Personal Finance News Thursday 7/26

Phil's Personal Finance Tip of the Day:

Let Your Imagination Fuel Your Success

July 26, 2012 By Harvey Mackay

Take a close look at the back of a dollar bill.  On the left side is a pyramid, with an eye at the top.  Over the pyramid is the Latin inscription “annuit coeptis.”  It means:  “Providence has Favored Our Undertakings.”

The pyramid symbolizes the strength of the union of the states.  The top of the pyramid is unfinished, meaning there is still work to be done to make our system even better.  The eye stands for the all-seeing God, Supreme Builder of the Universe.  Benjamin Franklin chose this motto because he believed imagination was the singular characteristic of the people he helped to forge into a new nation.

I think Ben Franklin would be pleasantly surprised where imagination got this great nation.

“The most interesting people are the people with the most interesting pictures in their minds,” said Earl Nightingale, one of the pioneers of the motivational movement.

I’m always fascinated listening to people who see the world through a different lens.  Most of us have ideas of what we’d like to change, but not necessarily the vision to make it happen.  People who can clear the negative clutter from problems will always be successful.

The famous inventor Thomas Edison used to say his deafness was his greatest blessing.  A blessing because it saved him from having to listen to reasons why things couldn’t be done.

Curtis Carlson, founder of the Carlson Companies and one of my mentors, spent his life building and expanding.  When asked what personal qualities contributed to the building of his successful empire, Curt responded, “I think my success is the result of my ability to see and to imagine how things can be.  I’m not distracted by how things are.”

It’s never too late to develop your imagination, although I believe that the longer you suppress it, the more challenging it will be.  Consider this lesson that was shared by Gordon McKenzie, a well-known creative force at Hallmark Cards.

To read the entire article from Harvey Mackay:
http://harveymackay.com/column/let-your-imagination-fuel-your-success/

Mackay’s Moral:  The only person who can put limits on your imagination is you.

Personal Finance News Wednesday 7/25

Phil's Personal Finance Tip of the Day:

 

6 Ways to Save on Home Energy in the Heat of Summer

 

By Money Crashers | U.S.News & World Report LP – Wed, Jul 25, 2012 12:04 PM EDT

David Bakke lives in Atlanta and frequently experiments with various ways to save money at home. He shares his tips and insights on the finance blog, MoneyCrashers.com.

 

Summer is upon us, and while I'm sure we all hope for mild weather, chances are that your home energy costs may be rising--especially if you live in an area of the country affected by the recent heat wave. However, it's always a great idea to save money any way you can. So even if your energy costs aren't skyrocketing, consider the following ideas to make your electric bills more manageable this summer:

 

1. Adjust the Thermostat

Air conditioning costs a fortune, and if it runs around the clock, you can surely expect a huge bill. To reduce the expense, gradually raise the temperature of your thermostat by at least three degrees. Doing so will save you approximately 20 percent on your summer electric bills.

2. Request a Home Energy Audit

Many power companies can come to your home and perform a home energy audit for free. Providers have to borrow power from other companies at peak usage times in order to meet demands, which cost them a lot of money. Therefore, they have just as much motivation as you do to save energy at home. The audit typically takes about an hour, and the tips and advice provided can help you save a significant amount.

3. Switch Providers

If the power industry has been deregulated in your state, you have options of where to purchase your electricity. Therefore, check out the competition. Review your bill and find out what you're paying per kilowatt-hour, and see if you can find a better rate. However, be sure to look for any extra charges or hidden fees before you make the switch.

To read the entire article from David Bakke(Moneywatchers):
http://finance.yahoo.com/news/6-ways-save-home-energy-132949061.html

 

Scripture of the Day from Dave Ramsey.com:

Proverbs 29:20 — Do you see someone who speaks in haste? There is more hope for a fool than them.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.  

 

Personal Finance News Tuesday 7/24

Phil's Personal Finance Tip of the Day:

Struggling to pay your cell phone bill?
By Clark Howard

Are you like two-thirds of Americans who, by their own telling, are struggling to pay their cell phone bill each month? I've got solutions for you.

A new poll finds that 68% of Americans have trouble making their monthly cell phone bill because it's so high, according to what I read in The Orange County Register. The survey, done by CouponCodes4U.com, took into account the responses of 1,623 Americans from the age of 18 to 35.

Wow! That's a real wake-up call, particularly for those with AT&T and Verizon. I hear all the time from people who say they can't leave their cell phone carrier because they're "under contract" or "have a family plan."

The reality is you have to start planning your exit strategy now, regardless of where you are in your contract. If you have a fancy smart phone, especially an iPhone, you can sell it on eBay and probably get enough money to cover your early termination fees.

Leave AT&T and Verizon to the big fat cats in corporate America! If you need to watch your wallet, you need to migrate away from them. (Sprint and T-Mobile are in their own orbit and can in fact offer some deals for families.)

In general, you'll get a better deal from any of the Big 5 discounters: Straight Talk, Boost Mobile, Virgin Mobile, Cricket, and Metro PCS. They offer smartphone service that's effectively less than half the cost per line than AT&T or Verizon.

If you're still using AT&T or Verizon, you are throwing away maybe $1,000 a year. Check out these other companies and you'll have a great shot of saving big dough.

Please listen to the Clark Howard show live from 1-3 EST daily:
http://www.clarkhoward.com/

Scripture of the Day from Dave Ramsey.com:
Psalm 9:12 — Blessed is he man you discipline, O Lord, he man you teach from your law.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Monday 7/23

Phil's Personal Finance Tip of the Day:

Save Your Way to $1 Million
By Donna Rosato | Money – Mon, Jul 23, 2012 11:45 AM EDT

Research shows that people who practice so-called burst saving are far more likely to sock away enough money for a comfortable retirement than those who don't.

According to a study by the research firm Hearts & Wallets, 64% of burst savers were able to build a nest egg equal to at least 10 times their annual pay, a common benchmark for a financially secure retirement.

They were also likelier than non-power savers to hit that goal no matter what age they started their savings regimen.

Says Laura Varas, a principal at Hearts & Wallets: "Once you've got a base of assets that really matters, it puts a tail wind at your back."

Part of a special report on How to reach $1 million, this story explains how saving aggressively for a decade can help you reach millionaire status by the time you retire.

KEY MOVE: Aim to save at least 15% of your income for a period of ten years or more.

HOW TO GET THERE

Get the timing right. Burst savers most commonly funded a ramp-up in their savings rate with money they received from pay hikes and bonuses, according to the Hearts & Wallets study. That way you don't feel the pain of living on less; you still take home more money, just not quite as much.
Power savers also often timed bursts to periods when their expenses fell or their income spiked. For example, many substantially increased contributions to their 401(k) or other retirement accounts after their children left home or during periods when both spouses were working.

To read the entire article from Money:
http://finance.yahoo.com/news/save-way-1-million-124900798.html

Scripture of the Day from Dave Ramsey.com:
James 1:22 &mdsah; Do not merely listen to the Word, and so deceive yourselves. Do what it says.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Friday 7/20

Phil's Personal Finance Tip of the Day:

Millionaires in the Making
By Carolyn Bigda, Lisa Gibbs, Elaine Pofeldt and Donna Rosato | CNNMoney.com – 4 hours ago

These five people are well on their way to amassing seven figures. Here's how they're making it happen.

Retire on rents

Name: Paul Attar, 41
Home town: San Antonio
Occupation: Property and small-business owner
Net worth: About $550,000

Though Paul Attar is a scientist who co-founded a medical research company in 2006, the primary vehicle he's using to amass wealth for himself and his family is actually real estate.

He owns two rental properties on his own, and with his business partner formed a company that buys homes in the $150,000-$300,000 range, using 10-year loans.

He views these properties as a "long-term investment to provide wealth to our families after we are gone." Any distributions he gets from his medical company that he doesn't need go straight into his real estate venture.

His long-term goal: Own 10 properties generating $15,000 per month by 60.

To read the entire article from CNN Money:
http://finance.yahoo.com/news/millionaires-in-the-making.html

Scripture of the Day from Dave Ramsey.com:
Hebrews 13:6 — We say with confidence, "The Lord is my helper; I will not be afraid."

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Thursday 7/19

Phil's Personal Finance Tip of the Day:

Clear Thinking Is In Critical Condition

July 19, 2012 By Harvey Mackay

A Midwest university professor complained: “We are now focusing more on how to use the tools of communication than we are on how to effectively communicate … As a result, we are turning out computer and internet gurus who can’t write and think creatively.”

You bet they are. Making your points to your boss or anyone else requires more than information. It demands the critical thinking that convinces them of your point of view.

I would venture as far as saying that technology has set us back in the general field of thinking, trusting gadgets to do some of our thinking rather than using them to enhance our lives.

Critical thinking has never been more important – or more challenging. With so much information bombarding us 24/7, sifting through the content to find factual, legitimate and useful material is no small task. Do you believe everything you read or hear? Do you check sources?

Thomas Edison, the genius of invention, had a way of thinking that was both critical and creative. Fortunately, it isn’t only a natural-born talent. It’s a habit you can cultivate. Take some lessons from Edison’s thinking processes:

• Question all assumptions. Don’t accept the conventional wisdom without first examining and challenging it. It’s said that Edison, when hiring a new employee, would invite the person to have some soup with him. If the candidate salted the soup before tasting it, he didn’t get the job because he assumed it would require salt without testing the theory first.
• Generate as many ideas as possible. The more ideas you have to test, the more likely you’ll find one that works, as long as you keep at it. Edison is reported to have conducted more than 50,000 experiments before perfecting the alkaline storage cell battery.
• Analyze your failures. When an experiment fails, take some time to consider what you can learn. Keep detailed notes so that when an idea works, you can go back and re-examine your efforts in light of your success.
• Adapt other ideas. Edison often used the inventions and ideas of other people as a mental springboard. Keep up with what’s going on in your organization and industry – what people are doing, where others have failed. Look for ways to take policies, systems, or ideas that are already working somewhere else, and turn them into something you can use in your own department.
• Record all your ideas. Keep a notebook for writing down ideas whenever they occur to you. Go back over the notebook regularly, looking for connections between ideas or new ways of thinking about the same problem.

To read the entire article from Harvey Mackay.com:
http://harveymackay.com/column/clear-thinking-is-in-critical-condition/

Scripture of the Day from Dave Ramsey.com:
Matthew 6:34 — Do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Wednesday 7/18

Phil's Personal Finance Tip of the Day:

Things You Need to Do While You're Unemployed

ForbesWoman | Secrets to Your Success – Wed, Jul 18, 2012 6:24 PM EDT

By Jacquelyn Smith

If you're unemployed and worried that employers will turn you down for taking on unimpressive work during the recession or for the large employment gaps on your résumé-you needn't panic. A new survey just released by the careers website CareerBuilder.com reveals that the vast majority of employers are sympathetic to such circumstances.

The nationwide survey was conducted online by Harris Interactive, on behalf of CareerBuilder, among 3,023 hiring managers and human resource professionals between November 9 and December 5, 2011. Not only does it offer unemployed job seekers some hope, but it also provides tips to help them land a new position.

"More than 40% of unemployed job seekers have been out of work for six months or longer," says Rosemary Haefner, vice president of human resources for CareerBuilder. "There's a sense that such a long gap on a résumé negatively affects a candidate's chances, but the survey shows that is not true.

That's very positive news for this group of job seekers. If you fill the gaps with activities and experience that illustrate how you are still developing your skill sets, the overwhelming majority of employers will look past your unemployment and focus on what you can bring to their team."

To read the entire article by Jacquelyn Smith:
 http://shine.yahoo.com/secrets-to-your-success/10-things-while-youre-unemployed-222400584.html

Scripture of the Day from Dave Ramsey.com:
Psalm 65:9 — You care for the land and water it; you enrich it abundantly. The streams of God are filled with water to provide the people with grain, for so you have ordained it.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Tuesday 7/17

Phil's Personal Finance Tip of the Day:

Retirement savings raided by 35% of laid-off workers
By Christine Dugas, USA TODAY

The number of displaced workers has risen dramatically since the start of the Great Recession, and this year a third of them had to raid retirement savings to make ends meet.

Making matters worse, many who have lost their jobs have defaulted on 401(k) loans, causing taxes and penalties to further deplete their retirement savings.

"Of greatest concern are those who are in their 40s and 50s," says Catherine Collinson, president of Transamerica Center for Retirement Studies, which released a study today on the retirement outlook of the unemployed and underemployed.

• COLUMN: Step-by-step plan to rebuild your portfolio

• STORY: Investor uncertainty leads to lower retirement expectations

Long-term unemployment for older workers has risen substantially, the U.S. Government Accountability Office says. Last year, 55% of unemployed workers age 55 and older had been seeking a job for more than six months.

Older Americans are hit hard two ways. "It is more difficult for them to find employment," Collinson says. "And they have less time to build or rebuild their retirement savings."

Displaced workers in their 40s and 50s have median household retirement savings of only $2,300, the Transamerica study says.

Unemployed and underemployed workers of all ages are under financial stress. And three in 10 do not have health insurance, the study found.

As financial problems mount, many displaced workers are tapping their savings. This year, 35% have taken money from their retirement savings.

To read the entire article from USA Today:

http://www.usatoday.com/money/perfi/retirement/story/2012-07-18/401k-retirement-loan-withdrawals/56280996/1

Scripture of the Day from Dave Ramsey.com:
Ephesians 4:29 — Do not let any unwelcome talk come out of your mouths, but only what is helpful for building others up according to their needs, that it may benefit those that listen.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Monday 7/16

Phil's Personal Finance Tip of the Day:

Your Adviser Did What?!
By KELLY GREENE and JOE LIGHT/The Wall Street Journal

What are you getting for that hefty annual fee you are paying your financial planner?

In an era of belt-tightening, it can pay to ask for more.

Wilson Matthews, 36 years old, sells fine men's clothing in Birmingham, Ala., but turned to his planner to haggle with a car dealership. The planner, Irvin Schorsch III, president of Pennsylvania Capital Management in Jenkintown, Pa., managed to get the price of an Audi A4 reduced by $6,100—and got another $1,000 knocked off the shipping fee.

Mr. Schorsch says he offers to negotiate all kinds of big-ticket purchases for clients, from cars and boats to retirement homes and weddings.

Says Mr. Matthews: "Why not take advantage of the free help?"

Financial planners typically help investors manage their money and plan for retirement. But with the stock market stuck in a rut and interest rates near record lows, they are finding it tougher to justify their price tag. Fee-only planners—as opposed to brokers who are paid on commission for stock or bond sales—typically charge a flat 1% annual fee on assets up to $1 million and 0.75% on assets larger than that, according to the National Association of Personal Financial Advisors, a group for fee-only advisers.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10001424052702303292204577519183016464916.html?mod=WSJ_PersonalFinance_PF16


Scripture of the Day from Dave Ramsey.com:
1 Timothy 6:9 — People who want to get rich fall into temptation and a trap and many foolish and harmful desires that plunge men into ruin and destruction.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Friday 7/13

Phil's Personal Finance Tip of the Day:

The Power of We
July 12, 2012 By Harvey Mackay

A famous organist was performing a concert on a huge antique organ in front of a large audience. The bellows were hand-pumped by a boy seated behind a screen, unseen by any in the vast auditorium.

The first part of the performance went very well, and at intermission the organist took his bows as the listeners applauded enthusiastically. During the break, the musician rested in a side passageway. The boy came out to join him.

“We played well, didn’t we, sir?” the boy asked.

The arrogant musician glared at him. “What do you mean, we?”

After the intermission, the organist returned to his seat to begin his next number. But as he pressed his fingers down on the keys, nothing happened. The bellows produced no wind, and so not a sound came out.

Then the organist heard a whisper from behind the screen: “Say, mister, now do you know what we means?”

Out of the mouths of babes, as they say.

I’ve written more than a dozen columns over the last 18-plus years on the importance of teamwork.

You might wonder what else there is to say. The simple answer: plenty! As long as projects require the efforts of more than one person, we’ll keep talking about teamwork.

Michael Jordan, in his book I Can’t Accept Not Trying, writes: “There are plenty of teams in every sport that have great players and never win titles. Most of the time, those players aren’t willing to sacrifice for the greater good of the team. The funny thing is, in the end, their unwillingness to sacrifice only makes individual goals more difficult to achieve. One thing I believe to the fullest is that if you think and achieve as a team, the individual accolades will take care of themselves. Talent wins games, but teamwork and intelligence win championships.”

To read the entire article by Harvey Mackay on the importance of office teamwork: http://harveymackay.com/column/the-power-of-we/

Mackay’s Moral: We is a little word that sends a big message.

Personal Finance News Thursday 7/12

Phil's Personal Finance Tip of the Day:

How do you rebuild your dreams if you've lost everything?
Fox and Friends/Fox News Thursday 7/12/12

Real estate expert Bob Massi weighs in on the road to recovery when you have lost everything and how to respond to your own financial crisis:

To watch the video from Fox and Friends Shattered Dreams Segment:

http://www.foxnews.com/on-air/fox-friends/index.html#/v/1731214973001/how-do-you-rebuild-your-dreams-if-youve-lost-everything/?playlist_id=162383

Scripture of the Day from Dave Ramsey.com:
John 3:16 — For God so loved the world that He gave His one and only Son, that whoever believes in him shall not perish but have eternal life.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Wednesday 7/11

Phil's Personal Finance Tip of the Day:

Get E-Books At the Library
By EMILY GLAZER-Tip of the Week from The Wall Street Journal

If you're looking to do some summer reading on an e-reader, check out your local library.

Most libraries now offer a wide selection of e-books that can be downloaded to devices like Amazon.com's Kindle, Barnes & Noble's Nook and Apple's iPad.

You don't need to go to the actual library to download books; you can do so from most libraries' websites. You will need to have a library card with a PIN.

Checkout periods for e-books range from a few days to two weeks, depending on the title and library.

And you don't have to worry about overdue fees in case you forget to make it to the library. When the book is due, you simply lose access to it.

Don't count on an endless electronic supply of new releases or bestsellers, however. Each e-book is one copy of a book, says Yolanda McKnight, Austin Public Library's cataloging and collection development manager. So if a library has a limited number of electronic versions of a hot title you may have a wait—though you can reserve a copy.

The Austin Public Library's 20 branches began offering e-books last November and now have nearly 8,000 titles, Ms. McKnight says.

To access e-books from Austin's libraries, download free software from its website and then search for e-books on the website's catalog. To reserve or check out an e-book, you provide your PIN. You can choose to check out an e-book for one or two weeks. Once checked out, the e-book is available on your device within a few seconds.

Scripture of the Day from Dave Ramsey.com:
Psalm 118:8 — It is better to take refuge in the Lord than to trust in humans.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Tuesday 7/10

Phil's Personal Finance Tip of the Day:

Some homeowners lose houses for a little as $400 in overdue taxes, consumer group says
By Daniel Wagner, AP Business Writer | Associated Press – 8 hours ago

WASHINGTON (AP) -- The elderly and other vulnerable homeowners are losing their homes because they owe as little as a few hundred dollars in back taxes, according to a report from a consumer group.

Outdated state laws allow big banks and other investors to reap windfall profits by buying the houses for a pittance and reselling them, the National Consumer Law Center said in a report being released Tuesday.

Local governments can seize and sell a home if the owner falls behind on property taxes and fees.

The process helps governments make ends meet at a time when low property values and the weak economy are squeezing tax revenue.

But tax debts as small as $400 can cause people to lose their homes because of arcane laws and misinformation among consumers, says John Rao, the report's author and an attorney with NCLC.

The consequences are "devastating for individuals, families and communities," Rao said. He said states should update laws so speculators can't profit from misinformed homeowners and people who have difficulty managing their finances.

The rules for property tax sales can be confusing, especially to elderly people who can't keep track of their finances and people in minority-heavy communities that were targeted by subprime lenders.

To read the entire article from AP:
http://finance.yahoo.com/news/report-lose-homes-over-little-040212140.html

Scripture of the Day from Dave Ramsey.com:
1 Thessalonians 5:14 — And we urge you, brothers and sisters, warn those who are idle and disruptive, encourage the disheartened, help the weak, be patient with everyone.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Monday 7/9

Phil's Personal Finance Tip of the Day:

Car repair costs drop; West pays most
By Kelsey Mays | Cars.com – Fri, Jul 6, 2012 12:57 PM EDT

As the median age of a car on the road nears 11 years, drivers can breathe a (slight) sigh of relief: Fixing their cars is getting cheaper.

The average cost for car repairs stemming from a check-engine light fell 6% in 2011, California-based CarMD.com says, with drivers averaging $333.93 per repair. About two-thirds of that went to parts, with labor making up the remaining third. CarMD says lower labor rates, driven by the recession, are responsible for the overall decline in such repair costs, but the cost of parts has gone up, and severe repairs are becoming more common.

Drivers in Indiana paid $283.95 per repair, making the Hoosier State the cheapest place for check-engine repairs. Other inexpensive states include Maine, Wisconsin, Iowa and New Hampshire. In sharp contrast, Wyoming drivers averaged $389.18 per repair, capping a group of pricey states that includes Utah, California, Montana and Arizona.

CarMD believes that high altitudes left Wyoming drivers paying the most, as did having long distances between mechanics. Indeed, with 5.8 people per square mile, Wyoming ranked as America's second-least-dense state in 2010. Alaska ranked first, but it's midpack in CarMD's repair costs.

High airborne dust in Western states risked expensive repairs ($400, on average) to vehicles' mass airflow sensors, CarMD says. Nationwide, faulty oxygen sensors were the most common cause of a check-engine light. To replace those sensors, drivers paid the least in Nebraska and the most in Illinois.

See where your state ranks from Cars.com:
http://autos.yahoo.com/news/car-repair-costs-drop--southwest-pays-most.html

Scripture of the Day from Dave Ramsey.com:
Proverbs 11:3 — The integrity of the upright guides them.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Saturday 7/7

Phil's Personal Finance Tip of the Day:

Road to Millions: The Favors
From Dave Ramsey.com

Don and Sandy Favors (top right) are building a wonderful legacy for their family with the guidance of their investing professional.

A couple of years ago, Don and Sandy Favors were in the same boat as many Americans. They'd had their income cut due to the recession, and they were doing all they could to keep the bills paid. Don worried that they would never save enough money to be able to retire.

The Favors finally got mad at their debt, and today they're debt-free and saving for retirement. But now that they're almost 50, do they have time to build a nest egg that will give them the retirement they want?

Not Where We Thought We'd Be

In 2009, the Favors were $43,000 in debt. Making their truck, boat and credit card payments wasn't a big problem until Sandy, a teacher, and Don, an auto technician, were both forced to take pay cuts, reducing their $100,000 income by $10,000.

The turning point came when Don and Sandy's son, Jason, returned from Afghanistan to his Army base in Anchorage, Alaska. Don made the trip to Alaska to welcome Jason home, but they had to pay for it with their credit card.

"At our age, we should have had the money in savings to pay for that trip without having to put it on the credit card," Sandy said. "So I just got mad at the debt. Dave says you have to get mad at it, or it will never go away."

Don and Sandy signed up to take Financial Peace University (FPU) in the fall of 2010 and were immediately gazelle intense. They shopped differently, used money received as gifts to pay off debt, skipped vacations, and didn't buy anything they didn't need.

One year after their FPU class began, the Favors were debt-free!

Building for the Future

Don and Sandy are both 49 years old. They want to move from their current home in Lowell, Indiana, and buy a lake home in Minnesota when they retire at age 65. "We have vacationed in Minnesota for almost 20 years and love it there," Sandy said. "It doesn't hurt that our grandson lives there too."

A few months before the Favors paid off their last debt, they visited Steve Brady, Dave's investing Endorsed Local Provider for their area. They'd already been investing in their work retirement plans, but they knew they'd need to do more to reach their retirement goals.

Steve coached Don and Sandy on paying off their remaining debt and building their emergency fund. He helped them reallocate the investments in their 401(k)s and showed them how to invest in Roth IRAs. They are now investing $400 a month in their 401(k)s and $350 a month in their Roth IRA.

Their Road to Millions

"The Favors are within three years of paying off their home and have decided to double down on their mortgage to get it done," Steve explained. "Then, they will begin investing an additional $1,300 a month toward retirement."

Based on their mutual funds' strong performance record, Steve estimates that Don and Sandy will have more than $1.4 million when they retire in 16 years. "It is possible to retire with dignity even when starting late, if you get as serious as the Favors have."

"With no debt in retirement, it will be easy to live on our retirement savings," Sandy agreed. "We feel confident that Steve has helped us build a plan that will get us there."

Get Great Advice and Start on Your Road to Millions Today

It's never too late to start investing for your future. An investing ELP like Steve will show you how to make the most of your investments and help you make a plan to reach your retirement goals. Contact your ELP today!

Inspirational Quotes@Inspire_Us from Twitter:
Don't take tomorrow to bed with you. -Norman Peale

Personal Finance News Friday 7/6

Phil's Personal Finance Tip of the Day:

New Careers: Where Tragedy Became Triumph

By Daniel Bukszpan | CNBC – Fri, Jul 6, 2012 2:42 PM EDT

After living through an accident, illness or loss of a loved one, many people find comfort in going back to the predictable rhythms of their old, familiar routines. Losing themselves at work can offer escape from these events and help set them on the road to recovery.

For others, the response is exactly the opposite, and going back to their old lives after a traumatic, life-changing event is out of the question. The only thing that seems right to them is to create a new plan for living, one that acknowledges the hardships they’ve endured and the wisdom they’ve acquired since their lives changed.

CNBC.com presents this list of people who survived tragedies and responded by creating new careers and businesses. These new ventures not only helped them cope, but may have served to inspire other people going through similarly challenging times.

HALO Innovations

In 1991, Bill Schmid and his wife experienced what most parents only go through in their worst nightmares — they lost their daughter Haley to Sudden Infant Death Syndrome. While some of the causes of SIDS remain unknown, loose crib bedding is a known risk factor, and Schmid, an engineer, vowed to put his skills to find a way to eliminate it.

He founded HALO Innovations, and the company manufactured sleeping products such as the SleepSack swaddling blanket. The blanket is now sold at Babies R Us, Target and Walmart, and its success has prompted the company to create other products, such as the Active-Airflow crib mattress.

According to the company’s website, “the mattress is the only product proven to reduce the risk of ‘rebreathing’ for infants, a condition associated with Sudden Infant Death Syndrome (SIDS).”

To read the entire story from CNBC:
 http://finance.yahoo.com/news/new-careers--where-tragedy-became-triumph.html

Scripture of the Day from Dave Ramsey.com:
Proverbs 12:17 — An honest witness tells the truth, but a false witness tells lies.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.

Personal Finance News Thursday 7/5

Phil's Personal Finance Tip of the Day:

When You Delegate You Elevate

July 5, 2012 By Harvey Mackay

“The surest way for an executive to kill himself is to refuse to learn how, and when, and to whom to delegate work,” said James Cash Penney, founder of the J.C. Penney retail chain.

When you grow, you have to know when to let go. You have to know when to delegate down so you can rise up. The inability to delegate properly is the main reason that executives fail. I’ve learned that people will seldom let you down if they understand that your destiny is in their hands, and vice versa.

Delegating is a key management skill. But managers often mistake delegation for passing off work.

Failing to effectively delegate wastes your time as well as the company’s time and resources.

Personal experience starting and running Mackay Envelope Company, now MackayMitchell Envelope Company, taught me this. There came a day when we had grown to the point where I had to hire a person under me to run the company day to day, while I scanned the horizon, studying our industry and the company’s future direction.

The reason? You don’t want to be micro-managing and end up macro-mangling. The captain’s place is on the bridge and not knee deep in the bilge. As the person steering an enterprise, you keep your head high and your vision unobstructed so you can study the big responsibilities, while maintaining authority and control. Many aspects of this art can’t be taught. Pulling it off successfully can’t be analyzed or quantified. But it can be qualified. If you don’t get quality people, you’re doomed.

Robert Townsend in his book, Further Up the Organization, wrote: “Leaders delegate whole important jobs. Non-leaders make all final decisions themselves.”

To read the entire article from Harvey Mackay.com:
http://harveymackay.com/column/when-you-delegate-you-elevate/

Mackay’s Moral: The most successful managers aim at making themselves unnecessary to their staff. 

Personal Finance News Wednesday 7/4

HAPPY JULY 4TH!!!

Today we take a break from Personal Finance and enjoy the festivities of the holiday.

John Adams was a prophet back on July 2nd, 1776 in describing how we would celebrate the signing of The Declaration of Independence. However he was two days off at the time:

“The Second Day of July 1776 will be the most memorable Epocha in the History of America. I am apt to believe that it will be celebrated by succeeding Generations as the great anniversary Festival. It ought to be commemorated as the Day of Deliverance by solemn Acts of Devotion to God Almighty. It ought to be solemnized with Pomp and Parade with Shews Games Sports Guns Bells Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more. You will think me transported with Enthusiasm but I am not. I am well aware of the Toil and Blood and Treasure that it will cost Us to maintain this Declaration and support and defend these States. Yet through all the Gloom I can see the Rays of ravishing Light and Glory. I can see that the End is more than worth all the Means. And that Posterity will tryumph in that Days Transaction even altho We should rue it which I trust in God We shall not. The Book of Abigail and John: Selected Letters of the Adams Family 17621784 Harvard University Press 1975 142 .”
― John Adams

Personal Finance News Monday 7/2

Phil's Personal Finance Tip of the Day:

Apps that can help you earn money
By Clark Howard

Looking some quick ways to make a little extra cash?

Some months ago, I told you about a service called Fiverr.com, where people share things they're willing to do for $5. You might be able to hire someone to review your resume, design a website, improve a PowerPoint presentation or even write your Maid of Honor speech -- all for $5! The low price is often a loss leader allowing a contractor to develop a client base for their particular area of expertise.

I have also talked in the past about eLance.com, which you can use to find freelancing and consulting jobs, or to offer your freelance services to others.

Now The San Francisco Chronicle has written up several other sites that offer similar options.

TaskRabbit.com allows you to hire someone in your local area to run errands for you. For example, if you buy Ikea furniture, you might hire a "rabbit" to assemble it for you. Or you might hire someone to pick up your dry cleaning. The service is only available in select areas.

RedBeacon.com lets you get price quotes and book appointments for local services, such as those provided by a plumber or electrician. Again, RedBeacon.com may only be available in select areas.


Meanwhile, USA Today reports on CheckPoints.com, an app that offers manufacturer deals while you're in the store. You earn points for simply scanning the barcode on an item in a store. No purchase of the product is necessary. You can redeem the points you collect for free gift cards, airline miles, and other perks.

Finally, I've gotten a lot of questions about EasyShiftApp.com. This app lets you essentially be an on-demand secret shopper. You're assigned 'shifts' by product manufacturers who want people on the ground to go into stores and confirm that their merchandise is being displayed properly. The pay rate for a shift is between $3 and $8 and the money is remitted to you via PayPal.

Please listen to the Clark Howard show live from 1-3 EST daily:
http://www.clarkhoward.com/

Quote of the Day from Dave Ramsey.com:
Colossians 3:23–24 — Whatever you do, work at it with all your heart, as working for the Lord, not for men... It is the Lord Christ you are serving.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.