Enemy of Debt: Where Behavior Meets Reality

10 Small Ways to Increase your Emergency Fund Without Noticing

For many of us, myself included, squeezing money out of your budget takes a lot of fancy footwork. Finding ways to save the money to build up your emergency fund or save for a new car when things are already tight requires numerous income streams. Often times you can not make room for a second job and that is when using your imagination, your dedication and the few minutes of free time you can carve out of your day to make extra money. This list, when separated, may not bring a lot of extra money (accept for the first one) into your savings account. But when all are added up, they can bring you hundreds (and maybe even thousands) of dollars in revenue. 1. Pay Yourself First – I've heard this phrase time and time again, as I'm sure you have too. It didn't make sense to me for awhile until I automated the transfer to my savings account and then set my budget for the amount of money I brought in after that automatic transfer. It's extremely important to think of your income in the terms of this post-transfer amount. 2. Increase the Automatic Transfer – If you've set up your automatic transfer Read More

Surprise, Your Credit Report Stinks

Credit reports are a funny thing that even the most seasoned of financial experts have trouble understanding. With all of the “myths” and “misconceptions” about credit scores swirling around it can be difficult to decipher myth from the real truth. Recently my friend went to a car dealership in search of a new vehicle to replace their old vehicle. Unfortunately, they didn’t have the money saved up to purchase the vehicle (I advised paying cash makes the most financial senseJ), and were going to have to finance the vehicle. When applying for any loan or line of credit you are subjected to a credit pull to determine your credit worthiness. After the credit pull was complete and the score was in plain sight my friend was shocked to find their score was much lower than they expected. Not only was this car loan going to cost them more but their “lower” score was going to affect their insurance payments and maybe even their chances for employment. They had many questions for me as they had fallen victim to believing the many myths about credit and had no idea they were causing the damage they did through actions they thought were innocent. So let’s Read More

Exercising Your Way Out of Debt

This is a guest post. Several years ago, I found myself in a position I had never before envisioned: in debt. A combination of student loans, frivolous spending habits, and a general cost of living that was difficult on my income all coalesced to drive my bills higher and higher. Unable to pay, I consolidated them and resolved to crack down and pay them back. And, for a while, I did: I lived a far more frugal lifestyle and began chipping away, slowly, at my debt. I had turned the corner. But being in debt is just as much a state of affairs as a state of being. Debt sits not only on your budget and on your bottom line, but it also hovers above you everywhere you go and with every purchase that you make. Although my debt was decreasing in amount it was no less weighty in the burden it imposed on me. I was capable of paying it off, I knew that I didn’t need a bankruptcy lawyer, but the debt still gave me a growing feeling of hopelessness. I began to wonder whether I would ever become debt-free. It was exercise that helped me reverse course, change my attitude, Read More

Make Your Own Credit Card

I often meet with clients who are using credit cards to fund their daily life. With no money in savings credit cards have come through for them time and time again in emergencies. Their reluctance to get off credit is understandable. It's their friend. They know they can count on it. It's possible they have never had money is savings, credit has been their life line since they can remember. Credit is their Read More

The Danger of Marketing

According to the American Marketing Association, the definition of marketing is “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” Basically, the purpose of marketing is to let you know about the products and services companies offer that have value for you. The first problem with marketing is that the catch phrases are often misleading and may cause you to buy inappropriate and expensive products. The second problem is the marketing message may blind you to the reality that no product is, in itself, a solution. Investment products are typically positioned and marketed based on one of the following qualities; safety, growth, or some combination. Safety is the avoidance of risks. Risks are perils, hazards, or other bad things that could happen to your money. Marketing in the financial services industry is very competitive and the temptation to use catchy yet misleading phrases is rampant. A recent case illustrates this very well. Almost every major financial media outlet has discovered a new risk to investors. Evidently there is a risk you will live too long. Terrifying, isn’t it.  Google this risk and you will find articles and Read More

Pay Off Debt Faster by Using the Right Financial Tools

How many of you have a plan you consistently follow each month to pay off debt? Based on my own experience (before my wife and I got our financial heads together), I'd guess that many of you do not. I know the drill. You pay off a little debt here and a little debt there but it's random and not based on any kind of written (or visual) plan. You make some progress and take a few steps forward but then suddenly find yourself taking a few more steps back. Some of you may even be paying just the minimum payments thinking that eventually its got to get paid off. My wife and I have done that too. None of that works in the long run. You need a plan! The fact is that you are more likely to pay off your debt if you have a plan to guide you through the mud. Let's face it. We need to see and visualize what we're doing and how long it will take. If we say we want to pay off our debt but have no idea when it will happen, chances are we won't make much progress towards reaching that goal. Today I want to Read More

An Open Letter to My Debt

Dear Debt, I’ve waited 5 years to say these words to you—good riddance. I know you’re thinking that this is some sort of joke and I’m really about to burst into a Green Day song, but I assure you I’m not. I’m legitimately, once and for all, saying good riddance. You have caused me enough grief, frustration and sadness for two lifetimes. And I couldn’t be happier that you’re gone. We started out as friends. You were a constant presence in my life. It was comforting to have you because it was a reminder of the good times we had. Vacations, drinks and dinners with friends, new clothes…all good things. And when I needed you most, you gave me a little more. I appreciated that because seriously, what 21 year old doesn’t need an $8000 credit limit? You allowed me to do things that I otherwise couldn’t have done. For that, I am grateful. Almost. You see, you took advantage of me. You knew that I didn’t know what I was doing and you allowed me to get out of control. What’s that? I need to take responsibility for my own actions? Fine. I’ll give you that. I did use you frivolously and with Read More