"To The Wire To The Limit To The Wall" my homeownership struggles

Its been so hard the last couple of weeks and seems like it keeps getting worse. At first I was going to blog after all the smoke cleared but I think its even more important, to share what I have been going through so people can learn from my mistakes.

To make a longer story short, my home has been on the market for 6 months under the conditions of possible foreclosure. I will say based on bad information I decide to stop making payments on my home, so I could negotiate a short sale. I purchased my home in 2007 and have had it rented for 2 years because it was to far away from my job. It was pre Dave and there are days I could undo the situation but I cant.

The closer I have gotten to my debt free date the more I realized I wanted to be completely debt free. I didn't want to struggle with loosing money on a personal residence turned rental. I didn't want the stress of owning a home with a tenant and mortgage looming over me in a city an hour away (never purchase real estate you don't work or live near). I knew when I decided to list the house I would be opening up a BIG OLE CAN of worms but I wanted to at least see if selling the house was possible.

I have dealt with not so great Realtors and now a tenant who insist on not paying rent or cooperating with potential buyers because of the foreclosure. By the time I tried to explain to her I was not going to let the home actually foreclose, she had already decided she was going to rebel. So now the foreclosure date is looming over my head and I have done EVERYTHING possible to make sure the possible sale goes smooth. My new realtor keeps telling me she has a buyer but has not given me any paper work to begin the process, she actually hasn't even listed the house with her company. Today I wanted to take matters into my own hands and list the house on craigs list, but I know that wouldn't be trusting God.

The law firm says I have til July 23rd to pay $8600. The plan from day one was to borrow the money from my 401k which is the only exception to borrowing money on the Dave Ramsey plan. However I never anticipated it would take this long to sell. Its partially my fault for being extremely passive about my old realtor and now my new one, but I have yet to figure out how to deal with them.

Even though my credit isn't of much importance I DO NOT want that dreaded "Forecloser" stamp added to my report even if I never plan to borrow money again its just some silly psychological thing I got going on. If I pay the 8600 I get to keep my home without having to deal with the "AFTER FORECLOSURE" after math. If I wait to let the home foreclose, the bank will still work with me but I still have to deal with my tenant,eviction and the foreclosure workout plan which honestly all this at once has been way to much stress and that would be more than I care to take on.

If I pay the balance I will have another debt added back to my snowball and it will be another year or more paying it off. In hindsight I will be debt free except for the housing loans, but mentally it wont register that I will have paid off $40k in 3 years so I won't be able to relax until the ONLY debt is one mortgage or none at all. So that's the update, and I ask everyone to continue to keep me in prayer as every day is a struggle but I think I am doing a lot better since last week. I limit my phone calls with people that will speak negative things to me and contribute to my stress regarding my home. I was aware what I was getting myself into but all of this has been WAY more than I would have liked to have gone through. Not to mention I have to pray my tenant doesn't do damage to my home out of anger. If I could go back knowing what I know now I would have tried to sell the home 2 years ago when I moved out, but my stubbornness got the best of me, so time will tell how it all plays out so stay tuned....

Have you ever done anything financially that you regretted?

The Case for Joint Bank Accounts

The other day I was researching ways to become paperless via the suggestion of young mogul and I stumbled upon a few articles about joint bank accounts (I know blame my a.d.d)

Here is the first: Which Should You Choose: Joint or Separate Finances?

and

Got My Mind on My Money and My Money On My Mind

While I always try to keep an open mind about how a marriage should work, I was a bit disturbed about the reasons behind keeping separate bank accounts once you are married. I personally believe your accounts should be joint and in a second I will explain why. Before that, however I want to point out a few interesting facts about some of the comments in both these post that just boggled my mind.

1. A lot of people are shacking up - Now before I go on being judgmental, I too was once a shacker-upper at one point in time (until God delivered my brain). When I look back I realize how much I was setting myself up for disaster, needless to say me and that guy aren't together. How can you begin to rap your mind around sharing bank accounts when you can't even commit to each other as partners for life? I think if I was just living with someone I would be a bit hesitant to share my bank account too. Hey I didn't work this hard to get outta debt for you to come mess it up (figuratively speaking)

2. People are dating each other way to long - I am a firm believer of getting to know a person but I saw comments that read "my boyfriend of 8 years" or my girlfriend of 4 years ect...... what the heck last time I checked most of aren't celebs and even all of them don't get a pass to prolong marriage for life. Why is it taking so long for you to decide if its ok to marry each other? I understand possibly getting stuck with lemons be yeeesh, after a while ya gotta know if the person is a dud or not. Studies show that more people are having children out of wedlock so clearly you think someone is good enough to bring a life into the world but not marry.... I am all but puzzled. I personally don't plan on dating anyone again for more than a year without having the discussion about marriage and actually planing for one. You may not think its cool but hey, the longer I wait the sooner I end up with a joint, house, baby, a car note and no ring and SEPARATE bank account lol.

Now on to the case for joint accounts. I did read a few reasons that people like having separate accounts. All reason to pathetic to even list on this blog, so I won't. I will just enlighten you with my reasons why you SHOULD. Now my way won't guarantee a long lasting marriage, nor do I intend to sway people from a tradition that has been passed down from generation to generation, because I know there are a few people who will use the argument " my mom n dad did it" So I won't go there. These are simply just my opinion and anyone who doesn't agree can freely share why.....

1. It forces people to communicate - I believe a lot of relationships are already strained because people don't know how to talk to each other. I can freely admit this is an issue I have always had in my dating experience, which prayerfully won't be an issue in my next one. But not sharing banking accounts to me is like saying to me "I only want to talk to you regarding the fun stuff like, sex and where we will go out to eat" I know its pretty far fetched but really at what point will you talk about really important stuff? I think sharing your money will expose weaknesses early on in a relationship and give people a chance to deal with it vs pushing it under the rug until someone trips and falls over it.

2. I may as well not ever marry and just have a roommate - When you don't share bank accounts this to me is just like having a roommate in college. If we aren't going to share things then really what is the point? All you did was moved your pile of unwanted junk into a house or apt we now share. Oh yea and I get to see your eye crusted face when I wake up (oh joy) What exactly do we have to look forward to if whats mine is mine and whats yours is yours??

3. People are sabotaging their financial future by not becoming "one" - How can you really be on the same page about life changing events if you can't share you funds. I have heard many people say that when you get married you practically double your chances of financial prosperity. Keep in mind if you just want to live average and be an average joe then yea this would be ok. I personally don't plan on retiring and ending up eating alpo for life and working at walmart. If I just lived my life on one salary and split a few bills here n there this is what I have to look forward too. If you are smart sure you may end up with a nice size 401k but compare that too sharing with a spouse and having 5 times as much as you would when you shared. Money isn't everything I know but it sure does help when you have it.

4. Sharing creates a bond beyond the norm - When I am married I don't want there to be any secrets between us. I know everything won't be perfect but why add to the drama when you don't have too? When we both sit down to do a budget we are drawing closer to each other in that we share the same desires and goals and want to do our best to help each other meet them. Im not a natural born nerd but I have become one, and I know it would do me wonders to know my hubby cares about our financial future just as much as I do. We need to be equal partners in this and if one of us is not making decisions something eventually will come up short.

So there are all my reasons, I probably could come up with more but I would rather hear what the rest of blog world has to say about it.

Goal Setting, Work and other Randomness.

I haven't been able to post much as of late, due to crazy schedules and facebook (I'm addicted what can I say). But I obviously need to start making more time to post even while I'm so called busy, because you just never know who might benefit from something I write.

So here are a couple things that I am working on in conjunction with becoming debt free. I have accepted the fact that unless I hit the lotto I will be pushing onto the three year mark of becoming debt free. I was really disappointed in myself at first but then I recounted my progress and decided that it not as bad as it looks. This year I have paid of around 6,000 in debt soon to be 8,000 come June. Purchased a car with cash, and still remained sane through it all!!! I don't keep a super strict budget like I use to hence the reason my food bill is over $900 since the beginning of the year don't worry though I did buy lots of healthy food!! I have fasted 2 times this year and so changing to a vegan diet contributes to higher grocery bills which is funny to me. (segway)

As I continue to press towards debt freedom, I have become more active in other area's of life. This includes spending more time with friends, and becoming more disciplined in my work schedule. Since I was able to choose vacation time vs pay during overtime at work I have been working super hard. My goal is by late June I will have accumulated 125 hours worth of vacation time. This is a big deal since I haven't had a real vacation in YEARS!! I can't wait to take a long guilt free paid for vacation next year. My days now consist of waking up at 5am to be at work by 6:30am and I work every day until 6pm. This will continue until May 22nd. Once overtime is done I still have to maintain perfect attendance. I don't have any trips planned until my birthday and they are small trips which shouldn't cost much and both involve the weekends so I won't be needing any days off work for them.

FPU will be over in 2 weeks should have been over 3 weeks ago but I extended it due to schedule conflicts. Even though it has lasted longer than it should have, I have had a wonderful time hosting it. My students have been wonderful and I am excited about doing my second one before the year is out. I still have one student who thinks she can invest while having a $25,000 car with payments on it. I hope she soon comes to the light and either dumps the car, or pays it off with savings (that I know she has) my goal is to eventually show her how life can be with NO PAYMENTS.

Its been a great year for growth as I probably have said a million times, but it really has. I look back over the last two years and understand that this whole process has been life changing. This year has been mostly about spiritual growth more than anything and my attitude towards life. I enjoy going to work (most days) and I look forward to each day now.

I am so excited about the future and always imagine what life will be when I finally get to the other side. Life is good now but wow its gonna be so much better when there is no debt hanging over my head. Now that you have listen to me ramble on...... What changes have you made this year, that contribute to your over all growth and progress.

Blog Throwback (Are You Broke?) Don't fake the funk

I started a blog in 2007 which shall remain nameless unless you already know the name of it lol. That chronicled just about everything going on in my life. I started to read some of those old entries and all I can say is I have GROWN! Anywhoot, here is an entry I did (April 4, 2008) on debt and I thought it was pretty interested to know 2 years later everything I wrote on the subject still remains true. Check it out!

Ok as you all know I have been on this huge financial kick for the past 4 months. Had a large amount of set backs and finally able to get the ball back rolling. As I was enjoying my friday evening I was reading blogs one to be exact called stuff educated black people like (yall know bout it). Anyways I started to wonder about us folk and what it is that actually makes us successful people.

Most Educated folk after they get their college degrees move outta state and make there first home purchase, get their first car, and take that first trip to another country. At first I used to be close minded thinkin yea this was really how to show people you made it. After I hit rock bottom from losing just about all my stuff (and mind) I started to realize that all that stuff didn’t really make sense and the friends I thought I was keeping up with had less than I did. So now I have a new list of what it means (to start) to be financially successful along with your college education. Just because you have an education does not give you permission to be stupid about money.

1. Don’t buy a house unless its more than just you living in it and if you do pay it off in 15 years or less

Yea I know we look good and we can show off but truth is now days unless you are purchasing a home for 50 cents on the dollar its not a wise choice. Most of us if we travel and work them 75k and up jobs dont even have time to enjoy that lavish home so it just sits there looking cute and going down in value. Also paying a home in 15 years will cost you more on the front end but will save 10’s of thousands in the long run. Most folk say they don’t plan to own a home more than 5 or 10 years but truth told if you pay it off you can have this as an asset in addition to the new home you purchase, instead of dumping all the interest. Also the so called tax deduction you think you get from owning a home (per the irs) is not really helping you (ask me for more info on this)

2. Pay off your student loans

We all think its the American way to live in debt and have student loans but truth is the longer you keep them the longer you will be broke. I looked at my student loan balance it said it would be an extra 7,000 if i drag my payments on for life instead of paying off the original 11,000 I actually owe, the rest is interest. It is a wise choice to pay off all your loans regardless of what they tell u in college. also stop going to school trying to avoid paying back loans and get a job!!!!

3. Pay for cars with cash Thats just smart and its what rich folk do they don’t typically drive BMW’S

4. Actually contribute 15% of your income to retirement some kinda way

Please don’t believe ssi will be there when you turn 65.

5. Stop borrowing money

Buying everything on credit is not cute anymore even if it is a 0% interest card.

6. Have a net worth

The definition of net worth is what you own – (MINUS) what you owe = what you are worth. meaning if you had to get rid of everything what would you be left with. If all your money is tied up in house payments credit cards, car payments, bikes, boats, and time shares and when you add it all up hello?? your broke. You have to actually have something you own to be wealthy and also not have debt if you owe 500,000 on stuff and none of it is paid for unless you got 1 million in the bank your broke

7. Stop Using credit cards

Who wants to argue with me about this really?

8. Learn how to really invest in real estate

This does not mean borrowing the equity against your principal residence to go buy rental properties and fix and flip its (this is not property ladder on TLC). Those people who do that don’t have money and neither do you. If you wanna be a tv look a like, the least you can do is pay cash for your investments and us cash to fix them up. If all those rental properties you never sell go belly up or u lose your job God forbid, your house will be foreclosed on first!!! this isn’t cute when you have mouths to feed.

9. Save Money for stuff you want to buy

So I know we live in a get it now pay for it later society but honestly if we saved for it for a couple months you might not feel such stress later on when your not using it.

10. Don’t get a loan to start up a business

Most new businesses cost under 5,000 to start so you do not need the SBA to get off the ground!! Stop being lazy, if you want to advertise print some flyers and drive around town and post them, make a website, tell friends, work your butt off. You don’t need hundreds and thousands of dollars in capital to start a company and make it work.

I am learning these things now. It took me losing most of all I had to figure out I really had nothing. I don’t want to live the life of my broke friends who look like they got it going on. I want to be the one who actually has money to lend and not need it back, actually take real vacations and actually own nice cars and houses. Most importantly I want to give back to my community we can’t do that financially or spiritually if we work 100 hours a week trying to pay a house note.

I am currently working on getting out of debt, its not cute to be in it. Its not fun getting out. I have to live on nothing and work my butt off for a number of years (hopefully less that two) but it will be a great feeling when I say I truly have a net worth.

Mikki

Joe Clark and Car Debt

When I first decided to write about this particular topic the first thing that came to my mind was this video clip as funny as it may seem. Me and one of my friends would always tease each other saying " you smoke crack don't cha?" every time either of us would do OR say something extremely silly or stupid.

This is exactly how I feel about car debt, its like killing yourself REALLY! Recently I was talking to a co worker and she was explaining to me that she just found out her ex husband has a car lease on a lexus for 700 dollars a month and bounces checks on a monthly basis. For one how does she know so much about an ex lol and two how in the world do you pay $700 a month for a car! Talk about insanity doubled over!

Now don't get me wrong I am a fan of nice cars or even new cars for that matter WHEN YOU HAVE THE CASH. I drove around in stupid for 2 years before stupid caught me and repossessed my "nice car" After that time of embarrassment and pain, I decided I would never have a car payment again. Check out what Dave says about buying new cars..

Buying a new car is not something 98% of the people out there need to be doing. It is a luxury item. Only buy a new car if you're filthy rich. The money saved by buying a used car is because of depreciation (the loss of the financial value of an object due to its use). Used cars have already depreciated (60% to 70% in the first five years). Buying used allows the person who bought the car when it was new to eat the cost of the depreciation. Then the person who buys the car used can get a great car for much less than the new wholesale prices.

Say you are looking into financing a sports car with payments of $400 per month. The car that you are driving now is worth around $1,500. If you take that $400 and pay yourself instead of paying it to the dealer, you will save $4,000 in 10 months. You will have $1,500 from selling your old car, so you will be able to buy a $5,500 car just 10 months from now. Continue doing that for another 10 months and you will be able to buy yourself a $10,000 car. That is only 20 months away. You can do it!

There are alternatives to buying new. Used lots are overflowing, and millions of cars come from expired leases. If you want to know what used cars are selling for these days, look online at the following sites:

• KBB.com
• Edmunds.com
• Carmax.com

Also, call some of the banks in your area and ask them how they dispose of their repossessions. If they have a repo auction in your area, this is a great way to find good deals. But the best deals you can find are usually from individuals because they are trying to get rid of their vehicles. Look in your area papers and find what's for sale. No car fever! Go take a cold shower! No new car!

So what are your thoughts on new cars?

Working For The Man Every Night and Day!

Ike and Tina Turner



I have been so exausted over the last couple of weeks and working very hard to shake the feeling so I can carry on with life. Yesterday I was speaking to a good friend of mine who currently is attending college full time. She was telling me about how wonderful it is to not have to work full time and I am telling her how much work sucks typical right?

Then I went on to tell her how much money I make and her voice went 2 octaves up exclaiming "what!!" Umm geez yea its not really that much but I guess so when your income is pretty much zero. I went on to explain how while I am so thankful I have a "stable job" (only 2 lay off days a month aint bad), I do not intend to work a normal 9-5 for the rest of my life. I think this is ok for some people but not me.

I was over visiting Brads website Enemy of Debt and his blog post No More Mondays reminded me of something!! What was it? That I DON'T HAVE TO WORK A 9-5 EVER AGAIN ONCE IM DEBT FREE!! Mind you I don't plan on quitting my job the day after, but remember the reason I started my debt free journey is so that I could actually enjoy what I wanted to in life and not be tied down to one thing forever because of debt.

The economy is only as stable as you make it in my opinion. People start business every day that end up thriving over a period of time. I believe as long as you plan and work hard you will make it just fine. I don't knock people that enjoy working 9-5 at all and my job is the one thing allowing me to become debt free. I am so happy that I have been working on getting out of debt because it has allowed my dreams to be much more like reality which you just can't get at a 9-5.

My goals once I am debt free are as follows:

Travel extensively
Take Dave Ramseys counselor training - Like Brad
Become a full time landlord
Work at the hair salon part time and eventually open my own
Become a home buying counselor and get paid to do it!

What are some of your dreams? Do you think having to much debt keeps you from them at times?

Financial Peace University Hosted By Divine Debt Free!

It is a privilege and honor to announce your newest coordinator of Financial Peace University, ME!!!

Yup you heard it first here, I will be coordinating the first community FPU class right here in Lansing Mi. Those of you who have been with me since the beginning know how I have always talked about hosting a class, well the time has come!!

I was able to contact the manager at my apartment complex and they have agreed to holding the class at the club house, which is an amazing deal!! I am so excited to host a class because you get to watch lives change over a few months. I remember when I first joined Financial Peace University I was a hawt mess. In a few months everything became different and now I get to share my story with others live and in person!!

The class will begin Feb 2nd and run through April. I have wonderful friends who are supporting the event, Rina Risper of NEW CITIZENS PRESS will be advertising in her paper through January which is also very exciting. So if you are in the Lansing area come check us out!!

Funny Video : Debt

Enjoy!

Personal Growth and Money

When I was a child, I talked like a child, I thought like a child, I reasoned like a child. When I became a man, I put childish ways behind me.
1 Corinthians 13:11 (NIV)


Its been two years since I started on the path to debt freedom. In those two years I have improved my attitude about life and money. Learned how to set goals and stick to them. Increased my faith and awareness of my spirituality, and educated myself on building relationships. All in all its been a wonderful experience even in the hard times. However I would be lying if I said I have come full circle when it comes to personal growth.

People always say you continue to learn even as you get older, which I do believe. But what about those times when you "skip" certain parts of the growth process? As I stated in my "About me" section of my blog, I am NOT a financial adviser nor do I have any professional training in the matter, but why don't I?

I started college just as I graduated from high school, but I never finished. I could give you all the reasons why I didn't but its a pretty mute point so I will refrain. However since I started getting out of debt I have began to realize what I am passionate about. I can talk about money until Im am blue in the face, and even after it turns yellow (which is kinda hard lol) because I love it. I love to talk about budgets, credit, real estate, saving, and all things related to finance. So what is stopping me from pursuing an education in finance you ask? Fear that's what....

Even as a young adult I was scared of going into debt for school, even though I went in to debt for what turned out to be much larger than a college education I still did it can you see the irony in that? Turns out NOT finishing college was one the most dumbest things I could do. But this post today isn't about beating myself up, its about "Growth". If I am going to reach my "Full" potential I MUST go back to school point blank. I have to admit its a frighting choice but if I want to grow and continue to help others Its something that should be done. Besides all that why not get paid for doing something I love right?

With that said, I am going to start college soon, but this time its going to be debt free. Originally I had intended to wait until all my debt was paid off but, there is no reason to put it off considering the amount I can spend on a few classes is the same amount I used to fund some of those trips I went on this past summer.

Here at Divine & Debt Free we encourage everyone, if you are holding back from doing something out of fear.... don't. As the word of God says "For God has not given us a spirit of fear and timidity, but of power, love, and self-discipline". 2 Timothy 1:7 (New Living Translation)