Health insurance
Long term disability insurance (LTD)
Long term care insurance (if you are over 60)
Life insurance 10 times your income
Things to stay away from
Return of premium (pay extra and they return your premium over 5 or 10 years)
Cancer insurance (good health insurance covers this)
Short term disability (emergency funds should cover this)
accidental death insurance
Monday, August 23, 2010
Forcing Gods Hand
I was sitting at work today listening to the debt free Friday Dave Ramsey show and I started thinking about what I would say when I called Dave Ramsey to do my own debt free scream. However this time my thinking took me down a much different path and I thought it would be good to share with others.
Dave Ramsey always ask his callers what the hardest part of getting out of debt is. Usually I come up with a different answer in my own mock interview, but my most recent answer was having to short sale my home. This thought process lead me to how I came to own my home in the first place and the answer struck me like lightening.
I proceeded to tell Dave how I wanted to be like my friends and have a piece of something. Also at the time I so desperately wanted to leave Lansing Michigan because well after a break up it was the last place I wanted to be, not to mention occasionally seeing your ex out and about to add insult to injury. I figured if I purchased a house where I wanted to be (Back in Detroit), God would work his magic and actually cause my job to transfer me. After months and months of applying it just wasn't happening. I am still paying the price for buying a home before it was my time though there is a light at the end of the tunnel, its the most expensive lesson I have ever had to learn.
Now days when people ask me why I brought my house, the answer finally is clear to me " I was trying to force Gods hand" The more I learn about God the more I realize forcing God to do things never works. I realize that in life we create more havoc than if we just allow God to operate in his own time. Becoming debt free has taught me a lot of life lessons but this is the one that stands out to me the most, simply because its something I struggle with everyday.
There are many things in life that you can do that will cause you to be successful, but then there are those things that no matter what you do won't change until you allow God himself to change them for you. So if you struggle with this aspect of life my advise would be to "wait on God" You can experience so much more peace when you don't try to figure out EVERY single aspect of your life. Sometimes its actually ok to just go with the flow and allow things to play out. When we try to do things our own way and make things happen, things tend to go south and we spend a life time trying to turn it back around. So do what you can and let God do what you cannot :)
Have you ever tried to force Gods hand?
Dave Ramsey always ask his callers what the hardest part of getting out of debt is. Usually I come up with a different answer in my own mock interview, but my most recent answer was having to short sale my home. This thought process lead me to how I came to own my home in the first place and the answer struck me like lightening.
I proceeded to tell Dave how I wanted to be like my friends and have a piece of something. Also at the time I so desperately wanted to leave Lansing Michigan because well after a break up it was the last place I wanted to be, not to mention occasionally seeing your ex out and about to add insult to injury. I figured if I purchased a house where I wanted to be (Back in Detroit), God would work his magic and actually cause my job to transfer me. After months and months of applying it just wasn't happening. I am still paying the price for buying a home before it was my time though there is a light at the end of the tunnel, its the most expensive lesson I have ever had to learn.
Now days when people ask me why I brought my house, the answer finally is clear to me " I was trying to force Gods hand" The more I learn about God the more I realize forcing God to do things never works. I realize that in life we create more havoc than if we just allow God to operate in his own time. Becoming debt free has taught me a lot of life lessons but this is the one that stands out to me the most, simply because its something I struggle with everyday.
There are many things in life that you can do that will cause you to be successful, but then there are those things that no matter what you do won't change until you allow God himself to change them for you. So if you struggle with this aspect of life my advise would be to "wait on God" You can experience so much more peace when you don't try to figure out EVERY single aspect of your life. Sometimes its actually ok to just go with the flow and allow things to play out. When we try to do things our own way and make things happen, things tend to go south and we spend a life time trying to turn it back around. So do what you can and let God do what you cannot :)
Have you ever tried to force Gods hand?
Friday, August 20, 2010
What Do you spend your time doing?
I recently picked up the Millionaire next Door book by Thomas J Stanley and its a great read. In one particular chapter Mr Stanley went on to described two types of people. Throughout the book he references the two types to drive home points. I thought it was interesting so I decided to share it....
PAW- Prodigious accumulator of Wealth: To be well positioned in the PAW category, you should be worth twice the level of wealth expected. PAWS are builders of wealth, that is they are best at building net worth compared to others in their income/age category. PAWs typically have a minimum of four times the wealth accumulated by UAWS.
UAW- Under accumulator of wealth (self explanatory)
According to Mr Stanley, efficiency is one of the most important components of wealth accumulation. People who become wealthy allocate their time, energy, and money in ways consistent with enhancing their net worth. PAWS allocate nearly twice the number of hours per month to planning their financial investments as UAWS do. I personally believe im somewhere near the UAW side of things. I KNOW I waste a lot of time doing things that have nothing to do with building wealth. I do believe that we should spend time enjoying our guilty pleasures but sometimes we can go overboard.
So what would you rather be doing, spending time watching t.v or building wealth? DON'T BE A UAW!
PAW- Prodigious accumulator of Wealth: To be well positioned in the PAW category, you should be worth twice the level of wealth expected. PAWS are builders of wealth, that is they are best at building net worth compared to others in their income/age category. PAWs typically have a minimum of four times the wealth accumulated by UAWS.
UAW- Under accumulator of wealth (self explanatory)
According to Mr Stanley, efficiency is one of the most important components of wealth accumulation. People who become wealthy allocate their time, energy, and money in ways consistent with enhancing their net worth. PAWS allocate nearly twice the number of hours per month to planning their financial investments as UAWS do. I personally believe im somewhere near the UAW side of things. I KNOW I waste a lot of time doing things that have nothing to do with building wealth. I do believe that we should spend time enjoying our guilty pleasures but sometimes we can go overboard.
So what would you rather be doing, spending time watching t.v or building wealth? DON'T BE A UAW!
Monday, August 16, 2010
Michael Jackson & My Debt Snowball
Today I was looking over my budget and I have to be truthful with my fellow bloggers and say its not looking to good!!! Originally I thought I would be ok bringing in the new year with a little bit of debt but that debt free date keeps going futher and further out. I have been spending a lot, and putting very little towards my snowball with the excuse being "wait til my home is sold" but my house is having less and less to do with my other remaining debt. When I saw that debt free date being pushed closer to march I started to freak out. Hey its been almost 3 years now and this has gone on longer than need be and its time to REALLY kick it in to gear.
Soooooooo (DRUM ROLL PLEASE!!!!) I am going to get a second job (REALLY THIS TIME). I am so ready to be done with this debt and move on with life and I am at the point where I am ready to do what it takes. I took a lot of time off in between due to burn out and ever since I have been plinking away at my debt. Have I done well? Oh yes no doubt!! but I need to bring it on home and wrap it up!!! I realize the more I piddle away the more depressed I get because nothing is happening.
I have about 4 news papers that have been piling up on my door step since the weekend and I am going to plug away until I find something. I need an extra $6,000 to be debt free by year end which is somewhere betweeen $600-$700 every two weeks give or take. I am ready to put this debt to sleep for good and the time is gonna be now!!!!!
Has anything been keeping you from moving faster in your snowball, or are you having a hard time getting started... Let me know!
Tuesday, August 10, 2010
My Debt Round Up
I haven't giving an update on my finances in a while so I thought now would be a good time. I was talking to a friend of mine the other day about my debt and I remember saying to her "I haven't paid much this year" Being shocked at my own statement this taunted me for a good few days until one day I was laying in my bed and realized it wasn't true!
When I was having the conversation I was basically recalling actual checks I have written to pay off debt which is mostly why I couldn't really tell from just looking at the numbers on my spread sheet. However it dawned on me that I was having money auto drafted out of my paycheck for a good 2 months in excess of 500-800 at a time. So after I went back and recalculated here is what I discovered.
My total debt pay off to date : $11,000 - this includes a 401k loan and a pay day advance from YEARS ago.
I also brought a car for $2500 with $400 in repairs to date.
There are a bunch of other randomness within my budget but over all I have done a great job (In my opinion). I certainly didn't think I would be rolling up on 3 years worth of getting out of debt but it has definantly made for good story telling if nothing else!
Whats your debt repayment round up?
When I was having the conversation I was basically recalling actual checks I have written to pay off debt which is mostly why I couldn't really tell from just looking at the numbers on my spread sheet. However it dawned on me that I was having money auto drafted out of my paycheck for a good 2 months in excess of 500-800 at a time. So after I went back and recalculated here is what I discovered.
My total debt pay off to date : $11,000 - this includes a 401k loan and a pay day advance from YEARS ago.
I also brought a car for $2500 with $400 in repairs to date.
There are a bunch of other randomness within my budget but over all I have done a great job (In my opinion). I certainly didn't think I would be rolling up on 3 years worth of getting out of debt but it has definantly made for good story telling if nothing else!
Whats your debt repayment round up?
Monday, August 9, 2010
Court Is In Session
Today was my court date to evict the girl who is living in my property and I am happy to report I won my case! The judge showed no mercy or sympathy regarding her not paying rent.
I am overwhelmed by the situation but happy as well. Its been a long 2 months and I am still not out of the clear regarding the property.
I will continue to keep everyone up to date.
I am overwhelmed by the situation but happy as well. Its been a long 2 months and I am still not out of the clear regarding the property.
I will continue to keep everyone up to date.
Saturday, August 7, 2010
Meal Time Makeover Update*
I missed everyone so very much and later on I will post more but I thought I would share my food update first!!
I have been using emealz (read previous post) for about a week and so far I LOVE IT!! I haven't had to eat out once and everything I cook I love! I haven't even made it through much of whats in my frig and the two times I made dinner (full meals) I fed more than myself so thats a pretty darn big deal. I think I can officially say that with the exception of a few things like milk and cheese (my favorite) this food will certain last me close to the end of the month. So the advertisement says cut your grocery bill in half and it just might actually be a true statement!!
I have been using emealz (read previous post) for about a week and so far I LOVE IT!! I haven't had to eat out once and everything I cook I love! I haven't even made it through much of whats in my frig and the two times I made dinner (full meals) I fed more than myself so thats a pretty darn big deal. I think I can officially say that with the exception of a few things like milk and cheese (my favorite) this food will certain last me close to the end of the month. So the advertisement says cut your grocery bill in half and it just might actually be a true statement!!
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