Fascinations with Procrastination

Photo courtesy of Mark & the Zebra

Before this recession and the downturn in the economy. It seemed like the hardest thing in the world to get someone to put away money in an emergency fund. But as the unemployment numbers have swelled, so too has the sense of urgency to stash the cash... y'know just in case.


But at the same time, some... no MANY people still refuse to make any serious changes to their approach towards their financial behaviors.


I sometimes find it interesting to study the conditions under which we are forced to shift gears and move into an uncomfortable situation (saving) to avoid the effects of another uncomfortable situation (compulsive spending/shopping, living check-to-check, living the good live, etc.) -- even when we know it was the right thing to do all along, and also know that it will put us in a far better position moving forward.


Okay, I just used alot of words to say very little, let me bottom-line it for you lol. We don't like to change until we HAVE to.


Now, please dont feel like I'm picking on you, trust me when I say this applies to me most of all.


When my car is running strong I dont take nearly as much care to maintain it as when it's giving me trouble. And the same goes with my finances. It took a MAJOR situation before my wife and I decided that we NEEDED to get out of debt completely. Before that event, we were already settling into the "minimum payment mode" on all our accounts.


But once we were faced with that situation, it put us in a place where we really had no choice but to get all the way out of debt and stop digging ourselves deeper or dragging it out any further.
I can't wait for the day that I'll be able to share exactly what that situation was. Hopefully my wife will give me the greenlight someday. But I know for now that it's still too fresh and close to home even though the actual situation was resolved long ago.


Er... but back to the point I was trying to make... ah what was it?


We don't like to change until we HAVE to!

Romans 13:8 puts it this way (NIV):

"Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellow man has fulfilled the law."

And verse 11 continues:

"And do this, understanding the present time. The hour has come for you to wake up from your slumber, because our salvation is nearer now than when we first believed."


See, there really is no time to waste because most of us truly know what 'time' it is. For this year my church leadership selected the phrase "Now is the Time" as the theme for this year's ministerial focus. And although this year is now more than half-way over, I still want to offer those words as something for you to consider...


NOW IS THE TIME!

@W


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I Think We Need A Change...

Photo courtesy of Forgotten memory



As you know if you've been around us for even 5 minutes, we've been at this for almost 2 full years now! September 13th - which also happens to be my birthday - will make it official.





Within those 2 years we've picked up a lot of personal insight and we've also tweaked a number of techniques to find a more 'custom' fit than most of the major programs provide. We took all of the info and then applied our personal filter to it based on our beleif system, our financial situation at the time, and our decisions based on just how aggressive we wanted to be at the outset. Once we got the hang of it we essentially just let it run it's course without much change. Sure there was a streamlining process that we had to go thru but it mostly happened as a result of our weekly budget meetings and in very small increments.





But now I'm coming to a place where I feel we need a change in strategy. And I'd prefer for it to be a MAJOR change! At times I question if we are somehow too 'comfortable' with the pace we've settled into lately. Quite honestly there are times where I dont feel very "Gazelle Intense" at all about what we're doing.





And then when you couple with that the fact that we are quickly becoming role models through the ever-extending reach of this blog, Facebook and Twitter it becomes a challenge sometimes to manage a balance between what we're doing as a household vs. what we want to empower you to do as a person/family.





The bottom line is that I feel the need to possibly change the way we are approaching our debt. I'm looking for a way to make it 'fresh' again to us in spite of the fact that we've accomplished so much and are now at our virtual halfway point in the journey.





I'd love to hear ideas from any of you who have felt this same way and done something about it! Please leave me a comment below or hit me up on Twitter with your suggestions!





See ya next time,

@W




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Simple Secrets: Paying on it vs. Paying it OFF

Photo courtesy of Tea & Jam

Ok folks. In my last post we went over the basics of the 7 Baby Steps that have helped us pay off over $53,000 in debt in the last 20 months. But today, I'm going to let you in on a little secret: There should actually be 8 baby steps!

Step Zero: Stop using currently established and available forms of credit, and also stop accepting NEW forms of credit.

This step contains the key to your Total Money Makeover, and it's such a radical shift from 'the norm' that it causes many to fail even before they start. Some folks just cant get their head around living off of CASH.

When you really get the point of this program, you will soon realize that you really don't need credit at all. Not for credit reports, or FICO scores, or for your cash back rewards. You don't need it.

Minor tangent: Speaking of cash back rewards... how much CASH are you really getting BACK when the creditor is charging you interest for the use of your credit line? Think about it!

Now, in my last post I promised to tell you why we REALLY chose to stick with this system, and here is the reason: Because at first we felt like we were doing something WRONG. And when I say 'wrong' I mean we felt like we were being disloyal to the credit industry in some way. It's hard to articulate, but Visa and MasterCard have become so prevalent in our society and in our spending habits, that it felt truly odd to simply make the decision not to use our charge cards! How sick is that?

The entire credit system is propped upon the fact that they NEED you to NEED them. They constantly send the message that if you aren't using credit in some way, you simply will not be able to 'compete' with or keep up with the average consumer. It's a very Pied Piper mentality!

Once we realized why it felt so wrong, it lit a fire in us! And it opened our eyes to the many tactics and tricks that are pressed upon the average consumer.

THIS IS A WAR PEOPLE! And if you haven't noticed, take a look at what this nation has been through in the last 16 months as proof. The housing market collapse, the banking and financial institution implosions, the economy woes, the employment issues. They are all mutations of one virus: CREDIT...

Credit tells you it's ok to spend more than you actually possess. Credit tells you it's ok to borrow against your future, to acquire something today. Credit can erode your character and your sense of delayed gratification, and it can also ease you into a place of irresponsibility and 'living for the moment' emotional purchasing.

Because of this, you are required to make a change in your approach toward money. This is where the title of my post comes in. People who are comfortable with debt, have no problem "paying on" something far longer then they ever intended to, because they get lulled to sleep by the convenience factor of a payment plan.

Meanwhile, those who have had enough of this game of debt become addicted to "paying off" things as quickly as possible so that they can free up their income and truly live a life that's not dictated by a three digit score, and the limits on their cards.

Thanks for tuning in, I hope you're enjoying this expose' series.

Next up: "The $1,000 Scramble"

You are worthy of the journey!

@W







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@Risk Theater: Crisis of Credit (Visualized)

Photo courtesy of Students of Calvary

http://www.crisisofcredit.com/



"The Short and Simple Story of the Credit Crisis.Crisisofcredit.comThe goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated. This project was completed as part of my thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.For more on my broader thesis work exploring the use of new media to make sense of a increasingly complex world, visit jdjarvis.com"


Hi guys, It's been a while since I posted a video and I found just the thing today.

This is a quick, easy and sleek explanation of the financial collapse we all now have front row seats for.

Enjoy!





Any Questions?

@W


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We're Getting PUMPED!!

Our budget is finally about to pack on some serious muscle in this war we've waged on our debt!

The Lord is aligning a number of things at JUST the right time as far as our finances are concerned. My wife just got a DREAM of a part-time job. (Ka-ching $$) My job just assigned me to a large overtime project. (KA-ching $$$) And largest of all in the next few days we'll be paying off a major loan that will push an extra 5 'bills' ($500) straight to our debt snowball! (KA-CHINGY ching chang $$$$!!) LOL

Now usually our budget meetings have become pretty fluid and pain-free, but last night took it to a whole new level. We were actually GIDDY talking about out finances! We were joking around and giving each other funny lil nicknames. For instance, because I'm the one that actually plots out our budget spreadsheet, and withdraws the cash ect. I made a joke that she should call me the "Comptroller". And since she's so great at filing our budgets, papers, and bills as well as keeping track of the decisions we make, as well as the follow-up involved so that we can ACT once we have the money in hand, I said I'm gonna call her the "Administrator" lol. Well to make a long story short we settled on the fact that she's the "Commissioner", and I am the "Mayor" lol! (right honey?)

So anyway, as you can see this new turn of events has us STOKED! And we are both certain in the fact that the Lord is blessing our efforts in ways we could only dream of! For the longest time both of us have been 'worried' about our Gazelle Intensity, because certain circumstances prevented us from generating any extra income. We 'wanted' to get to a point where it could be realistic, but even a recently as last month it just didn't seem possible.

We knew the loan would be paid off in November and that had us amped enough, but we didn't know where else we could squeeze out more income. For the time being that no longer appears to be an issue and I truly and openly praise God for making a way. We're so undeserving of how well He's protecting and accelerating our efforts! WOW!

Which brings me to my point for today: It's really true that He will make ways for you, when you start moving His way! (Oooh I LIKE that one, did that really just come from ME?! lol)

Mmm, I think I can stop right there for now, that'll preach all by itself!

For those of you who are attempting a Total Money Makeover, and really giving it your ALL, THIS is for YOU. It doesn't start out easy, and it doesn't always feel easy as you're going through it, but I can GUARANTEE that it is EASILY worth the effort! (Man I'm just on a roll today with the good quotes! lol)

You will suddenly see things open up in amazing ways as you continue in this process as long as your heart is in it for the right reasons. Not to BE RICH, or to flaunt your newly reclaimed income potential recklessly. No not at all! Chasing those things is what got you here in the first place! Instead, once this process takes ahold of the way you think, feel, and interact with your money, you wont even WANT all of the things your money will now be able to afford you! Yes, when you get to the other side of this thing - when you are finally able to scream "WE"RE DEBT FREE!!!!!!" by all means celebrate and enjoy your accomplishment. But I promise you, you wont be out to blow your extra income on every DVD that Best Buy carries, or every new toy for your car, or every color that Gucci bag comes in. I just don't think it's possible to go through this process and hold on to that type of materialistic mentality.

I'm not saying you wont get nice stuff once your debt free. Oh yes you will, but you wont be living your life slaving to acquire those things, because you'll be in a position to safely afford them while living within your means. And there's a BIG difference between the two.

"If you live like no one else...one day you will live like no one else!"

Lord, I cant wait for that day. But thank you in the meantime for what you are allowing us to do with each day you give us between now and the day we pay off that last bill! And Lord you know this isn't just about the money for us. I love you for what you are teaching me as a steward and a husband. I love that what we are learning can be just as easily applied to how we steward our TIME, or set our PRIORITIES, or how we manage all of the other resources you've given us. My marriage is stronger for us having gone through this. I am stronger in my trust that you will provide in EVERY circumstance what is needed for me to rely totally on you. If I wasn't going through this process, I don't know how else you would have shown me all that you are teaching me. But I'm thankful that you chose to call us to bear witness to this message. Thank you for your ways and your mercy towards me and my family. We do this to honor YOU... because you really do own it all!

Your servant,

@W






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An Open Letter to my DEBT...

I need this relationship to be over.

I've said it a million times in my head, and I've said it to others about you, but never directly to you . Forgive me if I sound rude or ruthless, but I need this to feel as painful for you as having you in my life was for me.

I'm leaving you behind because you bring nothing but pain and remorse. You are what stands between me and my dreams. You've been the cause of so much strife and confusion in my life. I've thought about YOU more than probabbly anything else in my life, and that's just not right.
You were always good for showing me a good time... And then leaving me stuck with the bill. I cant count the times you told me to freely use you, to rely on you. Only to find out later YOU were using ME!

And when I had exhausted my resources you never lent a hand. Instead you sent merciless goons after me. But time after time I came back to for more because I thought you were the only way. The way to everything I thought I wanted.

I've finally got up the nerve to head out on my own without you. I know you wont miss me cause I never was your 'only'. I'm finally at a point in my life where I can SEE living life without you!
Oh yeah, I'm so through with you! But I want you to know I'm not angry with you. In fact I'm grateful because of what you've allowed me to learn about myself. I'm different from the dude you met in college. Thank you sooo much for putting me up on the game. Now that I know you inside out, you'll never be able to get me back.

So I urge you to enjoy what time you have left with me. I've made a vow to get rid of as much of you as I can each and every day till there's nothing left of you in my life.

Yes it's a slow painful process like climbing a mountain using only your fingers... Or scraping peanut butter out of a jar using a toothpick... But once you're gone I wont ever have to do it again.

I pray my children never meet you. In fact I forbid you from ever coming around them. Going forward you are to keep your hands off of my family... PERIOD!

Again, I'm not mad at you. You were only doing what you were designed to do. Just know that you cant do it to US anymore. I just thought it would only be fair of me to be straight up with you and tell you why I'm leaving you.

I cant wait to be free of you...

@W




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Beer and Money... A Match Made In...(Nevermind)

Photo courtesy of GraphicsDB.com

During this rollercoaster of a year for the economy, Americans have tightened budgets and pinched pennies in various ways. Many have cut back on driving to ease the cost of gas. Many have skipped the box office ($10 per ticket) in exchange for Redbox ($1 per movie rental). (P.S. - I love you redbox, you've been a wonderful friend to my wife and I while we get out of debt! lol)

But one staple of American life has strangely resisted the downward pull of our slumping economy. Actually this industry is experiencing a record surge in sales instead of the decline seen elsewhere.

So what is this magical product? I bet you would say Oil, or Gas, but you'd be wrong... well kinda wrong because they're not the product I'm talking about in this instance.

Homer Simpson would call it DUFF... er - I mean BEER.

For 2008 beer prices are up 7% over the past year as brewers passed on higher manufacturing costs to consumers.... BUT...2008 sales are also up 6.8% as well! It would be one thing if they jacked up the prices and usage remained roughly the same... but you actually mean to tell me that people are paying more for it, and STILL buying more of it at the same time? Is it really that deep America?!

Well in a word... Yes.

See, beer and alcohol are about as close to the perfect 'product' as we'll ever see. When people celebrate, they get drunk. When people wallow in their sorrows, they get drunk. Got that huge promotion? Let's go get drunk. Just got fired after 20 years with the company? Hmmm... I know, let's go get drunk! (and now go look at the picture for this post again lol.... deep aint it?)

And as most of you know firsthand, or have *ahem* 'heard' from others, drinking aint cheap! lol

Still, you have to tip your hat to anyone who has the moral ambivalence to brew and market beer and alcohol. It fits virtually any occassion. unless you dont drink that is...

Making money off of people's joy and pain comes off a bit parasitic or opportunistic to me. In a way it reminds me of predatory lenders, which I've seen my fair share of in the past year. But hey, what do I know?

@W

*Just to clarify, I do not condone the consumption of alchol, nor do I partake of it myself. I just wanted to share this observation with you while it was fresh in my mind.

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Food Bank: The McDonald's Mentality Pt. I

Photo courtesy of Goombay*

*Photo was taken in New Orleans after Katrina...

As you can see from my post history, I've been coming back to the relationship between food and money lately. Each time I feel I've exhausted the point, I discover a new facet to examine.

So with that in mind, I'm turing my focus to the largest chain of fast food restaurants, McDonald's. Before I get into it, consider this: McDonald's serves 47 MILLION custermers daily. Let that sink in for a moment.

Now, Surely you're aware of the health risks of eating too much fast food. But if you look past the food, and really consider the mindset behind McDonald's hold on pop culture you'll learn some startling things about the concepts of debt, credit, predatory lending/marketing and consumer loyalty. With these things in mind I just ask that you consider McDonald's to be our 'Metaphor' for all things instant gratification, quick-n-easy, and of little value.

In order to set the stage properly for this series though, I must invite you to open your bible - YES your bible - to see the first example of McDonald's business model...

Jacob & Esau

The story is found in Genesis 25:29-34 (KJV)

29 And Jacob sod pottage: and Esau came from the field, and he was faint:
30 And Esau said to Jacob, Feed me, I pray thee, with that same red pottage; for I am faint: therefore was his name called Edom.
31 And Jacob said, Sell me this day thy birthright.
32 And Esau said, Behold, I am at the point to die: and what profit shall this birthright do to me?
33 And Jacob said, Swear to me this day; and he sware unto him: and he sold his birthright unto Jacob.
34 Then Jacob gave Esau bread and pottage of lentiles; and he did eat and drink, and rose up, and went his way: thus Esau despised his birthright.

Did you miss it? What does this have to do with McDonalds? Well they say a picture is worth a 1000 words so check this out:

(Click to enlarge)

Are you seeing a connection yet? The ad says get a FREE biscuit or sandwich.... but then it says in fine print "With the purchase of ANY medium or large beverage.".... BUT in order to get the 'free' coupon... you have to put in your email address, name, and Date of Birth?!? If my counting is correct that is 2 steps completely removed from FREE.

I hate to tell you but you just pulled an Esau if you signed up for this mess. Why don't you just email them your social security number and drivers license too! Are you THAT hungry? At least Esau had part of an excuse, dude was faint "at the point to die" lol.

See - and I want you to listen to me VERY carefully - THIS IS WHERE IT STARTS. This is exaclty how we get into debt. Early, often and easily. This isnt targeted at you or me, well not really. It's just a fish hook. Dangling in the water for whatever fish will bite the line. Most likely someone younger than us either in age or financial responsibility will see this as a "deal". (As if McDonald's is doing them a favor by extending such an offer.)

Everything of 'value' cant always be quantified in dollars and cents.

You just exchanged permanent personal information, for a nasty chicken sandwich, and didnt even bat an eye while doing so... It's all... become... so simple.

Ba da ba ba baa... It's loving YOU. Because if they can get you to give up your personal information for the 'cost' of a chicken sandwich (and the mandatory drink you purchased, of course) then they KNOW you'll be giving up a few dollars soon. They've got a bite.

Hook, line, and sinker...

It's not identity theft if you sign up willingly. Just like Jacob never 'stole' the birthright from his brother, he sold it to him for chicken noodle soup. Shady? Yes. Manipulative? Yes. Against the law? No.

Stay tuned... this is just the prelude. The gloves are coming off.

@W

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Full Circle: How Our TMM Began...

Photo courtesy of ZaksterNT

Over the past 2 weeks I've taken a break from the blog. I needed to clear my head because I've been overwhelmed by the resonsibility I feel towards you as my readers. See I want to reach you, but most of the time I dont know how effectively I'm doing that. I thought about extending this 'break' for the blog through the rest of the year. I thought about quitting it altogether. But something happened last Saturday that changed my mind.

I've often heard the saying: "When you feel you've reached the end, try going back to the beginning."

Last week my wife and I went away for the weekend with a group of married couples for our annual Duets Retreat. On Saturday morning, my wife shared a portion of our financial testimony with the group and it was incredibly powerful to hear it from her.

No sooner than my wife stopped talking, the couple next to us tapped her on the shoulder. They wanted to know more. A few hours later, while walking with another couple, the conversation again turned to the testimony she gave. We spent the rest of the afternoon sharing with them just a few of the blessings we've experienced since this journey began for us. There is something beautiful about witnessing someone hungry to change their life for the better, and it continually blesses us to be a part of moments like that.

There was something I kept identifying with in that couple. It was an urgent need for change. It made me realize that it was a year ago this week that we were first exposed to Dave Ramsey's TMM. The similarities are strangely alike the more I think about it.

This time last year my wife and I were just getting back from our Honeymoon, which we celebrated at the same location as this year' Duets retreat. The next week at church, a young couple ran up to us in the lobby and happily pushed a bag into our hands. The couple was on the leadership council for the ministry, and had taken extra special care of us at the retreat. Inside the bag, was a book wrapped in tissue paper... The Total Money Makeover. At the time we were more grateful for the thought and gesture than we were for the actual book.

A month went by. It was now September and we had never given the book a second glance, but we were now in the greatest financial challenge of our young marriage. We prayed over who to call, who to open up to about the trouble we were facing, and the Lord directed us to them again.

So on September 13th (my birthday) we called and explained the situation to them and they proceeded to share their amazing testimony with us. All we were looking for was Godly counsel from people who had been in our shoes before, nothing else... but by the end of the conversation they had offered to gift us a portion of the money we needed for our situation. (And not a small gift either!) A few days later, we went over to their house to pick up the gift, and they had another one waiting for us to go along with it. It was Dave Ramsey's 13-cd Financial Peace University set.

From that moment on we became students of this movement, and stewards of the message. We began our makeover officially in October when we did our budget, and started having weekly meetings. But the seeds were planted in August and September when they handed us the book (that we never looked at tsk tsk tsk...) and again when they gave us counsel and set an excellent example of generosity through their cheerful giving.

In Revelations 12:11 (KJV) is says: And they overcame by the blood of the Lamb, and by the word of their testimony; and they loved not their lives unto the death.

NEVER discount the power of your testimony! I never thought we would be here, or at least not this early in our marriage. I was thinking we would reach it maybe 10 years from now... maybe. But within the next year we will have erased ALL of our debt with the exception of our mortgage. All within 2 years of grinding and putting off the instant gratification this world tries to shove down our throats daily. And the only reason I'm online typing this out to you is so that you can KNOW you can do this too. That's it. That's our tesimony in a sentence! We are doing this because we know that YOU can do this.

And so now it has come full circle for us a year later. Now we are on the leadership counsel for the couple's ministry. Now others are seeking us out for the same counsel we sought. And now we get to be the couple gleefully pushing a bag into another couple's hands with the book inside.

Today, I'm honored to push this post into your hand with the same energy and enthusiasm as it was handed to me!

...And to think I almost gave that up.

@W

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How Cycling is Changing My Finances & My Life...

Photo courtesy of .kol tregaskes

I'll be turning 30 in September, and I wanted to do something monumental to celebrate. I was looking for a personal challenge that would both push me and reward me on a number of levels. Somehow cycling has become that challenge for me.

A few years ago when my wife first moved into her condo, we saw 2 mountain bikes (male and female) next to the dumpster with a note on them that read: "Free Bikes, only about 100 miles worth of use ... Enjoy!" So we looked around to make sure this wasn't some sort of setup, and then wheeled them bad boys inside before the person changed their mind! lol

The bikes sat, the tires got flat, and we never ended up riding them until last month.

Around the same time a co-worker of mine who also lives close by, told me how he bikes in to work once or twice a week. He said the health benefits from it made him feel brand new, and that by doing so he saves about $30 in gas per week. ($$Ca-ching$$)

After hearing that, I was sold on the idea... but he went on to explain that it takes him 1 hour and 45 mins. to get to work, and that's just ONE WAY! Also it's about 26 miles from Leesburg to Tyson's Corner... or the distance of a marathon!

Like I said I was already sold on the idea because gas ain't cheap and $30 a week equals $120 a month that can go towards debt... That's a no brainer for a Gazelle Intense dude like myself right?

Yeah, I was sold alright, that is until I got out on the WO&D Trail for the first time. I was overdressed, poorly hydrated, and over-confident. It took me about an hour to go 5 miles my first time out. but it taught me a lesson in preparation. (Click the link to read my wife's excellent article on it) The next time out it took me 30 mins. but it taught me how to efficiently use my gearshift. Each time out I kept learning something new and adding it to my routine and now I can do that same 5 miles in about 15 mins. But while these time improvements were great for a 5 mile distance, they accounted for roughly 10% of the total distance to my goal.

See, It's great to have short-term goals, but it's important to keep in mind how well they are helping you meet your expected goal. This is particularly important to keep in mind when dealing with finances. Yes, it's hard to stop living in the moment and focusing on what this week's check will do for you this week. But at some point I hope you'll ask your self "What do I need to do so that one day I won't need to worry about next week's check being short?" or " When do I want to stop working for my income?" or "When do I want to start saving for my future, retirement, children, or business?".

Short-term goals are great. But they're called 'short-term' for a reason. They are meant to lead to a larger success, and they provide you with the momentum and confidence to do so.

Yesterday, I reached my goal in cycling, I made it all the way to my job in 1 hour and 40 mins. And I achieved this a full month before my birthday! Yes it's a great feat and I'm proud of what I accomplished. But it has now forced my long-term goal to change. See I didn't take into account that once I made it to my goal, I would also have to cycle all the way back home the same day.(I barely had enough energy to make TO my goal lol. You mean to tell me I gotta go BACK?!) So now my next challenge is to be able to make it to work and back home in decent time! But at least all it costs me is a FREE gallon of water per round trip instead of $4 per gallon of gas to drive!

Happy Trails!

@W

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Tired of Rejection, Consumers Turn to Credit Companies For Approval

Photo courtesy of Todd Heisler/The New York Times

A strange thing is happening here in America. People are beginning to use credit-worthiness as a measure of self-esteem. It reminds me of a saying I just made up; Someone is always willing to give you what you want, as long as you pay for it. (Wow, I like that!)

Growing weary of being rejected for choice jobs and being denied by choice colleges, Americans young and old are trying to buy their dreams on credit. What they dont realize is that sometimes they end up paying with their life. Now hold on a minute I'm not saying they're being killed by credit directly, you should know me better than that. But what I am saying is that the stress and pressure of living the "good life" without a "good income" is taking more of a toll on us than we are openly willing to admit.

The New York Times is doing a brilliant series on consumer debt called The Debt Trap and it's as hard hitting and exhaustive in exposing the consumer debt crisis as CNN's Black in America series is in addressing the state of African-Americans in the US. I highly recommend checking them both out!

I keep asking the question "How did we get here?" And no one seems to have the answer. So I guess I'm taking it upon myself to find and provide the answer for all of you.

The more I see stories like the current one on NYT about Diane McLeod, the more I'm aware of the burden I've been given regarding the debt-free message.

Diane started out debt-free just like the rest of us, but the article goes on to explain how marriage, divorce, illness, unemployment, underemployment, wildly irresponsible spending, and now foreclosure have driven her nearly $250k into debt! Strangely enough though, she still continues to get "Pre-approved" offers from a steady stream of credit card companies, even though her credit is now decimated and she cant afford to pay her existing debts!

Here is a excerpt from the article:

"Recently an envelope arrived offering a “pre-qualified” Salute Visa Gold card issued by Urban Bank Trust. “We think you deserve more credit!” it said in bold type. A spokeswoman at Urban Bank said the Salute Visa is part of a program “designed to provide access to credit for folks who would not otherwise qualify for credit.” The Salute Visa offered Ms. McLeod a $300 credit line. But a closer look at the fine print showed that $150 of that would go, as annual fees, to Urban Bank."

Hmmm, quick question: If you cannot 'otherwise qualify' for credit, why are you still being provided with access to it?!? Greed is to blame for most of this mess. Both the greed of consumers to have what they want, when they want it, and live beyond their means as a way of "survival". And the greed of companies to sell you things you cannot afford so that you have to pawn your birthright, your values and your spiritual inheritance to purchase them.

Again, how did we get here?! What happened to our values?

I'm getting into the daily habit of reading a chapter of Proverbs. I read the chapter that matches the date. Yesterday was the 23rd and while reading I read this:

"Do not wear yourself out to get rich; have the wisdom to show constraint."
Proverbs 23:4 (NIV)

I love what this text is saying without saying it. My personal translation would say, "If you show constraint and build your wealth the right way, you will be healthy enough to enjoy what you have earned." No borrowing on credit, no loans, no get rich quick schemes.

Showing constraint in your finances is called a wise thing in this verse...

Aha, that's the answer to my question! I now know how we got here! We're not reading our bibles, duh!

Thanks for reading,

@W

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@ Risk Theater: I'm A Compulsive Shopper...

I saw an absolutely brilliant episode of TRUE LIFE on MTV last night.

The episode was called "I'm a compulsive shopper" and it did a great job of documenting 2 teenage girls who have literally become addicted to shopping! I copied the episode summary so please see it below. I'll also be contacting MTV Networks to ask permission to post the full episode here shortly. It's not up on MTV.com yet but I certainly recommend seeing sometime when it airs on the network. For now here are a few photos from the show*...
All materials are taken from MTV.com*

Full Summary

It's no secret that teenage girls love to shop. Trips to the mall to find that perfect dress or take advantage of a blow-out sale are no oddity among teenage girls and their friends; but what happens when those shopping trips become a little too frequent? For Gabby and Ali, shopping has become so addicting that they are no longer able to lead healthy lives. For these girls, shopping has gone far beyond a form of retail therapy-it is their only way of life.

Gabby is eighteen years old from Queens, NY, and her life is all about what she wears. Her closet is so stuffed with clothes that she can barely see what is in it-but she does manage to find a pair of unworn designer jeans she bought for three hundred dollars with the tags still on. Gabby's mom has multiple sclerosis, so since she has always been unable to make trips to the mall with her daughter, Gabby starting using her parents' credit cards from a very young age. Now, years later, her so called "normal" use of her parent's plastic has turned compulsive, and as a result, she has put her family in about ten thousand dollars worth of debt. In order to support her shopping addiction and pay her bills, Gabby works two jobs and lives from pay check to pay check. Every two weeks simply means more money that she can spend on new clothes and accessories-and for Gabby, that means every last penny. Gabby's father, frustrated with what Gabby has done to the family, demands that Gabby see a therapist, but Gabby refuses to admit she has a problem. And besides, why would she waste a trip into Manhattan to see a therapist when she could be shopping on Canal Street? Things start to look up when Gabby finally decides she wants to start saving money. However, deciding to save money for breast implants is probably not the best solution for curing her compulsive spending habits. Will Gabby ever be able to pay her parents back for the enormous debt she has caused them? And will Gabby ever be able to remove herself from the ruthless cycle of making more money just so that she can spend more money?

Ali is nineteen years old from Columbus, Ohio, and she shops whenever she can-whether or not she has the money. She works hard on her image and figures if she keeps it up she will eventually live up to the likes of Paris Hilton or other pop divas and finally start believing in herself. Ali works the door at a strip club, and unlike Gabby who has to wait two weeks for her next cash flow, Ali bypasses the anxiety about waiting for a paycheck by taking home a nightly wad of cash. However, despite this constant flow of money, Ali still manages to run out of money, and in order to satisfy her "shopping fixes," her boyfriend, Kyle, ends up footing the bill. As a result of her constant need to shop, Ali has let her bills accumulate for the past 4 months-which means a debt accumulation of almost eight thousand dollars. While Ali acknowledges she should pay off her debt, the high she gets after a shopping spree makes it hard for her to change her behavior. Ali starts going to Debtors Anonymous meetings twice a week, and while she would like to think she is changing her behavior, she doubts if she really is-especially after she spends every last penny when shopping for her birthday. Eventually, Rent-A-Center comes and removes all her bedroom furniture which Ali never paid for, leaving Ali's room a cluttered mess of clothes. Despite this reality check, Ali still continues to shop and rack up her debt- now totally almost 15,000 dollars. Will Ali ever realize life is not just about the shopping and purchasing? And will she ever be able to find the money and confidence she needs to get the intensive therapy she recognizes she needs to get her life back on track?

Watch True Life: I'm a Compulsive Shopper to find out what happens to these two girls when they literally shop till they drop.

This show gave me plenty to consider and some ideas for topics to cover this week. I hope you'll make time to check it out.

Thanks fam!

@W

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America: Our Love Affair With "Brand" Names...

All this...







Equalls this....





photos courtesy of gtmcknight and shadphotos

*I must warn you, today's post officially counts as a rant. I'm not in a bad mood, and I'm not having a bad day... but some days I feel the need to give it to you straight. It is what it is right? I'm not out to hurt your feelings, I just want you to ponder what I'm saying here...




BRAND


–noun


1. kind, grade, or make, as indicated by a stamp, trademark, or the like: the best brand of coffee.
2. a mark made by burning or otherwise, to indicate kind, grade, make, ownership, etc.
3. a mark formerly put upon criminals with a hot iron.
4. any mark of disgrace; stigma.
5. branding iron.
6. a kind or variety of something distinguished by some distinctive characteristic: The movie was filled with slapstick—a brand of humor he did not find funny.
7. a burning or partly burned piece of wood.
8. Archaic. a sword. –verb (used with object)
9. to label or mark with or as if with a brand.
10. to mark with disgrace or infamy; stigmatize.
11. to impress indelibly: The plane crash was branded on her mind.
12. to give a brand name to: branded merchandise.
13. to promote as a brand name.


Of all these definitions taken from Dictionary.com, I like #2 the most... ownership is the name of the game. All of these products, services, toys, gadgets, fashions, and trends are vying to own a share of YOU.


YOU are the stock...

YOU are the "marketplace"

YOU are supply and demand

YOU are the numbers that fly across the stock tickerboard.

Not some store, not some fictitious 'average consumer'... YOU!


Nike, Sony, McDonalds, and Verizon dont exist without YOU. Visa, Exxon, Costco and Wegmans have nothing to sell if you dont buy...


Now I hear what you're saying. "You dont honestly expect me to stop buying gas, groceries, grillers (30 Day Veggie Plan shout out!) and games, do you?!?


No, I dont. But that's not the point I'm trying to make. What I'm trying to get at is that we've grown accustomed to buying from the highest bidder, not the highest provider of quality or value.


It's the little things... next time you head to Walmart I dare you to buy the off-brand walmart version of everything you would normally buy "branded". From toothpaste to toilet paper. No Mentadent, pick up the Equate Winterfresh toothpaste instead. No 4-pack of Sharmin toilet paper, pick up the Kirkland 12-pack of TP instead for the same price.


See, our problems are much larger than credit card debt, and the mortgage crisis. Our rampant consumerism and materialism is killing us in droves. We are choosing to stay this way. It's an addiction much in the same way smoking is.

My wife and I just lost a friend to cancer. This time last year she had surgery for a brain tumor and she knew she had to give up smoking or die. She stopped for a while after learning the news... but more and more time passed and the cigarettes slowly started making appearances again. She could'nt put them down, even to extend her life.


How many financial 'obligations' (Netflix, Speigel, Verizon Fios' 7000 channel package.) do you carry? Would anyone really notice if you switched to Payless dress sock instead of Kenneth Cole's? Will you ever become a Billionaire by spending $300 on a Billionaire Boys Club wallet?


How long are we going to continue going broke making them rich?


How much longer are you willing to be "@Risk" like everyone else?


End of rant, you can all go back to "normal"... but why would you ever want to?


@W


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A Look Inside Our Weekly Budget Meeting

Photo courtesy of rubymatt

My wife came up with this great idea for a post: a brief walkthru of our weekly budget meeting.

I'm sure some of you out there who are just starting out have experienced the 'thrill' of the 2 hour budget meeting, but I assure you it will get better. The more consistently you meet, the faster the meetings will go in the future. You will soon find that both you and your spouse are improving the way you both approach and communicate about finances.

I remember back in October when we first started having meetings.... pure disaster! It would take forever for us to get through it, and just the thought of how our finances looked at the time caused a great deal of tension. Many nights we didn't even want to sit down and look at the budget because we just KNEW it was going to end in silence, or frustration, or that defeated feeling when you know you've got more 'month than you do money'.

BUT YOU MUST KEEP AT IT!

You have to consider the first few meetings like Training Camp. When the team gets together to shake off the rust of the off season and learn what direction the team wants to grow for the season. You learn your routes, learn to read your teammates, and learn how to respond to game time pressure. This is where you solidify your financial chemistry with your spouse which is extremely important because...

How you arrive at decisions about your money is just as important as paying down the debt.

If you are married, this must be a team effort and you both need to have equal say. If you both can't agree how to proceed, Husband it's your call. God made you the head of the household for a reason and this is one of those times when it counts. BUT it usually doesn't even have to come to this point because there is almost always a mutually agreeable solution... or at least there should be. However if it does come to this point, I urge you husbands to make your decision in a way that will best serve your family, not just to 'have your way' or make a point. Sometimes the wisest decision a husband can make is to listen to what his wife says and act on it.

Time is of the essence...

Your weekly meeting should not be a long drawn out event. In fact the shorter the amount of time you take, the better as long as you cover the basics of your meeting. The meeting should be viewed as a tool to keep you motivated and informed of your progress from week to week. I cant stress enough that the first few weeks wont look or even feel good, but soon after you will see the progress, the preparation, and the peace that comes from being on the same page with your spouse.

To help you increase the impact and efficiency of your budget meeting, I've broken this post down into a few sections.

- Establishing an agreeable meeting time.
- Finding a place outside of the home where you can meet.
- The tools you should have handy.
- The Objectives you should meet at every meeting, NO EXCEPTIONS.
- Goals to set for the next meeting.

Times that you should NOT be meeting:

-Late at night - It can RUIN you sleep for the night...

-Early in the morning - It can RUIN the day ahead...

-When either of you are sleepy, cranky, hungry or watching 'the game' or Iron Chef. lol

Any time other than the three I mentioned is highly recommended.

Rendezvous Point:

Where you meet helps determine how effective you meeting will be. I don't recommend doing them at home because you can easily be distracted, or tempted to multi-task other things at the same time. Instead, I recommend meeting at a coffee shop, restaurant of public library (my personal favorite). It's good to find a relaxing environment, but not a cozy one. Or if the weather is decent you can meet outside, the fresh air will help you concentrate.

Tools of the trade:

-Prayer, always start with it!

-An agenda of the items you want to focus on.

-2 copies of the budget. *You will both need your own copy for note taking, doodling, and editing, because your budget NEVER stays as it was first drafted.

OR

-Paper to take notes. *Trust me by the 2nd day you'll have forgotten everything if it isn't down on paper. This saves you from recapping all of last weeks' meeting this week! lol

-Resource materials such as The Total Money Makeover, or the book/program you may be following. *This is optional, but helpful to have at the ready. Don't try to do it all yourself, there is plenty of help out there available to you, most of it free.

Prime Objectives: (If nothing else gets discussed, these are a MUST...)

Naturally there are topics that you should strive to discuss every time you meet. Here are a few, but your list depends on how you both approach things.

-"The 4 Walls": Food, Clothing, Shelter, Transportation.

-Know your next payday.

-Know what dates each expense/payment is next due.

-Know who does what: who's calling the creditor, writing the check, withdrawing the cash, dropping off the payment, addressing the envelope, putting the stamp on it, purchasing the stamps if you don't have any, and who's placing the envelope in the mailbox. *The 'who' does not and should NOT have to be one person. This is a team effort!

-Know when each of the prior items should be done by.

Close with a look ahead to the next meeting:

-Have tangible goals you would like to see completed by the time you next meet.

-Discuss payments, conflicts, possible problems you foresee on the horizon.

-Propose changes in strategy or format. *This can be helpful because your partner wont feel like a suggested change has been 'sprung' upon them. It gives them enough time to think and digest the suggestion in time for the next meeting. It's both a considerate and fair way to voice your objections if you don't like how something is going. And it also means your not just 'complaining' about the process, your bringing a solution to the table.

Well that's about all there is to it! If you take some of these things into consideration going forward, I'm sure it will help smooth parts of the process out for you. And as always if you have any suggestions of how you and your family do something differently, please let us know in the comments section!

Till we 'meet' again... get it? lol

@W

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June is the LAST month we spend $500 on FOOD!

photo courtesy of cycrolu

Dont you just love epiphanies? I had one yesterday while preparing for the 'weekly' budget meeting with my wife. (She'll get a laugh out of the 'weekly' part lol.) For what seems like months I've been looking at our budget trying to see what else I could squeeze out of it. I could never see it, but I could just sense that I was missing something that was staring me right in the face. And boy was it ever, it was the $500 we've been spending on food each and every month! $500 as in a car note on a brand new 5 Series BMW... $500 as in a PS3 and 2 games! For the record, right now it's just the 2 of us, no kids and no pets! I know of couples with 3 children that get by on spending less!

I know just how we got in this bind, and sadly I know we're not the only ones. Sure our situation may be slightly different, but the symptoms are completely the same for anyone who is overspending on food or any other area of your finances. For me it's a word called COMFORT, that simple, inviting killer of many other positive C words: conviction, concentration, character, courage, & chutzpah!

It might not be called the same thing for you, but you need to understand that no matter what you're calling it, IT is keeping you from that next level in your debt dumping experience. See there are basically 3 factors that determine the relationship you have with money: Emotion, Psychology, and the Numbers. I was reading a great article over at Zenhabits.net yesterday called: How I Paid Off $35,000 in Debt, and How You Can Too.

In the article the author was debating the logic of paying your debt off in order of interest rate from highest to lowest, versus paying your debt in order of account balance from lowest to highest. Both approaches have their benefits depending on your psychology towards money. And it was while he was explaining this that he threw out a quote that hit me like an uppercut!

"Many experts advise paying your high interest debts first. Obviously, this makes the most sense mathematically. But if money were all about math, you wouldn’t have debt in the first place. Debt is as much about emotion and psychology as it is about math."

When we started this budget back in October, I was eating fast food almost daily, and my wife was on a weight-loss program. Because of this, we made the decision to split our food money into His and Hers envelopes. The deal was supposed to be $50 per person per check for personal food, and another $50 every other check strictly for non-food groceries such as cleaning products, toiletries, etc. This worked 'fine' for us because we could basically expect one of us to be paid each week, so it equalled $50 per person each week. That might not sound like much at all right? $50 divided by 7 days is $7.15/day... But when you look at it on a month to month basis, it works out to about $200 per person just for our food allowance, and $100 each month for non-food groceries.

I never needed $200 just for food, it just a comfortable dollar amount for the types of food I wanted to buy. Everybody knows it's cheaper and healthier to prepare and cook your own food than it is to eat out all the time. And everybody also knows that it's far cheaper to brownbag your lunch each day rather than frequenting McDonalds, Wendy's, Burger King, and Taco Bell and letting them hit you up for $6-$8 per meal!

While everybody (myself included) might have already known this, yesterday I was finally willing to admit it to myself. My Emotion (wanting to be comfortable) was not in keeping with my Psychology (Kill off this debt by any means) or my Numbers (Spend less on wants, and more on needs and debt elimination). The three have to be in agreement for things to work at an optimum clip.

By the end of the budget meeting, my wife and I decided that we could do away with the His and Hers food money, and also do away with $150 of that $500 tab each month. We both feel very good about it, because we both realize not much is being lost, but a whole lot is being gained by the change we just made. We basically just created some extra income where there was none by curbing our wasteful spending and thinking outside of the box.

I'm sure there are ways you can do the same if you take the time to balance the Emotion, the Psychology, and the Numbers to work to your advantage.

So here's your homework till the next time we meet up: I want you to A) Find a name for your emotion towards your money or B) Give a name to the emotion that prevents you from whipping your financial picture into better shape. And if you care to share them, feel free to use the Comments section, we'd all love to hear you perspective!

Be Blessed till next time,

@W

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