If you struggle with your money, join me for FPU this Summer

I’m ramping up to coordinate my second Financial Peace University session for the year. The Spring session I had the privilege to coordinate was amazing, with 20 families completing the material and over a $100,000 turn around of their finances. It’s great to be able to be a part of a life-changing event for so many people.

If you’ve never taken Financial Peace University, I 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, you’re all welcome to join mine.

We’ll be starting with a short orientation meeting for anyone interested in finding out more about FPU. We’ll be going over the class schedule and format, talk about what we expect from class members, how childcare will be handled, and answer any additional questions. That will happen on May 21st at 6:00 pm, and it shouldn’t last more than forty-five minutes.

The schedule breaks down as follows:

• May 21 – Orientation
• June 4 – Super Saving: Why you should save money, and why you need to start now.
• June 11 – Relating With Money: Why families must work together to achieve financial goals.
• June 25 – Cash Flow Planning: How to develop a monthly budget that really works.
• July 2 – Dumping Debt: What myths we believe about debt, and how to become debt free.
• July 9  – Buyer Beware: Why marketing is so powerful, and how to reduce it’s influence.
• July 16 – The Role of Insurance: What insurance you need to have, and what to avoid.
• July 23 – Retirement and College Planning: How to plan for the future.
• July 30 – Real Estate and Mortgages: How to buy or sell a home.
• August 6 – The Great Misunderstanding: Why you should live a generous life.

All meetings, including the orientation will be held at Saguaro Canyon Church at 10111 E Old Spanish Trail.  Childcare is provided each time with a suggested donation.

If you want to find out more information or register for the class, you can check out the class page on DaveRamsey.com for all of your answers.  Hope to see you this Summer!

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?

FPU Lesson 7 – Retirement and College Planning

Once the debt is gone and you’ve put together an solid emergency fund, it’s time to start working on funding the future. Both for yourself and your children. 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.

Lesson 7, Retirement and College Planning

Key Points

Independence in the future is up to you. Work with investment advisors who have the heart of a teacher. You are responsible for funding whatever kind of future you want to have. Do not count on government programs or handouts to provide for you. Make a plan and start now.

The best way to invest is to be out of debt first. Work the Baby Steps. If you try to fund your future while trying to save for emergencies, put aside money for your kids college, and make all of your debt payments, well you’re not going to do any of those things well. Multitasking is a bunch of crap. Only work on one goal at a time until you’ve mastered it, and then move to the next step.

Don’t put all of your eggs in one basket. You must diversify. Spread your money around. You should never pile all of your wealth into one particular investment. The more you spread it around, the better your money will grow.

Fund college education only after you are fully funding your retirement. Your kids future in college may or may not happen. Your future (and your spouse’s) is definitely coming, and you need to be ready for it. There are a lot of options for your kids to fund their education, and it’s probably healthy to let them explore them as a part of the process.

Challenges

Can You Get a 12% Return? Investing is about long-term growth, and requires patience. Dave bases the 12% number on the average performance of the S&P over the past 80+ years (11.84%). Individual annual returns are going to fluctuate:

2010: 15.06%
2009: 26.46%
2008: -37.00%
2007: 5.49%
2006: 15.79%
2005: 4.91%

Based on 20 to 25 year averages, I feel 10% is more realistic, but ask me again in 5 years.

What’s Your Magic Number? How old are you going to be when you retire? Is 65 set in stone?

Consider Life-Long Work. If you are doing work that you love, why would you want to stop doing it? What does that do to the concept of retirement?

Say No To Student Loans. The average student graduates with $27,000 in loans (In 2011, it was $24,000, and in 2008 it was $18,000. Not a good trend). In most circumstances, these are NOT able to be bankrupted.

Is Education Changing? Almost everyone predicts that the next big economic bubble will be in education. At the same time, how we learn and what we need to learn has changed. Will the next decade do to the education industry what the last decade has done to the newspaper industry?

Go Deeper

• Thou Shall Prosper by Rabbi Daniel Lapin

• 48 Days to the Work You Love by Dan Miller

• Stop Stealing Dreams by Seth Godin

• Debt Free U by Zac Bisonette

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Next week: Lesson 8 – Real Estate and Mortgages

Quick Hits of the Week

• After being kicked out of the Anglican church, John Wesley would preach in the fields and drew huge crowds. When asked how he was able to attract so many, he replied, “I simply set myself on fire and people come to watch me burn.” His passion was unquenchable, and people responded to it. What are you on fire for?

• Each month that you put a little money aside for retirement, what are you actually putting the money aside for? What’s your plan? I talk about things like passion in work to remind you, and myself, that we’re all put on this rock to fulfill a purpose, and that purpose doesn’t end until we stop sucking air. Don’t become obsessed with a dream of luxury that you can’t guarantee. Don’t fall into the trap of purposeless hedonism. It’s a great idea to invest in the possibilities of tomorrow, but you should never stop being productive with the one lifetime you’ve been given.

• What habits are you training yourself to keep right now for the rest of your life? Here’s 20 that you should be working on as soon as you can, and the sooner the better. Too many of them are things that I learned later than I should have.

• In America, we’ve gotten used to certain luxuries that, if they were suddenly gone, would seriously alter our lives for the worse. We take things for granted, like indoor plumbing and waste management, because they’re always there. Another thing we take for granted: Generally being free from illness. Why don’t we suffer from horrible illnesses like Small Pox or Polio? Vaccination. Massive, ubiquitous vaccination of the population. The more people who are resistant to a disease due to vaccines, the harder it is for that disease to spread to someone who’s vulnerable. Like Dana McCaffery, who caught Whooping Cough as an infant and died. Even if vaccines caused health problems like Autism (which they don’t) it’s a better solution than widespread terminal illness and higher infant mortality rates. Don’t fear the needles, people.

• Finally, this is still my favorite music mash-up. Amazing.

Is there something valuable or important or cool or funny or weird or awesome out there I missed this week? I can’t hit it all, but you should let me know about it by dropping me a line or sharing it in the comments below! I’d appreciate the heads up.

Top Posts – Third Quarter 2012

Only three more months to go in 2012. Since the last time we did this, I went to Nashville and got trained as a financial coach by some seriously talented people. We started a new round of FPU (It’s only 9 weeks now, you should check it out). I took a week off for vacation, and now we’re back to your regularly scheduled blog.

Here are the top five posts from the last three months:

• Meandering Into Adulthood – Second time around for this one. I guess the path to adulthood isn’t clear for most of us.

• Kick the Ends Out – The two most irresponsible concepts propagated in the modern era.

• A week in California – A few vacation pictures. You probably saw them yesterday.

• Nor a Lender Be – Borrowing money is a bad idea. Lending money is worse.

• Secure Your Mask First Before Helping Others – It’s not about being selfish, it’s about being able to serve.