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Keep It Simple

Slow 300x199 Keep It Simple Keeping things simple is key when it comes to making financial decisions. Before my wife and I had a clue, I was waist deep in books and other information about how I could manipulate our money so we could be financially independent asap. Whether it was in real estate, stocks, currency, or some other thing that I saw on midnight cable. I really was all over the map trying out new things.

A few years later, when we came to the understanding that things weren’t happening the way the books led us to believe, we slowed down and started to take one step at a time. The surprising thing was, our net worth started to go up. Funny how things began to work out for us when we stopped listening to the get rich quick stuff.

Not sure what direction to go? Try keeping it simple and have a solid foundation before you move on.

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Credit Score And Credit Card Points

Written by Darrin Greene · Leave a Comment

Credit 300x300 Credit Score And Credit Card Points Two things that both the financial industry and our culture have sold us are: build your credit score and use a credit card so you can get points while you do it.

Believing these two things may be holding you back from the life that you really want. Here’s why:

Your credit score / FICO score is built from 5 categories:

35% – Payment history
30% – Amounts owed
15% – Length of credit history
10% – New credit
10% – Types of credit used

The MYTH has been that if I have a high credit score I am doing well financially. The truth is that you don’t mind paying the bank the majority of your hard earned money.

I know of many millionaires that have a credit score of ZERO. Usually the first response from people is that these individuals don’t need a credit score because they have money. Though that is true, The Millionaire Next Door tells how the vast majority of millionaires got out of debt and stayed out of debt which enabled them to become wealthy. You want to become rich? Do what the rich are doing, not what a keynote speaker is saying at a weekend conference while getting rich off of you.

Another common MYTH is this: Using a credit card to gain points will help me financially.

This perspective is very common and it is one of the reasons that my wife and I used to run everything through our cards. If you are reading this and your financial state is where you want it to be and that is a result of using your credit card points, this post isn’t for you. If you aren’t happy with your financial status, than maybe it is.

During a conversation between Ari Shapiro of NPR’s Morning Edition and Cornell economics professor Robert Frank about why we spend more using credit versus cash, Shapiro noted, “When McDonald’s started allowing credit card purchases, the average purchase went from $4.50 up to $7.00. That’s a huge increase.”

Another article I read stated, “When an establishment accepts credit cards, the average ticket size goes up. We anticipate a 40 percent increase in the average ticket size for those franchises implementing credit card processing for the first time.”

My goal isn’t to question whether it is right or wrong to use credit cards, but I’m definitely trying to say that if you are justifying your credit card usage for convenience and points while you are losing control with the rest of your finances… STOP!! Just wanted to be clear on that.

Your family’s future is much more important then getting your milk for free the next time you go shopping or getting a $50 gift card to a restaurant because you spent $2000 on your card.

If you aren’t happy with where you are at, doing the same thing will only get the same results. A good rule of thumb is to do the opposite of what your broke friends are doing and you should be in pretty good shape.

What are your thoughts? Are you getting ahead financially because of your credit score and credit card points?

Is Money Hindering Or Enhancing Your Dreams?

Written by Darrin Greene · Leave a Comment

Stepping out and making your dreams become reality is a courageous thing to do.

Years back when Laurie and I made the decision to start living out our dreams, without a doubt money was hindering us. It’s not that we didn’t have some money. I mean, we took out a 16,000 dollar loan and I quit my job. What could go wrong? Well, let me tell you. That money disappeared in a few short months while we chased the ideas that were in our heads, and all that we really had to show for it was receipts. But at least we could use them for a business write off (insert sarcasm).

As you may have guessed, back to work I went so we could stay afloat.

It wasn’t until we got a clue that things started to change. Working a day/night job wasn’t that bad when we had a plan in place. We made different decisions when there wasn’t the stress of debt on our shoulders and we weren’t being forced to make things work. Things organically just started to happen.

For us, that was the difference of having our money enhance our dreams instead of hindering them.

What is money doing for your dreams?

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9 Ways To Stay In Your Budget For Christmas

Written by Darrin Greene · 3 Comments

This is supposed to be a happy and joyful time of year. Failing to plan and follow through with those plans can make the sweetness of this season short lived.

Here are 9 ways to keep the sweetness alive, financially speaking:

1. Let’s not kid ourselves – we can’t live on a budget unless we make one. Don’t have one? Start with this budget.

2. Instead of being 100% responsible for providing all of the dinner/dessert/drinks when you have people over at your home, spice it up a little and have the others bring their favorite dish.

3. Just because there is a price tag on an item, that doesn’t mean you have to buy it for that price. In fact, I just did this today. I bought a present for my daughter and simply asked for a discount. After talking with the cashier for about 15 seconds, she took about 30% off.

4. For my family, it’s nothing to drive 15-20 minutes to see friends and family. When you make trips like this make sure you plan a little extra time so you can also run other errands or stop at the store if you have to. Though spending a little extra on gas shouldn’t make it or break it for you, every little bit helps.

5. Put a limit on the gifts that everyone is buying for each other.

6. Make some or all of your gifts. I talked a little about this here.

7. Bake cookies/pastry as gifts. I can still remember from years ago when someone gave our family some cookies that she had baked the day before. That’s pretty good considering I can’t even remember the things that I received last year.

8. Have kids? Hook up with another family that has kids so you can trade off when you have an event to go to. The other family can do the same. No need to pay for babysitting.

9. Re-gift things that you got from the year before that are still in the box. Something to remember with this – don’t re-gift something that you received from the same gathering that you are going back to. Might not go over too well.

Help me add to the list. Leave a comment below of what you are doing to stay in your budget for Christmas.

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The Little Things Matter

Written by Darrin Greene · Leave a Comment

Looking Down 300x225 The Little Things Matter When’s the last time you told your spouse you loved them? Did you pick up your towel after your shower? Are there dirty clothes from yesterday still laying on the floor?

These are little things in life but when not done on a regular basis, they can turn into big things. Really, these are some of the things that people are fighting about in marriage counseling.

When you look at it that way it is easy to see that the small things do matter. If we understand that fact, then why are a lot of us either in a job we don’t like and not getting paid what we are worth, feeling stuck under a pile of debt and just scraping by, or even feeling like we will never get to the point where we can truly live?

It all starts with the small things which enable the big things in life to happen. You want more money left over at the end of the month? Think of all the small purchases you made last month, most of which were probably not needs. It’s the little things that are going to nickle and dime you to death.

How do you walk a mile? One step at a time. Don’t forget to take account of the little things you do, not doing so could be the factor that is holding you back from your dreams.

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How To Spend Money At Christmas

Written by Darrin Greene · Leave a Comment

Once again Christmas is coming and yes, it is in December this year. The snow has started to fall at our place and it’s hard not to start singing the songs of the season. More so for my wife. If you are finding that you have limited money this year to buy gifts, what’s the best way to go about not being a scrooge? First step – go in with a plan. This could mean putting a cap on the individuals that you are buying gifts for or even just buying things for the kids. Either way you do it, [...]

3 Things To Try If Your Spouse Isn’t On Board

Written by Darrin Greene · 1 Comment

Trying to go the right direction in life is a great thing to do, especially when it comes to making a budget and living on a plan. But what if your significant other doesn’t want to go with you? I guess one option is to carry on and do things without them. And another may be to forget it and not go after something better for your family’s lives. Here are 3 things to try to get your spouse on board or at least provide some ground for compromise: Stop focusing on the “what” and start talking about the “why”. [...]

5 Ways To Build Your Emergency Fund

Written by Darrin Greene · Leave a Comment

When a family is starting out on their new financial journey, I always recommend that they begin by saving for a Beginner Emergency Fund. This consists of anywhere from $500 to $2,500. Here are 5 ways to reach this goal: Sell unused items around your home. I remember when Laurie and I started our journey, if it wasn’t bolted down to the floor it had a “for sale” sticker on it (just joking – but not really). Get overtime at work. Some employers would be more than happy to make this happen if they knew your family was making [...]

If Nothing Else, Do This With Your Finances

Written by Darrin Greene · 2 Comments

I recently wrote about divorce over at TheUnshakableMan.com, and with finances being one of the leading causes of divorce, if you do nothing else with your finances, you should at least do this… By “this” I’m referring to agreeing on your finances. Something that I tell clients from time to time is that even if they do the opposite of what I recommend, it is crucial that they at least do it in unity with their spouse. Whether you are going the right or wrong way with your finances, you will be walking hand in hand with the one you [...]