Are you ready to use cash yet???

I just read an article posted on Clark Howard's website about how banks are now making more money on debit cards than on credit cards and I will say that I am completely appalled!!! The article talks about how banks play games and juggle your balances so that it benefits them in order to charge you overdraft fees. Branch Managers at Wells Fargo have their pay reduced for multiple credits for customers who call and complain and are given credits. THIS IS LUDICROUS!!!

I mean, how many more times do we have to prove why it is so much better for YOU if you change your habits and use CASH!!! It seems even if you are responsible and balance your check book daily and never spend more than you have in your account you are still not in control. Why cause yourself so much trouble. Just do what our grandparents always did and pay CASH for it!!!!!!

For the original article see the following link:

http://clarkhoward.com/liveweb/shownotes/2009/09/30/16762/

Can Financial Peace exist in America?

I was reading an article in the Henry County Times from a columist who was asking the question "Can financial peace exist in Amerca?". That is a very good question. He was talking about how he and his wife had taken Dave Ramsey's Financial Peace University class and had learned so much about paying down one's debt, not using credit cards and sacrificing immediate gain in the interest of a secure future. The writer stated how he had seen so many families who were in need of FPU. Then he stated a very interesting statement that made me think. Maybe members of the US Congress should take Dave Ramsey's Financial Peace University? He goes on to say that our political leaders have done little more than throw money at the financial problems of our nation, which have resulted in an ever-growing mountain of debt and financial turmoil. He comments that if this were a married couple or single struggling to see light at the end of a tunnel they would be told not to spend money they do not have and to exhibit more self-control. Then he asks, "Why should the response be any different for the government?"

That makes a lot of sense. Maybe we should host a new town hall event with Dave Ramsey where the people of the great nation of America evoke our rights as Americans and force politicians to take Financial Peace University and get on a zero based budget, where they spend every dime on paper on purpose before the month begins. Where they do not spend more money than we make and where we do not borrow money from other nations.

What do you think?

Then and only then can Financial Peace exist in America, on Capital Hill, today.

It doesn't matter how much we buy, there is always plenty more that I want

A friend passed along a great article in christianitytoday.com about living in a material world. The article was about a young lady who thought she would be satisfied with "just a house". After getting married and getting "just a house" she started asking herself if she could be satisfied with "just any old house" and she quickly realized NO. The article goes on to say that she quickly realized that she was a person who was not easily satisfied. Her story says that desire started to take over her and she realized that "just any old house" was not going to satisfy her now or ever for that matter. She says "I'm very much a part of the never-enough world and then states chances are so are you". Are you?

Isn't that what has happened to us in society today? Materialism is preached so much it becomes who we are. If material things provide the answers to life's basic questions in your world like "what am I worth", "am I successful", "do I have peace of mind", this is a serious disconnect. Ask yourself right now "who says?" Who says that having material things make me successful? Who says that having peace of mind is when I have stuff?

I love what this article reminds us. That God did not create us to be materialistic. He created us to be relational beings. When we start replacing relationships with materials things we have a void. The void that we continue to trick ourselves into believing is missing more stuff. The fact is the void is we are missing relationships with people. The article quotes "There will never be enough material things to satisfy the longings of the human soul."

Don't get me wrong, God does not care if we have material things. He does however care when we replace the "love of stuff" with the love of others.

Here are some questions to ponder as the writer in the article suggests:

What do I expect out of life and where do those expectations come from? What is success and do I tend to measure it by outward trappings? How much of myself am I giving to my loved ones and how much am I relying on expensive gifts (for birthdays or Christmas, for example) to communicate love? What is the real source of the emptiness or drivenness I feel?

Living within your means

I have talked to many people who feel being on a budget is like having a straight jacket on and someone telling them what they can and can not buy with their hard earned money. That is not the case at all. Living on zero based budget is merely a tool that helps you to live within your means.

Living within your means is defined by the financial experts as saving some of your paycheck each month and having no debt. The Federal Reserve did a survey of consumer finances in 2001, and the survey showed that about 14.5% of Americans consistently spend more money than they make. These people are in pretty big trouble. That is one of the reasons why we are in the situation we are in now as consumers and as a nation. 26.3% of Americans spend as much as they make or more. According to studies many Americans actually spend $1.22 for every $1.00 we make. That means we are going in to debt an average of 20% for every pay check we make.

If you can find a good financial advisor who will guide you through a zero based budget process, it is really not bad at all. It is merely spending every dime you make on paper on purpose before the month begins. A budget removes the fear of being in the middle of the month and not knowing how you will get to the end of the month. A budget helps a married couple communicate better. A budget will cover every possible expense that would occur in time, so you are not borrowing from Peter to pay Paul. A budget is merely spending what you make and no more!

If you are in fear right now of getting through the next month and have debt up to your eyeballs the best thing you can do for yourself, your family and our economy is to get on a zero based budget TODAY! It's not too late. You have to start WHERE you are, no matter how bad you think it may be.

Guilty as charged!

Today I was reading weekly newsletter from my local senator and I came across something that shocked me. Now I am not sure why I would feel something from a Senator would NOT shock me, but in any case, I was really shocked this time. The government has decided that it is necessary to appoint a special commission called the "Financial Crisis Commission" that has until the end of next year to determine and examine the cause of our nations' financial crisis.

Now, I am not at all about pointing fingers, but I am shocked that it takes a committee of 10 men over 18 months to figure this one out. "What and who was the cause of our nation's financial crisis?".

Well, I am one person and I can tell everyone in a matter of 1 second without thinking twice about it and it costs tax payers nothing, that WE ARE ALL GUILTY! Yes, you, me and THEM. We all purchased things that we THOUGHT we needed to impress people we do not like with money we did not have. Including the United States government.

We are GUILTY! GUILTY! GUILTY!

One thing I will agree with the Senator on is that "it is imperative that we get an objective evaluation to find out what went right, what went wrong and what we must do to prevent it from happening again," but to try and figure out who done it, well that case is CLOSED!!!

It's never too late to change your family tree

Our church just completed our first Wednesday night Bible study with six lessons from Dave Ramsey's book set Life Lessons with Junior. It was a lot of fun. The children learned about work, spending, giving, saving, integrity and debt. The kids and even their parents had a great time. I want to encourage every parent to take time to teach your kids about money. It is never too early or late to teach them. Take a look at these staggering statistics:

• 19% of Americans between the ages of 18-24 declared bankruptcy in 2001.- USA Today, 2001. The fastest growing group of bankruptcy filers are those people who are 25 years of age or younger.- Senate Committee on Banking, Housing and Urban Affairs, 2002. Over 80% of undergraduates have at least one credit card and nearly 50% of college graduates carry four or more credit cards. According to the Department of Education, the average balance carried by these students is more than $3,000.- Senator Chris Dodd, CT. 68.1% of high school seniors surveyed failed a basic financial survey, up from 52.1% in 2001, and only 10% scored a "C" or better.-Jump$tart Coalition for Personal Financial Literacy, Annual Summary, 2002. Nearly half of college-age adults (49%) said they believe they are more likely to become millionaires by starring in a reality TV series than by learning how to budget and save wisely (36%).-Visa USA, 2003. Persons entering college are offered an average of 8 credit cards in their FIRST WEEK of school.- Jump$tart Coalition for Personal Financial Literacy, Annual Summary, 2002. 83% of adults are unaware of the resources available to help them teach children practical money skills.- Visa USA, 2003.

Dave says that your job as a parent is not just to keep your child happy - AMEN! It is tough love sometimes isn't it and saying the dreaded "NO" word to our children is done out of love. You're raising a future grown-up who needs to be able to deal with grown-up matters. If you teach little Timmy how to handle money responsibly, then grown-up Timmy will be better equipped for a richer life.

Pay just the minimum on your credit cards and build up savings - NOT!!!

I know some of you have heard this, because some of you have asked me about it. Of course, you know me, I will always refer back to what Dave Ramsey says, but don’t just take it from me or Dave, see what the paid experts say on MSN Money. Putting yourself further into debt by borrowing fro your credit cards for your savings is a “STUPID” idea as Dave would recommend. Why? Even the Bible says “the rich rule over the poor and the borrower is SLAVE to the lender”. The reason why America is in such a mess today is because once the consumers started hurting financially the credit card companies tightened the hand cuffs on our lives and now we are screaming to be released from these chains. Why would you give the credit card companies back the key? It's time we break out of the bondage and handle our money the way God intended and then we can have true Financial Peace.

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/why-suze-orman-is-wrong-again.aspx

The key to winning with your money in these trying economic times is to change your behavior and get on a budget. Handling money is 20% knowledge and 80% behavior. Following the Dave Ramsey Baby Steps as prescribed in Financial Peace University has been proven to win family after family, including my own. The Seven Baby Steps are attached herein.

Use the Baby Steps to get your finances in order and on track. Then pass them on to someone you know and help change their life!

$1,000 to start an Emergency Fund

Pay off all debt using the Debt Snowball

3 to 6 months of expenses in savings

Invest 15% of household income into Roth IRAs and pre-tax retirement

College funding for children

Pay off home early

Build wealth and give! Invest in mutual funds and real estate