Martin Luther King Jr Had a Dream – Do You?

As I had a chance to reflect on one of America’s great historic figures this weekend, I couldn’t help but think of you. Granted, what this man endured had nothing to do with personal finance, but it had everything to do with amazing self-sacrifice, determination, courage and hope. These are all things that are needed when trying to defy overwhelming odds in order to make big changes in your life.

On August 28, 1963 Martin Luther King Jr. delivered one of the most inspirational speeches ever, about a dream and a vision he had for America. That dream was inspired by something inside him that believed it was possible to change something very wrong with his country. His dream was brought on by some truly sad times of racism that I couldn’t possibly begin to understand.

What I do understand, however, is that he never gave up, even though his opposition must have been overwhelming! As he found himself jailed for his activism, he very easily could have given up, but at what cost to his dream? He could have just let his surroundings and his situation deter him from what he knew to be right. Instead of giving up though, when times were difficult, he marched on, thinking not of himself, but of those he was trying to help. He sacrificed so much for what he believed in, which in the end, cost him his life.

Martin Luther King Jr. may not have lived to see the result and impact of what he did so many years ago, but I have to believe that if he had to do it all over again—he would.

Perhaps some will say that my using Martin Luther King, Jr’s story to inspire financial freedom is quite a stretch. Maybe in content, but not in character, principle, or in action.

What I see, and how I relate the two, is very simple.

What you are experiencing today financially, may seem so overwhelming that you just can’t comprehend being able to overcome it. My assumption is that there were likely times when MLK must have thought he was fighting a losing battle, yet I have read nothing to imply that he ever thought of giving up.

“Faith is taking the first step even when you don’t see the whole staircase.” Martin Luther King, Jr

Change comes with lots of hard work and sacrifice. It is not something that just happens because you want it to. Change is not easy, but one thing is for sure, if you keep doing the same things with your money, you will keep getting the same results. You may struggle along your path to financial freedom, but that is precisely what will teach you the most, as well as strengthen you for what is to come. Be strong—do not let your struggles and perceived failures be the reason for your financial demise. We all have struggles, even those of us who have managed to turn our finances around. Financial success isn’t reliant upon the absence of problems, it is reliant upon how you handle those problems you face.

“Change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom.” Martin Luther King, Jr

Your solution, or the solution that society seems to look to first, are not necessarily your best options. It may seem as though they are at first glance, but using a debt consolidation company to manage and pay off your debt, teaches you nothing. It can also cost you more than just the fees they charge for the opportunity to do so. Most people end up right back where they started, because they didn’t learn what needed to be learned to keep from returning to the debt they eliminated. The easiest way is typically not the best way.

Bankruptcy seems like the right thing, because after all, you pretty much get to start all over. Just like with debt consolidation companies, you didn’t really solve the problem that caused the financial mess in the first place. You technically just avoided the problem all together and treated the symptom instead of the cause, which happens to be your behavior.

Think about what is at stake before you make each financial decision.

“Rarely do we find men who willingly engage in hard, solid thinking. There is an almost universal quest for easy answers and half-baked solutions. Nothing pains some people more than having to think.” Martin Luther King, Jr

Martin Luther King, Jr might have been fighting for the rights of blacks in America, but you should be using the same principles to free yourself from the bondage that enslaves you.

• You may not see the light at the end of the tunnel at first, but know that it is there!
• It may be difficult, and at times feel impossible, but know you can do it!
• It may be hard to believe in your ability to turn things around, but keep this in mind—you are your best solution!

You are the one that must step up to the plate. You are the one that must be strong and courageous! It is YOU that will make the difference!

I hope you’re able to take from this story the message of hope and hard work, determination and courage, and above all, the belief in your ability to make great things happen.

You don’t have to be in debt. You don’t have to live paycheck to paycheck. The choice is yours, and your dream is what you make it. If you follow your dream the way he followed his, chances are, your dream will become a reality.

What is your financial dream, and what are you willing to sacrifice to accomplish it? Are you willing to pay the price and sacrifice to become financially independent? If you’re not, what cost are you willing to pay to do nothing?

This Weeks Roundup: Tip’d Rockstars, Mentions, and My Health

Great Articles From Good Friends

• How I Saved $10,000 in Six Months – Evolution You
• 20 Signs You Need a Financial Makeover – Budgets Are Sexy
• Life After Bankruptcy: 3 Things That Could Change After You File – Stumble Forward
• Too Much Debt? 5 Steps To Pay Off Your Debt – Free From Broke
• Don’t Let Yourself Drown in a Sea of Financial Stress – Financially Poor
• 10 Guiding Principles For The “New Retirement” – Redeeming Riches
• Avoid the Blame Game—Take Responsibility for Your Financial Affairs - Free Money Finance
• Student Loans: Necessary for a College Degree? – Couple Money
• 11 Ways to Convince Your Boss to Give You a Raise – Out of Your Rut

Enemy of Debt Around the Blogosphere

• Best of Money Carnival #65 – Bible Money Matters
• Best of Money carnival #66 – Personal Finance By The Book
• The Top 30 Personal Finance Bloggers You Need To Be Following On Twitter – Own the Dollar
• Create an emergency fund to avoid costly, unnecessary debt – Personal Money Store
• Emergency Savings – Out of Debt Again

Enemy of Fat Updates

• Workout Hell, The Beginning – P90X Day One
• P90X Workout Update -Day 3
• P90X – Days 4 and 5 (Yoga & Legs and Back)

Tips on Finding You the Right Auto Insurance Coverage

This is a guest post from a recent series of three from the folks at Century 21. Make sure you are insured, but most importantly make sure you have the right coverage for you!

While there are a plethora of options for auto insurance coverage, it can be tough to find the right provider that works best for you when you need to make that auto insurance claim. But they’re out there. However, the right coverage can’t find you if you don’t go out and look for it.

If you’re not sure what discounts you may deserve on your auto insurance coverage, I have some tips to share with you that might clear up some of your uncertainties and bring you plenty of savings on your auto insurance. First off, you can’t find savings without shopping around. Rates vary from company to company so always get quotes from at least 3 different companies. When you file an auto insurance claim, the deductible is the amount of money that you lay down before your insurance starts up. Remember that higher deductibles can bring substantially lower premiums, but make sure you have the funds to cover it in case you have to make an auto insurance claim.

It’s important to know that how insurance companies decide on your premiums have a lot to do with statistics. Unfortunately, there are some things that are out of your control like the fact that insurance agencies take into consideration your gender. Statistics have proven that males generally drive more recklessly, drive more often, get more speeding tickets and annually drive more miles. All of these statistics will influence agencies to charge men higher premiums for insurance.

But there is no sense worrying about what’s really not in your control. It’s time to focus on things that you can do to lower those rates. It certainly helps to know your car. Do you have an older car? For older models, it might not make sense financially to pay premiums over many years to keep collision and comprehensive auto coverage. You will only receive the book value of the car if it is totaled in an accident. If you’re thinking about buying a new car, remember cars that are expensive to repair or ones with high theft rates will raise the costs of your auto insurance coverage. However, having safety features like air bags and anti-locks might get you discounts, depending on your insurance company.

When you finally find that provider you trust to process your auto insurance claims, ask about their possible discounts for bundling. You already get your auto insurance coverage from them. Why shouldn’t you get your other car insured by them or your homeowners insurance as well? Many insurers will give you a break if you buy two or more types of insurance. Hopefully one or more of these tips will help in keeping your insurance premiums low.

Photo Credit: bubblemonkey

If Someone Paid You $500 to Improve Your Finances, Would You Be Interested?

Ahhh, Friday Has Arrived!!

As most of you tidy up your workspace, and prepare for the weekend ahead, the last thing you might be thinking about is how to better manage your money. In fact, some of you may be schematizing (yes, it’s a word) your way into a brand new car, a state-of-the-art plasma, 3D, blu-ray, movie theater-sized television, or some special gadget that is going to take you to the moon. That’s fine if you have your ducks in a row, all accept for the new car of course. (buy used) BUT…what if you’re living paycheck to paycheck and have stress-inducing debt?

Shouldn’t you be trying to find ways to increase your income, pay off your debt, and stop living paycheck to paycheck? I’m not knocking any of the above luxuries, I’d love to go to the moon myself! All I am saying is, are your priorities in order? What’s important to you, and are you doing all you can to fulfill those goals?

They ARE goals, right?

Perhaps you’re looking for that kick in the butt to get you started, or you’re just overwhelmed with your entire situation. The truth is there are answers to all your problems, even if you don’t like what they are, or simply refuse to accept them. I find the Personal Finance Community to be the biggest hope for folks like you. Even folks that have their “ducks in a row” use this community to stay on track.

You can listen to some hot shot, that has an opinion on television, (because maybe he is promoting his new book, or about to release a new course promising “secrets” that only HE knows) BUT the blogging community wants to truly help you transform your life, and most of us know there is nothing secret about how to manage your money! It’s why I started Enemy of Debt, and I know for a fact that it’s why a lot of bloggers do what they do. We care about how you end up financially! Where do you think my passion for debt freedom and personal finance come from? I assure you it’s not because I’m making millions of dollars from Enemy of Debt—because trust me—I’m not.

I’ll stop babbling and get to the point!

Introducing…

This is the mission on MoneyedUp.com—in their own words!

“Most of the content on moneyedup.com will focus on spending and saving money wisely, being financially literate and increasing our income. We are here to help inform on financial matters and help people live the life they want.”

The blog, www.moneyedup.com, is a place where many minds have come together to give you more options, more ideas, and a fresh look at the “big bad world” of personal finance. Finance doesn’t have to be big or bad, it just has to be deliberate and consistent over time.

Maybe this will encourage you to start now!

Want A Chance To Win $500?

Oh, you’re wanting to think about it now huh? I thought so. Even if you have already grabbed the bull by the horns, subscribing to a great financial resource, and winning $500 is pretty irresistible right?

You could put it in your Emergency Fund! Pay off the next debt on your Debt Snowball! Start an Educational Savings Account for your children’s college! You could even get a head start on your Retirement! The options are endless. If any of those things are on your to do list, maybe you should forget about that new boat until you start checking some of them off. Hmmm…

What Would You Do With $500?

So head on over to MoneyedUp and be sure to enter for a chance to win BIG! There is some quality content for you to devour. Check out a few of the articles I have enjoyed the most!

• 5 Reasons Why You Will Never Be Rich
• The Importance of Understanding How Money Works
• How To Make A Budget And Stick To It
• 5 Things You Should Never Say About Money
• 5 Ways To Pay Off Your Mortgage Faster

Take Control, and Get Moneyed Up!

Seriously…what would you do if you won $500? I want to know! Share your thoughts below.

Photo Credit: TedsBlog

Book Review & Giveaway: The New Rules for Mortgages

Hello everyone, I hope you are all having a magnificent week so far! Before I get started, I feel I need to clarify a few things about my views and beliefs concerning a mortgage. As most of you know, I am against debt, but I do realize that not all people are going to go out there and save, save, save, in order to pay 100% cash down. Some people, if not most, would even consider that to be impossible. I’ll save that discussion for another day, but I just want to point out that I understand that the average person will not even consider the sacrifice and commitment that it takes to pay for a house without getting a mortgage.

With that said, I started this blog to help people, and if I ignored the fact that most people (even those adamantly opposed to debt), will still consider a mortgage to be good debt, I’d be doing a great disservice to many of you. For those of you that do not hold my belief that all debt is bondage and unnecessary, and fully intend on getting a mortgage, I want to help you get the best mortgage you can. Owning a home is often considered the American Dream, but you should know what you are getting yourself into.

That’s why I agreed to do a quick review and giveaway, for a book written by Dale Robyn Siegel, called The New Rules for Mortgages. She is an attorney and licensed mortgage broker with more than 20 years of experience, which includes owning a mortgage brokerage company for more than 10 years. As most of you know, the rules have changed since the colossal free fall of the housing market in 2008. This book sets out to help you understand those changes in the midst of all the chaos.

It is intended to present “just the facts and the vocabulary you need to understand the subject matter.” It provides short explanations for the basics, without confusing you with unnecessary gibberish that you really don’t need. If you want the most current information available, no matter what state you live in, this book is for you. Best of all, it’s less than 200 pages!

I did not read the entire book, but I did pick a few chapters of interest so that I could go ahead and put this book in your hands. In chapter two, the author talks about income, obviously a big part of qualifying for a mortgage in the first place, hence the reason I chose it. Did you know that in 2008, average families were spending as much as 60% of their income on housing. (proof this book is much needed) That only leaves 40% for everything else! Not only should those numbers be flipped upside down, but realistically, you should responsibly try to spend around 25-35% as a reasonable percentage. Once you get over 40% you are entering dangerous territory, and it’s time to start taking drastic measures to either reduce that number by earning more, refinancing, or even selling!

“The More Toys You Have, the Smaller Your House”

Now this is my favorite part of the chapter 2, because we’re talking about behavior and how it affects your decisions, or as I like say, Behavior Versus Reality.

Here’s an excerpt that states something I think most Americans fall victim too—themselves and their bad habits!

“The problem is the the more money you spend on cars, time-shares (YIKES!), and credit cards (TRIPLE-YIKES!), the less you can spend on a house. The more payments you have on stuff you don’t need, the less you have left over for the house with the white picket fence. So think before you spend on stuff you can do without, or knock yourself down a few levels on that car!” Chapter 2: Income, Yeah You Need That! (my emphasis added)

Take away the car payments and the credit cards, and you’ve got yourself the possibility of owning a nice home with a white picket fence—and within your means.

Furthermore, the chapter covers all of the different income scenarios, what you can use, what you cannot, and why, to help you get a mortgage. Another subject of interest for me was in the same chapter, about co-signing and how it can harm your borrowing power. For obvious reasons, if you are going to be held responsible if someone else doesn’t pay (and statistics show you likely will), the risk to the bank increases because it is at least possible you will not be able to make your payments in the future. Anyone that reads EOD knows I think co-signing is one of the dumbest things a person can do financially. If you’ve never done it, DON’T START NOW, and if you have, I’m sorry.

I was planning on covering another chapter, but I think I have said enough. You get the point. If you are going to get a mortgage then you are going to want the newest and most helpful information available, to assist you with the biggest financial decision you may ever make. As I always say, do your own research and understand what it is you are getting yourself into. Once your name is signed, you are obligated.

There are a number of things covered in this book that I would never recommend to anyone, but to be fair, they are written for informational purposes. If you only read about 15 year fixed-rate mortgages (my recommendation), and then hear something about an interest-only mortgage that will reduce your payments, from a shady mortgage brokers perspective, you will at least know what it is they are selling. We have an interest-only mortgage and my advice would be to RUN as fast as you can in the other direction!!! (not kidding) Once you’re in, it’s really hard to get out, and we’re experiencing that right now!

You may even find that owning a home is something you just can’t do right now. No worries though. Just make a responsible and well thought out plan so that you can do it in the near future.

The New Rules for Mortgages Giveaway

I am giving away two copies of this book! Be sure to enter!

All you need to do in order to enter for a chance to win is be a current subscriber to Enemy of Debt and leave a comment below. In your comment answer one of these two questions: (worth 5 entries)

1. Have you ever had too much mortgage, or a bad mortgage loan you regretted getting? What did you learn from your experience?
2. If you’ve never owned a home, why do you think it’s important to buy a house you can truly afford? (Don’t confuse afford with “I can afford the monthly payments”, because there’s more to affording a home than just the payments.)

Want to increase your chances of winning? These can be done at the bottom of this post. (Be sure to leave a comment letting me know about your extra entries.)

1. Tweet this post. (make sure @enemyofdebt is in your tweet.) Worth 5 extra entries!
2. Stumble this post. Worth 5 extra entries!
3. Tip this post. Worth 5 extra entries!

Giveaway Deadline

All entries must be submitted by Saturday August 28th at midnight! I will be selecting the winners via random.org, and will update THIS POST to let you know who the winners are on Thursday.

Good Luck!!

WINNERS!

Jenn and Melissa won a copy of this book! Congratulations for taking the time to leave a comment and participate!

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