Military Finances
How To Eliminate Debt and Become Financially IndependentMany of us would say, debt is a necessary evil; we place upon ourselves. There is no "quick fix" in getting out of debt. As a matter of fact, most of us live in debt our entire lives. However, it is not impossible to become debt free. It will require time, patience and consistency. First, I recommend starting with a budget worksheet and a game plan. Ask yourself, "Where do I want to be in 8 to 10 years?" Then set your goals and begin your game plan to achieve that goal. Ten Good Indicators of Financial Bondage (by Bob Russell, Money) - Guilt - When you use money that belongs to a creditor for your own purpose.
- Deception - When you're around others, you pretend to live on a level that's not real.
- Stress - Having to stall creditors. 80% of American families experience the pressure of overdue bills.
- Preoccupation - So worried about money matters that you find it difficult to think about and enjoy other things.
- Bickering - Money is a fighting word in your home. The subject is a frequent source of contention and hassle.
- Envy - You are jealous of others who have more.
- Resentment - You are angry with God for not increasing your supply.
- Loneliness - You feel alienated from friends who appear free of financial pressure, and you are uncomfortable in church because you can't give what you know you should. No one knows but you.
- Hopelessness - You are getting deeper and deeper into debt and see no way out, or for the past five years you have said I think we'll be in good shape in two more years.
- Low self-esteem - You feel like a failure as you move further away from the image you project and the financial freedom you want to experience.
All of us as Americans have had these feelings at one time or another in our lifetime. Yet, as Americans, we do the least planning on this everyday issues. We plan more for a vacation or a day off on what we will do or where we will go. All of the blame should not be placed on us because education is the key. Where do we receive education on finances? Not from the financial institutions. They are busy trying to get into our pocketbooks with credit cards, interest rates, balloon notes, whole life insurance policies, poor return on savings, and things of these nature. Investing
We must accept responsibility. Lets face it; we work hard, we all pay bills and must save for our retirement. Knowing how money works and using what the wealthy know and have been using for years is the key. Learning these proven principles and concepts is what will help us achieve our own and family's goals and dreams. Most people don't plan to fail, they fail to plan. Investments
Know where to invest, and how to invest Debt Elimination
Mortgage, Car loans, know how they work do not be deceived Income Protection
Whole Life, Term Life, Why it is necessary, the difference between Income/Expense Management
Know where money is going and how it is being applied Children's College Education
Alternative methods for achieving these goals, New Plans out 5-29 plans, Education Savings Accounts, Custodial Accounts. Request for Free information to be sent out on these new ways to beat college cost. Investing comes with a price...the earlier the better. The more we save the more we reap from the seeds planted. An example on saving: $200 a month for 35 years (30-65). 3% is right under $150,000; you would receive this from a local bank. Such as savings or certificate of deposits. These are not ideal methods of planning for retirement. Due to the fact inflation is averaging 4 and 5 percent. Your money is making someone else rich and remains idle as far as working for you. 6% is right under $300,000; insurance companies get on these saving type of polices and its just another way for them to use our money to make them money. Run from them. Life insurance is for one purpose and one purpose only, protecting you in case of untimely death. Not to make you financially independent. 12% can anyone guess? $1,300,000; now you will see what I am talking about, Financial institutions leaving us in the dark and use our money to create wealth for the salaries of the wealthy. Where do you receive this (ROR) Real Rate of Return, not from a bank, credit union or insurance company? It is from the Global Economy. "Compound interest is the most powerful force in the Universe."
Albert Einstein, as quoted in Dow 40,000, David Elias (1999) One of the biggest reason people doesn't save: Too much debt. Debt Elimination
Mortgages are one of American's largest investments. Five mortgage traps you should be aware of. (The big picture of why banks love us the consumer.) Trap 1
Private Mortgage Insurance (PMI) - insures the lender against loss on loans where the loan amount is 80% of the value of the home. Cost of this service that provides nothing for the consumer $50 - $150. Trap 2
Escrow - Some mortgage lenders require borrowers to pay extra money with their monthly payments to ensure taxes and home taxes are paid. The lender holds this money and pays it at the end of the year. How to pay it smart; Pay your own and set up an interest-bearing account and each month set aside and earn interest on your own money and pay the bill at the end of the year. Trap 3
Rate Vs APR - Mortgage lenders often EMPHASIZE interest rates, and not the real cost or annual percentage rate. Evaluating is key. Watch for hidden fees. Trap 4
Mortgage Fine Print - Watch for mice print, two mortgage terms that spell trouble are often hidden foot notes, A "Balloon Note" provision means the lender has a set period of time for the borrower to make monthly payments; after the time has lapsed, the remaining balance is due. In other words, you are leasing your home and after 5 to 10 years, depending on agreement you must come up with the entire balance or be forced to loose your home! Trap 5
Charge for Acceleration - banks and mortgage companies do not allow you or give the consumer to pay, or shorten the duration of the loan off early. So what they do is charge for this service. Instead of making it an incentive. Why? They make all of the money over the years in interest. So my suggestions, Pay the least back to banks on interest. Look for Simple interest mortgages, and without the above-mentioned traps. Have an understanding how they work; knowledge is leverage. Car loans, credit cards, and installment loans are all the same the time and interest to be paid back is sometimes undetermined. Not with your interest in mind. So look for avenues to achieve a debt freedom date and stick to a game plan. Security will come in time. Income Protection
Most polices are whole life, (or some type of policy that offers savings) there are literally all types of names. Insurance companies apply greed to the equation. For example giving to a poor rate of return for your savings or contributions, little or no build up in the early years, and with rate hikes could deplete it all together or force you to get rid of it all together. Term Life, is low cost and applies the most coverage for the cost. Insurance is supposed to work in this fashion, pure protection. The financial cycle is as applies; when you are younger you have more financial obligations and therefore a greater need for you to protect your family of potential loss of your earning power. When you are older you are more likely to have fewer dependents and financial responsibilities and less of a need for income protection. The best way to know how much coverage you would need is to list the items for consideration such as; high debt, mortgage, burial, and income for a number of years for survivors. Income/Expense Management
I would recommend a Financial Planner to help you with this. Budgeting is the best way to look at every dollar and where it is going. A Financial Planner in many cases will help you free up money and have it working for you in your best interest. A lot of company's charge for this service. The average out there is $1,200. Is this necessary or ideal? No, of course not. Contact me for free advice in these areas and more. Solutions are out there it is where you go and at the heart of the consumer to make the decision to seek these routes. For the journeys are too short for costly mistakes. In closing, I just ask a few questions. If you could spend 30 minutes answering some basic questions then walk away knowing how to find potential solutions for your financial problems at no cost would you do it? On a scale 1-10 ten are the highest how would you rate your desire to become debt free and financially independent? Feel free to email me questions or ideas on finding ways to achieve your goals and dreams today. | 
