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Wealth

Motivation 101 – YOU CAN DO IT TOO!

by Brad Chaffee on May 12, 2009

Table of contents for Motivation 101

Motivation 101 – YOU CAN DO IT TOO!
Motivation 101 – Saving To Buy, Instead Of Buying To Slave!
Motivation 101 – What You Believe, Is What You Achieve!

Are You Motivated?

Chances are, you often feel overwhelmed with your financial situation, and like most, you want to do something about it. There are many things that keep us from doing what we know we should do. Time constraints, lack of energy, procrastination, depression, and even addictions to name a few. One that people rarely consider is negativity from the people around them. People will rain on your parade in a second once you start talking about quitting something they too are doing. Whether it be shopping, smoking, going on a diet, exercising, or changing your financial habits, people usually try to give you some reason they think you should stick with them. After all they have credit cards, a nice home, and a shiny new car in their driveway!

Chances are, they are BROKE! Dave Ramsey often says, “If you want to be rich, do what rich people do”! Usually the person telling you that cutting up your credit cards is stupid, is the one with NO EMERGENCY FUND and tons of debt payments every month!! Don’t listen to them!!

Go listen to those that are doing a plan that is working! Go listen to the folks that have done it and are now proud to shout they are debt free!! It’s emotional and even though it is someone else, you can’t help but feel a tiny bit of that excitement and motivation running through your veins. It’s almost as if for one split second, you are them. I feel that when I listen to debt free calls! It’s because I know that once you eliminate your debt payments, you have more opportunities to save, build wealth, and GIVE! It’s why I HATE debt!!!

I Have Proof That Without Debt You Can Do More!

In The Wealth Building Benefits Of Being Debt Free, written by Stuart Laing in 2006, he makes the same case for becoming debt free as I make here on EOD. Debt payments SUCK YOUR INCOME DRY! You can INVEST like crazy if you weren’t paying off that shiny new car that loses 70% of it’s value in just 4 years!! You can INVEST like crazy if you didn’t have a house payment because you paid it off!! Some people I know have to make at least $2200 a month just to pay their house and car payments. Add credit card debt to that and you are in dangerous waters!

My buddy J, over at BudgetsAreSexy.com, has a ton of savings, and the only debt he carries is a mortgage. He has paid off his 2 cars, pays extra on his mortgage when he can, and has NO credit card debt! Go over and ask J how much being debt free but his house, helps him build his Net Worth. He is on fire!! Now we disagree on a few things, but it’s hard for me to tell him he is doing it wrong when his financial position is so strong.

Personally I would rather see J slow down on his savings for a second, so he can focus extremely hard on killing his mortgage once and for all. This would mean that he would keep investing 15% of his monthly income for retirement (Roth’s), and then throw EVERYTHING EXTRA towards the mortgage ONLY. With the money he would save on interest, plus the money saved from having no mortgage payment, he could build wealth incredibly fast! The earlier he pays off his house, the more momentum the compound interest will have by the time he reaches retirement age. (Approximately $9600 more each year could be earning interest, to put a number on it.)

Budgets Are Sexy Update: Paying Extra On Your Loans Now, Goes A Long Way Later! This is a GREAT post!

Need more incentive? Do a budget with only necessities, and absolutely NO DEBT! (No house payment, no credit card payment, no student loan, no medical bills…you get the point.) I call it a dream budget! How much money do you have to save, give and invest? How free would you feel if you didn’t owe ANYONE a dime?

Conclusion

A growing number of people are staying motivated, and you can too! Avoid the naysayers, and anyone who tells you that you will ALWAYS have a car payment, or that you can’t live in this world without a credit card. They are misinformed! We were skeptical too, because we bought into the lies about needing debt, just like you did! NO MORE baby, we have had enough! Start a budget today, stop borrowing more money, and get you an Emergency Fund of $1,000! Once you do that you can focus intensely on paying off your debt as FAST as you can! Others are doing it, and YOU CAN DO IT TOO!!! Be the one at the top of the mountain, or at least the one climbing the mountain, instead of the one at the bottom saying, “it can’t be done”!!!

Watch this family scream “We’re Debt Free!”, and tell me what it would mean to you to be able to do the same thing. Let me know if I have turned the only light on in a dark, dark room! Share with a friend and get them to subscribe!

Now go make it happen!

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11 Keys To Building Wealth For Generations

by Brad Chaffee on April 24, 2009

in Money Management

DOWNLOAD THIS BUDGET – I created this budget to give people the tools needed to budget effectively. Budgeting is very important and I have received many emails about how it has helped people with the process. Give it a try and see what you think!
FOLLOW THESE 7 EASY STEPS TO BUDGETING – Proven methods to help you beat the budgeting blues. So many people, including myself, have started a budget and before the month ends the budget is busted. It kills your motivation and desire to budget, and before you know it you are right back to your old ways. This post will keep that from happening to you.
LEARN TO SAVE – This is too important to ignore!! I know what keeps you from saving money but do you?
UNLOCK YOUR TRUE POTENTIAL – In my opinion there is nothing that keeps someone from prosperity as much as not taking responsibility for their own life and problems. You must take action if you want to change your situation. Waiting for someone else to prime the engine will keep you right where you are.
INVEST FEARLESSLY – Fear is our worst enemy, even worse than debt! When you are scared you make decisions on the fly and panic causes you to rush those decisions. If you have planned well for your future then you are probably enjoying the low prices. If you have not planned then you better get ready for the next BIG SALE!
TEACH YOUR CHILDREN SOUND FINANCIAL PRINCIPLES – Don’t rely on our misguided school system to teach your kids about money because they WON’T. Step up to the plate and prepare your children for the life they will be pushed into once they become an adult. If they are not aware of what is smart and what is not, they will be enslaved by credit card companies camped out at their college campus.
DON’T BE AFRAID TO RENT – So many people buy a house before they can truly afford it. We did it too so don’t take this personal, that’s why we had to use “creative financing” to purchase both of our homes. Just because you can afford the payment doesn’t mean you can afford the house. When life happens it doesn’t care if you have savings, can pay your mortgage, or got an unwanted pay cut.
RECESSION PROOF YOUR LIFE – It’s really pretty simple. If you plan for the future then a recession doesn’t really have much of an impact. The key is using your greatest wealth building tool.
GIVE YOURSELF A RAISE – Do you barely make it through each month by the skin of your teeth? Wonder where you can get that raise you have been looking for? I bet I can find you that raise!!
ADJUST YOUR PRIORITIES – You are where you are today because of the decisions you made yesterday. Your priorities can be found by following where your money is spent. Is there something that you feel you deserve? (Like Health Care?) If your priorities were different could you afford that something?
GIVE YOUR TEENAGERS AN ADVANTAGE – Teenagers and young adults are often pressured into something they don’t want to do simply because society, and probably their parents, tell them that they should. They pick a job based on the salary instead of their strengths. To top it off they go into debt to get that diploma and spend most of their adult life paying off the master for something they don’t even enjoy doing. (Intended for teenagers but helpful for most adults)

Did any of these articles help you? Subscribe & leave your comment below…

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Debt-ception – Why Do We Fall For The Lie?

by Brad Chaffee on April 7, 2009

in Money Management

Debt-ception Is Everywhere!

The use of debt is rampant and highly irresponsible. Because we think the good outweighs the bad, we allow ourselves to justify its use. We tell ourselves that it is okay because it is helping us, ignoring all of the signs of its destruction. We have replaced good old fashioned savings for the servitude and hardship that debt brings us. In my opinion we have done this because we have forgotten that no journey worth taking is easy. We have lost hope in our lives and in ourselves, but I know how to get that back. Learning how to become debt free is a great way to start!

What Debt IS in four telling words:

Deceptive
Exploitative
Bondage
Tragic

Deceptive
It fools us into believing that it is there to help us, while working behind the scenes to keep us from realizing our true capabilities. It lures us in by convincing us that we can have more by increasing the quality of our life. It builds our hopes by fooling us into believing that we can have anything we want without a hefty penalty. I mean come on, what’s a little interest? What happens next is anything but the happy, relaxing, dream come true that you were looking for!

Exploitative
All your credit cards, personal loans, car payments and other forms of debt are, are other people using your money to build wealth for themselves. Often the poor and elderly are exploited the most! Pay day Loans, Rent-To-Owns, and Reverse Mortgages to name a few. One way to avoid becoming exploited is to plan for your retirement. There’s a thought!

Bondage
Debt is nothing short of slavery. It chains us down keeping us from being able to move freely without stress or severe pain. The servant status obtained by using debt is unavoidable. Once you sign the papers you are its slave. It will eventually render you lifeless as it drains every ounce of hope out of your tired body.

Tragic
With debt comes death! No not your death, but the death of your hopes and dreams. The tragedy is that so many of us have forfeited our chances to use our income to truly better our lives and those around us. To have the same opportunity to build wealth as the next man, as proven in the Ben and Arthur Example, and NOT…is the very definition of tragedy! (A disastrous event, especially one involving distressing loss…) The longer you ignore the problem the more you will lose along the way.

Why Do We Use Debt?

We use it because we always want more and we decide to overlook the deception taking place in order to get it. We use it because we have been taught that debt is a part of life, and that it is the only way we are to achieve. We use it to convey success and status. We use it because we are too lazy to save for the things we want. We used it to cause our current economic decline and some of us are still trying to figure out what happened. Debt happened, that’s what!

Why You Should NOT Use Debt!

Debt creeps into your life by deceiving you. Then it gets fat off of you, declares you as enslaved, and keeps you from ever experiencing the freedom you deserve. That is a tragic!

STOP the DEBT-ception before it is too late! When is it TOO LATE? I don’t know so you should get started NOW! Too late could be tomorrow!

Random Thought

I have often wondered why some people hate corporations so much. They provide jobs, benefits, & more affordable products for everyday life among other things. It’s corporate greed that they hate right? I hate corporate greed too, but I don’t really associate greed with every corporation. People who love money so much that it causes them to steal from others are who you hate, not the company they fooled along the way.

Then I figured it out! Debt has caused you to loathe corporations that are making gobs and gobs of money off of you in the form of interest. Let me see if I understand this correctly. You hate something that you obediently begged to participate in by signing your name. I have the answer you have been looking for: DON’T BORROW MONEY!! Debt is enabling someone else to become VERY rich off of your sweat, tears, and labor!!

Instead use that same income to plan for your families future by saving, budgeting, and building wealth. Use that wealth to combat the greedy scum by doing great deeds with your money. It’s called a counter offensive strategy! End the deceiving cycle that is debt by learning how to become and remain debt free! It’s worth the effort and way less painful than the alternative!

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Are You Waiting For Washington To Save The Day?

by Brad Chaffee on October 16, 2008

in Money Management

As it stands now this is not a political blog, and I want to keep it that way. However, with the upcoming election, coupled with recent events (bailout, mortgage crisis) and the state of our economy, I feel it is important to address this issue. It seems that so many people are putting all of their faith into electing a President that they feel will fly down from the sky with his Presidential cape and leotards to save the day. Why is that? Do people really believe that Washington is going to come to the rescue? Do you really think that is where the answers are going to be found?

If so, I’ve got news for you. It’s not true. Regardless of who gets elected in November, you are still going to have debt. If the Economy was booming you would still have debt. If the Economy is horrible, yep you guessed it, your financial situation is still the same. Your debt is the problem, not Washington. Until you get your financial situation under control nothing is going to make your life any easier when it comes to your finances. Maybe it is time you sit back and reflect upon your decisions and ask yourself a few questions.

Do I have a budget?
Is there anything that I can cut from my expenses each month?
Do I have adequate savings?
Do I rely on my Credit Cards during an Emergency?
If I lost my job today, would I be okay?
Are my priorities truly in order?
If something were to happen to me (God forbid), would my family be okay?
Is debt the center of my finances?
CAN I DO BETTER WITH MY MONEY?

Let’s break it down shall we. If you had a budget, cut your expenses to necessities, had adequate savings, didn’t rely on your credit cards to bail you out, knew what your priorities really were, and didn’t consider debt to be your savior – the state of the economy wouldn’t put such a strain on your wallet, would it? You would not only feel safe and prepared, you would be able to use your income to make your financial situation EVEN better! Think about it! A recession is like a BIG sale and the perfect time to invest wisely.

According to a recent report on consumer debt released by the Federal Reserve, this country owes an out-of-control 2.5 Trillion dollars. This is INSANE! Here’s some context for you.

Unbelievable right? Now add another trillion and a half and recalculate. This crisis is huge, and until Americans start to realize how dumb debt really is, I am afraid we have more troubling times ahead. My point is this. Don’t wait on Washington to fix what you yourself can fix RIGHT NOW! Don’t believe for one second that any person elected into office is going to make your life complete. Step up to the plate and fix your own economy. Stop borrowing money, put yourself on a budget, spend less than you make and save as much as you can along the way. If you are not doing these things then you have no right to complain about living paycheck to paycheck.

There is NO EXCUSE as to why we in America shouldn’t be able to achieve wealth. After looking at the “Ben & Arthur Invests” example that illustrates compound interest perfectly, I am convinced that those that do not acquire wealth in this country really don’t want it unless it is given to them by those that do. Look at the chart for yourself; am I wrong? If you think so, I would absolutely love to hear from you…leave your comments below.

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Poverty To Prosperity

This is an age old problem that seems to never go away. How do you end poverty completely and is it even possible? I believe that there is an answer to this question, and believe it or not, the Government is not it. The answer is YOU! The way you think, [...]

2 comments Get Motivated!