STOP SHOVELING YOUR HARD EARNED MONEY OUT THE DOOR AND START BUILDINGWEALTH!

Getting yourself debt-free, you will be able to free up your most powerful wealth building tool, YOUR INCOME.  Building wealth takes dollars. Building wealth takes less expenses and more income. When you stop shoveling your paychecks out the door to credit card companies, car payments, personal loans, student loans, past due medical bills, you will have money to do things like saving for emergencies, remodeling the house, taking vacations that won’t follow you home and investing for retirement --or better yet: actually retiring!

Think about it. If you are currently carrying a $10,000 credit card balance at an annual interest rate of 24% you are literally flushing $2400 a year away for NOTHING. That’s $200 a month! It’s just money that the credit card is taking from you. If you are able to pay that card off, those dollars can be reallocated and spent where and when you want.  Most Americans today think that $10,000 of credit card debt and two car payments in the household are ‘normal’.  This ‘normal’ is making the credit card companies rich. Last year it added up to them earning $18.5 BILLION dollars in interest charges. American’s habits of charging things like gas, groceries, clothing, mani’s/pedi’s, tools, car repairs, etc added up to a whopping Trillion Dollars last year. It’s time for a shift in mindset, behavior AND habits.

I teach my clients to use the debt snowball technique once we establish their monthly budget. 

How does the debt snowball work?  Its simple. You list your debts (other than your mortgage) smallest to largest by amount owed.  Don’t worry about the interest rates, just list them! ANY and all extra money goes to the smallest debt on the list each month until it’s paid off. Why do I not suggest you pay off the highest interest card first?  I agree that mathematically it’s correct that you would pay off the highest interest card/loan first BUT this is not about math.  It's about behavior.  If it were simply a mathematical issue you would have already done the simple math and realized that there wasn't enough coming in to pay off what was charged or bought.  Using the snowball and paying off the smallest debt first gives you instant success and you can see and feel the results of ridding yourself of a debt. Once you do that with one, you will want to continue until it’s ALL gone!  There are plenty of tools that can to show the efforts of this technique. For more information on how a financial wellness coach can help you gain back control of your finances visit my website at www.sickofthehustle.com

RESISTANCE…

RESISTANCE: The law of physics says that for every 'action' there is an opposite 'reaction'.  If you learn to understand that this is so, your added awareness to the law of resistance, can help you hold stronger, as you walk towards your dream of Financial Peace.

Think of a rubber band.  Resistance comes when you first take a hold of each side and start to pull them apart.  Isn't that also true of how we feel when we first begin to work on our financial wellness plan?  The 'feelings' that come up as we step onto this new road are overwhelming at times.  One partner may be excited to get started and the other resistant.  In a single's situation, you may be ready in your heart but your head starts to tell you differently.  The funny thing about resistance is that you will find as much resistance as you did in the beginning as you near the end of your goal. Why? Because that's the law of physics!  The more we pull outward to see how strong that elastic really is, we have a new 'fear' of it breaking, so we are resistant to continue to pull.  I've seen many people start their journey off strong and as they are so so close to having their debts all paid off, retract due to resistance.

So, how will you know if you are in 'resistance" at the beginning or towards the end of your journey? Quite simply.  You will MAKE EXCUSES.  You will PROCRASTINATE.  You will START SLIPPING back into your old spending habits. You will STOP BUDGETING. You will STOP COMMUNICATING.  You will STOP WORKING THE PLAN.

At the 'beginning' of working on your new plan,  you might find yourself saying things like, "I have no time", "I'll just watch you do it and see how it works", "that's just not MY thing", But what is 'x' happens?".

At the end of working on your new plan, you might find yourself saying things like, "But we've worked so hard for the past few years, let's just reward ourselves", "I'm sick of measuring everything I do!", "I meant to fund the envelopes but forgot", I don't know where that extra week's paycheck went this month, was there really an extra week?",  "we've skimped this long, I need to splurge just once."

All of these statements are clear signs that you are 'resistant' and resistance will inhibit you reaching your goal is you don't see it appearing.   If you find yourself using any of this language, do something about it today.  Regroup. Recommit. Reconnect.  HOW?  Sign up for a Facebook support group and share, such as my Sick of the Hustle Budgeting discussion group-- it's a great forum to connect with others on the same journey.  Sign up for another Financial Peace University Class in your area.  Get one on one coaching to help you along. (that's my specialty!). Get an accountability partner.  Read Dave Ramsey's Total Money Makeover or Smart Money Smart Kids (again). Listen to some Podcasts on financial wellness. Share your success with someone else who is struggling and help them.
     
Stay Positive and Keep all of these 'tools' handy in your toolbox when resistance rears its ugly head!

Michelle
www.sickofthehustle.com

WANT TO RAISE FINANCIALLY HEALTHY KIDS? GIVE UP IGNORANCE AND KEEPING UP WITH THE JONES'S...

• Living in a bigger house
• Driving more expensive cars
• Wearing designer clothing 
• Birthday party for Billy and his 15 friends 

All of these are great to have but I'm an advocate for having what you need before having what you want. I teach my clients the tools of building and protecting the '4 walls' (food - shelter- transportation- clothing) and building a solid foundation BEFORE you put the roof on.

Many families today "feel" (yes emotion drives 80% of our money handling) as though their children will suffer if they don't have the newest bat, the UGG boots, and the party for 15 at Chucky Cheese. I truly believe this started with our 80's generation because I don't remember my parents being focused on making sure I had $100 pairs of NIKE's, and a birthday party that cost as much as a monthly car payment. They knew better.  Sure, they had there set of 'keeping up with the Jones's too' but the credit frenzy was just beginning when I was a teenager. We had the Sears and JCPenney cards (didn't everyone?) but I didn't watch my parents charge the washer/dryer on 90 days same as cash. They didn't finance our childhood pet. They did what most American's did before credit became a 'normal way of life" they paid CASH and only when they could afford it. 

So how is this new credit action affecting our children? Really think about the long term effects our buying decisions and behaviors have on our kids. If you are using credit cards to get your nails done, take the family vacation, and stopping at Panera, Papa Gino's, and Outback for dinner this week, these are the behavior patterns our kids see AND become accustomed to.  They don't SEE cash leave your hands. They don't SEE half of the weekly paycheck going out the door for the family cell phone plan with unlimited minutes, texts, and data. They don't SEE the cable bill came in $70 higher because it snowed for three days and school was canceled, and the added cost of 'hitting the rent movie button' actually takes away from the normal budget.  Unless you are talking to them about what it takes to run a household and modeling the things you know will create healthy adults down the road, you are missing out on an opportunity to teach your children what Mastercard & Discover will teach them if you don't. Start using an 'envelope system". I'm a huge fan of what this one tool provided in terms of my kids SEEING a change in my behavior. When we stopped for a bite to eat at a drive thru for example I had my son pull out the envelope and the unfamilar cash to pay for the order. Same at the grocery store, if they are with me, they open up the envelope and can see the $$ leaving .. they also are quick to count what's left and tell me 'that's it? we better be careful!"  I'm proud of this because I know there is a huge difference in their awareness (not just mine) that has benefited them with my changing my pattern from ignorance to understanding. 

TO ORDER DAVE RAMSEY'S DELUXE ENVELOPE SYSTEM CLICK HERE: 

SELL SOME STUFF- AND BUILD THAT EMERGENCY FUND or PAY DOWN SOME DEBT!

Now that the weather is decent, it's that time of year when many people enjoy looking for treasures! Why not take advantage and SELL SOME OF YOUR STUFF!!! My last two yard sales netted me over $500 (and my kids over $100 each) so it was worth the time we put in…

Before you just throw everything onto a table in your driveway, there is some prep work that you should consider!

1. Pick a good day(s) and time. This all depends upon where you live. I think Saturday mornings are the best times for sales.  As far as the time of day and length to run your sale – that is really personal preference.

2. Advertise your yard sale time/place:  Use social media to your advantage! Post an announcement on your personal Facebook page, Twitter, or Instagram!! Ask your friends and family to share as well. Also, Facebook now has yard sale 'group sites'- many for each town where you can post your events. Craigslist allows a free posting as well. Many local newspapers also allow free listings for local tag sales so get the word out along many outlets!

3. Clearly Direct Traffic to your Sale.  Two days before, make sure you place signs helping shoppers find your sale.  It is best to start close to major intersections close to your home, followed by additional signs (with arrows) directing them to your home.  

4. Organize your items for display. If everything is thrown onto a table or things are dirty, most people will perceive your items as "junk" and may not even take the time to look through your goods.  Just taking the extra time to have several tables and items split out by category (household goods, tools, toys, books) can yield you more money!

Be sure you price your items. Start this process early in the planning stages. Don't wait until the night before or the day of to get started.   

5. Make sure your items are clean. As you set your items out for your sale, take a minute to make sure that everything is clean.  If your clothes or toys are dirty or your picture frame is coated in dust, it can really turn off potential buyers.

6. Launder and fold/hang clothing items. If  you are going to sell clothes, you will want to spend time getting these items ready.  I actually launder everything before I sell it.  This helps me find those hidden stains that seem to appear after time.  Think about it—  Would you really want to purchase a dress that has a stain on it? Probably not!  Sort clothes by season and according to size. This makes it very easy for your buyers find what they are looking for. I also HIGHLY recommend hanging outfits. Either buy a rack or use a study clothes line and string across your front porch if you have one!

7. Clearly price all of your goods. It's a turn off to me when I go to a tag sale or an antique store and nothing is tagged. People like to know what you are asking. If there are some items you are open to negotiating, keep those on a "make me an offer" or put a sticker with MMAO!  If you are not sure what to price things, you can go and check out Ebay or Craigslist so that you can be sure you are asking a fair price for your items. Just be sure you don’t under price your stuff! People at tag sales will usually try to get you down, especially near the end. Know what you want and go from there. 

8.  Make sure you have plenty of change available (and only take cash).   I get $100 in change before I start.  I start out with $20 in change in my box at a time. Make sure you have $1's, $5's, $10's and regularly coin change! If you are selling items at .75/.50 you will need quarters!! Wearing a carpenters apron helps if you are walking around a lot.  Accept only cash!  I’d also recommend you accept nothing larger than $20 bills.  If you are selling a large ticket item, you can ask the purchaser to please go and get $20 bills. You would hate to get counterfeit bills given to you and then you’ll be out your cash — and your item!

9.  Offer 50% off of “Goodie Boxes” Toward the End of the Sale.  If time is drawing close to ending your sale and you have items to move, you can offer 50% off of all marked prices. People that show up at the end are those that are probably expecting that and will haggle anyway.  

10.  Price Items to Sell and Be Willing to Negotiate Those Prices.  If you really want to sell your items, make sure that you remove emotion. If you are attached to a baby blanket, you will think it is worth more than it really is.

When the sale is over decide if you want to have another run at this. You can take the remaining items and put them up on the Facebook community yard sale sites, Ebay, Craigslist OR  you can gift your treasures to Goodwill or another local charity so that others are blessed by your giving them. 

LASTLY, tally up what you made and make those dollars count! Deposit them into your growing Emergency Fund (if you have NOT yet saved $1000) and if you have apply those dollars towards your debt snowball.