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178 Past Due – The Past Due Radio Finale

Derek Sisterhen — Fri, 28 Oct 2011 14:32:25 +0000

Past Due: Radio 178 – The Past Due Radio Finale

As the all-knowing They say: “All good things must come to an end.” After nearly four years of broadcasting, Past Due Radio went out with a bang. In honor of the finale, we welcomed back Justin Lukasavige, the original host of Past Due Radio (and current host of CoachRadio.tv), to reminisce and help us guide the ship back home one last time.

Today we discussed why the time has come to move forward from Past Due Radio. With transitions in my professional life, I want to continue helping those I come into contact with as effectively as possible. I’ll be doing so by helping Justin with CoachRadio.tv, collaborating on relevant subject matter like leadership, creating culture, and strategic planning (that actually works).

We relived, and even replayed, some memorable moments:

The Pontiac Caller – Just after GM stopped producing Pontiacs, one eager caller wanted to know if his truly would wind up a collector’s item. We had to break the bad news…

The 100th Episode – The epic opening musical sequence took me a long time to program into our soundboard, but it was worth every second!

The Jelly Beans – In true Past Due Radio community fashion, Tony rose to the challenge by sending us Harry Potter Bertie Bott’s Beans. Justin and I ate them on video and nearly tossed our cookies.

I’ve managed to ruffle thousands of feathers with my critique of those who steamroll their family members with Dave Ramsey’s Baby Steps. To date, The Dark Side of Dave Ramsey’s Baby Steps is the most-watched video we ever released on Past Due Radio. Justin helps all the critics of my video put down the pitchforks and torches on YouTube. And we even released a video in response to them, where I highlight the bright side of the Baby Steps.

It’s been an incredible journey with you, our fans and listeners. Thank you for the privilege of allowing me to host this show and inviting me to join you in the adventure of making this life truly count.

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177 Past Due – Confessions Of A Financial Coach (Part 2)

Derek Sisterhen — Fri, 21 Oct 2011 13:49:38 +0000

Past Due: Radio 177 – Confessions Of A Financial Coach (Part 2)

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Over the years, I’ve been fortunate enough to work with many people who are trying to handle their finances with purpose and intention. Our background – our personal history – has a tremendous influence on our lives. It also has a tremendous influence on our use of money. Over the years, I’ve seen where the “norms” created in the homes where we’ve been raised and our experiences on our own can catapult us to positive change, or be the only thing holding us back.

Today we discussed:

1) Internal vows – the commitments we make to ourselves (for better or worse) that we convince ourselves must come to fruition for us to be happy

2) Our true identity – where we use our money reveals everything about our belief system, how we value others, and what we believe we can accomplish with our lives

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176 Past Due – Confessions Of A Financial Coach (Part 1)

Derek Sisterhen — Sat, 15 Oct 2011 18:56:16 +0000

Past Due: Radio 176 – Confessions Of A Financial Coach (Part 1)

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Over the years, I’ve been fortunate enough to work with many people who are trying to handle their finances with purpose and intention. I’ve learned as much from them as they’ve learned from me, and I wanted to share some of those things – confessions, if you will – with the radio audience.

Today we discussed:

1) How do you define “success”?

2) Are you accountable for your actions and opportunity to be successful?

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Eat Healthy, Save Money

Derek Sisterhen — Tue, 11 Oct 2011 12:30:06 +0000

Christine Luken, the Coupon Queen, is back to dispel some myths and give us some solid ways to save money on healthy foods. After Christine’s last guest post, it was clear we have some very discerning fans that are looking for ways to make products that are good for them also good for the budget. ~D.S.

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There’s a myth floating around out there that I am constantly trying to dispel. It goes something like this: “I’m eating healthy/organic/gluten-free, and there aren’t any coupons for the food I eat.” Or: “The only coupons I see out there are for processed and packaged foods.”

Let me set the record straight: You can eat healthy AND save money! The two are not mutually exclusive.

Now, it’s true that there are many coupons out there for products like Pop-Tarts, Rice-A-Roni, and Frosted Flakes. However, there are also coupons and deals to be had for Kashi Frozen Dinners, Cascadian Farms cereal, Udi’s Gluten Free Bread, and all-natural Luna Bars. You just need to know where to find them!

The first strategy you need to follow to save money on healthy food is to buy it when it’s on sale with coupons. Then you need to stock up on it so you have it on hand when it’s not on sale. This is known in couponing circles as “stockpiling.” Stockpiling does not mean you designate an entire room in your house to food storage. It simply means that you buy enough to last until the next sale. Never buy more of an item than your family will use before it expires. Things like organic cereal and granola bars have a reasonably long shelf life. You can freeze extra loaves of gluten-free bread when it goes on sale.

So where do you find coupons for organic and gluten-free products? It’s true that there aren’t too many of these in the Sunday paper (although you might spot a few.) The best ones I’ve found are online. Coupons.com frequently has printable coupons for Kashi products. With printable coupons, you can typically print two of any coupon per month per computer. So if you both you and your spouse have laptops and your kids have a desktop computer, you can potentially print six of the same coupon. You can also have friends and family members print some for you. Another great website for printable healthy coupons is MamboSpouts.com. I also recommend that you follow Organic Deals on Facebook. I frequently re-post deals they share for organic and gluten-free products.

Another way to get multiple coupons for healthy food is to search for them on E-Bay. Just type in the product name and coupon in the E-Bay search bar. There are quite a few “coupon clipping services” on E-Bay that will cut the coupons for you so that you can pay a few bucks for ten to twenty of a coupon. Let me give you a real-life example of this. Just a few weeks ago, I went to E-Bay and purchased twenty 50-cents off coupons for Luna Bars, an all-natural, 80% organic energy bar for women, for $6 shipped. My local Kroger doubles coupons so these are actually worth $1 for me. Guess what? Kroger sells Luna bars for 99 cents each. I use my coupons (usually five or ten at a time) to get my energy bars for free! My cost for the Luna bars was $6 for twenty, which is 30 cents a bar. 70% off isn’t too bad! Sometimes, people in other parts of the country, like Colorado and California, will get organic coupons in their Sunday papers that I wouldn’t get here in Cincinnati. Just make sure you are buying from a reputable seller with a good rating and that you’re buying original manufacturer’s coupons.

Do you have a favorite brand of organic or gluten-free food? If you write or email the manufacturer singing the praises of their products, they will frequently send you free coupons! It’s also a great idea to sign up for your favorite brands’ email lists and follow them on Facebook or Twitter. They frequently reward loyal followers and subscribers with printable coupons and free samples.

One last tip to reduce the cost of eating healthy is to use coupons for your non-food items. Even if you have a hard time finding good deals on your organic and gluten-free food, you can still use coupons to get your toilet paper, garbage bags, deodorant, shaving cream, dish washing liquid, and fabric softener for less. Now you can eat healthy without emptying your wallet!

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Christine Luken is a Coupon Queen, Financial Coach, and author of the e-book, Confessions of a Coupon Queen: Secrets Retailers Don’t Want You to Know. Christine has a passion for helping families save money so they can build up their savings and pay off their debt. In her spare time, you can find Christine on the golf course, at the mall shopping for shoes (coupons in hand!), or at home watching cage fighting with her husband. You can find her on her website or email her directly.

175 Past Due – No More Free Lunches (Or Banks)

Derek Sisterhen — Sat, 08 Oct 2011 15:21:20 +0000

Past Due: Radio 175 – No More Free Lunches (Or Banks)

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Greg has been reading the news and seeing how banks are beginning to charge for previously free services. In particular, he noticed that Bank of America is preparing to charge customers $5 a month to use their debit cards. Greg asked: “First, how did this happen (that banks are charging fees like this)? And second, what does this mean for an average guy like me? How should I be vetting my banks?”

These are great questions. Oftentimes we assume that our bank has our best interest at heart, but we forget that they work for shareholders (which is why it’s a good idea to have your financial institution(s) in your mix of mutual funds, too). When things change, we figure the bank is out to get us; but the reality is that they need us, or else they wouldn’t be in business.

Today we discussed:

1) How banks actually work; why they offered free services for so long and what recent regulatory changes are forcing them to do differently.

2) The three questions you should ask to determine if your bank relationship fits your needs.

If you put a premium on relationships – having a banker that knows your name – recognize that those services cost money and may require you to pay for them. If you prefer free self-service banking options, just remember that you get what you pay for.

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

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174 Past Due – The Non-Conformist Family Is Making Progress!

Derek Sisterhen — Sun, 25 Sep 2011 20:25:51 +0000

Past Due: Radio 174 – The Non-Conformist Family Is Making Progress!

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The Non-Conformist Family is back! We’re checking in with Josh and Sarah Gordon as they are five weeks into their action plan (they were the focus of Episode #169).

First Month Review:

During our cross-interview (Josh asked me questions about financial coaching, then I asked him questions about the last month), we learned a few important success factors:

1) A spending plan is just another piece of paper (or spreadsheet) until you know how much you’ve been spending. Josh and Sarah discovered their passion for coffee was a significant monthly expense.

2) Sometimes you just have to say “No”! The Gordons made a tough call by cancelling an impromptu trip with family, but they saved some money in the process.

Next Month’s Action Steps:

1) Continue to track spending, looking for continued patterns and behaviors that encourage or limit success.

2) Place every single penny of leftover cash flow into the emergency fund. (Josh even had a great plan to move $2 to the emergency fund every time he felt tempted to go out for coffee; sometimes we have to reward ourselves in other ways!)

We’ll look forward to checking in with The Non-Conformist Family in another month!

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Off With Their Talking Heads!

Derek Sisterhen — Tue, 20 Sep 2011 12:00:13 +0000

I have to be honest with you… No, wait a second. I hate it when I start a statement with, “I have to be honest”, it implies that I’m not always honest, but that, in this moment, I’m signifying that I will, in fact, be honest.

I don’t like that.

I’m always honest with you guys. In my honesty I’m going to vent a little bit.

I give plenty of accolades and much respect to the pioneers of the Internet. The technology we have today is incredible and it allows us to have a meaningful impact on many around us. It allows me to have awesome interactions with you, the loyal members of the PDR universe.

It also allows for an incredible preponderance of garbage.

That’s right. Thanks to the ease with which ebooks, physical books, audio books, blogs, videos, and websites can be birthed into existence, the number of hacks hatching before our eyes has grown exponentially.

Just because someone reads Think And Grow Rich doesn’t make them qualified to act as a business coach. Neither does reading The Millionaire Next Door mean they’re equipped to advise those with two commas in their net worth.

While it can be humorous in some cases, I find it increasingly obnoxious.

Now, please don’t be misled by the title of this post; I’m not suggesting we gather the villagers and head out with pitchforks and (freshly sharpened) axes. What I see in this crowd of talking heads is the same thing we’ve all seen at any family reunion or awkward high school reunion conversation. Just think of your loony uncle with all his political diatribes that have no factual basis. Or think of that guy or lady you meet at a party who has the tax code pegged (but doesn’t actually know the difference between a deduction and a credit).

See, talking heads have been with us forever. Our Information Age has just given them a unique megaphone like none that ever existed before. So, be on guard. A healthy dose of skepticism is wise; shrewdness is laudable.

By the way, did I tell you I’m planning on writing an ebook on brain surgery. I mean, I’ve watched a lot of Discovery Health and Grey’s Anatomy, and, you know, my wife used to work in healthcare. I’m pretty sure I’m qualified…

Ah, but then I’d be sticking my neck right out there on the chopping block.

Keep it real, friends; somebody has to.

173 Past Due – Our Daughter Needs A Car, We Can’t Get A Loan

Derek Sisterhen — Fri, 16 Sep 2011 15:30:46 +0000

Past Due: Radio 173 – Our Daughter Needs A Car, We Can’t Get A Loan

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Robert and his wife Patricia are reaping a harvest of, admittedly, poorly sown financial decisions. They have a college-age daughter who is splitting the family vehicle with Patricia to get to and from classes, then to and from her part-time job. The family needs a car in the worst way, but no one is qualifying for a car loan.

In his submission, Robert acknowledged that they’ve been late on mortgage payments in the past, and are trying to clean up their finances, but now they feel limited with this incredibly inconvenient transportation situation.

Today we discussed:

1) How the pressure of inconvenience often drives us to rushed, unwise financial decisions. We must assess the true cost of paying interest on a used car (and likely subprime interest at that) in the context of the hassle-factor of sharing a vehicle.

2) The importance of Robert and Patricia openly confronting their financial situation for their children to see. It’s time for them to lead their kids – two generations of healthy money managers hang in the balance.

3) How sometimes the best course of action isn’t the most obvious. Robert’s daughter has already saved $3,000 toward the purchase of a vehicle and has the potential to save more than her parents.

This show exposed a lot of the systemic financial issues we’re seeing in American households with regularity: paycheck-to-paycheck living, financially unprepared children, the perpetuation of the “Sandwich Generation”, and knee-jerk decision-making in financial discomfort.

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3 Things I Would (Or Wouldn’t) Do Differently

Derek Sisterhen — Tue, 13 Sep 2011 12:00:19 +0000

We don’t typically like to air out our dirty laundry for everyone to see. I have much respect for Ryan Brewer and his willingness to share some of the missteps from his past and how he’s embraced the lessons they taught him. Not to worry, Ryan, if stupid was illegal, I’d be right there in jail with you! ~D.S.

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When you’ve screwed up with money as much as I have there are probably quite a few things that you’d say you would do differently. As for me…

1. I wouldn’t change all the different times I borrowed money.

True, that sounds like the complete opposite of what most people would say. Think of it as a great lesson on what to never do again. Borrowing money and getting my financial butt handed to me taught me a very valuable lesson that will stick with me the rest of my life. I’m so glad I made the mistakes because it made me what I am today.

2. I would’ve learned to do a better budget earlier.

In the early days, “budget” was a swear word in our house. Even if we did a budget, it was really hard for us to stick with it. I regret not learning how to properly do a budget and be able to stay on it each month. I can only imagine the thousands of dollars we wasted by not following a budget earlier on.

3. I wouldn’t have ignored by credit card bills for so long.

Sure, credit card companies are annoying and can get under your skin, but ignoring them is not something that I should’ve done. When you have a choice between eating and paying a credit card then obviously you would eat. For myself, I could’ve done both, but chose not to pay the cards and it really backfired. I wish I would’ve paid more attention and kept up with my credit cards, it would of saved me a lot of money in the long run.

Even though some of my financial past is marked with mistakes I wish I hadn’t made, I wouldn’t change any of them. What I learned in the process was just too valuable. Don’t waste your time regretting what you have done; focus instead on the path ahead.

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Ryan Brewer is the author of If Stupid Was Illegal We’d Be In Jail. And runs ifstupidwasillegal.com. Ryan is a blogger who loves to share is story with anyone. Ryan also is a stay at home dad. In his spare time he likes to ride his bicycle with no hands. Ryan can be reached at @ltj2009 or ifstupidwasillegal.com.

172 Past Due – How Am I Ever Going To Retire?

Derek Sisterhen — Mon, 12 Sep 2011 18:23:09 +0000

Past Due: Radio 172 – How Am I Ever Going To Retire?

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How am I ever going to retire? I’ve probably gotten that question a hundred times over the past few years. Given the Great Recession and market volatility, it’s easy to understand the concern of so many around us that they won’t have enough money for life after work.

Today we discussed some of the flawed logic behind the notion of “retirement”. I shared some of the wildly outlandish visions I had for my own retirement at one time, and how the force of our culture plays a big role in creating a discontented spirit toward the later years in life – particularly if savings is low.

We also covered:

1) A recent study showing that if most people had to pay for the kind of retirement they desire, they would need annual retirement income of 135% of pre-retirement income; talk about expensive taste!

2) The math Certified Financial Planners use to calculate how much you’ll need in savings in order to withdraw an annual “income” similar to your former income in your retirement years.

3) The notion that one should never retire, but use their vast experiences and skills to impact those around them and their community.

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Does Money Make Us Happy?

Derek Sisterhen — Tue, 06 Sep 2011 12:00:56 +0000

Danny Kofke answered this question – “Does money make me happy?” – a long time ago. He and his family have accomplished more in the way of strong relationships and meaningful adventures on a salary most people would call meager. He appeared on Past Due Radio back in the good ol’ days when we broadcasted on AM 1030 in Raleigh. It’s great to have him back with us! ~D.S.

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We live in one of the wealthiest nations on Earth, yet so many people are unhappy. A lot of us seek professional help for this very reason. Clearly, having money can take away many worries, but it doesn’t automatically guarantee happiness.

Think about some of your peers. Do any of them make a lot of money but have nothing to show for it? There might be some who press the snooze button numerous times on Monday morning because they dread going to work. Even if you make $500,000 a year, if you are unhappy Monday through Friday you are not “wealthy.” Many people in this situation spend money and buy things to make themselves “happy.” Once the weekend rolls around, they can come up with some great reasons to buy things. “I work so hard and put up with so much I deserve ________________.” Fill in this blank with clothes, jewelry, eating out, and so on. I’ll make them happy, won’t it?

Let’s face it, buying things can bring about a sense of joy, but only for a moment. If I go out and buy a shirt it feels great. The first few times I wear it, it feels good. Then, after five or six times of wearing this shirt, something happens; it becomes old. How many of us have looked in our closet and said, “I have nothing to wear” even though we have 50 outfits staring back at us? At one point in time we liked these clothes (or at least we liked them enough to buy them) but, after a while, that feeling faded away. If our happiness is based on material things, we enter a vicious cycle of having to routinely make purchases to replace the dwindling happiness we once experienced from the previous purchase. Sounds a little expensive.

Emotions account for the largest component of any money problem. We know not to buy things we cannot afford using credit cards, but we still do. Let’s say we use a credit card with a 24% annual percentage rate (APR) and spend $1,000 on “happiness purchases”. If we didn’t make a single payment during the course of the year, we’d owe $1,240 after 12 months. An 8th grader can do the math, but we choose to look the other away. We’re too busy being happy with our new stuff.

The vicious cycle of happiness spending tends to drag other areas of our life into the whirlpool. Money and weight problems often go hand-in-hand. Just like the calculating simple interest, we now have easy access to basically all of the nutritional information for the food we eat. Yet nearly two-thirds of our country is classified overweight or obese. We know how bad it is to continually stop by our favorite fast-food restaurant to order a number 3 and super-size it, but we still do it. Why do we do this to ourselves? The answer is the same as why we buy things we can’t afford: the temporary feeling of satisfaction.

It’s pretty simple to have money and be healthy on paper. In practice, though, the results will show our true level of commitment. Imagine if you lived by the phrase “Eat Less Than You Burn, Spend Less Than You Earn”. Live healthy, live happy.

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Danny Kofke is currently a special education teacher in Georgia. His love of teaching and finances led him to write two books – How To Survive (and perhaps thrive) On A Teacher’s Salary and the just released A Simple Book of Financial Wisdom: Teach Yourself (and Your Kids) How to Live Wealthy with Little Money. Danny has appeared on numerous television shows including Fox & Friends and CNN’s Newsroom, and has been interviewed on over 250 radio shows. Danny wants to show others that, if this 35 year-old school teacher can gain financial wisdom, then they can too. He is living proof that a family can live wealthy on little money. To learn more about Danny, please visit dannykofke.blogspot.com.

171 Past Due – Should I Delay Debt Freedom To Be A Best Man?

Derek Sisterhen — Mon, 05 Sep 2011 15:09:19 +0000

Past Due: Radio 171 – Should I Delay Debt Freedom To Be A Best Man?

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BJ and Sylvia wrote in from Germany looking for guidance on a dilemma: Do they attend BJ’s brother’s wedding (BJ being the best man, by the way) and delay debt freedom, or continue with their plan to become debt free and disappoint their family?

Talk about a can of worms! But hey, that’s life and money, isn’t it?

Because of the cost of travel back to the U.S., recent unexpected expenses, and changes in income, this is no little decision. Add to that the pressure of family expectations, and you have a recipe for major stress.

Today, we helped BJ and Sylvia by:

1) Discussing that there is an opportunity cost of getting out of debt – all those opportunities we have to say, ‘No’ to – and that we must assess just how much that cost weighs in our current strategy toward debt freedom.

2) Covering the four lists that everyone should make upon committing to getting out debt and controlling spending:

List of goals for the next 6-12 months
List of current expenses
List of reasons to use emergency savings
List of reasons to suspend the debt snowball

3) Unpacking the other areas where family and money tend to intersect – like Christmas, wedding and baby showers – and how to set the appropriate boundary so that you invest in those relationships without short-changing financial goals.

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Saving Money Without Coupons

Derek Sisterhen — Tue, 30 Aug 2011 12:00:39 +0000

We haven’t talked about couponing much on PDR, yet I know many in our audience are coupon mavens. Christine Luken is the Coupon Queen and has made a name for herself by how easy she makes saving money with simple coupon strategies. But today, she’s going to show those who prefer not to tinker with the ads in the Sunday paper how to save some cash. Christine is also giving away her e-book to the first three people to comment on this article. ~D.S.

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I’m going to take a swan-dive into the deep end of controversy and embrace my critics. I am the Coupon Queen and I’m here to tell you today that you CAN save money WITHOUT using coupons. To my fellow Coupon Queens and Kings, the previous statement is borderline blasphemous (and I hope they don’t show up on my doorstep tomorrow with torches and pitchforks!) Look, I love using coupons and the money it saves me, but I know I’ll never persuade everyone to use coupons.

I recently researched why people don’t use coupons, because it seems like a no-brainer to me. If I can pay less for something, I’m willing to put out a small amount of effort to accomplish that. However, not everyone sees eye-to-eye with me on this. Non-Couponers feel like it takes too much time, organization, and energy to use coupons in a way that will give them a good return for their effort. As much as I’d like to corner each and every one of these people and attempt to persuade them otherwise, I understand that I can’t win everyone over to my side. As the old saying goes, “Those convinced against their will are of the same opinion still.”

Rather than rail against the coupon-haters, I’m going to show them some love. As a Coupon Queen, I am always looking for a great deal and there are ways to save that do not involve coupons. So this is for all of you who can’t be bothered with coupons, for whatever reason. I believe that you still want to save money; you just don’t want the hassle of cutting, sorting, and organizing those little squares of paper.

One of the best ways to get a discount is to just ask for one! I’m not talking about hard-core, used-car-salesman negotiating here. It’s as easy as asking, “Is this your best price on this item?” or “Are there any discounts or specials going on today?” If you like to haggle and you’re not opposed to gently used items, there are deals galore to be found at Craig’s List, E-Bay, yard sales, thrift shops, and consignment stores. I have purchased clothing, books, jewelry, and other items with huge discounts that looked brand new! I also like to sell my shopping “mistakes” back to my local consignment shop and on E-Bay. If you prefer new, you can glean some awesome treasures in the clearance section of your favorite stores. (Some retailers specifically exclude clearance items from their coupons, so you’re not leaving any money on the table.)

Another way to save without coupons is by utilizing store loyalty cards. The nice thing about these cards is that most never expire. The cashier scans the loyalty card and you automatically earn discounts or free items. I frequently earn free smoothies and sandwiches from Panera, gift cards from Office Max, and fuel discounts from Kroger. If you’re going to use this strategy, you may want to purchase a larger wallet… I currently have 15 different store loyalty cards in mine!

I’m probably going to stir up some trouble with this next tip, because people have strong opinions about the store I’m about to mention. If you don’t want to mess with coupons, I suggest doing the majority of your shopping at Walmart. They really do have low prices on the name brand items that people use every day. (No, Walmart did not pay me to say that!) Many people don’t realize that Walmart also does price matching. If you are feeling ambitious, grab the sale ads for the other local grocery stores and take them with you on your next shopping trip to Walmart. If grapes are 88 cents a pound at Kroger, Walmart will match that price if you show them the Kroger ad. You don’t need a coupon and you don’t need to shop at more than one store to get all the good deals.

When is a coupon not a coupon? When it’s an e-coupon! Okay, they sort of are coupons, but hear me out! E-coupons are electronic coupons that are either linked to your store loyalty card or sent to your cell phone via email or text message. This is great for folks who don’t want to keep track of paper coupons and expiration dates. Typically, you’ll go to a store’s website, select the e-coupons you want to load to your store card. When you check out, you’ll swipe your card or have the cashier scan the barcode on your iPhone or Blackberry. The e-coupons will automatically reduce your total bill if you purchased those items.

Whether you are a Crazy Coupon Lady like me or a die-hard Non-Couponer, we can all agree that paying less for things we want or need is a good thing. Because, why pay retail if you don’t have to? Happy Shopping!

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Christine Luken is a Coupon Queen, Financial Coach, and author of the e-book, Confessions of a Coupon Queen: Secrets Retailers Don’t Want You to Know. (Use coupon code DRC9 to save 10% and to support Past Due Radio.) Christine has a passion for helping families save money so they can build up their savings and pay off their debt. In her spare time, you can find Christine on the golf course, at the mall shopping for shoes (coupons in hand!), or at home watching cage fighting with her husband. You can find her on her website or email her directly.

170 Past Due – Should I Pay Down Student Loans Or Save For Tuition?

Derek Sisterhen — Fri, 26 Aug 2011 22:38:39 +0000

Past Due: Radio 170 – Should I Pay Down Student Loans Or Save For Tuition?

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Amanda is a rising college junior and is trying to make the best use of $500 a month in cash flow: “Do I pay it toward my $16,000 in outstanding student loans, or save it to – hopefully – pay for my senior year tuition in cash?”

First off, I can’t remember anyone in college who had an extra $50 a month to spare, let alone $500. Way to go, Amanda!

On today’s show we discussed:

1) The rule-of-thumb I’ve helped many people use to stay ahead of upcoming, expected expenses when also trying to eliminate their debt.

2) The importance of Amanda entering the real world as a college graduate with a sense of financial accomplishment (and how that confidence will set the stage for her making future goals a reality).

3) Whether borrowing for higher education can actually be called and “investment”, and how to reduce the risk while maintaining the reward of investing in yourself.

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3 Lessons On Pregnancy & Money

Derek Sisterhen — Tue, 23 Aug 2011 12:00:03 +0000

Jon White is not only talking the talk, he’s walking the walk. It’s so exciting to think that he and his wife Lisa are welcoming their first child into a financially healthy home. For many families, the onset of children exposes cracks in the financial foundation. If nothing else, these three simple ways to prepare for baby will get your wheels turning. ~D.S.

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My wife Lisa and I welcomed our first child into the world on July 10^th. Joshua Daniel has been a tremendous blessing in our lives. Besides not getting a whole lot of sleep, things are coming along great. Everybody says that having children is a huge financial burden. While there are some financial adjustments that need to be made, if you plan ahead accordingly and stay under control, they are very manageable. Below are three lessons my wife and I learned as we prepared financially for our baby’s life on the outside.

Pile up cash during the pregnancy

Yes, getting out of debt is nice, but during a pregnancy there’s no greater feeling than having a nice pile of cash saved in the bank in case of emergency. My wife and I already had about 4 months worth of expenses saved in our emergency fund when we found out we were pregnant. Yet we still cut back on our 401(K) contributions and stopped paying extra on our mortgage each month.

Sure, it pained me to make the minimum mortgage payment and watch my projected amortization schedule increase by a few months. But there was nothing better than that feeling of security our emergency fund provided. We also had more than our annual deductible in our Health Savings Account (HSA). This allowed us to enjoy the pregnancy and not worry instead about how we were going to pay for the baby.

Stick to your budget on baby “stuff”

When I talk about baby “stuff” I’m not talking about health needs. I am referring to everything that’s in a Babies “R” Us store. Lisa and I created a list of needs and wants. Now, granted, men and women have different feelings on this. When women find out they’re pregnant, they meet with other women and talk about baby outfits, toys, accessories, etc. But when men find out their wives are pregnant they think of one thing: DOLLAR SIGNS! Because of our needs and wants list my wife and I were both on the same page with this.

If you’ve never been into a Babies “R” Us store, prepare to be intimidated! After our first walk-through, we both left with our eyes glazed over. You can easily spend some money in that store if you aren’t careful, but remember you can still be a great parent without buying one of everything. Know your limits, then stick to them.

Have health insurance

This might seem obvious, but a lot of people don’t think they can afford health insurance if their employer doesn’t provide for it. This includes the self-employed and the unemployed. The monthly premiums might hurt, but you really can’t afford not to have health insurance, especially during a pregnancy. We are starting to get some of the bills in the mail already and that total amount will be well over $15,000. Thankfully, we have health insurance with an HSA policy and have more than met our decidable.

It’s also important to make sure you have the right kind of insurance. If you have choices through your employer, run the numbers and see what would be best for your situation. For us we found the HSA with its high deductible but lower monthly premiums was the best for us.

So, that’s what we did to prepare financially during a pregnancy. If you are thinking of having children, but are not quite sure if you can afford it, it’s important to realize that children are not that expensive as long as you plan accordingly. Remember you have nine months to get ready; your child’s birth shouldn’t sneak up on you.

If you have had a child, what are some other things that you did or did not do to prepare for the birth of your child?

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Jon White is the owner of JW’s Financial Coaching. He enjoys giving people hope with their finances by giving them a new perspective on their money and by teaching them to focus on their economy. Jon also is the host of the JW’s Financial Coaching Podcast devoted to answering listeners’ questions on personal finance as well as cover current events in the personal finance world. For fun Jon enjoys taking walks with his wife and watching college football. You can interact with Jon on Twitter or on Facebook.

169 Past Due – The Financial Plan For The Non-Conformist Family

Derek Sisterhen — Fri, 19 Aug 2011 15:30:51 +0000

Past Due: Radio 169 – The Financial Plan For The Non-Conformist Family

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Josh and Sarah Gordon of thenonconformistfamily.com have agreed to be guinea pigs in the PDR lab! In their effort to avoid mediocrity, they’re seeking direction on some huge financial goals in their new world of self-employment.

Today we assessed their goals for the next 12 months, their income and expenses, and I issued a 30-day action plan for them. Here’s what we know about them:

Goals:

In the next 12 months, they’d like to pay off $10,000 in student loans and save an emergency fund of $2,500
They want to give away three $1,000 awards to people creatively addressing social concerns
They intend to live unconventionally (in tents, cabins, or vehicles) and travel extensively in North America

Income & Expenses:

Income – $2,904
Expenses – $2,012
Net Income/(Loss) – $892

30-Day Action Plan:

Over the next 30 days, The Non-Conformist Family needs to focus on two initial goals:

1) Tracking every dollar they spend to determine the accuracy of their planned spending (and cash flow potential)

2) Funnel every bit of extra cash flow into their emergency fund

In the days ahead, we’ll be revisiting The Non-Conformist Family to see how they’re progressing, answer questions as they arise, and provide guidance for them on their journey.

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Try Budgeting Backwards

jgordon — Tue, 16 Aug 2011 12:00:43 +0000

In true non-conformist fashion, Joshua Gordon takes a process that’s been done from top-to-bottom for thousands of years and makes it bottom-to-top. I think you’ll find his perspective intriguing (unless – like me – you actually do like eating broccoli). ~D.S.

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I hate budgeting.

Always have. Sort of like eating broccoli – no fun, but necessary. Budgeting feels cramped and sterile; I don’t love being told what to do, so when my budget tells me I can’t spend money on something, well, I don’t like the feeling. Don’t get me wrong: I’m glad for the structure and intention our budget gives our finances, but… I just think broccoli. Blech.

Now, I like both-and solutions. I like to ‘have my ~~broccoli~~ cake and eat it too’. So I’ve been thinking: Can I have the structure and intention of budgeting without the restrictive-feeling baggage?

Reverse Budgeting. That’s the term I’ve coined to describe the mindset my wife and I have adopted. It’s a fresh way of looking at money: It’s conventional budgeting flipped on its head. Reverse Budgeting is really only a slight shift in thinking, but the ramifications are huge.

See, conventional budgeting says, “I have this much money; I can only purchase A and B, but not C”. Reverse Budgeting says, “I want to purchase A, B, and C – therefore, I will make $X”.

Did you catch that?

Budgeting uses your current resources to limit your actions. Reverse Budgeting uses your actions to determine what resources you need. After defining and embracing Reverse Budgeting, I’m living with a new perspective that encourages me to expand my income to meet my needs.

Here’s what reverse budgeting has done for me:

Encourages industriousness in my business endeavors
Inspires creative problem solving and money stretching
Reminds me that my job doesn’t control my income, I do

If you want to realign your priorities towards entrepreneurship and fantastic greatness, give Reverse Budgeting a shot.

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Joshua Gordon is Head Man of Awesome at TheNonConformistFamily.com. Together with his wildly hot wife, he’s leading his family of four on an epic trek out of Boring Template Life. Josh needs friends (his words, not mine), so hit him up on twitter and facebook.

168 Past Due – Should We Repair Or Replace The Car?

Derek Sisterhen — Sat, 13 Aug 2011 01:28:51 +0000

Past Due: Radio 168 – Should We Repair Or Replace The Car?

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Jane and Bill wrote in this week in the midst of an all-too-familiar conundrum: “Should we shell out the money to repair an aging vehicle, or throw in the towel and buy a new one?”

Right now, they have a large, four-wheeled paperweight in the driveway that requires about $1,500 worth of repairs to make it road ready again. They’re concerned that spending that kind of cash on repairs – money that has to come from the emergency fund because they haven’t been saving for ongoing vehicle expenses – will be a waste. Especially if they can use it toward a new, more reliable vehicle.

Today we discussed:

1) The two typical reactions for most people in this situation: A) Put the repairs on a credit card, B) Go buy a brand new car.

2) How to calculate your true ongoing vehicle expenses (covering everything from tires, brakes, batteries, wiper blades, filters, and alternators), and how to save for them every month in a clean, easy way.

3) The rule-of-thumb (and the exception to the rule) that I use when determining whether it makes sense to bite the bullet and repair an aging car, and when to move on to greener highways.

Cars are typically the largest purchases we make outside of our homes. You have to do your due diligence to make a wise decision on this issue in order to avoid car accidents of financial proportions!

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Do Something Even If It’s Wrong! 5 Steps To Financial Recovery

Tony Elam — Tue, 09 Aug 2011 12:00:40 +0000

Have you ever attended a financial class, or asked for help and it seems like the standard advice given just doesn’t seem to apply? It may be that the advice is fine, but you aren’t sure where to begin. If you’re struggling financially and don’t where to start, the next 5 steps will help you customize good advice for your benefit.

1. Do something even if it’s wrong!

A surefire way to remain in the same spot is to do nothing. Well, actually that’s not entirely true; if you do nothing, you could go backwards even further. My friend used to say when we were younger, “Let’s do something even if it’s wrong!” He would usually say it right before we got into trouble! This is not what I am suggesting you do. Simply put, just get started even if it turns out to be wrong. Don’t hide from your problems, get them out in front of you. The things that will turn in your favor will far outweigh the mistakes. Take no more than two weeks to decide on major financial decisions.

2. Put it on paper.

If it’s for your basic everyday needs, or it deals with delinquent credit cards and/or loans, just get it down on paper. Take everything that you need to manage financially, and begin funneling it onto a pad of paper. List the monthly cost, the balance, and the due dates. You can’t manage it all in your noggin; eventually something will fall through the cracks.

3. Do a budget.

This may sound similar to the previous step, but creating a budget is one step further. Think of step 2 as the places we need to visit, and step 3 is the order in which we want to visit them. For most, learning to do a budget confidently takes around 90 days. After that, you can effectively create a budget in about 30 minutes. Do you have 30 minutes to do the #1 thing that will give you more of the future you want?

4. Stop doing things that aren’t working.

When I was at my worst financially, I would write checks knowing they would bounce. I did this all the time. So, when I decided to get serious and began looking at my problems, I decided to close my bank account. You might say I needed to just get better at managing my checkbook and stop writing checks if I had no money in my account. I tried that but ultimately it didn’t work. Instead of writing checks I began paying my bills with money orders. I never bounced a money order, and it cost me much less in fees. I have since re-opened my accounts, and manage them fine. Bottom line, what are you doing over and over again that’s not working?

5. Don’t be anxious about anything.

Once it’s on paper, and you have made decisions regarding the situation, forget about it. Worrying about your problems will get you nowhere. Instead, start listening to podcasts and reading books and magazines that pertain to money. Find trusted advisers that will help guide you in the direction you want to go. Hire a coach if necessary. Hang out with friends who will encourage you and want to have fun. Be present in what you are doing when you are doing it. A lot of financial problems snowball in the wrong direction, because we focus on them too much (without doing anything about them). Beyond that, you tend to gravitate towards what you focus on.

Don’t worry about the whole journey, just begin moving. Don’t be afraid to customize the general advice that will lead you where you want to go. Good advice is usually a template and needs to be customized for your specific situation. What gets you stuck financially? Have you gotten general advice that didn’t seem to fit? Share your story in the comments below.

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Tony is a personal finance coach in Orlando, FL and online. From his own experience, he believes that change at the core is the same no whether you are trying to become debt free, lose weight, or find work that you love. His goal is to encourage others to escape mediocrity in their own lives, and become the people they were made to be. You can find him at findingforwardmotion.com along with Twitter and Facebook.

167 Past Due – Where Does The Sandwich Generation Get Money For Bread?

Derek Sisterhen — Fri, 05 Aug 2011 19:25:36 +0000

Past Due: Radio 167 – Where Does The Sandwich Generation Get Money For Bread?

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My friend Bob is feeling the pain of being caught in the middle of a sandwich. This isn’t some weird food fetish; he’s actually dealing with helping his parents financially while trying to raise his own kids. And Bob is not alone. There is a whole segment of our society feeling the squeeze, called the “Sandwich Generation.”

Bob asked, “When trying to support parents and take care of your own family, where does the money come from?”

It’s a relevant question – over 1 in 8 Americans between the ages of 40 and 60 are sandwiched – but we didn’t want to just talk about getting more money for the problem. We had to understand the cause of the problem, too.

Today we discussed:

1) The primary cause of the Sandwich Generation, and how one generation’s lack of financial preparedness can become a problem for each future generation in a family tree.

2) How to deal with being sandwiched in your own family, and the kind of honest conversations that the “meat” needs to have with both “buns”.

3) How we can toss the Sandwich Generation effect from our society and, surprisingly, which generation in a family tree will be responsible for stopping the madness.

The good news for Bob, and the rest of us for that matter, is that the Sandwich Generation doesn’t have to last forever. Defining boundaries between family members is a critical component to maintaining healthy relationships and securing your financial future.

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166 Past Due – Preparing Financially For Life Outside The Nest

Derek Sisterhen — Fri, 29 Jul 2011 23:54:31 +0000

Past Due: Radio 166 – Preparing Financially For Life Outside The Nest

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I took another Facebook question today from my friend Ashley. She’s a little concerned for a friend of hers who is just now leaving the safety and comfort of her parent’s nest for the wide open real world.

Ashley asked, “I have a friend that just moved out of her parents’ house. She’s never had a budget, never really had to worry about how to pay for life, retirement, etc? What can she do to get settled successfully?”

While this doesn’t appear to be a “failure to launch” situation, I couldn’t help but think of the 2006 film with Sarah Jessica Parker and Matthew McConaughey.

Today we discussed:

1) What parents of adult children can do to guide them toward independence, as well as the social change that has occurred since the Great Recession resulting 60% of college grads returning to live at home.

2) What Ashley needs to do, as this young woman’s friend, to encourage her and hold her accountable in the midst of spreading her wings.

3) The first two steps any newly-independent person should take to understand their financial position, lifestyle expenses, and to plan for the risks of life.

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165 Past Due – How Much Life Insurance Do I Really Need?

Derek Sisterhen — Fri, 22 Jul 2011 14:23:59 +0000

Past Due: Radio 165 – How Much Life Insurance Do I Really Need?

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You have to respect the power of Facebook. I put out an APB to see what kind of financial questions my friends wanted some input on and I got great feedback. We’ll see more of their questions in upcoming shows.

My friend Jay asked: “How much life insurance do I (and my wife) really need?” Great question! We haven’t talked about the provocative, tantalizing subject of life insurance in a while!

On today’s show we covered the following:

1) What life insurance is really used for and the various types out there

2) What costs (premiums) you can expect to transfer the risk of lost income to an insurance company

3) The rule of thumb I use when helping folks determine their life insurance coverage amount

Having adequate life insurance is critical to a well-rounded financial plan. Making sure you aren’t paying an arm and a leg for it, to the detriment of your other financial goals, it’s just good stewardship.

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164 Past Due – What Are The Best Ways To Borrow $20,000 Fast?

Derek Sisterhen — Fri, 15 Jul 2011 16:54:25 +0000

Past Due: Radio 164 – What Are The Best Ways To Borrow $20,000 Fast?

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During a recent workshop for teens and their parents, we discussed the dangers of debt, how credit cards work, paying for college, and cars. During the Q&A, a father of a 17-year old girl asked, “What if you need some cash very quickly, about $18,000-$20,000? What are the best ways to borrow if you must?”

That’s an interesting question that comes with a very loaded answer. On today’s show we discussed the typically approach most people take when they need money for “surprises” like college tuition, house repairs, and car replacement. We also addressed how we start to justify poor borrowing decisions by only looking at perceived “benefits” of the different types of loan out there.

We covered:

1) Credit cards

2) Borrowing from family

3) 401(k) and other retirement plan loans

4) Home equity loans and lines of credit

Before pulling the trigger, we must understand the major detractors for using these lending methods to supplement a big time cash shortfall. We also talked about how borrowing like this perpetuates a debt cycle and will like require a lifestyle adjustment to break.

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163 Past Due – Teaching Your Kids About Work And Reward

Derek Sisterhen — Fri, 24 Jun 2011 16:15:02 +0000

Past Due: Radio 163 – Teaching Your Kids About Work And Reward

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Susan and William of Raleigh, NC are the winners of the Kids & Money Contest! They wrote in about the numerous financial mistakes they made as a young couple and how they’ve systematically begun teaching their children – all four of them! – how to avoid them. In the years since getting married, Susan and William have paid off their debt and are working with each of their children to understand healthy, wise money management.

Today, we talked about the importance of connecting work with reward early in your children’s lives so that they understand the concept of earning what they want. We also discussed the need for parents to help their kids uncover their passions, and how work can assist in this effort.

In addition, we addressed the three camps that parents tend to fall into regarding teaching children the connection between work and reward:

1) The “Kids Should Just Be Kids” camp – they’ll have all their lives to work

2) The “No Work – No Pay” camp – kids work on commissions and only get paid for the jobs they do

3) The “Apathy” camp – mantra: “Oh, they’ll just figure it out”

Hanging in the balance is the legacy of the parents – whether positive or negative.

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162 Past Due – Help! My Fiance’s Finances Are Trashed!

Derek Sisterhen — Fri, 17 Jun 2011 16:15:52 +0000

Past Due: Radio 162 – Help! My Fiance’s Finances Are Trashed!

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I was teaching a group of undergrad and graduate interns at SAS Institute earlier this week and was asked a great question: What do you so when you find out your fiance has a poor financial situation?

The intern asked the question on behalf of a friend who recently discovered his fiance had $12,000 in credit card debt and she isn’t able to make consistent payments. This groom-to-be is concerned about uniting their finances and what the credit score implications could be in the future, especially for buying a house.

Today, we address:

1) The three critical discussions every engaged couple should have on dreams, upbringing, and current spending (this assumes you’ve already been through a pre-marriage course or counseling)

2) The way that banks handle married applicants when one person has a low credit score and won’t qualify

3) The focal points this young couple needs to aim toward to start their marriage on the same page

So many couples spend significant amounts of time planning their wedding that they neglect planning for their marriage. Taking the time to walk through a couple of fun, conversation-provoking exercises can literally divorce-proof a marriage.

Today’s Mentionables:

Episode 134 – Do-Overs: Preparing for Marriage – In this episode, we discussed some of the mistakes Elisa and I made in preparing for managing money after I do and what I would do if I could do it all over again

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161 Past Due – Downsize or Refinance to Boost Nest Egg?

Derek Sisterhen — Sun, 12 Jun 2011 19:48:18 +0000

Past Due: Radio 161 – Downsize or Refinance to Boost Nest Egg?

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Tom and Denise are dealing with a conundrum: Should they refinance their house to a great, low interest rate and pay it off in 15 years, or should they sell it, downsize, and use the freed up cash flow to fund other retirement savings? They’re in their mid-fifties and are beginning to feel the pressure of retirement.

The situation they find themselves in is very common among American couples in this age group. We’ve believed for a long time that having a house – especially a paid-for house – at retirement is a crucial component of our retirement nest egg. However, given the recent upheaval in the real estate market, many have found themselves staring at a cracked and scrambled nest egg.

Today we addressed:

1) Whether real estate should play as significant a role in our retirement portfolio as previous generations believed.

2) What the net gain in value to their overall retirement portfolio would be if they refinanced.

3) What the potential for gains would be if they chose to downsize.

Sometimes we have to be reminded of simple investing concepts like diversification in order to make the best decisions for our long-term financial plan.

Kids & Money Contest: I’m looking for stories of parents teaching their kids about managing money and understanding how money works. If you have a great story (humorous, big life lesson, etc) of what to do – even what not to do – please send it to mailbag@pastdueradio.com by Sunday, June 19th with “Kids Money Content” in the subject line. Entries will be gathered for the next few weeks and the winner will receive Junior’s Adventures, the boxed set of money lessons for children by Dave Ramsey, and a copy of my book, Get Naked: Stripping Down to Money & Marriage.

Today’s Mentionables:

Episode 154 – Robert Kiyosaki’s Dad & Credit Scores Banks Like – In this episode, we discussed all the expenses that go into owning a home that we typically ignore when considering our “return on investment”

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160 Past Due – How To Expect “Unexpected” Expenses

Derek Sisterhen — Fri, 03 Jun 2011 20:52:42 +0000

Past Due: Radio 160 – How To Expect “Unexpected” Expenses

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Daniel and Lori heard last week’s show and wrote in a few questions. They seem to continually get knocked down by vehicle and medical expenses, not to mention the costs associated with their children. They’re beginning to feel defeated and are trying to find out what they might be missing so they can begin making real progress.

In today’s show, I shared that Daniel and Lori’s struggles are very common. That rug-pulled-out-from-under-us feeling is normal among the two-thirds of Americans living paycheck-to-paycheck when “unexpected” expenses arise. I also addressed that there really aren’t very many unexpected expenses, but we have to embrace two ideals:

1) We must reacquaint ourselves with reality – most of us grossly underestimate the true costs associated with our lifestyle

2) We must establish a new method of savings – planning for future expenses means incorporating monthly savings today so we can avoid feelings of stress and tension

The good news is, with a little forethought and a new perspective on their standard of living, Daniel and Lori will be well on their way toward their goals, leaving that sense of defeat in the dust.

Today’s Mentionables:

Episode 158 – Selling a Car at a Loss to Dump Debt – Sometimes we have to scale back our vehicles when we realize how much they truly cost to drive and maintain

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159 Past Due – How to Keep Going in the Face of Setbacks

Derek Sisterhen — Fri, 27 May 2011 21:46:58 +0000

Past Due: Radio 159 – How to Keep Going in the Face of Setbacks

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Chad and Julie, a young couple from Raleigh, have clearly defined their financial goals – mainly to pay off over $70,000 in student loans – but keep running into one setback after another. It feels like every time they take one step forward something pushes them two steps back. But there’s a lot to learn from how they’re handling the adversity in an effort to persevere toward their goals.

On today’s show, we address three critical components of families that persevere in the face of setbacks:

1) Optimism – In spite of an unexpected tax bill and rising childcare expenses, Chad and Julie continue to believe they will reach the finish line.

2) Proactive – Each time they’ve encountered a setback, Chad and Julie have proactively sought new paths toward their goal of debt freedom – from having “apocalypse-style” yard sales to teaching music lessons for extra income.

3) Community – Chad and Julie began their financial journey recognizing they needed the support of others. They have a group of friends who encourage them and hold them accountable to their short and long-term goals, and they’ve pursued many classes to learn more about wise money management.

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158 Past Due – Selling a Car at a Loss to Dump Debt

Derek Sisterhen — Sun, 22 May 2011 17:13:31 +0000

Past Due: Radio 158 – Selling a Car at a Loss to Dump Debt

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Does it make sense to sell a car at a loss if you’re trying to get out of debt?

Sue, a financial coach in Raleigh, sought out my perspective on a family she’s currently working with. They’re working on a substantial debt-elimination plan, but keep running into a roadblock: the family’s gas-hog SUV with big-time monthly payments (to the tune of $800).

On today’s show, we addressed three pressure points facing this family:

1) How can they sell their car for less than what is owed? (And, should gas economy be a deciding factor?)

2) What are the financial implications? I run the numbers on their situation to paint a clear, objective picture.

3) Should they use a company like CarMax to speed up the process of dumping the vehicle? We must understand how dealerships value vehicles first.

Today’s Mentionables:

Episode 135 – Do Overs: Buying A Car – I dove into the details of my last car purchase and how I made a mistake that cost me nearly $30,000.

Kelley Blue Book – This is one of the most well-known vehicle valuation services out there; pay attention to the differences between Private Party and Retail/Trade-In values for your used vehicles.

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157 Past Due – What to do with $130,000 in Credit Card Debt

Derek Sisterhen — Fri, 13 May 2011 21:41:04 +0000

Past Due: Radio 157 – What to do with $130,000 in Credit Card Debt

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What do you tell someone that has $130,000 in credit card debt?

That’s the question that was posed to me over lunch with a friend. He’s a financial planner and was working with a couple recently that told him they carried six-figure credit card debt. Today, I addressed the typical causes of that level of credit card debt and two steps for getting out of it.

While that level of credit card debt may have shocked my friend, I’ve seen it on many occasions. I recounted many of the experiences of Doug and Kathy Grant, former clients who had that same level of credit card debt when we first met. Their story is one of changed attitudes and sacrifice; today they’re well on their way to recovery.

Today’s Mentionables:

Episode 110 – Real Life: Kathy Grant – My interview with Kathy one year after we forged a new path for herself and her husband.

Episode 144 – Why the American Dream is Ruining Lives – A show uncovering how our desire for more and increasing standards of living actually result in depression and broken relationships.

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156 Past Due – Mother’s Day: My Mom the Money Maestro

Derek Sisterhen — Sun, 08 May 2011 15:43:16 +0000

Past Due: Radio 156 – Mother’s Day: My Mom the Money Maestro

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This is a special Mother’s Day edition of Past Due Radio! In an effort to honor the moms out there, I decided to honor my mother by sharing a few stories of how she taught me plenty about life and money during my childhood.

From the time when I couldn’t sleep through the night (there was a five foot tall banana in my closet that laughed at me…), and how she developed a reward system to help me stay in bed; to the amazing big boy bicycle I wanted at age nine and her response to how I could earn it (hint: I’m an incredible weed puller to this day); all the way to the car accident in my senior year of high school and how she helped me help myself in paying for the damages, my mother knew what she was doing.

Kids & Money Contest: I’m looking for stories of parents teaching their kids about managing money and understanding how money works. If you have a great story (humorous, big life lesson, etc) of what to do – even what not to do – please send it to mailbag@pastdueradio.com with “Kids Money Content” in the subject line. Entries will be gathered for the next few weeks and the winner will receive Junior’s Adventures, the boxed set of money lessons for children by Dave Ramsey, and a copy of my book, Get Naked: Stripping Down to Money & Marriage.

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155 Past Due – Paying Off Mortgage-sized Student Loans

Derek Sisterhen — Fri, 29 Apr 2011 20:58:23 +0000

Past Due: Radio 155 – Paying Off Mortgage-sized Student Loans

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I remember when, about ten years ago, the idea of having $100,000 in student loans seemed outlandish. Ten years later, I’m meeting more and more people who have student loans in excess of $200,000.

Today, we discussed a question from Alex, a recent graduate with two Bachelor’s degrees and licensed as a Registered Nurse. In her seven years of higher education, she accumulated just over $200,000 in student loan debt and is trying to understand whether a consolidation loan makes sense to help her manage the debt load.

To help answer the question, we first covered the two fundamental mistakes most people make when approaching borrowing for college:

1) Underestimating the true, final cost
2) Making presumptions about future income after graduation

Then we talked about the next steps for Alex to begin systematically eliminating the outstanding debt – whether she chooses to consolidate or not.

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154 Past Due – Robert Kiyosaki’s Dad & The Credit Scores Banks Like

Derek Sisterhen — Fri, 22 Apr 2011 21:40:17 +0000

Past Due: Radio 154 – Robert Kiyosaki’s Dad & The Credit Scores Banks Like

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We discussed two different questions on today’s show – from real estate looking like an asset, but behaving like a liability, to which credit scores banks prefer to use when they make lending decisions.

Shawn in Garland, TX wanted to get some thoughts on Robert Kiyosaki’s statement that real estate behaves like a liability. It’s an interesting argument that Kiyosaki presents in his bestseller Rich Dad, Poor Dad, but I addressed the issue of semantics and that we don’t want to confuse expenses with actually owing people money. Likewise, the biggest component missing from the typical American household regarding their home truly behaving like an asset is time. The more we move in and out of house, the more frequently we reset ourselves back to the most expensive time in the mortgage: The early years when we primarily pay interest.

Keith and Julie wanted to know how banks use the credit scores from Experian, Equifax, and TransUnion to make lending and pricing decisions. I covered how they select the score that will dictate the underwriting decision, and how other financial institutions – like insurance companies – can use credit scoring data to create their own measures when determining premiums. If you haven’t checked your credit report recently, be sure to get your free annual credit report from each of the three bureaus at AnnualCreditReport.com.

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153 Past Due – Wrestling With Graduate School Loans, Investing

Derek Sisterhen — Fri, 15 Apr 2011 21:52:58 +0000

Past Due: Radio 153 – Wrestling With Graduate School Loans, Investing

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Paul and Kristina in Morrisville, NC wrote in a question about balancing the repayment of Paul’s grad school loan with their goal of buying a house. Since getting married, they’ve managed money very wisely in order to make it through Paul’s grad school program without incurring any additional debt and depleting their savings.

In just a matter of weeks, they’ll experience a quadrupling of their income when Paul begins his new job. But that new income isn’t alone; there is $81,000 in student loans to repay. They would also like to begin saving for a $40,000 down payment on a house.

Today we covered the importance of focused intensity toward goals, the risks associated with interest rates and bringing student loan debt into the home-buying process, and how paying off debt and building a down payment are actually forms of investing in our financial plans.

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152 Past Due – Pay Off Debt or Save With Inheritance?

Derek Sisterhen — Fri, 08 Apr 2011 16:33:21 +0000

Past Due: Radio 152 – Pay Off Debt or Save With Inheritance?

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Trey wrote in a question about a $26,000 inheritance he and his wife recently received. We’ve heard from Trey before about his desire to eliminate his student loans, and he’s looking for advice on whether to use the inheritance to become debt free. The only trouble is, Trey graduates from seminary in two months and he currently doesn’t have a job lined up.

In Trey’s mind, there are three options for the use of the inheritance:

1) Pay off the debt
2) Sit on the cash until his future beyond school takes shape
3) Split the money, using some to pay down the debt and some to bolster savings

I addressed those three options and provided my perspective on the kind of cash Trey and his family actually need to have on hand as they prepare for a time of uncertainty and transition.

I concluded the show by sharing some of the major changes I’ve experienced in the last seven months around my health and physical fitness, and how I just completed my first 10k.

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151 Past Due – Will You Cosign A Car Loan For Me?

Derek Sisterhen — Fri, 01 Apr 2011 15:03:04 +0000

Past Due: Radio 151 – Will You Cosign A Car Loan For Me?

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I received a phone call last week from “Paul” (name changed for purposes of the show). Paul wants to buy a new car because his current vehicle needs a lot of maintenance to pass inspection, which might cost close to the vehicle’s current value. The dealership told Paul that he needs a cosigner on the loan, or else he can expect his monthly payments to be 25% more without one. Paul turned to me for options.

Paul’s situation revealed some very substantial flaws in his financial belief system. I found four major red flags in this situation and talked them through with Paul on the phone. Today’s show is a review of those red flags:

1) The issue of cosigning
2) Borrowing to establish a credit history
3) Buying a brand new car
4) Misunderstanding needs and wants

I concluded with my recommendation for Paul, the actual outcome, and how that will impact him going forward.

If you have a specific question, I’d be happy to answer it and further cultivate the wisdom the of Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!

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150 Past Due – Rent vs. Buy vs. Buy A Duplex?

Derek Sisterhen — Fri, 25 Mar 2011 06:15:42 +0000

Past Due: Radio 150 – Rent vs. Buy vs. Buy A Duplex?

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Today we talked through a very interesting real estate proposition, courtesy of Rodney. Rodney and his wife are a few months away from becoming completely debt free; they’ve been renting and are trying to determine the best strategy for preparing to buy a house.

Right now, Rodney and his wife only spend 9% of their take-home pay on rent, but they’re considering buying a house – even a duplex – by saving either 100% of the purchase price or 20% as a down payment. What are the pros and cons of buying a duplex? What are the pros and cons of saving up to pay cash for a house?

Surprisingly, our conversation doesn’t begin with math, but with: What’s the point in buying a house anyway? Once we’ve answered that question, we can dig into the numbers. I provided some projections of how much Rodney and his wife could save if they stayed put, as well as if they purchased a duplex and had some neighbors right on the other side of a common wall, then provided my opinion, which doesn’t involve living next door to my renters.

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149 Past Due – Borrowing From A 401(k) To Refinance A Mortgage

Derek Sisterhen — Fri, 18 Mar 2011 17:43:31 +0000

Past Due: Radio 149 – Borrowing From A 401(k) To Refinance A Mortgage

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Today we took a Mailbag question from Brian and Jill. They’re paying a hefty monthly payment on their second mortgage and have been exploring the option of refinancing. The bank is willing to processing the refinance of the second mortgage – likely dropping their interest rate by almost 3% – but only if they can pay down the current loan’s balance to meet their loan-to-value (LTV) requirements.

Brian and Jill are looking at their 401(k) as a source of quick cash to help drop the balance on the second mortgage, complete the refinance, and greatly reduce the second mortgage payment. They wanted to know the pros and cons of doing this, what risks to expect, and if there was anything they weren’t aware of about 401(k) loans.

What looks like a pretty easy, simple solution can get quite tricky and messy when all the details of a decision like this are brought to the surface. I provided an interesting assessment of where they’d be financially if they just left everything as is, and compared that to where they might be 15 years from now if they borrowed on the 401(k) today.

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148 Past Due – Mailbag: Decluttering To Pay Off Student Loans

Derek Sisterhen — Fri, 11 Mar 2011 18:33:14 +0000

Past Due: Radio 148 – Mailbag: Decluttering To Pay Off Student Loans

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Today we took a Mailbag question from Trey, right here in Raleigh. Trey is getting ready to graduate from seminary to pursue a full-time career in ministry. He’s looking for guidance on the minimalism movement and how his family’s pursuit of that kind of lifestyle might help them dump $25,000 in outstanding student loans.

Our discussion centered around the history of the minimalism movement. The minimalism movement and subculture have enjoyed a resurgence in popularity due to the negative results our country has experienced in the wake of the Great Recession. Research also reinforces that living with less stuff helps us focus on important relationships, and that healthy relationships create far more happiness than material items.

However, there are some downsides to living a minimalistic lifestyle – there’s a slippery slope to judgment and condemnation of others who don’t live that lifestyle. We applied the pros and cons of living this way to Trey’s situation of needing to pay off his student loan debt.

Today’s Mentionables:

Tammy Strobel – Tammy and her husband have created a community of people who seek to live on less; they live on only 100 items.

Adam Baker – Adam Baker and his family have been able to travel the world by maintaining few material possessions, seeking to focus on their relationships with each other and doing work they love.

Money, Possession, and Eternity – Randy Alcorn’s excellent book reviewing how materialism can stand in our way of living life to the full.

Americans Living Like Spartans – A blog post from August 2010 I wrote about the minimalism movement.

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Unsubscribe

Jaime Thompson — Wed, 16 Feb 2011 21:00:03 +0000

How many e-mails do you get a day from companies promoting ongoing or upcoming sales and specials? I’m talking about the e-mails that hit your inbox because you subscribed to them. Now how many times have you purchased items you weren’t intending to purchase because you received one of these e-mails? My guess is more than you have realized. So my challenge to you is to unsubscribe from these e-mails. You’re not alone in this, I’ve taken on this challenge myself. While I loathe shopping malls, I find myself all too often browsing online stores getting enticed by free shipping and then purchasing something I don’t need or had no intention of buying until I saw it in an e-mail and then just had to have it! Never mind the time wasted browsing online I never intended to waste.

I’m not saying ban online shopping. When you’re ready to replace an item (remember, the one-for-one shopping rule!), online is a great place to find what you are looking for. There are plenty of sites out there compiling all the coupon codes companies send out in those pesky e-mails. A quick google search will still get you the discount you want, but those “courtesy” weekly/daily/monthly e-mails won’t have you accidentally making a purchase.

(photo by johnscotthaydon)

Choose to Just Say No!

Jaime Thompson — Tue, 08 Feb 2011 20:00:58 +0000

While it’s not new news, the lawsuit against McDonald’s and their Happy Meals is still making headlines. Here’s the thing, I get it, McDonald’s is not the healthiest food choice and they try to entice kids to then beg their parents to bring them so they can get some toy. However, last I checked I had the CHOICE to not eat there. And I have that same choice to tell my kids no. At what point do we as Americans, consumers, and parents start taking accountability for our decisions? This isn’t just about some $0.02 piece of plastic that comes with a ton of saturated fat and sodium. It’s about making choices in our lives that are better for us. Kids need boundaries, so if you can’t start with telling them “no” to that happy meal, where are you going to start?

(photo by cocoen)

Live Like A Millionaire

Jaime Thompson — Tue, 01 Feb 2011 12:00:09 +0000

Do you live below your means?
Do you allocate your time, energy and money efficiently?
Do you believe financial independence is more important than flaunting a social status?
Do you purchase used vehicles in cash?
If you have adult children, are they financially independent?
Do you love your career?

The above traits* are the way most millionaires in this country live. If you want a certain lifestyle, you need to be friends with people who already have that lifestyle or aspire to have that same lifestyle. So do those traits describe your friends? Or are you busy trying to outdo each other with the most recent luxury vehicle you just financed (or even worse leased)? The designer purse with it’s logo splattered all over it? If you want to be rich, you need to do what rich people do and that starts with living a debt free life. The celebrities and athletes you see “living the high life” account for only 1% of the millionaires in the U.S.

And by the way, the average millionaire in this country did not receive an inheritance or trust fund, 80% of the millionaires in our country are first generation. Being wealthy doesn’t happen overnight. If it did, wouldn’t we all be wealthy? It requires hard work. Again, otherwise wouldn’t we all be wealthy? It’s time to stop dreaming and start doing.

*The Millionaire Next Door by Thomas J. Stanley, William D. Danko

(photo by yomanimus)

Budget Buster…Attending Weddings

Jaime Thompson — Tue, 25 Jan 2011 18:23:56 +0000

December is the most popular month for engagements accounting for 20% of total engagements all year! Know a couple that said “yes” over the holidays? Or perhaps will be getting engaged come Valentine’s Day. Congratulations to them! Now guess what? The impending nuptials are no longer a surprise to you or your budget. As in, start planning to attend the big event now. Lets take a look at some things you may need to pay for to attend the celebration.

Will the event be in a different town from where you live? Airfare? Gas? Hotel? Rental car? Dining out?

Are you in the wedding? Will you have to rent a tux? Buy a bridesmaids dress? Shoes? Accessories? Have your hair, make up, and nails done?

Will you be hosting or attending a bridal shower? Perhaps more travel expenses? And don’t forget a gift.

Will you be attending a bachelor or bachelorette party? Even more traveling? Entertainment expenses?

And don’t forget a wedding gift!

Yikes! Things can start adding up quickly. Be realistic about your budget. How long do you have from now until the wedding day? What can you honestly afford to put away each month to prepare for the expenses that lie ahead? While weddings are wonderful (and hopefully) once in a lifetime events, they are not an excuse for you to go into debt. If you can’t afford the $300 bubble gum pink taffeta dress the bride wants you to purchase to be in the wedding, be up front with her. Perhaps you can assist in another meaningful way and spare yourself the debt and the dress you know you will never wear again. Be honest with yourself about whether you can afford to travel out of town for a wedding shower, and a bachelor(ette) party, and the wedding. I understand these may be hard choices to make, but focus on what is important to you in your life and prioritize. After all the happy couple will be committing themselves to each other until death (not debt) do them part.

(photo by sarawestermark)

Twitter To Get A Job

Jory Butler — Thu, 20 Jan 2011 05:54:37 +0000

This is one example of how to use “Twitter” in your job search. Have fun with it.

The recommended book is called, “The Twitter Job Search Guide.”

(Go Ahead and hit the full screen button so you can see the video better)

httpv://www.youtube.com/watch?v=KosRdQRSNQ0

If we haven’t connected on Twitter, my Twitter ID is: JoryButlerCoach

Food….A Four Letter Word

Jaime Thompson — Fri, 14 Jan 2011 12:00:45 +0000

Last week I touched on how to save (or really spend less) on “stuff”. One of the biggest budget busters for people is food, so I think it’s worth discussing some ways to keep those costs minimized as well. You have to eat, I’m not going to deny you that, so how can we keep food expenses to a reasonable portion of your budget.

- If you’ve been reading my blog for any length of time, I think you’ve started to see my underlying theme of “always have a plan” and this goes for grocery shopping as well. Create a meal plan for the week, create a grocery list based on that meal plan, and shop according to the list.

- Eat healthy, fresh, and local. We are very fortunate to live near several fantastic farmers markets that operate year round, if you do as well, shop them. Not only are they often less expensive than grocery stores, but you’re helping out your local economy, which I’m sure could use it. When you eat healthy balanced meals, you aren’t hungry all day long. The more processed you eat, the more empty calories you eat, and the more food you consume. I’m not trying to turn this into a health class, it’s just the way our bodies work.

- Know how much things cost. Most of us have more than one choice of grocery stores to shop at. Pay attention to the price differences amongst those stores. I am not a coupon-er, but I know many people who are and claim to save a ton of money. What I have found is the items I buy don’t usually have coupons and when they do, even triple a coupon at one chain does not make it any cheaper than the face value at the store I regularly shop at. This will not be the case for everyone, so you need to be aware of your situation.

- Weigh your opportunity cost. Time is money. Is it worth driving all over town to hit 10 different grocery stores to save $20? I’m not answering yes or no, I’m asking you to ask that of yourself. It goes back to knowing how much things cost at the stores available to you and how much you value your time.

- Just because you have a coupon does not mean you need to use it. Do not buy something just because it is on sale or cheap.

- Obviously food doesn’t only come from a grocery store. When you go out to eat, try to find coupons or specials. With sites like Groupon and LivingSocial attempting to change the way we shop, you might find a good opportunity to try a new restaurant at a great discount. Yep, it’s that plan ahead thing again, but I think you’ll find a little planning will take you and your money a long way.

(photo by rick)

Don’t Pay Full Price

Jaime Thompson — Fri, 07 Jan 2011 12:00:26 +0000

I recently had a client ask if I had any “how to save” advice to help her adjust to her new lifestyle of taking control of her money and where it goes. The best advice I could offer was “Don’t pay full price for anything…ever”. I’ll let grocery items be the exception to this rule for now. My philosophy is if “stuff” isn’t on sale, I don’t need it. And just because it’s on sale doesn’t mean I need it either. I use to fall under the “it’s such a great deal, I just have to have it” mentality. And then I realized I had a closet full of clothes I didn’t like, but boy could I tell you about the deal I got!
Our other house rule that helped curb the “great deal buying” is the 1-for-1 rule. When we bring something new into the house, something must be taken out. Buy a new shirt, an old shirt gets donated to goodwill. Buy new furniture, old furniture gets sold on Craigslist. New toys for birthdays, outgrown toys get passed on to a younger neighbor. I find it helps us keep the clutter minimized (remember your home is a reflection of your finances) and it also makes us more conscious of our spending.
Sure, I impulse shop, but I try to be sure to check the Internet for coupons before I head out. I’ve also yet to find a retailer refuse to scan a coupon off my smart phone, so if you have one, use it to your shopping advantage!
These aren’t new ideas or concepts, just ones I’ve found that help keep our spending in check. What stuff do you think is worth paying full price for? Any advice for the rest of us about how to save a few dollars?

(photo by the justified sinner)

To 2011 and Beyond!

Jaime Thompson — Fri, 31 Dec 2010 12:00:00 +0000

As we are hours away from the start of a new year, I leave with you one of my favorite quotes to take with you into 2011 and beyond.

“When one door of happiness closes, another opens; but often we look so long at the closed door that we do not see the one which has been opened for us.” -Helen Keller

Life will throw us sour lemons, just remember lemonade tastes much sweeter.

Wishing you and yours a 2011 filled with happiness, love, and laughter!

(photo by tanakawho)

Do What You Gotta Do!!!

Jory Butler — Wed, 29 Dec 2010 05:13:37 +0000

How many people do you know who are looking for that “ONE” perfect career. I hear some people say, ” I can’t take that job because it’s not what I want’.” They are scared they may get stuck in something they hate. I completely understand about finding the work you love and not settling for anything else. If that’s you, then I applaud. I also want to make sure you’re not being lazy either. If your family needs the utilities to be paid then go do something NOW! Please don’t make excuses for not getting work because you are “Waiting.”

There are 2 ways to look at your career. You can look at it from the short or long term perspective.

1. To provide the basic necessities for your family. (Short Term and Immediate)

2. To live your passion and make an income from it. (Strategic and Long Term Career Track)

If finances are tight and your family is feeling the pinch, then you must do what you need to in order to provide. Take a short term job to put food on the table. If life is throwing you a curve ball, this isn’t the time to meditate and wait for that dream job! It’s time to get to moving. Get any type of work, quickly! Go to the yellow pages, want ads, careerbuilder.com, etc..etc…

Once you have some sort of stability with your finances, begin immediately to map a game plan. This plan of action is doing the inward search of your passions, skills, dreams, personality, and strengths. This would be considered the long term plan. (1-3 years) Here are some questions you can ask yourself:

What do I want to be when I grow up?
What subjects or books interest me?
If I “COULD” do anything what would I do?

No matter what circumstances you’re in, take action. If you will take action, you’ll more than likely find yourself not stuck and moving towards work that matters.

Photo by: Litherland

I Got Your Free!

Jory Butler — Wed, 22 Dec 2010 17:49:23 +0000

In life when we pursue goals, sometimes life doesn’t agree. Obstacles and poor choices cause us to stop pursuing our dreams. Obviously, there are many factors in not pursing a dream. Sometimes we need an encouraging word or a resource to help us get over the hump. In getting to where we want to be, we need to be a continual learner.

Being in the coaching field, I come across valuable resources that help grow my business and increase my knowledge. I have always had a desire to learn about many different subjects. I especially love learning about people.

In life there are many ways to continue learning such as:

A Podcast
Blogs
Articles
Books (Written and Audio)
Workshops and Seminars
Etc…Etc…

There is another great way to be a continual learner and it’s FREE. I like free, don’t you? There are Universities that offer FREE courses online. These classes don’t lead to a degree, but you will learn. I don’t endorse specific websites, but I want to share this particular website. I believe it will help those of you who need it. Here is the link:

FREE COLLEGE CLASSES

When we do have things given to us for free, there isn’t much value placed on it. If you are passionate about a particular subject, then you will take time to learn. I hope that this can be a resource to help you find your passionate career.

I would love to hear about more resources! Would you mind sharing your resources?

Photo By: Xin Li 88-Richard Lee

Automate It

Jaime Thompson — Fri, 17 Dec 2010 12:00:32 +0000

A lot of us live our lives on autopilot. Wake up, get dressed, drink coffee (if you have young kids like me, lots of coffee), head to work, do the daily grind, come home, dinner, TV, bed. I’m not necessarily encouraging this as a lifestyle, but lets face it, we as Americans are pulled towards routine. Are you applying that auto pilot mentality to your personal finances? If not, why not? It allows you to stop spending time on the minutia of bill paying and gives you more time for fun things! Plus it eliminates late fees, credit report dings, the scramble for a stamp, the hand cramps from writing out countless checks. Ok, hopefully you don’t have so many bills that last one applies.

And here is the neat thing about automation, we can apply it to saving too! Remember that old adage pay yourself first. Get your emergency fund savings, retirement planning, and investing on auto pilot. We can even apply it to other saving goals…Christmas, vacations, home improvements. Remember, most of personal finance isn’t all about dollars and cents, it’s about behavior. If we automate our savings and bill paying, we know what’s left in our account each month is for the fun stuff. Before long you won’t even miss the money and it will start making money for you by accruing interest and ultimately compounding. Yes, we still need to budget each month, but we don’t need to spend hours paying the same bills every month. And how many times have you said “I should really start saving for that vacation” or “I really should increase my retirement contributions”. Stop talking start doing, put the boring stuff on auto pilot and take the wheel on the adventure of life!

(photo by mike miley)

Living Beneath Your Dignity?

Jory Butler — Wed, 15 Dec 2010 05:47:55 +0000

I read this article by Dan Miller, author of 48 Days To The Work You Love. I was moved by it’s content. It reminded me of who I really am. For those of you going through transition take these words to heart. I hope it’s an encouragement for you.

DAN MILLER

Yes, I know times are tough. I spoke at a conference recently and had the opportunity to talk to people who are wondering if there is any reason to be cheerful or optimistic.

As a Russian priest (1829 – 1908), Father John Sergiev first thought he wanted to be a monk in the remote areas of Siberia – but after a vision, he realized God wanted him to be a missionary right where he was – in the hustle and bustle of the big urban city of St. Petersburg. While most priests remained in the safe confines of their cathedrals, Father John would go out into the noisy, dirty, crime-ridden slums and back alleys of the city.

He would find someone down and out in the gutter, sleeping off the effects of the previous night’s drink and activities. Father John would cup his chin; look him in the eyes and say, “This is beneath your dignity. You were created to house the fullness of God.” Wherever he went, people found new hope and optimism because they discovered, or were reminded, of who they were. Seeing ourselves in the light of who God made us to be is both exciting and contagious.

So, are you expressing the fullness of God today? If you are full of despair and hopelessness because of the current economic situation, I doubt there is room for much else. If you are angry and resentful because your stocks crashed, your house dropped in value or you lost your job, I suspect that is what people will first hear about you.

Can you remember what you were created for? When I hear people complain about how bad their lives are I’m going to start saying, “This is beneath your dignity. You were created to house the fullness of God.”

Photo By: Robb North

The Season of Giving

Jaime Thompson — Fri, 10 Dec 2010 12:00:29 +0000

Last week I touched on trying to change the American mentality from being consumers of things to becoming consumers of experiences (aka life!). It’s also the time of year when people are often more cognizant of those less fortunate. With the economy still struggling, food banks, shelters, and other organizations that help those in our community are feeling the pinch. How does giving fit into your holiday budget this year? As Larry Winget says, “when you have money you are obligated to share a portion of it with those who don’t have money.”

One of the first things I try to instill in my clients is striving to have the attitude of a giver and not that of the typical American consumer. While the above quote speaks specifically of money, this doesn’t have to be the case. I understand the economy is tight for everybody. But we need to be willing to give our time, our talents, our services, and our resources to others. Being able to help others can add meaning to your life, reduce your stress, increase your happiness, and just makes you feel good!

Here are some ideas, no (or very little) money required, to get you started and I hope you’ll add your own as well as carry on the spirit of giving into 2011 and beyond. Make it something you will enjoy and get your whole family involved!

- pick up trash while playing at the park
- help an elderly neighbor with household chores
- help build a home
- mentor
- tutor
- volunteer in a museum, animal shelter, hospital, library (the opportunities are endless!)
- deliver meals on wheels
- bring a dog or baby to a nursing home
- host a coat drive/pajama drive/blanket drive
- send magazines or books you no longer need to our troops overseas
- prepare meals at a soup kitchen
- help plant a community garden
- clean out your closet and donate clothes to a women’s shelter or dress for success
- teach a cooking class, computer class, or another job skill that comes naturally to you
- babysit for new parents

What ideas can you add? And see if you can’t find a few dollars every month to share with a cause you believe in. Then challenge yourself to add a few more dollars to that amount each month. Let’s make it a year life of giving!

(photo by rishi menon)

Are You a Grinch?

Jaime Thompson — Fri, 03 Dec 2010 12:00:56 +0000

I know, another Dr. Seuss reference and more talk about “stuff”. I can’t help it, tis the season, and I warned you before about my love of Dr. Seuss. With Black Friday and Cyber Monday behind us, can we focus on another aspect of the holidays for a bit? It is more than giving “stuff” to each other isn’t it? I know you get it, I don’t like clutter.

Growing up we had an advent chain. We’d open one link a day throughout December. Sure, we’d get the occasional candy treat or little trinket, but what my sister and I remember most are the memories and traditions my parents created for us. Shopping for toys for tots, singing Christmas carols, driving around to look at the Christmas lights, and of course watching How the Grinch Stole Christmas!

I don’t expect you to not spend money during this time of year, that would make me a big hypocrite. However, a recent study found that spending money for an experience – theater tickets, traveling, cooking classes – produces longer-lasting satisfaction that spending money on stuff. So maybe instead of filling your home with things you can fill your life with experiences and create memories that long outlast any material item.

What family traditions do you hope to carry on? What experiences are you ready to undertake?

(photo by slworking2)

Wanna Be A Superhero?

Jory Butler — Thu, 02 Dec 2010 03:44:34 +0000

Would you want to be a superhero like Spider-man, Superman, or even Shrek? Yes, I consider Shrek a superhero. (I personally would love to fly.) Where would someone find out how to become a superhero? How would you ever become a superhero?

There really is a simple way to finding out if you would like to be a superhero or even like a particular career. Informational interviewing is a great way to find out. It’s asking someone who is doing what you want, questions.

For example: If you wanted to become a real estate agent, you could take a high quality agent out for lunch. (I would suggest an agent that lives far enough away that it wouldn’t be competition.) Take a notepad and ask as them questions such as:

How did you get started in this career?
What does your typical day look like?
In a down economy what things do you do to keep an income?
What have you learned on the job that school doesn’t teach?
What would you recommend someone new to focus on first?

By actually taking initiative, you’ll discover if you would like a particular career path or not. I know this may be simple wisdom, but not many people do it. So if you desire a specific career, go find out if you would enjoy it. Informational interviewing is a great way to find out what you love. There you have it. Happy interviewing!

Photo Credit: Stitch / Jimmy Hilario

Happy Planning!

Jaime Thompson — Sat, 27 Nov 2010 19:22:32 +0000

I hope everyone is having a wonderful Thanksgiving weekend enjoying time with loved ones. While we’re busy thinking about all the things we have to be grateful for, it’s also a great time to review your goals and dreams for the upcoming year. I don’t just mean financial. Where are you in your life? Is this where you want to be? Are you healthy? Do you take time to take care of yourself? How about self improvement or education? What about your family and relationships with others? Your career? We have a great worksheet to get you started and your mind thinking at http://www.lukascoaching.com/resources.htm
Happy planning!

(photo by thai jasmine)

Thanksgiving and The Resume

Jory Butler — Thu, 25 Nov 2010 17:20:46 +0000

What does Thanksgiving and a resume have in common? Not much, but I thought if I titled this blog, “Resume” not many people would be too excited. I was thinking through what to talk about and I thought about the dreaded “Resume.” Come on, you know you dread writing your resume.

There are many reasons that people struggle writing the resume. We wonder what format, what kind of paper, who do I give it to, etc…etc… I want to give you a few basic tips that may help you figure out this resume mumbo jumbo.

RESUME TIPS

Based on who you are today and where you want to be.
There is not one clear cut way to write a resume’ or template. (Google types of resumes) Resume
Write to the future.
Use keywords in your resume. (Especially, if you submit your resume online. Companies use software to weed job seekers.)
Sell it, don’t tell it. IE. Don’t just tell you were responsible (Function and Responsibility), share accomplishments, results or benefits.
Make sure you do use your skills, experience, and abilities to leverage to your new opportunity.
Still get your resume to the person who has the power to hire. (The Decision Maker)
Make each one inviting to read and visually appealing. (Be creative conservative depending on type of career pursued).
Your resume doesn’t have to fit on one page and use the following fonts. (Tahoma, Georgia, Garamound, Verdana.)

One last tip for your resume and career change. Do an inward search of who you are and where you want to go. Identify those things that bring you energy and passion. The resume is just a tool to help you get an interview. If you will do a proper career search, the resume shouldn’t account for more than 10% of the process in finding work you love.

I hope that you all are going to enjoy this special day. There are so many things to be thankful for. We all have a chance to serve people and let them be first. What a great day to be reminded of all the many blessings. Have a great Thanksgiving weekend.

Photo Credit: kafka4prez on Flickr

The Super Target Effect

Jaime Thompson — Fri, 19 Nov 2010 12:00:04 +0000

We live two miles from a Super Target. Not just any Super Target, but one of the top 30 in the Nation. Needless to say, they opened their doors in the right place. Target spends hundreds of thousands of dollars a year on market research, so of course they knew they were in the right place. My kids probably spent as much time wandering those aisles as they did playing at our house the first year of their lives. For anyone who has had a newborn, you can remember the importance (i.e. keeping your sanity) of getting out of the house, but being in a place where people don’t mind your tattered sweat pants covered in spit up, the luggage under your eyes, and a screaming baby in your arms. And herein begins our problem with Super Target. It’s a great place to wander and buy almost anything you can imagine from electronics to books to decor to clothing to groceries. How many times have I justified, “but it’s only $5”. The problem is 20 times “it’s only $5” becomes an extra $100 at the check out, and I know I’m not alone in this!

Here’s the latest….the Target Credit Card where you now get a 5% discount on every purchase you make with that little red plastic card. Studies have shown that people spend an average of 12-18% more when they use plastic versus cash. So, how much is that 5% “discount” really costing you? Remember, Target spends oogles (yes, that’s a professional term) of money on market research. You don’t think they are really offering you 5% off do you? They’re really offering you the opportunity to spend even more than you normally would all under the guise of a small discount. Target, and all their retail friends, will continue to come up with new ways to take more of your money without you realizing it. You have to be smarter than them and the gimmicks. Go in with a game plan and a budget and even better cash on hand. Think you don’t fall under that statistic and you can make that reward card work for you? Try using cash for one month and let me know how your spending went.

(photo by bankbryan)

That’s Just Me, And I’m Stickin’ To It!!!!

Jory Butler — Wed, 17 Nov 2010 04:32:32 +0000

Boy, if we stuck to that line, we would all be in trouble, hugh? Why do we do the things we do? What’s that guy’s problem? Why doesn’t my wife understand me? Ok, maybe the last question is just because wives are superior to husbands. (Wives you can thank me now.) We tend to ask questions like this, because our lack of understanding about personality. There are many personality tests out there. The Myers Briggs, Strong’s, and DISC are to name a few.

Why is this “Personality” testing so important when it comes to our work? Here are a few reasons why:

Better understand someone else, such as your coworkers.
Become a better communicator. (And again the wives, say Amen!)
Know how you like to act towards task.
Helps you see things you may not see on your own.
Helps you understand the environments that you thrive in.
Helps this coach better understand my career clients.

How does this translate into your career?

Have you ever known someone who is a dominate type? They make quick decisions and solve problems. If your personality is more reserved, you may need to speed up your speech or get to the point with a dominate type of person. Likewise, if you are dominant type, maybe you could slow down and take time to listen. If you interview with someone that has a different personality style, you can communicate in the way they like to build rapport.

When we have an understanding of our personality and strengths, we will tend to find more satisfaction in our activities. It can help you go from just good enough, to excelling in all facets of life. If you haven’t taken a personality test, try one for the fun of it. Make it a game and it might help you find a better fit for work that matters.

Photo by: (tourist_on_earth)

Don’t Make That Commitment

Jaime Thompson — Fri, 12 Nov 2010 12:00:37 +0000

What are you doing next week? You probably have a general idea. How about in 5 years? You might have some goals and dreams, but life happens and sometimes it can be hard to predict. So why would you want to commit $470* a month to pay for a car over the next 5 years? Is your income going to be the same? Will you be in the same job or even line of work? How about a marriage or divorce? Baby or two or three?

Been there, done that. Long story short, we needed another car immediately (note I didn’t say new). Against my car purchasing history and philosophy, we ended up buying, or I should say financing, a brand new car. Only 2.9% interest, I mean you can’t borrow money much cheaper, right? Well the DINKS (duel income no kids) that we were, committed $376 a month to pay for that car for the next five years. One week after driving it off the lot we found out we were expecting our first baby. Nine months later with a healthy happy baby boy, we have one income and 3 hungry mouths to feed and oh yeah, that $376/month commitment. It is a struggle at times, but we keep chugging away and paying the $376/month. Along the way we welcome healthy happy baby boy number two. Then the economy takes a nose dive and our one income turns into half an income as my husband’s company temporarily reduces his hours. Two months later that temporary reduction becomes a massive company layoff and our half income is reduced to none. But that $376 commitment, still there. Hmmm….this was not in the plan, but then again, life happens. So how does the story end? Well, we were fortunate enough that the unemployment stint was extremely short. And please remember I am a finance nerd so we do have an emergency fund tucked away for “life”. We paid off the car earlier than the loan terms and won’t ever look at 2.9% interest as a great deal again. We find ourselves in the market for another “newer” car in the next few months and fortunately this time have the cash on hand to make that purchase so we don’t have to commit tomorrow’s income to buy something today.

*the average new car payment in the U.S.

(photo by harry_nl)

I’m Not In Transition, Am I?

Jory Butler — Wed, 10 Nov 2010 06:54:33 +0000

The career transition can be one of the hardest parts of life. People are trying to navigate their course and keep a good attitude at the same time. People who tend to focus on where they want to go, usually have a better attitude during career transition. Make the choice today to smile, be good to a friend, and know that you are another day closer to your dream career.

httpv://www.youtube.com/watch?v=Z686adNH6vk&feature=youtube_gdata_player

Feel free to comment or share with someone who may need some encouragement during their transition.

Credit Union v Bank

Jaime Thompson — Fri, 05 Nov 2010 12:00:51 +0000

So, what’s the difference and why does it matter to you? A banks primary purpose is to make money for their investors and stock holders. Unless you hold a stock certificate with your bank’s name on it, they are not in business to help you make money. A Credit Union isn’t trying to make you money either, but as a non-profit organization, they aren’t trying to realize profits. Unlike a bank who has customers, if you belong to a credit union, you are viewed as a member who has a say in how the financial institution is run. You even get to vote for the Board of Directors. Since credit unions are not in business to make profits, they don’t typically charge the high fees and finance charges traditional banks often do. They can offer higher interest rates on savings accounts and lower interest rates on loans. You also won’t find them creating new fees and inventing new policies to increase profits or pay exorbitant executive salaries.

Don’t get me wrong, banks aren’t all bad. They can usually offer a wider range of services and if you belong to a national bank such as Wells Fargo, you can use their branches and ATM’s all over the country. However, that’s pretty much where my praise of banks ends.

Personally, like 90 million other members, I’ve belonged to a credit union since before I could walk. My parents opened an account for me and I’ve been a member ever since. I’m fortunate that it is one of the largest in the country, but for the past 8 years I have lived 4 hours from the closest branch. Thanks to the Internet and reciprocal membership with local credit unions this has been a non-issue for us. According to the Credit Union National Association, virtually everyone in the U.S. can belong to a credit union. They also estimate that members save $8 billion a year due to better interest rates and reduced fees. It might be worth your time to see if you can become a member and take a part of that $8 billion in savings for yourself.

(photo by TheOtter)

Job Search Discouragement? You’re Better Than That.

Jory Butler — Wed, 03 Nov 2010 14:12:59 +0000

How many of you know someone who is dealing with job search discouragement? How many of you personally are dealing with this? These days there are so many conversations that deal with finding “Work That Matters.” There are many of you that have been laid off, are stressed, and are losing hope.

If there is one piece of advice that I can pass along to you today, it is have alternatives. If you are just looking for one company, one job, one career, to fill you up, then you might run out of gas before you start. If you have multiple companies that you are researching and doing a proper job search, then at the end of the day you should have multiple options to choose from. If there are multiple job offers then you are more in control of your job search and life. Have alternatives.

I ran across this video clip of Rocky Balboa. This is the last movie in the “Rocky” series. Rocky has learned many life lessons along the way and now his son must learn a few things. The point of this clip is to encourage you through life struggles and give you a jolt for your day. Be the person that God created you to be. If you are struggling through the day to day activities of your job search, watch this and be encouraged. You are better than that!!! Lift your head high, chest out, smile, and get out there and find work you love. You are worth it!

The Greatest Discovery of the 20th Century

Jaime Thompson — Fri, 29 Oct 2010 12:00:46 +0000

When asked what the greatest discovery of the 20th century was, Albert Einstein replied compound interest. In fact he has called it “the most powerful force in the Universe”. So what is this phenomenon called compound interest you ask? It’s the concept that money grows exponentially. Oh, ok you want the English version. In essence compound interest is interest collected on your original investment plus the interest that investment has earned. So whenever interest is applied it gets added to your principal balance and interest is accumulated on the whole balance, not just your original investment. Basically a snowball of wealth accumulation.

Lets look at retirement planning. Fresh out of college, Susie, at age 22 invests $200 a month for 10 years earning 10% interest. After those 10 years however, she doesn’t contribute another dime to her retirement. So Susie has invested $24,000 of her own money. Her counterpart Mark was not so quick to start saving for retirement and waited until he was 32 to start investing (the age she stopped). He also invested $200 a month earning 10%, but instead of stopping after 10 years, he invested all the way until he retired at 65. His out of pocket investment was $79,200, over three times more than what Susie invested. So who has more money at retirement? Susie does. Not just a few dollars more, but hundreds of thousands more. At 65, Mark’s $79,200 investment has earned him $586,744. Susie, after only $24,000 out of her pocket, has over $977,000 saved. How can this be? Susie had time on her side allowing her interest to exponentially gain more interest. Lesson learned: invest early, invest regularly, and invest for the long term. Let your money do the work for you, it’s a wealth building secret you can’t afford to not use.

(photo by purpleslog)

Move On!!!

Jory Butler — Wed, 27 Oct 2010 01:01:50 +0000

Sometimes in life we need to move on, in order to find work we love. It takes hope, confidence, and a plan of action, to help reduce risk. Do your due diligence and if all indications say move, then get moving.

httpv://www.youtube.com/watch?v=E-RKKGxLkeI&feature=player_profilepage#!

Write down your story. I mean the good, the bad, the ugly. What work did you love? What are parts of the job that you liked? What did you want to be when you were a kid? What are your passions away from work? What hobbies do you enjoy?

Start creating your story by deciding to do so. So what’s your story going to be? I would love to hear what that is.

Helping People Who Don’t Want Help

Derek Sisterhen — Fri, 22 Oct 2010 20:25:43 +0000

I had a concerned father call me recently saying that his daughter and son-in-law were on a collision course with financial disaster. They’re young, newly married, and wasting money all over the place.

They’re late on some of their bills and they just borrowed a bunch of money to pay back – you guessed it – previous debts. (When is it that we learn we can’t borrow our way out of debt?)

“What can I do to help them?” the father asked, the sound of distress growing in his voice.

We all know people who need help, don’t we? We hurt for them when we see their destructive behavior robbing them of time, money, solid relationships; robbing them of life.

I told this father that he might have to let his daughter and her young groom fall on their faces a few times. That’s tough stuff – especially in today’s culture where helicopter parenting has become an accepted style of child rearing.

In his book QBQ: The Question Behind The Question, John Miller says, “Change only comes from the inside, as a result of decisions made by the individual.”

We can’t force someone to change any more than we can force the proverbial horse to drink after we did all that work leading him to water. Sometimes the horse has to stand there and feel his tongue parching in the heat, his head going dizzy with dehydration.

So, it’s possible that the best help is to simply love on those who need it. Encouraging them when the timing is right and backing off when it isn’t. Those people might struggle, stumble, trip, fall, pick themselves back up only to fall again, and you’ll have to watch this in a loving way.

But the moment will come; the moment when they’ve had enough. And that’s when you show the way. Ironically, if you do this right – provide love and encouragement without encroaching and preaching – they will turn to you for guidance in that moment of conviction.

That’s a powerful and humbling place to be. It starts with loving them enough to let them fail.

Open Enrollment

Jaime Thompson — Fri, 22 Oct 2010 12:00:58 +0000

Here is comes, time for your company to let you know how much more health insurance is going to cost you in the upcoming year than it did this past year. Since most employers offer more than one option, you should review the choices rather than sticking with the status quo or default option. After all, health insurance is not one size fits all.

Some ways to help you save on medical costs include signing up for a flexible spending account (FSA) or health savings account (HSA), offered with high deductible plans. This allows you to tuck away dollars before taxes are taken out to apply towards medical costs. There are restrictions and guidelines for both, so make sure to educate yourself with regards to what the money can be used on and the time line in which it needs to be used.

Negotiate with health care providers. Ask about costs up front and what your insurance will cover and what will come out of your pocket. Many medical offices as well as hospitals are willing to give you a discount for paying at the time of your visit, so don’t be afraid to ask. It saves them the time, money, and effort of trying to collect from you months later.

If you can buy generic, buy generic and shop around for your prescriptions. Online pharmacies can sometimes fill them cheaper than brick and mortar stores. And you may even find a price difference amongst pharmacies in the same neighborhood.

Don’t forget open enrollment is a time to look at all your employer sponsored benefits, so be sure to review any life insurance, disability insurance, and dependent-care FSA options afforded you. It’s also a great time to ensure your beneficiary information is up to date.

If you have specific questions about your options and coverage, don’t be afraid to go to your human resources department or plan facilitator. That’s what they are there for. These are big decisions you only get to make once a year, so make sure you have all your questions answered before checking off that box.

(photo by wcm1111)

Lost or Found? Road Map

Jory Butler — Wed, 20 Oct 2010 20:29:58 +0000

When we are pursuing purpose for our lives, we come to a point where we need direction. A road map is something that gives you direction in your life as well as your career.

Doesn’t make such a difference when people help give you direction to help you attain your goals? Think of the, “The Biggest Loser,” reality show. For those of you who don’t know, this is the reality based show that helps people lose weight. Losing weight can be a struggle. How many of the contestants are grateful to have been on the show? The contestants usually tell us that they couldn’t have lost all the weight without a coach or a plan (Road Map).

httpv://www.youtube.com/watch?v=SXQARWdPTlI&feature=player_profilepage

A coach gives accountability, encouragement, direction, tools, and resources. So if you are losing weight or trying to find a sense of direction for your career, get some help and direction.

70 Days and Counting

Jaime Thompson — Fri, 15 Oct 2010 12:00:48 +0000

We haven’t even reached Halloween and stores are stocking up for Christmas. No, it’s not for your convenience while you’re picking out costumes or goodies for trick-or-treaters. It’s their way of getting you to spend your money, more of it than you may hope or plan for. It’s just become fall like here in North Carolina and I’m not quite ready for the Christmas bombardment. Makes it a little harder to live in the moment and appreciate some of the other wonderful events (like a little holiday called Thanksgiving) that happen in the fall. Regardless it’s a great time to make sure you have your holiday budget planned out since you undoubtedly will be shopping at a store tempting you with the upcoming holidays.

Are you traveling? Having guests? Cooking meals? Attending parties? And yes, we can’t forget those holiday gifts themselves. I always tell people to best time to start planning for Christmas is December 26. Ok, you can wait until January and take a little break at the end of the year before worrying about the next one. After all we know it’s the same day each year, so no excuse of “I didn’t know it was coming!”. Some banks offer a “Christmas account” where you tuck away a predetermined amount of money each month. Even if yours doesn’t have this option, you can do it yourself quite easily, and if you can make it automatic, even better. Once you have your holiday account funded, I recommend you budget that money. Who are you buying gifts for? List them all out along with how much money you have to allocate to each person on that list. Don’t forget things like decorations or Christmas cards and stamps if you send them. Those seemingly little things can really add up. Carry this list with you from now until you are done with your holiday shopping. Then sit back and enjoy the holiday season knowing you won’t have insurmountable bills awaiting you in the New Year.

(photo by xcode)

Networking and Relationships

Jory Butler — Thu, 14 Oct 2010 17:24:36 +0000

httpv://www.youtube.com/watch?v=5c2-ETcRrvg&feature=player_profilepage

The best way to network is to connect with those people you have great relationships. Far too many people go the route of traditional networking, without looking at who they already know. It’s like cold calling someone and asking for help vs. calling someone you know well and asking for help. Take time to develop true friendships in your life.

In the book, “The Power of Who,” Bob Beaudine tells his readers that you already know enough people to help you reach goals in every area of life.

Start today to develop and cultivate true friendships. One day they may be able to help you reach work you love.

If you need resources or someone to walk with you, feel free to connect. Contact Jory

Never Love Something That Can’t Love You Back

Jaime Thompson — Fri, 08 Oct 2010 18:49:49 +0000

We all have “money messages” we take away from our childhood. Not necessarily lessons learned from a sit down conversation, but observations about how those who raised us viewed money. While some of my tendencies to be a saver are in my genes, I learned early on, never to love something that can’t love me back. It was a waste of time, energy, and money to fawn over or buy stuff, objects, and things. They would just become clutter and could never fill any sort of void or emotional hole in my life.

Don’t get me wrong, I definitely had plenty of the “I want it now”, “ I have to have it”, and “I need it to survive” moments in my life. I could never understand why come holidays and birthdays my parents didn’t want any store bought gifts and were happy with the handmade “goodies” we would bring home from school. Then I grew up, moved out of my childhood home, started working for my own paycheck, and had my own bills to pay. Now I get it, it’s not about stuff. It’s about surrounding yourself with people that you love and enjoying the time you get to share together. Stuff fills up your closet with clutter, family and friends fill up your heart. Which would you rather spend your time, energy, and money on, the items that don’t know you exist or the people that love you back?

(photo by james jordan)

Storms To Sunny Skies

Jory Butler — Thu, 07 Oct 2010 01:49:20 +0000

This week I want to share with you the storms of a career search. Many times we don’t get what we want when we want it. There are many career changers out there that go through storms before there are sunny skies. It’s worth it to do the work in order to move towards work you love.

httpv://www.youtube.com/watch?v=ZmxbOBL5o7k&feature=player_profilepage

If you feel that you know someone who needs help have them contact me at the Lukas Coaching Team.

Are You A Sneetch?

Jaime Thompson — Fri, 01 Oct 2010 12:00:55 +0000

A quick tour of my house and it’s no secret I’m a Dr. Seuss fan. I love his creativity and the life lessons he always manages to sneak into the story regardless of how zany the words and characters may be. One of my all time favorites is The Sneetches, a story about a group of silly looking yellow creatures, some with green stars on their bellies and some without. Those with the green stars are deemed “the cool crowd” and those without are sad and desperate to be included. One day a “fix-it-up-chappie” by the quirky name of Sylvester McMonkey McBean arrives and seeing the moping Plain Belly Sneetches, quickly sets up a star-on machine. For a mere $3 each, the Plain Belly Sneetches can take a quick ride through this machine and come out with a star on their belly, giving them the appearance of being “cool”. Well as you can imagine the original Star-Belly Sneetches are none too pleased, so Sylvester McMonkey McBean puts together his star off machine. For only $10 they can have that star removed so they can once again declare themselves to be the best kind of Sneetch on the beach. The Sneetches get so caught up in their appearance they keep running through both machines “until neither the Plain nor the Star-Bellies knew whether this one was that one or that one was this one or which one was what one or what one was who.”* While they finally came to realize they were trying to discriminate and/or impress each other based solely on physical appearance, they spent every last dollar they had doing so.

Are you trying to impress people with things and stuff? Are you living paycheck to paycheck (or worse going into debt) trying to be somebody you aren’t? Is this the life you want? Or would you rather your friends be people who love you for being you, not whether or not you have a star upon thar.

* Dr Seuss. The Sneetches and Other Stories (Random House, 1961)

(photo by B3OK)

Go Ahead, Be Selfish

Jaime Thompson — Fri, 24 Sep 2010 11:00:45 +0000

We teach our children to share, to find the joy in giving, and that the world doesn’t revolve around them. Just as we try to model the social behaviors we want our children to take into adulthood, financial ideas and habits start developing at a young age. Whether we are conscientiously teaching them or they are merely observing our dealings with money, they are learning. However, I’m about to tell you to be selfish and teach your kids to do the same.

As parents we want the best for our children, but do we want to leave them with the financial burden of caring for us in our later years? We cannot sacrifice our retirement savings to “benefit” our children. I watch people put off their own retirement savings to put money in a college fund, pay for an extravagant vacation, or buy a new car, but who is going to pay your bills when you retire? Unless you plan on retiring in the next few years, the only thing you can be certain of is that the future of social security is uncertain. And with an enormous and continuously mounting national deficit we cannot expect the government to cover our expenses in retirement. So assuming you are debt free and have a comfortable emergency fund, what should you do with the extra money you have each month? First and foremost you should be putting money in a retirement fund. Yes, this means before you contribute to a college savings fund. If you work for a company that matches some of your 401k contributions, start there until you receive the full match (it’s free money!) and then put any other money you can into a Roth IRA*. Once you maximize your retirement investments, then you can start putting money away for college. Remember, your children can always get loans and scholarships to help pay for college, but nobody is going to give you a loan to pay your monthly bills in your retirement years.

*assuming you are eligible to contribute

(photo by scottwills)

K.I.S.S. Your Career

Jory Butler — Wed, 22 Sep 2010 15:37:25 +0000

Are you overwhelmed with so many resources about finding work? When you go to a library or bookstore do your eyes just glaze over how many books on the subject of careers? You are not alone!!!

Keep It Simple Silly

Let us know how we can help you K.I.S.S. Your Career.

httpv://www.youtube.com/watch?v=Ap8xFXnSWmY

Too Bad Teenagers Can’t Hang Out At Sky Mall

Derek Sisterhen — Mon, 20 Sep 2010 19:34:31 +0000

In the month of August I spent 26 hours in seven airplanes. And not one of those seven airplanes was absent a complimentary copy of Sky Mall, the shopping catalog so transcendent, so magnificent they can’t even keep it on earth. It can only be enjoyed at 32,000 feet.

Have you ever found yourself wondering what to do with your pet when company comes to visit? “Where to put Fluffy? Where to put Fluffy?” I’m sure you’ve asked yourself before.

Well, why not order an end table pet cage? That’s right! It looks like a sofa end table – you can even set your drink and a table lamp on top – but Fluffy can rest soundly below, behind the luxurious amber-stained oak cage bars.

It’s awfully uncomfortable sleeping on an airplane, isn’t it? If only there were a sleep system designed to make a coach seat feel like your living room sofa… But wait, there is a way! Enter the inflatable tray top pillow! Just manually inflate the wedge-shaped pillow, rest it on your tray, lean forward and sleep away the friendly skies! (Drool collection system sold separately.)

What’s ironic to me about Sky Mall is that, in the midst of me thinking that 93.6% of their products are absolutely ridiculous, they continue to put out catalogs.

Someone is buying this stuff!

So, what do we learn about ourselves when we read Sky Mall? Is Sky Mall in some form or fashion a commentary on who we are?

I think Sky Mall shows how much we love luxury and convenience, even if we have no luxurious or convenient place to put the luxury or convenience items. Plainly: Sky Mall helps us pretend we are something we aren’t.

Which makes me think of teenagers, because isn’t that the MO of most teenagers these days, to pretend you are something you aren’t? So, maybe it’s teenagers who keep the Sky Mall kingdom afloat.

Because adults would never have those kinds of image problems. Would they?

What’s In a Name?

Jaime Thompson — Sat, 18 Sep 2010 09:58:41 +0000

Did you have a hard time picking a name for your baby? Maybe you already have names picked out for your unborn children. What about your savings account? College fund? Vacation fund? Behavioral finance experts have found that earmarking your savings for a specific goal can have a big impact on your savings rate. In a 2009 study done by Amar Cheema and Dilip Soman, they found that labeling a college fund with a childs name nearly doubled how much was saved compared to those without a name attached. Cheema recommends opening multiple accounts and giving them labels to help motivate you to reach your goals. So, what will you be naming your savings account?

(photo by Vanderlin)

Hey Buddy! I Need Some Help!

Jory Butler — Fri, 10 Sep 2010 23:54:14 +0000

Working with clients, reading many books, and simply living life, one thing is for sure about careers. In order to find a career that you love, you must “Network.” That means building relationships and asking for help. The term network, can instantly cause our minds to go blank and bring fear. Some clients say, “I don’t know anyone who could help me in my job search.” I feel confident they really do know people, but don’t utilize the relationships they have.

Do you remember the movie, “Cast Away?” This is the movie that Tom Hanks is stranded on a deserted island for years. Tom Hanks was truly alone and had to figure out how to survive. Many job seekers can relate to the feeling of being on a deserted island called the “Job Search.” People, who tend to find work they love, find it because of relationships. Sometimes people need to be reminded to connect with others, in order to find a career they love.

Here are a few ideas to get you thinking about people you may know to help land your next job or career.

Social Media/Networks
Job Search Networks and Clubs
Community Leaders and Local Business Contacts
Friends & Family
Past & Present Coworkers, Classmates, and Teachers.
People that work within your target company
Authors for Newspapers, Magazines, and Blogs.
People in your church

I know there are many more ideas out there, but start with a few and get to connecting. Start “Networking” and you might be surprised how close you really are to finding work you love.

Photo by: Anthony Reeves

Organize Schmorganize

Jaime Thompson — Tue, 07 Sep 2010 15:01:23 +0000

I know I know, organizing is no fun. Well unless you’re a Type A like me who actually considers it a sport. Last week I alluded to your organized file cabinet and this week we’ll delve into that a little further to get you on the right track if you aren’t already there.

First you’ll need a place to hang file folders. No, you don’t need an industrial sized metal clunker. The first file cabinet I ever had was something I picked up at one of those super stores for around $5. It’s plastic and fits in the bottom of a closet, perfect for a small space. Obviously you’ll need to get some hanging folders with a tab at the top to create labels. Find an hour or two, a good friend to help or some great music to listen to then get to it. The following list includes the basic categories you should start with. I recommend keeping each primary category in alphabetical order and the subcategories also in alphabetical order behind it. And you guessed it, keep papers in chronological order when applicable.

Banking (savings & checking)
Children (bank accounts)
Credit Card Debt (hopefully you don’t need this one!)
Household (mortgage/rent, utilities, phone)
Insurance (auto, home owners, life, disability)
Investments (brokerage accounts, college savings, retirement)
Legal (alimony, child support, copy of wills)
Medical (bills, claims, copy of power-of-attorney, receipts)
Tax Returns

I understand that space is often at a premium, but there are some documents you will need to keep forever. In the previous list I reference keeping a copy of some of the below documents in your file cabinet so they’re easy to get to, but originals should be stored in something more secure such as a fire proof box.

Birth and death certificates
Passports
Immunization records
Marriage papers (and divorce papers)
Will and Living Trust
Health Care Proxy
Insurance Policies
Real Estate

Once you accomplish this task, give yourself a pat on the back or a little treat as a reward. My hope for you is that you will start to find that peace and order in your environment will promote peace and order in your financial life.

(photo by jono dot com)

Career Fields, Possibilities, and You

Jory Butler — Fri, 03 Sep 2010 19:07:54 +0000

Teachers and parents alike ask us, “What do you want to be when you grow up?” The answers come back as: teacher, doctor, lawyer, policeman, or fireman. We begin to plot our courses to pursue these jobs.

As we become adults, for some reason, we keep our thinking narrowed to those childhood answers and get stuck. In a sense, we have blinders on for one job. When we begin to feel that there only a few job opportunities out there we can become frustrated.

Some of my clients have become this frustrated individual, feeling stuck in their career search. For this client I am reminded of a book titled “What Color Is Your Parachute”, by Richard Bolles in which he talks about finding fields of interest. In Mr. Bolles book, he writes about visualizing a career as if it were literally a field. For example, if someone is interested in helping others, that individual could get into the medical “field.” Within that particular field there are many jobs and roles that a person could pick to help heal others. Possibilities include: Doctor, Nurse, Radiologist, Physical Therapist, medical equipment sales, and the list could go on and on.

So as you begin your career search, change your perspective to look at the opportunities within a “field.” This will help you see many opportunities and give you hope.

(Photo by: Julie Falk)

How Many Hours Did That Cost?

Jaime Thompson — Tue, 31 Aug 2010 16:33:40 +0000

Getting ready to shop the upcoming holiday weekend sales? Maybe you’ve already been busy with back to school shopping. Have you ever thought to calculate how many hours of work those dollars spent just cost you? It’s a powerful tool that might make you step back and reevaluate how you shop and what you buy. I’m sure you have an idea of your gross salary, but lets look at what you actually take home after Uncle Sam, health insurance, and your 401k among other things take their share. Go and get your most recent pay stub. It’s in your organized file cabinet, right? Divide your take home pay by the number of hours the paycheck covers. What did you come up with?

Lets say your result is $20 per working hour. So now we’ll apply that to your purchasing power. Your $6 a weekday morning coffee and muffin habit means you have to work an hour and a half to pay for it. The $60 video game, 3 hours. Those must have designer jeans at $200 a pair cost you 10 hours at work. $460 car payment is 23 hours in the office. That one payment is over half a week of a typical work week and we still need a place to live and food to eat.

Want another view? Include the hours you spend commuting to and from work and any other work related activities you do outside of the hours that paycheck covers. Sadly, that $20 just dropped even lower. This isn’t a way to shame you into not spending your money, just a tool that might make you think about how hard you really work to make that purchase. Remember it’s not just a dollar amount, but your precious time spent working to earn that dollar.

Photo: Time Card by flickr user TheGoogly, used under CC license