John (fake name) has a great heart but no plan for his money. Unfortunately he won’t be able to help others as much as he would like.
Betty (fake name) has a great plan for her money but a stingy heart. Unfortunately she won’t be able to enjoy her money as much as she could.
The man/woman with a generous heart and a strategic plan is the person who will have the most and do the most with it!
A good plan by itself is not enough. A good heart by itself is not enough. It takes both!
Dave Ramsey shares this quote in his book, EntreLeadership.
“I think there is something more important than believing: Action! The world is full of dreamers, there aren’t enough who will move ahead and begin to take concrete steps to actualize their vision.” — W. Clement Stone
Oh this grips me.
One of Sherri’s and my dreams is to be debt free… to step out of the bondage imposed by debt. For that reason I have secured a second job… a “concrete step to actualize [our] vision.”
What about you. What dreams do you have? What are you doing to actualize them?
I’d love to hear from you on this one!
Sallie Mae. Do you know her? I do. We are intimately acquainted. She tells me what I can and cannot do. She nags me. I don’t care for her very much.
Who is she? She is the organization to whom I owe my student loans.
I’m quite ready to dismiss her from my life.
After lots of prayer, counsel, and conversation with my bride I have taken a second job.
I have begun working nights at a local hospital. All of this additional income is going to pay off my student loans.
Sherri and I figure that in 3 years (or less) we can be free from Sallie Mae… of whom we are not so fond. 
Our plan is to drive to this guy’s headquarters after we’ve paid our final payment, stand in the lobby of his building, scream “We’re debt free”, and then write our name on his wall.
We will do this. The journey has begun.
Sherri and I are teaching “The Ladies” four things about money:
Earn it.
Give it.
Save it.
Spend it.
As they get older and we learn more we will teach them more.
Today however we did something important for them. We opened an ING account for each of them.
There is not a lot of money in their accounts. Just what they have saved to date (10% of what they earn).
BUT as they embrace the discipline of saving and begin to earn more that number will grow! And someday they will have a nice chunk of change to buy a car with, put a down payment on their first home, or buy a bunch of Barbies (KIDDING!).
We set up an automated deposit from our account into their separate ING accounts that will come out every payday. Again, the deposit is less than what a bottle of water costs but it’s the discipline of doing it, the fun of watching it grow, and the stockpile they will have someday in the future that makes this so much fun!
Besides that, I’m thinking about changing that time honored but stupid tradition of “Bride’s family pays for wedding” so that they can keep more of that money!
If you want to take your finances to the next level you can! Here’s how:
Read through the book of Proverbs and write down every reference to money that you find there.
There are 31 chapters in Proverbs. Read one per day and you will have read the book in one month. As a personal discipline I read through it every month and every month I am surprised at what I learn!
One of my financial mentors, Dave Ramsey, recently said, “If you read Proverbs over and over again, you’ll have a Masters degree in Finance.”
So here’s a few tips to help you get started:
We just wrapped up week two of a six week class called, “I Was Broke. Now I’m Not.“
Over the last four years Sherri and I have taken control of our finances. While we are neither wealthy or debt free (yet) we are in control of our money like we have never been before. It is exciting and liberating to be the boss of our money! It is empowering to tell our money what to do and where to go rather than our money telling us what we can and cannot do.
We are finally enjoying our finances and because we want to help others do the same we offer and will continue to offer financial classes at Church180.
Today we talked about putting a budget together.
Some high points:
Dave Ramsey says that “Finances are 20% head knowledge and 80% behavioral.” He’s right.
Anyone can win with and enjoy money. It doesn’t require brilliance as much as self-control and everyone has that capacity!
The first step in getting your behaviors in order is to create a budget. What is a budget?
John Maxwell says that, “A budget is telling your money where to go instead of wondering where it went.”
The truth is that you can do whatever you want with your money. You are the boss.
You tell your money where to go when you write a budget and then you allow that budget to shape your behaviors! For instance, if you budget $50 per month for eating out, then you can eat out all you want… until you hit the $50 mark. Then you are done.
You are the boss of your budget and your budget is the boss of you.
So how do you put a budget together?
Joe Sangle says that in order for a budget to work it must look like this: Income – Outgo = Exactly Zero. He’s right.
You simply can’t spend more than you make. I did not complete algebra in high school, and even I can understand this! This is not a “head knowledge” issue. For most people it is a discipline issue… and you can do something about that!
The world’s most famous wise man (Solomon) even gets in on the “great sayings about money” action!
He says, “The plans of the diligent lead to prosperity as surely as haste leads to poverty.” (Proverbs 21:5)
The bottom line here is that you CAN win with and enjoy the financial process in your home!
It requires a plan and discipline and you can do both!
To get you started, here are some helpful links:
OK, go get to work on that plan and start enjoying your money!
Dave Ramsey says that “finances is 20% head knowledge and 80% behavior.”
The reality is that most of us know more than we apply. For instance, don’t spend more than you have; yet studies indicate that we regularly do just that and consequently we have debt.
Anyhow, I’ve been reading Suze Orman’s book, “Action Plan (New Rules for New Times)” while on vacation.
She references a study that confirms Ramsey’s adage:
“A recent study by the Federal Reserve of Boston concluded that 40-50% of modified loans end up delinquent again within six months.”
Essentially a loan is modified in an effort to lower monthly mortgage payments (a service brought to you courtesy of the Home Affordable Modification Program… an initiative of the federal government).
This study reveals that even with lower monthly payments, within six months people are in trouble again. Essentially the loan modification proved to be a band-aid to the symptom. The real problem is a behavioral one, otherwise the modified loan would have fixed the problem of almost 1 of 2 program participants.
The issue is not a knowledge deficit, it is a behavior problem.
The truth is that until we get our behavior under control we will continue to have financial problems.
If you are struggling financially the first place to look is in the mirror.
Chances are that if you change your behavior you will see a change in your finances. So, what do you need to stop/start first?
In a few minutes a group of men from Church180 will meet to talk about money. We call it 3M (Men talking about Money in the Morning).
For the last 5 weeks we have been meeting at 7 a.m. on Saturday mornings to discuss Joe Sangl’s book and video teaching, “I Was Broke, Now I’m Not.“
Today we are talking about investing and the power of compound interest. Joe asks a question in his book that is worth repeating:
“How much are you currently spending to service debt every single month? For the average family in America, it is between $500 and $1,000 PER month [This does not include mortgage payments]. What if you did not have to send that money to the bank every single month? What could you do with that money?”
What could you do with the money you pay to creditors every month?
Joe says that most households can be debt free in 18-36 months. What would happen if you set a goal to be debt free, created a plan, lived by that plan and became debt free? What would you do with that extra $500 – $1,000 per month?
It wasn’t too long ago that I didn’t even know how to balance a checkbook! It’s only been in the last 4 years of our life that I have assumed an active role in the financial arena of our life. Prior to that I abdicated that role AND the corresponding pressure to my bride. Though she did a great job it wasn’t fair to her. I earned and spent without a clue and it, more often than not, fell her role to either say “We can’t” or to figure out how “We can” after we did!
Prior to our excursion into the church planting world I encountered Dave Ramsey. I read his book, Total Money Makeover and the journey began.
As our journey commenced, I met a man named Casey Graham. Casey changed my life. He taught a financial class called Re-Think Money. Sherri and I attended this seminar FIVE TIMES! I learned how to create a budget, balance a checkbook, create a “Kill-Debt Plan”, and much more! Most importantly though, I learned to be an active participant in the financial arena of our home, and even assume leadership responsibilities.
Casey was my “Go-To” man when it came to money. Since those days he has transitioned his focus from individuals to organizations and now is the founder and president of “The Change Group.” I have urged him many times to continue teaching the Re-Think Money seminar but his focus is clear for now. Maybe someday I can talk him into it!
Some time ago Casey turned me on to a guy named Joe Sangl.
Joe is my new Casey.
I just finished Joe’s book I Was Broke Now I’m Not.
Here’s why I like Joe – I’m a simple man. Joe makes money simple.
In 121 pages Joe simplifies topics like:
In addition to these topics (and more) Joe has a website with tons of FREE tools and documents – (click here to visit his site). In addition to his website, you can also visit his blog for a continual stream of financial insight (click here to check it out).
So, I’m not mad at Casey Graham any longer. Why? Because I’ve found Joe Sangl!
I like Joe!
Sherri and I have started using the “Envelope System” as a tool in the budgeting process. In short, we use cash for all of our discretionary spending (e.g. gas, groceries, date night, etc.).
Every month we budget to zero and figure out how much cash we will have for each line item. I take a document into the bank that identifies how many bills and coins we will need for that pay period. It’s not always an even number.
I’m beginning to be known at the bank, and it’s not because of my brilliant insights, muscular frame, debonair mannerisms, or delightful fragrances. Nope. I’m beginning to be known because when I come in the bank to make a deposit I am the dude that asks for odd amounts of cash. For instance, this week I asked for a dollar amount that ended in “seventeen cents.” I walked out of the bank with a handful of cash, a stack of quarters, one dime, one nickel, and two pennies.
The tellers aren’t soon to forget me. Again (I feel compelled to remind you… ), it is not my pithy comments, jutting chin, rippling triceps, or stylish clothes that make me memorable.
What makes me memorable is the uniqueness of my request. Who else walks out with a handful of cash, a stack of quarters, one dime, one nickel, and two pennies?
Now here’s the point, if you are like everyone else, you will be unremarkable, unmemorable, ordinary… forgettable.
The GREAT news is that you are none of those things! You are you. There is only one you. There will only ever be one like you and you are that one! You are you! You are remarkable!
Go today and enjoy being the remarkable, memorable, extraordinary you!
(And if you must walk out with cash don’t walk out with $0.17… get your own number)
By the way, if you’re having a hard time discovering who “You” is, you will find this post helpful.
