read, play sports, work on a small business, further your education, Steve MoneyPlanSOS Stewart no House Poor Are You? There are some stark differences that I just wanted point out between buying and renting because knowing these differences might just help that first home buyer or someone who is...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/z8GaAhMlx3M" height="1" width="1"/>http://moneyplansos.com/sos031-house-poor-are-you/http://traffic.libsyn.com/moneyplansos/sos031-House_Poor_Are_You.mp3 http://feedproxy.google.com/~r/mpsos/~3/lzMbTOZXCMc/ http://moneyplansos.com/030-mpsos-real-life-case-story/#comments Wed, 24 Aug 2011 14:46:58 +0000 Steve Stewart http://www.moneyplansos.com/?p=2678 http://moneyplansos.com/030-mpsos-real-life-case-story/feed/ 0 Real Life Case Study Glenn and Fredonna didn't have a plan for their money. He handled the finances and she was a "willing bystander" with the budget. When they contacted me they wanted to do better, to have a plan for their money. And I answered the call. - Glenn and Fredonna didn't have a plan for their money. He handled the finances and she was a "willing bystander" with the budget. When they contacted me they wanted to do better, to have a plan for their money. And I answered the call. They also allowed me to use their struggles for a Real Life Case Study episode. They wanted to be able to provide for their family, give generously, and build a house for themselves but did not know how they were going to do it. They had $1,000 in medical debt, $5,700 owed on a car, and the wife had $20,000 in student loans but decided to become a stay-at-home Mom while making $35,000 a year. (You can go back and listen to guest Financial Coach Don Current and I discuss their story at http://MoneyPlanSOS.com/003 ) Most of the time a spouse who has $20K in student loans isn't able to stay at home when the other spouse only makes $35K, that is without destroying the future of the entire family. But this couple has locked arms, cut back, and are making it on less than they make! And she helps market his handyman business and does some graphic work on the side: . Listen to their story in this episode of the MoneyPlanSOS podcast, hear their gentle hearts talk about caring for their two little girls, the way he took his handyman business seriously, started keeping track of expenses and are now working together on a budget. And they are rocking it! Steve MoneyPlanSOS Stewart no Glenn and Fredonna didn&#8217;t have a plan for their money. He handled the finances and she was a &#8220;willing bystander&#8221; with the budget. When they contacted me they wanted to do better, to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/lzMbTOZXCMc" height="1" width="1"/>http://moneyplansos.com/030-mpsos-real-life-case-story/http://traffic.libsyn.com/moneyplansos/030_MPSOS_-_Real_Life_Case_Story.mp3 http://feedproxy.google.com/~r/mpsos/~3/4cqJtdhJ-Tc/ http://moneyplansos.com/029-mpsos-everything-is-normal/#comments Wed, 17 Aug 2011 07:50:34 +0000 Steve Stewart http://www.moneyplansos.com/?p=2637 http://moneyplansos.com/029-mpsos-everything-is-normal/feed/ 2 Great Recovery Alex Humphrey from AlexSpeaks.com tells us that Everything is Normal. Places, people, things, even the way we think money should be handled is weird to some but becomes normal when you're around it long enough. - Alex Humphrey from AlexSpeaks.com tells us that Everything is Normal. Places, people, things, even the way we think money should be handled is weird to some but becomes normal when you're around it long enough. To read the original blogposts visit: http://alexspeaks.com/9-lessons-i-learned-in-jamaica/ and the post we discuss in this episode: http://alexspeaks.com/everyone-is-normal/ Alex's recent project is a blogpost series called "Money 101". You can read it at http://alexspeaks.com/money-101/ Also, Holla From The Impala: The Media Is Winning If you are getting something from this show, please leave feedback wherever you are listening to the show. Positive feedback helps the podcast rank higher in searches for others looking for shows about Personal Finance and Debt Freedom. Let me know if I can help: [cryptex]Steve@MoneyPlanSOS.com[/cryptex] or call/text 636-373-4818 Steve MoneyPlanSOS Stewart no Alex Humphrey from AlexSpeaks.com tells us that Everything is Normal. Places, people, things, even the way we think money should be handled is weird to some but becomes normal when you&#8217;re...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/4cqJtdhJ-Tc" height="1" width="1"/>http://moneyplansos.com/029-mpsos-everything-is-normal/http://traffic.libsyn.com/moneyplansos/029_MPSOS_-_Everything_Is_Normal.mp3 http://feedproxy.google.com/~r/mpsos/~3/PDP45alAoWM/ http://moneyplansos.com/028-mpsos-debt-snowball-calculator-with-eric-lentz/#comments Wed, 10 Aug 2011 13:34:46 +0000 Steve Stewart http://www.moneyplansos.com/?p=2605 http://moneyplansos.com/028-mpsos-debt-snowball-calculator-with-eric-lentz/feed/ 9 Budgeting,Debt Snowball Eric Lentz paid off $53,000 in debt over 24 months. As he worked two full-time jobs and got intense on eliminating his loans he created an Excel spreadsheet to track the amount of money he had available to increase paying off his debt and stay motivate... Eric Lentz paid off $53,000 in debt over 24 months. As he worked two full-time jobs and got intense on eliminating his loans he created an Excel spreadsheet to track the amount of money he had available to increase paying off his debt and stay motivated to stick to his plan. Eric continued to develop his program even after eliminating the last debt and now offers it on his website in a free and a Pro version with video tutorials at DebtSnowballCalculator.net. Some of the many features included in every Pro version: Easy access No dependence on internet You can take it with you Free lifetime upgrades No macros used Monitor your checkbook balance (avoid overdraft) View cash-flow and ease the budgeting process with first and second half functionality Enter recurring payments and budgeted cash expenditures Include your mortgage, or don't - it's your choice! Run scenarios on how debt payoff is effected when you earn more/spend less Allocate $ for your emergency fund Monitor the amount you have paid off and remaining interest Stay motivated by watching your progress on the Results page! Eric has allowed me to be an affiliate to offer the Pro version to listeners of the MoneyPlan SOS Podcast.  I encourage every Coach to have this in their toolbox as an additional way to show clients how fast they can pay off their debt if they just pay attention! Here is a fun video Eric helped me put together that shows what it would take for us to pay off our national debt in 12 1/2 years: Steve MoneyPlanSOS Stewart no Eric Lentz paid off $53,000 in debt over 24 months. As he worked two full-time jobs and got intense on eliminating his loans he created an Excel spreadsheet to track the amount of money he had...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/PDP45alAoWM" height="1" width="1"/>http://moneyplansos.com/028-mpsos-debt-snowball-calculator-with-eric-lentz/http://traffic.libsyn.com/moneyplansos/028_MPSOS_-_Debt_Snowball_Calculator.mp3 http://feedproxy.google.com/~r/mpsos/~3/JuVFDWztIrI/ http://moneyplansos.com/027-mpsos-crown-financial-ministries-with-john-riley/#comments Wed, 03 Aug 2011 04:35:27 +0000 Steve Stewart http://www.moneyplansos.com/?p=2565 http://moneyplansos.com/027-mpsos-crown-financial-ministries-with-john-riley/feed/ 1 Financial Coaches John Riley is the US Director of Volunteer Ministries at Crown Financial Ministries and has his eyes on Heaven in 2011. He serves a number of people at Crown who give of their time freely to churches, businesses, John Riley is the US Director of Volunteer Ministries at Crown Financial Ministries and has his eyes on Heaven in 2011. He serves a number of people at Crown who give of their time freely to churches, businesses, and schools in order to produce a true financial peace and freedom. In short, he supports Financial Coaches who help teach Americans how to manage their money God's way. John tells us where Crown came from, what Crown does, and about The Money Map.   For more details on meeting with a Crown Coach or becoming a Crown Coach yourself:  http://www.crown.org/Coaching/ Read articles written on a blog written by Crown CEO, Chuck Bentley:  http://inspiringfaithfulstewards.com/ Steve MoneyPlanSOS Stewart no John Riley is the US Director of Volunteer Ministries at Crown Financial Ministries and has his eyes on Heaven in 2011. He serves a number of people at Crown who give of their time freely to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/JuVFDWztIrI" height="1" width="1"/>http://moneyplansos.com/027-mpsos-crown-financial-ministries-with-john-riley/http://traffic.libsyn.com/moneyplansos/027_MPSOS_-_Interview_with_Crown_Financial_Ministries.mp3 http://feedproxy.google.com/~r/mpsos/~3/rTew-mjFb48/ http://moneyplansos.com/026-mpsos-build-a-house-of-financial-freedom/#comments Thu, 28 Jul 2011 05:32:56 +0000 Steve Stewart http://www.moneyplansos.com/?p=2522 http://moneyplansos.com/026-mpsos-build-a-house-of-financial-freedom/feed/ 0 Have A Plan,Top 5 Countdown Imagine a home where there are no obligations (debt). Here is the step-by-step plan to building a house of Financial Freedom: Work Plan Give Pay for necessities Save $1,000 Pay for a few wants Pay off all debt (except mortgage). Imagine a home where there are no obligations (debt). Here is the step-by-step plan to building a house of Financial Freedom: Work Plan Give Pay for necessities Save $1,000 Pay for a few wants Pay off all debt (except mortgage). Save 3-6 months of expenses Save for short-term purchases (repairs, vacations, etc..) Invest wisely Pay off the house Build wealth in order to give a bunch of it away Click here to download a printable copy with the associated verses   Holla From The Impala - Top 5 reasons why being in Debt is like the Matrix: #5 - It takes a lot of fancy moves to escape it #4 - The "Machine" needs you in order to stay alive #3 - No matter how much we are told that the world revolves around it, there is no spoon #2 - Loan Officers wear the same suits as The Agents #1 - When we are in it, we don't want to know the truth Coming in the next few months: Financial Literacy Classes for the Masses all along Interstate 70 from St. Louis to Indianapolis (possible other locations could be added at a later date). Check out the short Vacation Savings Tip videos and "Money Is Like…" blogposts on MoneyPlanSOS.com. If you like this show, please leave a review on iTunes so the podcast will show up higher in the rankings for people looking for shows on Financial Freedom! Steve MoneyPlanSOS Stewart no Imagine a home where there are no obligations (debt). Here is the step-by-step plan to building a house of Financial Freedom: Work Plan Give Pay for necessities Save $1,000 Pay for a few wants Pay...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/rTew-mjFb48" height="1" width="1"/>http://moneyplansos.com/026-mpsos-build-a-house-of-financial-freedom/http://traffic.libsyn.com/moneyplansos/026_MPSOS_-_Build_A_House_of_Financial_Freedom.mp3 http://feedproxy.google.com/~r/mpsos/~3/OeMEWsuiOmk/ http://moneyplansos.com/025-mpsos-the-great-recovery-action-steps/#comments Fri, 22 Jul 2011 09:40:21 +0000 Steve Stewart http://www.moneyplansos.com/?p=2490 http://moneyplansos.com/025-mpsos-the-great-recovery-action-steps/feed/ 8 Financial Coaches,Great Recovery The Great Recovery was simulcast all over America on July 21st. Dave Ramsey called out to Church Leaders and Financial Peace University Coordinators all over America to inject a spirit of hope into our congregations, communities, and our country. - The Great Recovery was simulcast all over America on July 21st. Dave Ramsey called out to Church Leaders and Financial Peace University Coordinators all over America to inject a spirit of hope into our congregations, communities, and our country. The answer won't come from the Government, it certainly won't come from the President, it won't even come from Dave Ramsey himself - but he can start a movement. Here are the four action steps: 1) Start talking to your congregation and community and inject a spirit of hope. 2) Teach financial classes in mass 3) Read Proverbs and start doing Pastoral work 4) Join in The Great Recovery. My co-host for this episode is Mike Young, a Dave Ramsey Certified Coach and host of the Beyond Your Wedding Day podcast (www.BeyondYourWeddingDay.com) Thanks to our guests: Jack Orman from Level Path Coaching (www.TheLevelPath.com) Teresa McGarry from MoneyTalk Financial Coaching (www.MoneyTalk.TMMcGarryLLC.com) Tony M from the driver's seat of his car Kathryn Gerken from Gerken Financial Coaching (www.GerkenFinancialCoaching.com)   If you want to learn more about becoming a coach or leading your own FPU class, visit DaveRamsey.com or TheGreatRecovery.com If you want help with your Financial Coaching business then give me a call: 636-373-4818 or send me an email: Steve@MoneyPlanSOS.com Steve MoneyPlanSOS Stewart no The Great Recovery was simulcast all over America on July 21st. Dave Ramsey called out to Church Leaders and Financial Peace University Coordinators all over America to inject a spirit of hope into...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/OeMEWsuiOmk" height="1" width="1"/>http://moneyplansos.com/025-mpsos-the-great-recovery-action-steps/http://traffic.libsyn.com/moneyplansos/025_MPSOS_-_The_Great_Recovery_Action_Steps.mp3 http://feedproxy.google.com/~r/mpsos/~3/fIHwINeVg-0/ http://moneyplansos.com/024-mpsos-real-life-case-study-with-zac-bissonnette/#comments Tue, 12 Jul 2011 10:52:53 +0000 Steve Stewart http://www.moneyplansos.com/?p=2442 http://moneyplansos.com/024-mpsos-real-life-case-study-with-zac-bissonnette/feed/ 4 Real Life Case Study,Student Loans   Zac Bissonnette, writer for Time.com and Author of Debt Free U, is passionate about personal finance and financial literacy issues. Zac has been studying and researching for many years on ways to pay for higher education and he views the student loa...   Zac Bissonnette, writer for Time.com and Author of Debt Free U, is passionate about personal finance and financial literacy issues. Zac has been studying and researching for many years on ways to pay for higher education and he views the student loan crisis in America as the most pressing financial issue that we have. He is NOT a Financial Coach, yet he is uniquely qualified to speak into the life of our Real Life Case Study subject. In this episode we help a young, single, male college student going off to an out-of-state college this fall. His tuition is paid for and he will be getting a stipend that will cover most of his expenses. So why is this a case study? He already has $90K in student loans. Ouch. Zac Bissonnette shares his extensive knowledge on private and Federal student loan debt to advise our Real Life Case Study on some choices he can make to improve his financial life before, and while away to, college. Financial Coaches: If you want an incredible tool for your toolbox then you need this book! If you would like to support the podcast and I convinced you that this is something that you need, then please consider purchasing the paperback of Kindle edition through my affiliate link: Debt Free U (through Amazon) Intro Music by:  <A HREF="http://ws.amazon.com/widgets/q?rt=ss_w_mpw&ServiceVersion=20070822&MarketPlace=US&ID=V20070822%2FUS%2Fmo006-20%2F8014%2F2dc9b28f-7345-41f4-b165-84e074086b58&Operation=NoScript">Amazon.com Widgets</A> Steve MoneyPlanSOS Stewart no   Zac Bissonnette, writer for Time.com and Author of Debt Free U, is passionate about personal finance and financial literacy issues. Zac has been studying and researching for many years on ways to...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/fIHwINeVg-0" height="1" width="1"/>http://moneyplansos.com/024-mpsos-real-life-case-study-with-zac-bissonnette/http://traffic.libsyn.com/moneyplansos/024_MPSOS_-_Real_Life_Case_Study_with_Zac_Bissonnette.mp3 http://feedproxy.google.com/~r/mpsos/~3/bYgeWownLD8/ http://moneyplansos.com/023-mpsos-savings-goals/#comments Wed, 06 Jul 2011 03:00:06 +0000 Steve Stewart http://www.moneyplansos.com/?p=2398 http://moneyplansos.com/023-mpsos-savings-goals/feed/ 2 Have A Plan,Save,Top 5 Countdown You need to save money. Once you have learned to live on less than you make, what do you do with the extra money? - First thing for anyone (whether in debt or not): Have $1,000 in cash put aside for emergencies. When you hit that $1,000 amount, You need to save money. Once you have learned to live on less than you make, what do you do with the extra money? First thing for anyone (whether in debt or not): Have $1,000 in cash put aside for emergencies. When you hit that $1,000 amount, say to yourself out loud "I saved A THOUSAND DOLLARS". Go ahead and practice now. Pretty powerful, huh? Then what? You need to set some Savings Goals: 3 things to do to set a savings goal: 1) Estimate how much you need for this savings goal 2) See how much can you save every month 3) Decide how long before you need the money   Holla From The Impala: Top 5 Signs you are addicted to shopping #5: Your night out with the guys starts AND ENDS at Bass Pro Shop #4: The Home setting on your GPS is The Mall Of America #3: You look forward to birthdays, anniversaries, and Christmas. Not because of the gifts but for all the items you can take back to look for "just the right one" #2: You took pen and paper to the theater with you for the sole purpose of writing down the name of every store the girls walked by or through in Sex & The City 2 #1: You bought the same limited-time offer item on the QVC Network TWICE! Homework Challenge: Set a savings goal for Christmas       Steve MoneyPlanSOS Stewart no You need to save money. Once you have learned to live on less than you make, what do you do with the extra money? First thing for anyone (whether in debt or not): Have $1,000 in cash put aside for...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/bYgeWownLD8" height="1" width="1"/>http://moneyplansos.com/023-mpsos-savings-goals/http://traffic.libsyn.com/moneyplansos/023_MPSOS_-_Savings_Goals.mp3 http://feedproxy.google.com/~r/mpsos/~3/NUPKXkt9inw/ http://moneyplansos.com/022-mpsos/#comments Tue, 28 Jun 2011 15:45:32 +0000 Steve Stewart http://www.moneyplansos.com/?p=2370 http://moneyplansos.com/022-mpsos/feed/ 1 Debit&Credit Cards,Living Without Credit Cards,Visa Zero Liability One giant choice we can make to get control of our money is to stop using credit cards. It may seem impossible but the steps I've laid out in this 4 part series gives anyone some time to work the process and even start back over again if they mess up. One giant choice we can make to get control of our money is to stop using credit cards. It may seem impossible but the steps I've laid out in this 4 part series gives anyone some time to work the process and even start back over again if they mess up. Step 1 - Take the cards out of your wallet, put cash in your wallet Step 2 - Delete credit card numbers from all online accounts, use your bank's BillPay for online payments, Debit for purchases. Start saving the money you haven't been over-spending. Step 3 - Freeze your accounts to any further charges. By now you will start to see how much you've haven't been spending and how much more you can be saving. Step 4 - Realize you haven't been using the cards and you don't need them. Use your Debit card just like you used your credit card, there is no difference and they have the same protections when you don't use your PIN number. Here is a blogpost I wrote about Visa's Zero Liability policy and the protection they give to debit cards: http://www.moneyplansos.com/is-your-credit-card-safer/ For more information, go directly to this information on Visa's website: http://usa.visa.com/personal/using_visa/personal_finance/debit.html http://usa.visa.com/personal/security/visa_security_program/zero_liability.html   Holla From The Impala - My daughter on money Visit Facebook.com/MoneyPlanSOS for new blogposts and video-blogposts in the month of July. Send me a message on what you think about the frequency of the show and how often you could listen if I did more audio episodes. Steve MoneyPlanSOS Stewart no One giant choice we can make to get control of our money is to stop using credit cards. It may seem impossible but the steps I&#8217;ve laid out in this 4 part series gives anyone some time to work...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/NUPKXkt9inw" height="1" width="1"/>http://moneyplansos.com/022-mpsos/http://traffic.libsyn.com/moneyplansos/022_MPSOS_-_Living_Without_Credit_Cards_Pt4.mp3 http://feedproxy.google.com/~r/mpsos/~3/iVvWk0R8Fs4/ http://moneyplansos.com/021-mpsos-real-life-case-study-with-kelly-brantley/#comments Wed, 22 Jun 2011 04:36:44 +0000 Steve Stewart http://www.moneyplansos.com/?p=2321 http://moneyplansos.com/021-mpsos-real-life-case-study-with-kelly-brantley/feed/ 1 Financial Coaches,Real Life Case Study Kelly Brantley from Financial Freedom Counseling Service - Our guest coach in this Real Life Case Study is a Dave Ramsey Certified Counselor (that guy in the picture with her) who has been helping individuals, couples, churches, Kelly Brantley from Financial Freedom Counseling Service Our guest coach in this Real Life Case Study is a Dave Ramsey Certified Counselor (that guy in the picture with her) who has been helping individuals, couples, churches, and businesses with their personal finance challenges for over 3 years. You can find more about her at www.DebtFreeWithKelly.com Today we talk about a couple who have $57,000 in credit card debt and $23,000 in student loan debt. They bring home $4,500 a month but are behind with 8 of the 13 cards and are beginning to worry about being sued. They are now working a MoneyPlan but they keep getting calls from creditors and knocked off-balance by letters in the mail threatening to "take legal action". Resources mentioned in this episode: For a discount on a State-specific will: http://www.uslegalforms.com/dave/ To learn more about rules on debt collection regulations: http://www.FTC.gov or http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm Also, I was recently on Matt and Janelle Wegner's podcast "Living In Financial Excellence" (can be found at http://financialexcellence.net/065-financial-excellence-4-steps-to-living-without-credit-cards/) and will be featured on Jon White's "JWFinancial Coaching Podcast" (at www.JWFinancialCoaching.Wordpress.com). How cool is that? Steve MoneyPlanSOS Stewart no Kelly Brantley from Financial Freedom Counseling Service Our guest coach in this Real Life Case Study is a Dave Ramsey Certified Counselor (that guy in the picture with her) who has been helping...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/iVvWk0R8Fs4" height="1" width="1"/>http://moneyplansos.com/021-mpsos-real-life-case-study-with-kelly-brantley/http://traffic.libsyn.com/moneyplansos/021_MPSOS_-_Real_Life_Case_Study_with_Kelly_Brantley.mp3 http://feedproxy.google.com/~r/mpsos/~3/kUvCsA3Gflg/ http://moneyplansos.com/020-mpsos/#comments Wed, 08 Jun 2011 03:30:47 +0000 Steve Stewart http://www.moneyplansos.com/?p=2279 http://moneyplansos.com/020-mpsos/feed/ 2 Credit Report,Debit&Credit Cards,Living Without Credit Cards Living Without Credit Cards takes more than just a pair of scissors and going cold turkey. This episode walks us through Step #3 to wean us off our dependency on plastic. Here is a recap of the steps so far: - Living Without Credit Cards takes more than just a pair of scissors and going cold turkey. This episode walks us through Step #3 to wean us off our dependency on plastic. Here is a recap of the steps so far: Step 1 - Take your cards out of your wallet and put cash in your wallet instead. Step 2 - Delete credit card numbers from your online accounts and use BillPay for online payments. This Episode: Step 3 - Freeze your credit card accounts from any further charges and use the money you have been saving to build up your emergency fund. Check your credit report if you have accounts that you can't find or don't know how to contact. To learn how to check your credit report for free, watch this Vid-torial: Annual Credit Report Vid-torial   Holla From The Impala: Buy Mutual Funds, not commercials Do you need a Coach? Visit http://www.moneyplansos.com/free-estimate to find out how to pick my brain and see if I can't help you with your money. The first consultation is free! Steve MoneyPlanSOS Stewart no 19:15 Living Without Credit Cards takes more than just a pair of scissors and going cold turkey. This episode walks us through Step #3 to wean us off our dependency on plastic. Here is a recap of the steps...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/kUvCsA3Gflg" height="1" width="1"/>http://moneyplansos.com/020-mpsos/http://traffic.libsyn.com/moneyplansos/020_MPSOS_-_Living_Without_Credit_Cards_Pt3.mp3 http://feedproxy.google.com/~r/mpsos/~3/g9s-llOt24I/ http://moneyplansos.com/019-mpsos/#comments Wed, 01 Jun 2011 05:07:26 +0000 Steve Stewart http://www.moneyplansos.com/?p=2254 http://moneyplansos.com/019-mpsos/feed/ 1 Debit&Credit Cards,Living Without Credit Cards We can't really live or give at our full potential unless we stop borrowing more money and eliminate debt. One of the first things we have to do to pay off debt is to stop borrowing more money. That means weaning our dependency away from credit cards a... We can't really live or give at our full potential unless we stop borrowing more money and eliminate debt. One of the first things we have to do to pay off debt is to stop borrowing more money. That means weaning our dependency away from credit cards and using cash or debit. This episode covers Step #2: Delete your credit card numbers from all online accounts. Some cool side effects of this exercise: You may find some accounts you no longer need (magazine subscriptions) or you may re-visit some contracts (revise your cell-phone plan or cable subscriptions). Substitution or Solution: Use your bank's free online BillPay to pay for online purchases. Also, attempt to purchase things locally for at least 1 month instead of online, only using Debit when absolutely necessary. Holla From The Impala: Investing in the market - ya can't lose! Become A Coach Book Giveaway Winner: Alex Humphrey from AlexSpeaks.com Steve MoneyPlanSOS Stewart no 19:19 We can&#8217;t really live or give at our full potential unless we stop borrowing more money and eliminate debt. One of the first things we have to do to pay off debt is to stop borrowing more money....<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/g9s-llOt24I" height="1" width="1"/>http://moneyplansos.com/019-mpsos/http://traffic.libsyn.com/moneyplansos/019_MPSOS__Living_Without_Credit_Cards_Pt2.mp3 http://feedproxy.google.com/~r/mpsos/~3/8zBgF6N7lKs/ http://moneyplansos.com/018-mpsos-jen-mcdonough-real-life-case-story/#comments Wed, 25 May 2011 22:27:36 +0000 Steve Stewart http://www.moneyplansos.com/?p=2247 http://moneyplansos.com/018-mpsos-jen-mcdonough-real-life-case-story/feed/ 7 Financial Peace University,Real Life Case Study Bob and Jen McDonough were normal Americans with four children, made a lot of money, and enjoyed life. They had two cars with payments, a 2nd mortgage, spent $1,000 a month on dining, paid off credit cards with 401K loans, Bob and Jen McDonough were normal Americans with four children, made a lot of money, and enjoyed life. They had two cars with payments, a 2nd mortgage, spent $1,000 a month on dining, paid off credit cards with 401K loans, and thought they were doing great.  But one of their four children caused them to sacrifice all that "living". Bob and Jen share their story of why they decided to make a drastic change in their life, including working 8 different jobs last year to pay off debt and START GIVING while paying off their ton of debt!  Listen to their inspiring story of who they were, who they are now, and who they hope to become. If you were inspired to give and don't know where to start, why not make a donation to the Juvenile Diabetes Research Foundation at www.JDRF.org.     UPDATE November 2011: Bob and Jen were featured on ABC 5  Update: Jen McDonough released her inspirational story of working through doubt and physical exhaustion to complete the IronMan. It reached Amazon's Top 100 in the Transformation Section and can be purchased in electronic e-book version or paperback   Steve MoneyPlanSOS Stewart no 53:45 Bob and Jen McDonough were normal Americans with four children, made a lot of money, and enjoyed life. They had two cars with payments, a 2nd mortgage, spent $1,000 a month on dining, paid off credit...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/8zBgF6N7lKs" height="1" width="1"/>http://moneyplansos.com/018-mpsos-jen-mcdonough-real-life-case-story/http://traffic.libsyn.com/moneyplansos/018_MPSOS_-_Real_Life_Case_Story.mp3 http://feedproxy.google.com/~r/mpsos/~3/pmLXys7mGRg/ http://moneyplansos.com/017-mpsos/#comments Thu, 19 May 2011 07:02:06 +0000 Steve Stewart http://www.moneyplansos.com/?p=2239 http://moneyplansos.com/017-mpsos/feed/ 3 Debit&Credit Cards,Living Without Credit Cards Americans are dependent on their credit cards. But you can live without credit cards, it just takes some time and effort. In this episode we talk about the very first action step you need to take. It's the hardest step to take, Americans are dependent on their credit cards. But you can live without credit cards, it just takes some time and effort. In this episode we talk about the very first action step you need to take. It's the hardest step to take, even though the action is very easy - it's just hard to stick to it. We also discuss a solution or substitution on what to do instead of using plastic by talking about how the envelope system works. Holla From The Impala: Leaving money on the table is NOT smart money management. Finally, what books are you reading this year. Let me know: Email Steve@MoneyPlanSOS.com, send a note on Facebook: "Ask MoneyPlanSOS", or send me a note on Twitter. Steve MoneyPlanSOS Stewart no 22:38 Americans are dependent on their credit cards. But you can live without credit cards, it just takes some time and effort. In this episode we talk about the very first action step you need to take....<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/pmLXys7mGRg" height="1" width="1"/>http://moneyplansos.com/017-mpsos/http://traffic.libsyn.com/moneyplansos/017_MPSOS.mp3 http://feedproxy.google.com/~r/mpsos/~3/ayO5nOFpSZo/ http://moneyplansos.com/016-mpsos-engaged-couples/#comments Sun, 08 May 2011 04:10:31 +0000 Steve Stewart http://www.moneyplansos.com/?p=2212 http://moneyplansos.com/016-mpsos-engaged-couples/feed/ 2 Jon White from JWFinancialCoaching.Wordpress.com shares this article about the - Dos and Don'ts for engaged couples - Photo by Bliss Katherine #1 DO: Have "The Money Talk" #1 DON'T: Combine finances early #2 DO: Make a mock budget Jon White from JWFinancialCoaching.Wordpress.com shares this article about the Dos and Don'ts for engaged couples Photo by Bliss Katherine #1 DO: Have "The Money Talk" #1 DON'T: Combine finances early #2 DO: Make a mock budget #2 DON'T: Blow off big disagreements Click on the media player above to hear all the important details. On Holla From The Impala: A Bad Good Investment And Art Milbert tells a story about Discouragement For information on Financial Coaching and how a Personal Finance Architect can help you build a solid financial foundation, email Steve@MoneyPlanSOS.com or call 636-373-4818. I want to help YOU. Steve MoneyPlanSOS Stewart no 19:42 Jon White from JWFinancialCoaching.Wordpress.com shares this article about the Dos and Don&#8217;ts for engaged couples Photo by Bliss Katherine #1 DO: Have &#8220;The Money Talk&#8221; #1...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/ayO5nOFpSZo" height="1" width="1"/>http://moneyplansos.com/016-mpsos-engaged-couples/http://traffic.libsyn.com/moneyplansos/016_MPSOS_-_Engaged_Couples_DOs_and_DONTs.mp3 http://feedproxy.google.com/~r/mpsos/~3/XjWHbeI17M4/ http://moneyplansos.com/015-mpsos/#comments Tue, 26 Apr 2011 13:20:49 +0000 Steve Stewart http://www.moneyplansos.com/?p=2143 http://moneyplansos.com/015-mpsos/feed/ 1 Financial Coaches,Real Life Case Study Matt and Janelle Wegner, a married couple with their own podcast called Living In Financial Excellence (LIFE), join me this week for our Real Life Case Study as we discuss a couple who have a good income but way too much outgo. Where do they cut back, Matt and Janelle Wegner, a married couple with their own podcast called Living In Financial Excellence (LIFE), join me this week for our Real Life Case Study as we discuss a couple who have a good income but way too much outgo. Where do they cut back, where can they work extra, should they sell the house? Mentioned in this episode: Matt and Janelle's Website: http://financialexcellence.net/ Noted in the show: http://financialexcellence.net/episode-53-business-lessons-learned-from-a-financial-coach/ If you didn't listen to the whole show then you don't know what this is for: http://www.chicagofed.org/webpages/education/msw/index.cfm Update: Matt and Janelle syndicated this episode on their show: http://financialexcellence.net/057-financial-excellence-real-life-financial-coaching-case-study/     Steve MoneyPlanSOS Stewart no 47:58 Matt and Janelle Wegner, a married couple with their own podcast called Living In Financial Excellence (LIFE), join me this week for our Real Life Case Study as we discuss a couple who have a good...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/XjWHbeI17M4" height="1" width="1"/>http://moneyplansos.com/015-mpsos/http://traffic.libsyn.com/moneyplansos/015_MPSOS_-_Real_Life_Case_Study_with_Matt__Janelle_Wegner.mp3 http://feedproxy.google.com/~r/mpsos/~3/DSzqci3Xysg/ http://moneyplansos.com/014-mpsos-become-a-coach-with-justin-lukasavige/#comments Mon, 18 Apr 2011 23:20:14 +0000 Steve Stewart http://www.moneyplansos.com/?p=2075 http://moneyplansos.com/014-mpsos-become-a-coach-with-justin-lukasavige/feed/ 4 Counselor Training,Financial Coaches,How-To Justin Lukasavige is a storywriter, but before he became the host of CoachRadio.tv and started helping businesses do business better he was a Dave Ramsey Certified Counselor. - Justin also wrote a book called "Become A Coach". Justin Lukasavige is a storywriter, but before he became the host of CoachRadio.tv and started helping businesses do business better he was a Dave Ramsey Certified Counselor. Justin also wrote a book called "Become A Coach". I asked him who should become a coach, how to make it work as a business, and what are the liabilities in being a Financial Coach. We also discuss the changes in Dave Ramsey's Counselor Training program, which we still consider to be the best around. If you are considering becoming a Financial Coach, or any kind of a coach that helps people with their problems, then I highly recommend his book in which he answers the most common questions he was asked about how he became a business coach. &amp;amp;amp;lt;A HREF="http://ws.amazon.com/widgets/q?ServiceVersion=20070822&amp;amp;amp;amp;MarketPlace=US&amp;amp;amp;amp;ID=V20070822%2FUS%2Fmo006-20%2F8003%2F2f969b43-ccb1-4ff6-a816-0a7a13bd11aa&amp;amp;amp;amp;Operation=NoScript"&amp;amp;amp;gt;Amazon.com Widgets&amp;amp;amp;lt;/A&amp;amp;amp;gt;  Steve MoneyPlanSOS Stewart no 57:39 Justin Lukasavige is a storywriter, but before he became the host of CoachRadio.tv and started helping businesses do business better he was a Dave Ramsey Certified Counselor. Justin also wrote a book...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/DSzqci3Xysg" height="1" width="1"/>http://moneyplansos.com/014-mpsos-become-a-coach-with-justin-lukasavige/http://traffic.libsyn.com/moneyplansos/014_MPSOS_-_Become_A_Coach_with_Justin_Lukasavige.mp3 http://feedproxy.google.com/~r/mpsos/~3/mLPQQG3af4M/ http://moneyplansos.com/013-mpsos-leverage-and-quarters-for-lotto/#comments Tue, 12 Apr 2011 12:01:50 +0000 Steve Stewart http://www.moneyplansos.com/?p=1971 http://moneyplansos.com/013-mpsos-leverage-and-quarters-for-lotto/feed/ 1 Leverage is a term used in the housing industry, but everday Americans Leverage themselves all the time and don't realize it. - Then on "Holla from the Impala" I talk about digging in your pocket for quarters to play the lottery. - Leverage is a term used in the housing industry, but everday Americans Leverage themselves all the time and don't realize it. Then on "Holla from the Impala" I talk about digging in your pocket for quarters to play the lottery. Music used in the intro is BREAKFAST WITH ZUES by CRESSIDA and it is KICKIN!   Steve MoneyPlanSOS Stewart no Leverage is a term used in the housing industry, but everday Americans Leverage themselves all the time and don&#8217;t realize it. Then on &#8220;Holla from the Impala&#8221; I talk about digging in...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/mLPQQG3af4M" height="1" width="1"/>http://moneyplansos.com/013-mpsos-leverage-and-quarters-for-lotto/http://traffic.libsyn.com/moneyplansos/013_MPSOS_-_Leverage_and_Quarters_for_Lotto.mp3 http://feedproxy.google.com/~r/mpsos/~3/ZVARnVB4-9I/ http://moneyplansos.com/012-mpsos-real-life-case-study-with-melissa-cappleman/#comments Tue, 29 Mar 2011 13:16:54 +0000 Steve Stewart http://www.moneyplansos.com/?p=1798 http://moneyplansos.com/012-mpsos-real-life-case-study-with-melissa-cappleman/feed/ 1 Broke,Financial Coaches,Real Life Case Study Coach Melissa Cappleman helps us in our Real Life Case Study today with a single Mom who is doing it all by herself with two children - and she's living in overdraft. Coach Melissa is also a working Mom, so she can relate with this client and provides ... Coach Melissa Cappleman helps us in our Real Life Case Study today with a single Mom who is doing it all by herself with two children - and she's living in overdraft. Coach Melissa is also a working Mom, so she can relate with this client and provides recommendations that can help this single Mom make the changes for herself, her future, and her children's future. Also: April is National Financial Literacy Month. How much time will you devote to learning how to better manage your personal finances? A dozen Coaches all over the nation are joining me in posting a 1-minute video each day to ask a question: What do you think about how money is managed? Visit this website every day in April 2011 to spend 30 minutes this month, 1 minute a day, learning about yourself and money.   Steve MoneyPlanSOS Stewart no Coach Melissa Cappleman helps us in our Real Life Case Study today with a single Mom who is doing it all by herself with two children &#8211; and she&#8217;s living in overdraft. Coach Melissa is...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/ZVARnVB4-9I" height="1" width="1"/>http://moneyplansos.com/012-mpsos-real-life-case-study-with-melissa-cappleman/http://traffic.libsyn.com/moneyplansos/012_MPSOS_-_Real_Life_Case_Study_with_Melissa_Cappleman.mp3 http://feedproxy.google.com/~r/mpsos/~3/gD0S9UBzypg/ http://moneyplansos.com/011-mpsos-i-lost-it-and-justin-bieber-has-a-coach/#comments Tue, 22 Mar 2011 15:48:42 +0000 Steve Stewart http://www.moneyplansos.com/?p=1773 http://moneyplansos.com/011-mpsos-i-lost-it-and-justin-bieber-has-a-coach/feed/ 4 Financial Coaches,Tithe Have you ever been totally derailed? Something unusual came up that just threw you off balance and you had to stop, get back up, and start moving forward again? That's what happened to me over the past few weeks. - Have you ever been totally derailed? Something unusual came up that just threw you off balance and you had to stop, get back up, and start moving forward again? That's what happened to me over the past few weeks. So in the 1st segment: I talk about those weird things that derailed me and how think I Lost It. Also, updates on previous episodes a listener's email: Do I tithe on Unemployment? Holla From The Impala: Rapscallion or God's Helper? Finally: Justin Bieber has a coach, Michael Jordan has a coach, who is your coach? If you like this Podcast, please leave a review on iTunes. Leaving postive feedback helps the podcast show up faster for others who are looking for help on becoming Debt Free! Thanks for listening, I really do appreciate every download!   Steve MoneyPlanSOS Stewart no Have you ever been totally derailed? Something unusual came up that just threw you off balance and you had to stop, get back up, and start moving forward again? That&#8217;s what happened to me over...<br/> <br/> Pay attention, not interest! I understand that personal finance is more about behavior than math and teach everyday Americans how to build a house of Financial Freedom!<img src="http://feeds.feedburner.com/~r/mpsos/~4/gD0S9UBzypg" height="1" width="1"/>http://moneyplansos.com/011-mpsos-i-lost-it-and-justin-bieber-has-a-coach/http://traffic.libsyn.com/moneyplansos/011_MPSOS_-_I_Lost_It_and_Justin_Bieber_has_a_Coach.mp3