$12,000 a Year

Could you live on $12,000 in annual income? I hear many of you laughing and saying, “I can barely live on $12,000 PER MONTH!”

I read this article today (click to read) and it forced me to really evaluate how I approach my finances.

More money typically means more stuff–either in quality or quantity–for ourselves. We usually want more money so that we can improve our standard of living.

In the article, the author lives on $12,000 per year and still decides to tithe (give a percentage of money to her church). She does it because “tithing reminds me that there are lots of people worse off than me, people who’d love to have my so-called ‘problems’.”

During this season, when folks are spending money they don’t have, keep in mind that there are those who are much worse off than you…and not by choice!

Defeating Debt

If you are an “average” American, you have thousands of dollars in credit card debt.   (see previous post on debt.)

Right up front…I’m not here to rehearse the painful realities of being in such a situation.  And it is futile to tell you about all the debt traps that you need to avoid–we’ve already fell for them.

This blog is a solicitation to the “non-average” Americans that have found a way to GET OUT OF DEBT.  What did you do?  How did you do it?  How hard was it?  How long did it take?

I’m looking for someone who is able to share solutions!

The Year-End Blues

Approaching the end of the year can be a depressing experience. We are forced to reflect upon the plans and resolutions that were NOT accomplished, and this can be disheartening.

“The diet(s) didn’t work–and I’m bigger now than I was at the end of last year.”

“I started a savings plan, but those funds are depleted and I actually have more debt than I did last year.”

“My relationship with my spouse seems to be in the same condition it was a year ago.”

“I’m still working this same dead-end job!”

“I really thought 2006 was going to be MY YEAR.”

These are very common sentiments. Many people start off the year with hope and fervor, but something happens at some point during the year, and we revert back to our old patterns and habits.

I’m sure you’re saying, “I want 2007 to be a better year for me. How do I avoid the tendency to fall back into my old ways of doing things?”

So, I’m soliciting the advice and counsel of our audience…

What does a person need to do to ensure that 2007 is a productive and developmental year?

‘Tis the Season

Lights. Trees. Shopping….Pressure.

Are you feeling the pressure to be a good Santa this holiday season? I mean, what kind of a scrooge wouldn’t spend hundreds, if not thousands, on gifts for their friends and loved ones?

I really do believe that the Christmas season should be about giving. The only problem is, people seem to experience pressure to give at levels that usually exceed their resources. Many of us go into tremendous levels of debt in our attempt to be GIVERS. It just doesn’t make sense.

It’s hard to give if you’re broke!

Where does this pressure come from? Is it the commercialization of the holiday? Is it our own ego trying to present an image that we’ve got it all together? Why do we insist on giving when we really don’t have much money to give?

Pay Day

It’s Friday! And for a lot of people, Friday means “pay day”.

Time to collect payment for the work you’ve been doing. (And for the husband of the frustrated wife, it’s time to suck your wife dry for all the work SHE’s been doing.)

Most people complain about how much–or how little–they get paid. “I do too much work for this measly check!”, or “I can barely make ends meet with these pennies!” We tend to focus on our INCOME being insufficient.

But here’s what I’ve learned…our success in our personal finances has more to do with WHAT GOES OUT than WHAT COMES IN.

It’s not what you MAKE, it’s what you KEEP!

So, before you let all of your hard-earned money leave out the door, make sure that you save some of it. In other words, pay yourself first.

Please use the comments to share some of your thoughts on saving money…challenges, tips, etc.

Show me the Principles…I’ll get the Money

The last ten years of my professional career has been spent in the financial services industry–either at investment firms or at a financial publishing company.

It was extremely difficult to work all day, interacting with individuals who had lots of money, and then go back to my “community” and see the poor financial state that most of us were in.

As a result, I started a financial principles course at my church through the Community Refuge Education and Recreation Center (a non-profit organization). It is my belief that biggest distinction between the “haves” and “have-nots” is their level of financial literacy.

Folks who don’t have money typically don’t understand money.

Notice my use of the word ‘have’. When I say ‘have’, I am referring to how much money a person KEEPS. What sense does it make to bring in a boatload of money (income) but have nothing left at the end of the day?

The only way to keep it (so that the money can continue working for you) is to have a good understanding of what money is, and how it works.

Please do whatever you can to increase your financial literacy.

What’s thine is mine

Dwayne and I worked together on this one…

I was amazed at the response to the Gift Bag story. You all seemed to get a real kick out of my pain (smile). However, I think that we can generally conclude that there really is a major difference between how men and women perceive certain things. In situations like the gift bag scenario, being different is really no big deal. However, with other issues—like money—the differences can create some serious tension.

In my own personal quest for financial independence, I’ve learned that much of a person’s financial attitudes and behaviors were shaped while they were children. We learned our lessons about money either by explicit instruction, observation, or remained in the dark due to lack of exposure. Whatever we know, or don’t know about money, we bring it all into our marriages.

I don’t have any hard evidence to share, but I’m told that the top 3 “issues” that plague and/or end a large percentage of marriages are money, sex, and children. Clearly, money is a big issue in relationships.

I realize that every house does what works for them, so I’m interested in hearing your thoughts on this…

Should married couples share a joint banking account?
	Yes - We need to be on the same page.
	No - We need to maintain some individuality.
	Yes and No - 1 joint account and 2 other separate accounts
	Another idea - Add a comment
Free polls from Pollhost.com

Christ Died that I Might Bling

Last week’s cover story for Time magazine was Does God Want You to be Rich? Interestingly enough, I am working on the Financial Stewardship piece of my church’s 100 Days to Wholeness campaign. So, this article was very timely for me.

The article investigates the church’s perspective on personal wealth, and it compares/contrasts the views of the “megachurches” vs. “traditional” preachers.

Does God want you to be rich?

If not, does God want you to be poor?

Are you a Producer or a Consumer?

In the “marketplace of life”, there appears to be two categories of people: producers and consumers.

Here are my definitions for these terms:

Producer: those who create items to be consumed

Consumer: those who come to the marketplace and give their money to the producers in exchange for stuff

I am tired of being on the consumer side of the table. At the end of the day, I have a bunch of stuff, and the producers have all of my money.

Why do we constantly give our money to someone for their creativity?

Couldn’t you or I create something that someone else might want to consume?


Be Productive!

Debt: Volunteering for Slavery

One proverb states,

The rich rule over the poor, and the borrower is servant to the lender.

When one person borrows from another, more than a financial transaction has occurred–a relationship has been created. And according to the proverb, this relationship does not benefit the borrower.

When a person takes on a debt, the borrower makes an agreement with the lender. “I’ll take the money (or merchandise) now, and I’ll pay you later.” This agreement connects the two parties, essentially forming a relationship.

Beneath the immediate gratification of having what they want NOW, the borrower has really given up quite a bit.

Essentially what the borrower has done is agreed to work and have his/her income go to the lender. In other words, when a person borrows, they are forfeiting their future income. The lender doesn’t have to work, because the borrower is working for him. (Sounds like slavery to me!)

It gets worse…Not only does the borrower pay the amount borrowed, or what the item was worth, but they also have to work to pay off the interest.

Doesn’t sound like a good deal to me!

So, every time you swipe your those credit cards, keep in mind–you are just volunteering for slavery.

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