A Bodey in Motion

Building momentum, one step at a time

Break the Chains! Free Yourself From Debt

B is for Bondage. Nothing ties up your income and locks up your dreams more than the bondage of debt. If you want to turn your finances around, escaping those chains must be a priority.

The borrower is slave to the lender. - Proverbs 22:6

Truths about debt:

  • Debt is a product being sold. Credit is the most aggressively marketed product in the country. Remember that “Life takes VISA” is an ad slogan, not a fact.
  • Debt limits options. Lenders must be paid. Any job that covers all of those bills is a requirement, no matter what. And an underwater mortgage can turn a home into a prison.
  • Debt increases risk. Being able to pay today doesn’t guarantee tomorrow. Failure to repay leads to threats and legal action, and can result in losses of property and wages.

How to escape:

  • Get intense. You can’t passively drift out of debt. Escaping requires passion. It’s time to get angry. It’s time to get focused.
  • Stop borrowing. No more new debt. Draw the line here, and get ready to fight.

What do you think? Are you living without debt? How did you escape? What should be my word for Q? Let me know in the comments below!

[image from publicdomainpictures.net]
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September 24, 2013 Posted by | Work and Money | , , , , , , , , , | Comments Off on Break the Chains! Free Yourself From Debt

Quick Hits: What got you broke won’t get you free. Money management tips from 1939. Near space exploration.

  • In space, no one can see you post.It takes time, when you’ve first hit the point of being broke, to realize that you can’t keep doing the things you’ve always been doing. You go through much the same process as the five stages of grief. That opening stage of denial can be difficult to overcome, because the bad habits that got you into trouble are so hard to break. People think they only need to change one little thing, and all of their troubles will evaporate. That’s why it’s so important for me to make sure that the person who is asking me for financial coaching is actually open to being coached. I don’t want to be fighting their excuses every time we come together to have them try something new. What got you broke won’t get you free, you’ll have to change.
  • This is a great post covering the finer points of a money management pamphlet that was written in 1939. This was written before there were credit cards. And before the FICO score ruled over everything. And that was less than one hundred years ago. Now, the average American family has a negative net worth. Maybe we need to humbly go to our ancestors and ask for their advice?
  • 50 years of exploring near space, and we’ve barely just scratched the surface. I love that we’ve started reaching out further using unmanned missions, but I hope that we return to the moon in my lifetime.

April 26, 2013 Posted by | Quick Hits and Links | , , , , , , , , , , , , , | Comments Off on Quick Hits: What got you broke won’t get you free. Money management tips from 1939. Near space exploration.

FPU Lesson 4 – Dumping Debt

The fourth week of FPU attacks the biggest problem most of us have when it comes to winning financially. Out-of-control debt. Below are my notes from the lesson, including the key points that I highlight from the video when leading the class, and some supplemental material that I think could help the class go further on this topic.

Financial Peace Unversity

Lesson 4, Dumping Debt

Key Points

Consumer debt has only become accepted as normal in America over the last 40 years. The credit card has only been in existence since 1950. It wasn’t until after 1970 that their use became widespread. Your ‘need’ for a good credit score is a recent invention. The Sears catalog used to warn customers against buying on credit, and now it’s their biggest money-making department.

Don’t believe myths about debt. It isn’t part of a healthy financial plan. Debt is a product being sold. Remember that whenever they offer a financing option. You’re being sold a product that is tremendously profitable for them. You don’t have to have a car payment. “90 days same-as-cash” isn’t actually the same as cash. Your FICO score has nothing to do with your financial stability. You can live a perfectly normal life without ever touching debt.

Remember the importance of gazelle intensity. It’s very easy in our culture to wander into a crippling amount of debt. Between stupid loans and consolidations, you can suddenly wake up and find yourself under a mountain of payments. Escaping from that kind of mess takes focus, sacrifice, and intensity. The same motivation a gazelle has when it’s running for its life.

Challenge

Chop some plastic. The first step to getting out of debt is to STOP borrowing more money. This is the week we break out the scissors and ask the class if they’d like to cut up some credit cards.

Go Deeper

If you want a more honest picture of how debt and wealth really works, check out these resources:

Next week, Lesson 5 – Buyer Beware.

March 27, 2013 Posted by | Marriage and Family, Past and Future, Work and Money | , , , , , , , , , , , | 1 Comment

Finding Financial Peace

This week, we’re beginning a new session of Financial Peace University at one of our local churches. We already have about 30 people signed up, and I’m personally hoping for a lot to happen over the next couple of months. I’ve got a few reasons to be excited.

  • Dave Ramsey and his team have recently reworked the course. The last time they updated was before the housing crash, so I’m expecting some new information in regards to that. There are so many people hurting in this area because of their out of control house payments, and I hope that we can really offer a few people some help.
  • We have a few families attending. Parents are taking the time to make sure that their older children have learned the basics of handling money before they go out into the world. I love that.
  • The course is now nine weeks instead of thirteen. I’m going to miss some of the material that’s been cut, but a shorter time commitment probably means more class retention, which is a good thing. Also, we might be able to fit in an additional session every year, and that would be awesome.

Here are the nine lessons:

  1. Super Saving – Why you should save money, and why you need to start now.
  2. Relating With Money – Why families must work together to achieve financial goals.
  3. Cash Flow Planning – How to develop a monthly budget that really works.
  4. Dumping Debt – What myths we believe about debt, and how to become debt free.
  5. Buyer Beware – Why marketing is so powerful, and how to reduce it’s influence.
  6. The Role of Insurance – What insurance you need to have, and what to avoid.
  7. Retirement and College Planning – How to plan for the future.
  8. Real Estate and Mortgages – How to buy or sell a home.
  9. The Great Misunderstanding – Why you should live a generous life.

If you’ve never taken Financial Peace University, I highly recommend it. It’s a great first step for families who are struggling with money issues and don’t know where to start. If you’re in the Tucson area, and you’re interested in joining a class, let me know. Send me an email and I’ll see if I can hook you up.

Question: Have you taken FPU? What was your experience? What was the most important thing you learned? How did it change your life and your finances?

August 20, 2012 Posted by | Marriage and Family, Work and Money | , , , , , , , , , , , , | 1 Comment