NBA Players Welcome to the Real World

NBA Players make more than 90% of the U.S. population. They get to travel across the country for free by the NBA. You get paid for doing a job you love. Most Americans work a job that they hate and have no other options.

Many times players are lured into the NBA and believe that their lifestyle will last forever so they aren’t concerned with how much money they spend – but nothing lasts forever. Americans learned the hard lesson that nothing in life is guaranteed and that life can be hard.

NBA Players suffer from the Instant Gratification Syndrome, you want everything right now. You spend money that you earn in the future to buy things in the present. You have no right to complain that you can’t pay your bills. No one made you buy a multi-millionaire dollar home; spend money on partying, women, designer clothes, jewelry, and things that have no value. You made those choices.

You decided that living that lifestyle was what you wanted and more important than planning for your future. Don’t be like Chris McAlister of the Ravens.

Immigrants that were brought to this country or migrated to this country knew the value of hard work; they did whatever they had to do to make a living even if it meant making sacrifices or working multiple jobs. Americans are spoiled and have forgotten how to survive. If one option stops working, find another option.

Yes you should be treated fairly by your employer but you should always look for other options. You can use your celebrity status to create a radio show, a television show, a clothing line, a sneaker line, sunglasses, hats, become a speaker, become a board member or advisory committee member for a national company or start a business. So many options are available to you and are easier for you to attain because of your celebrity status and the people you have at your disposal.

NBA owners are denying players adequate pension plans and requesting stricter salary caps. You can’t have it both ways. You have to provide one option or other. This will continue to lead to future lockouts until owners realize they are nothing without the players. Here are 7 tips to plan for your future.

1. Save. Save. Save. Save at least 30-50% of your income each month.
2. Retirement. Sign up for the NBA Retirement Association. You only get a small amount of income but if you combine it with additional steams of income through endorsements or businesses you should be able to retire comfortably.
3. Downsize. Downsize your lifestyle. Who are you trying to impress with your ferrari, maybach, diamond watches, and millionaire dollar home. People may be fascinated by the things you have but no one really cares. When you retire what do you want people to remember about you, that you lived in a million dollar home that you couldn’t afford or that you helped your community.
4. Think About Tomorrow. You can get traded, released or hurt at any time. Plan for your future so that you don’t have to file for bankruptcy or foreclosure.
5. Role Model. Be the best person you can be and serve as a role model for youth and younger players to prevent them from making the mistakes you made.
6. Give. Donate to charities or start your own foundation. This helps to reduce your tax liability and provides greatly needed assistance to social organizations that have been affected by the recession.
7. Say No. Learn how to say no to friends, strangers, relatives who ask to borrow money or ask you to buy something. If you always lend money you only enable that person to be dependent on you forever. Show them how to earn their own money so they don’t have to ask you for money.

You determined your self-worth by the things you own instead of realizing that your self-worth comes from within. No matter how much money you have it cannot make you happy and cannot fill a void in your life.

Think how different your life would be during the lockout if you saved at least one year’s salary, if you only bought one car or if you lived in smaller house. When you experience a financial crisis, your true character is tested. You either become a winner or loser.

Determine that you will always be a winner. Don’t let anyone determine your destiny, determine your own destiny. Money can generate wealth or generate debt you make the choice.

What's Your Cell Phone Backup Plan

In 2006 Congress passed legislation under the Warning Alert and Response Network Act (WARN) allowing the Federal government access to private cell phones to issue emergency warnings and alerts which resulted in the Personal Localized Alerting Network (PLAN). WARN requires cell phone provides to activate PLAN technology by April 2012. Participants that will offer PLAN prior to the deadline include Sprint, AT&T, Verizon, and T-Mobile.

PLAN allows authorized national, state or local government officials to send alerts via cell phone providers regarding public safety emergencies, such as a tornado or a terrorist threat. Cell phone providers push the alerts from cell towers to cell phones in the affected area. This technology ensures that emergency alerts do not get stuck in highly congested user areas.

PLAN enables government officials to target emergency alerts to specific geographic areas through cell towers which pushes the information to dedicated receivers in PLAN enabled cell phones. PLAN complements the existing Emergency Alert System implemented by the FCC and FEMA via media service providers.

Customers can opt out of the service but will still receive Presidential alerts even if their GPS locator is turned off. The PLAN technology will allow the messages to take precedence over regular phone calls or text messages so the alerts can get through. Messages will show up on the phone’s front screen, and arrive with a distinct ringtone or vibration. Three types of messages are included in PLAN: level 1 - messages from the President, level 2 - looming threats to safety, and level 3 - amber alerts about missing or abducted children. As of October 2010 the following cell phone providers participate in PLAN www.fcc.gov/pshs/docs/servcies/cmas/MasterCMASRegistry.xls

During a natural disaster cell phone networks quickly get jammed and subscribers are unable to make phone calls. This happened recently with the earthquake that struck the east coast. During a disaster many people rely on cell phones or the internet. If your power is out your only other option is your cell phone. Government agencies are urging subscribers to send text messages instead of making phone calls during a natural disaster.

Using social media and text messages cannot replace voice communications and does not address the cell phone network load problems. If everyone is sending text messages that causes another increase in load and can cause delays in sending and receiving text messages. For people who don’t use social media or cell phones or people who live in rural areas where cell phone coverage is not available there is no way other for them to communicate. The U.S. needs to invest more money in technology to compete with other countries. Japan is working to use renewable energy for its cellphone tower network s with solar, wind or biomass which protects against power grid outages. Japan has also created a cooking pot that can cook food over a campfire and charge a cell phone at the same time which costs $300.

If cell phone companies can provide their executives with million dollar salaries, bonus and perks each year, saved money by transferring their customer services departments to India and other countries, decreased their level of customer service, and made some staff reductions, why can’t they spend more money to upgrade their networks to provide better service to subscribers and handle increased loads during a natural disaster.

Here are 6 tips to prepare for phone interruptions during a natural disaster:
1. Disaster Plan. Create a disaster plan and test it periodically.
2. Don’t wait. Don’t wait until the last minute to take action. Prepare in advance and stay calm. Execute your disaster plan to minimize further damages and safety issues.
3. Communication Plan. Develop a communication plan to contact friends and family and test periodically.
4. Satellite phone. If you live areas that experience frequent natural disasters consider purchasing or renting a satellite phone which connects to satellites in space. They provide functionality similar to cell phones such as voice, paging alerts, messaging service and internet access. Coverage can include the world or specific regions. Prices ranges from $200 to $5,000 for the phone plus talk time ranging from $0.15 to $2.00 per minute.
5. Smartphones Apps. Use emergency communication smartphone applications such as Life360, Guardly, Emergency Distresss Beacon and Quake SOS to connect to family and friends or emergency service providers to identify your location and confirm your safety.
6. Emergency Alerts. Sign up to receive emergency alerts with your city or state government, local school or university, utility company or weather service. You can also sign up for the Emergency Email and Wireless Network to receive alerts from local, state and federal government agencies.

How the Verizon Strike Will Affect You

I found out about the Verizon strike when I called last week to ask a question about my landline bill. A message stated that the wait time could take up to 15 minutes due to the strike. I got tired of waiting and decided to call back later. I asked a few friends if they heard about the strike and they had not.

This is Verizon’s’ first strike in 11 years. The Verizon strike begun due to talks with union workers that failed on August 6, 2011. Verizon has 195,500 employees and approximately 135,000 are non-union employees.

Union employees do not pay for health insurance premiums. Verizon is proposing: union employees pay a portion of their health insurance premiums similar to the plan for non-union employees, tie pay increases to performance reviews, eliminate the sickness and death benefit program, cut in half the sickness disability benefits from 52 weeks to 26 weeks and reduce sick time.

Verizon is proposing the new terms for employees due to the continued decline in revenue in landline services and increased use of cell phones. Union employees state that Verizon wants to eliminate their pension plans, health insurance and reduce their pay.

The strike affects all landline customers, FIOS and internet customers but does not affect its wireless customers. Verizon makes some of its revenue from its non-wireless customers since landlines are still largely used throughout the country. To compensate for the strike, Verizon may raise rates for existing customers to offset any losses. Local phone service is still one of the most profitable services in America. Verizon overall is performing well and earns a profit every year.

Verizon has not addressed the continued decline in customer service over the past few years. Verizon has reduced spending in construction, networks and staff but has not increased funding in customer service. However, Verizon has continued to pay high compensation to executive staff who are paid hundreds of millions of dollars each year plus perks.

In some states Verizon offices are closed on Sundays. Verizon uses a third party company to accept customer credit card payments. FIOS and DSL are not available to every customer that requests it, although Verizon promised the government that it would upgrade all of its customers to fiber optic service.

The reduced spending affects Verizon’s network, maintenance needs, work orders and monitoring of existing customer services and infrastructure. The reduced spending affects customers by:

1. Possible network outages to public safety services such as 911 and local non-emergency services such as 311, 511 or 611. This would result in delays for public health, safety and security requests and customer services.

2. Decline in the quality of phone and internet services provided to customers.

3. Decrease in competition and revenue for Verizon competitors and resellers.

4. Possible reduction in community outreach efforts and initiatives to help low-income customers and small businesses.

5. Delays in fulfilling work orders due to reduced staff and aging infrastructure.

Verizon is pitting non-union employees against union employees causing a rift. According to union workers, some non-union employees tried to run their cars over union employees protesting. Some employees picketing stated the strike could last months.

Customers should demand that service for Verizon customers in America should be provided by Americans workers, demand upgrades to Verizon networks, improve customer service, provide cost effective services for individuals and businesses, stop increasing rates, hire additional staff, eliminate deregulation to allow competition with other companies and provide 24 x 7 service.

It appears that Verizon does not have the ability to remain competitive and reinvest itself by revising its company business model like McDonalds, Nike, Apple and other companies who saw the market changing and were able to adjust.

Who Will Cry for the Poor

                    

Who will cry for the poor?

Lost and all alone.

Who will cry for the poor?

Abandoned and confused.



Who will cry for the poor?

They have no food to eat.

They cried for relief but none came.



Who will cry for the poor?

They are hungry.

They have no clothes.



Who will cry for the poor?

They are cold and abandoned.

They just need a little help.



Who will cry for the poor?

They did the best they could.

They worked hard for a few dollars.



Who will cry for the poor?

They are hurting and afraid.

They don’t know what to do.

Can anybody help them?

Who will cry for the poor in America?

Will you?

 @ Copyright 2011 Harrine Freeman

10 Financial Tips for Sexy Consumers

Being sexy can be summarized in 3 main areas: attitude, confidence and image. Attitude relates to your views on life, usually an optimistic person who can take criticism well and always remains positive. Confidence is how you feel about yourself no matter what someone else says about you or does to you. Image is the physical appearance of a person, their smile, their teeth, their hair, their walk, their laugh, their face, their body, how they dress, how they smell.

According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit it is hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships.  Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy. Here are 10 financial tips for sexy consumers.

1.     Being debt free is fantastic. Save money on interest by paying more than the minimum monthly credit card or loan payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.

2.     Pay down debt as fast as twista rhymes. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.

3.     Act like a celebrity and go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process.

4.     Stay cozy and keep money in your pocket. Do an annual check on your heating system. Insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in.

5.     Social media can be your enemy. Many debt collectors and some state taxing authorities are searching for consumers on social media networks who owe debt. If you owe debt, hide your profile from public access or just be responsible and pay your debt.

6.     Plan for the unexpected. Create an emergency savings fund to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.

7.     Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets for name brand pieces for less.

8.     Cut back. See what areas you can reduce spending by creating a balanced budget to stay out of debt. Thirty-five percent should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.

9.     Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 60-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000. 

10.  Don’t be a question mark.  Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis. 

What is Your Debt Ceiling

The US debt ceiling is a limit that is set by Congress on the amount of debt the federal government can borrow. The debt ceiling cap applies to debt owed. The debt ceiling is similar to the total debt a person owes to their creditors.
Every day the federal government spends more money than it takes in and makes up the difference by borrowing money. As a result, every day, the government’s debt increases. Every day Americans spend more money than they earn and make up the difference by using credit cards, lines of credit, and home equity loans (HELOC) or other loans. As a result, their total debt owed increases. The government needs to balance the budget which will require reductions in spending. Americans need to create their own personal budget or spending plan and make reductions in their daily spending. An individual balanced budget consists of: 35% for housing (rent/mortgage and housing related costs), 15% transportation (car payment, maintenance/repairs, insurance), 15% debt (excluding mortgage), 10% savings, and 25% remaining expenses (entertainment, food, cable tv, internet, etc.)

A budget doesn’t have to be restrictive. Stars and athletes have budgets; they hire accountants to keep track of their money so why shouldn't you keep track of yours? Seventy percent of Americans live paycheck to paycheck and forty percent live above their means. When your budget is out of balance you go into debt which can lead to serious financial problems such as foreclosure, bankruptcy, etc.

Creating a budget shows accountability for your spending and identifies your SEO – what you spend, what you earn, and what you owe and reduces credit card usage. Make your budget flexible so you have additional money to pay for unexpected expenses. You budget should include savings. Here are 7 tips to creating a budget.
1. Subtract monthly expenses from your monthly income after taxes. If the total is negative or less than 5% of your total monthly income this is a red flag that you need to make some major adjustments to your budget.

2. Track daily, weekly or monthly.

3. Keep all your receipts and reconcile your bank accounts.

4. Use automated software tool, pen and paper or the envelope method.

5. Create short and long term financial goals.

6. Use money left over in budget to create a savings account and pay down debt.

7. Use automatic paycheck deduction or online bill payment.

8. Verify your bank statements with your monthly receipts.

Here are 12 tips to get out of debt:

1. Stop using your credit cards. Pay cash for all purchases until you pay off all of your debt.

2. Downgrade or downsize. Move into a smaller and less expensive home or apartment. Trade in your luxury car for a car with no note or a cheaper car payment.

3. Compare. Comparison shop before making a purchase to get the best deal. Use sites like www.bizrate.com, www.pricegrabber.com, craigslist.com to find bargains.

4. Insurance. Buy insurance for health, life, disability insurance. Buy bundled services to save money with the same company and ask about discounts.

5. Setup a debt payment plan with your creditors. Setup a debt payoff plan to prioritize your bills. By using the debt snowball method you will be able to quickly pay off some of your debts. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.

6. Sell Items. Sell items not used within the past 3 months or more on eBay or Craigslist.

7. Get current on late payments. Pay off collection accounts, tax liens and judgments as soon as possible.

8. Pay on time. Pay balance in full each month prior to the due date or as soon as you receive the bill which helps to avoid paying finance charges.

9. Negotiate. Contact the companies to negotiate a lower interest rate, get fees waived or change terms if your account is in good standing.

10. Pay more than minimum. If pay the minimum monthly payment your payment may not cover the cost of interest and finance charges that accrue on the balance. Send more than the minimum monthly payment each month to help your balance will go down faster.

11. Clothing. Shop at discount stores, buy clothes in off-season, check out discount racks at stores and ask if stores if they honor competitor coupons. Buy a few jackets and mix and match pieces to stretch your wardrobe.

12. Helping Others. Don't open joint accounts or co-sign for loans. If they don’t pay you are responsible for the debt.

Is Barnes & Noble Next?

On July 21, 2011, at a scheduled hearing Borders is expected to ask the U.S. Bankruptcy Court of the Southern District of New York to allow it to sell off all of its assets. If the judge approves the move, liquidation sales could start as soon as Friday; the company could go out of business by the end of September. Due to Borders closing all of its stores, 11,000 employees will be losing their jobs. This will have an impact on the economy as well of those families of those employees, more foreclosures, more bankruptcy filings, and more bad credit.

What does this mean for the book industry? The only two major bookstore chains left were Barnes and Noble and Borders. This is good news for Barnes and Noble but what about Borders customers. Will they honor the Borders coupons, Borders gift cards, Borders Bucks, Borders Rewards program, Borders Reward Plus? Will Borders Kobo e-reader owners be allowed to use the Barnes and Noble Nook to read their Kobo books? What happens to vendors who are owed money from Borders? These are some of the many questions that need to be answered.

Barnes and Noble has 717 stores in the United States and has 637 college bookstores. There are approximately 1300 independent bookstores in the United States. In some states there will be miles of neighborhoods without a bookstore. For those who do not have a computer or e-reader, buying books will be difficult. For those who enjoy going to a bookstore to view books before purchasing them, the buying experience will now be different.

For authors, especially self-published authors getting a booksigning will become more difficult since Barnes and Noble does not usually work with self-published authors. I was a fan of the Borders bookstore chain. Borders has more of a friendly family oriented feel. I loved the Borders policy where customers did not have to wait in line more than 20 minutes to make a purchase.

Hopefully Barnes and Noble is reviewing and analyzing Borders customers and using that to ensure former Borders customers enjoy their experience each time they visit at any Barnes and Noble store.
If you are a book lover and enjoy going to a bookstore to purchase books, browse books or attend booksignings or seminars, voice your concerns to Barnes and Noble about the type of customer experience you would like to see at Barnes and Noble. This is a critical time for Barnes and Noble and will determine if they continue to stay in business or go out of business but they need your help.

Forbearance Help for the Unemployed

This week President Obama announced adjustments to the Federal Housing Administration’s (FHA) requirements that will require mortgage loan servicers to extend the forbearance period for unemployed homeowners to 12 months. The previous period was 4 months. The President also has plans for loan servicers who participate in the Making Home Affordable Program (MHA) to extend the minimum forbearance period to 12 months wherever possible.


This is a huge victory for homeowners who wish to remain in their homes during unemployment. This will make it easier for unemployed borrowers to qualify for forbearance. This prevents unemployed homeowners from filing foreclosure or bankruptcy. A bankruptcy or foreclosure greatly lowers your credit score. However, forbearance does not impact your credit score as much as a bankruptcy or foreclosure.

A forbearance is when your mortgage company reduces or suspends your mortgage payments for a specific period of time. When that time period expires, you resume making your regular payments. You will either have to pay a lump sum for the payments missed or additional partial payments for a specific amount of time to bring your loan current. Here are 4 ways to apply for mortgage forbearance:

1. Examine your current situation. Determine which option is right for you. You should not apply for forbearance if you previously were not able to pay your mortgage when you were employed. Contact your loan provider to get more information on how to apply for forbearance and terms. Another option may be better for your situation such as loan modification, short-sale, etc.

2. Contact your lender. Write your lender a hardship letter asking for a forbearance stating the reasons why you need forbearance versus other mortgage assistance options. The letter should include: time period of the forbearance request, whether payments will be made, monthly amount paid, proof of your financial hardship, a plan to overcome your financial hardship before the forbearance period expires, a listing of your current income and monthly expenses, and steps taken to assist with the financial hardship prior to requesting a forbearance. If you cannot come to an agreement on the terms then forbearance might not be the right option for you.

3. Negotiate. Work with your lender to negotiate the best terms you can afford for the forbearance agreement. Filing forbearance prevents your mortgage company from filing foreclosure and helps maintain your relationship with your mortgage company by showing that you are willing to work with them to pay back the money owed. Ensure all of your questions are answered before signing any paperwork.

4. Advice. Consult a lawyer to get legal advice and tax implications regarding filing forbearance. A lawyer can assist with writing the hardship letter and negotiating with the mortgage company on your behalf.

Have You Discussed Your Finances as a Family

Finances and family are important because finances is one of the biggest contributors to couples getting a divorce and is one the main reasons couples and families fight. Good money management habits help you prepare for the future, ends fights, reduces stress, and makes your life more enjoyable. The easiest way is to save money or anything you buy or own, comparison shop to find the best deals. Some ways to have good money management skills are: create a budget, begin saving, reduce debt, and educate yourself.

Every family member has to work together to develop a plan to handle their finances, individually and as a family. Families always think they need more money, but they really only need more discipline. Discipline will help them achieve goals so that when their get more money they manage it well and make it last longer.

Effective money management is solely based on how a family spends their money and lives their lives. Money management should include setting short and long-term financial goals. Families should plan for their future such as retirement, college for the kids, purchasing a home, etc. Many times families are so consumed with living day to day or paycheck to paycheck they can't worry about their future but that is the main reason families stay stuck in the same rut. Here are 5 ways to better manage your family finances.

1. Create a budget - First create a household budget or spending plan that includes involves each family member. A budget will show what you earn, what you spend and what you owe. This will help you see right away what areas you need to reduce expenses and where most of your money is being spent.

Hold family meeting to discuss finances and be honest about your financial situation. Many times parents live above their means just so their children are not aware of their financial situation – this is a "no-no".

If you don't know the exact amount spent on a particular item write down your best estimate. If an item fluctuates and ranges from month to month take the highest amount paid thus far and use that same amount in your budget. Buy items on sale and buy only needs. Buy wants periodically after starting short-term goals.

2. Begin saving - Set financial goals with a specific dollar amount and target date for each goal such as: save $1,000 by December 2012. Take each dollar amount associated with a goal and divide by the number of months to reach the target date. This will show you how much money you need to save each month to reach the goal.

Develop short-term goals that can be achieved in 3 to 12 months. Long-term goals are set and should be achieved over a period of time such as 3 to 5 years. For a family the first goal should be to create an emergency fund.

The emergency fund should be large enough to cover household bills and expenses for 3 to 6 months. This will eliminate fights with your spouse or partner and the children as well as prevent using a credit card for unexpected emergencies. Balance your checkbooks, monthly bank statements and credit card statements with monthly receipts to make sure no errors appear on statements on with your bank accounts.

3. Reduce debt - Create a debt repayment plan to pay off all debts. Set a target date for each debt including interest paid, monthly payment, total amount owed and if any bills are late. Start paying the smallest debt first then work your way up to the largest debt. Use the money paid for one bill and apply towards the second bill and continue this until all debts are paid.

4. Educate yourself - Talk to other families who have been successful in managing their finances or read books on family finances such as Family Finances the Essential Guide for Parents by Ann Douglas, Personal & Family Finance Workbook by Craig Israelsen, America's Cheapest Family Gets You Right on the Money by Steve Economides, Your Military Family Network by Military Family Network.

5. Plan for the future – make sure you have health, life and disability insurance. If your job doesn't offer these develop a plan so you can afford to buy them to protect you and your family if a tragic event occurs that affects your finances.

Budgets should be revised often when a specific event occurs such as: promotion, raise, additional recurring expenses, birth of a child, marriage, divorce, etc. Compare your budget with the financial goals set to ensure everyone is on track to meeting the goals.

Financials Lessons From Dad

Sunday is Father’s Day. Many fathers across the country will receive new ties, drills, silly hats or socks, stuff they need or stuff they don’t want. Hopefully you will get your father a gift he really wants similar to the T-Mobile commercial that shows a Dad going to buy a cell phone for himself and signing his baby daughter’s name.

Dads often don’t get the love or appreciation they deserve. After all, they are the other half of the chromosome that creates life. If you haven’t said thanks to your Dad even if you never met your Dad say thank you, he helped create you. Just think what life would be life without you.

Now for my advice, Dad’s alway provide advice to their children, no matter what age. Here are some financial words of wisdom from dads.

1. Work hard. Have a strong work ethic which will translate to all aspects of your life. Your finances are an important aspect of your life and you should take great care to maintain your finances – take time to know how much you owe, how much you earn and how much you spend. These basic things will help you to develop a plan to get out of debt and plan for retirement.
2. Save for a rainy day. Life happens. Unexpected events will occur so why not be prepared. Create an emergency fund to cover bills for 9-12 months so when something unforeseen happens you have the money to pay for it instead of using your credit card.
3. Make sacrifices. Dads always make sacrifices for their family. You should too, especially financially. When making purchases consider the impact on your family. If you are single consider the impact to your future. Determine if the item is a need or want. Wants can be bought later.
4. Pay with cash. Dad always paid with cash. He wasn’t too ashamed to skip buying something because he didn’t have the money. He only bought want he needed and a few extras every now and then and he turned out fine.
5. Plan for the future. Dad thought about the future. He went to work every day and paid his bills on time. He didn’t spend money unnecessarily and lived a modest lifestyle. He saved money and had a retirement account. He lived comfortably during retirement and his family’s needs were met.

Share your financial stories from your dad at contests@hefreemanenterprises.com. The winning story will be posted in my July newsletter. The winner will receive a free autographed copy of my book, How to Get Out of Debt: Get an “A” Credit Rating for Free. Entries must be received by June 26, 2011.

Save Money on This Summer's Vacation

Every loves to travel during the summer and many family vacations usually start during the Memorial Day holiday. Unfortunately, the economy has made it difficult for many families to take a summer vacation. We work 10-12 hour days. We rush to work, rush to get the kids, rush home, rush to eat dinner and then repeat the entire process all over again the next day. We never fully take the time to relax. It may seem there are never enough hours in the day to get everything done.

We all need to take time out to relax. Now is a great time to start looking for bargains on airfare, hotels and vacation spots. You work hard all year and deserve take at least a mini-vacation to a nearby beach or hotel. If you can afford to go on vacation without charging it on your credit card and only to still pay for 6 month later – then do it and pay for it with cash. Here are 8 tips to help save money when you are planning for your summer vacation.

1. Plan ahead. Plan in advance to save money. Buy toiletries and other necessities before traveling.
2. Talk to others. Talk to friends and neighbors to find out how they planned their vacation, i.e. ask about any discounts or sales, restaurants, shops, etc.
3. Act fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
4. Shop around. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises. Purchase services together such as air and hotel or air, hotel and rental car to save money.
5. Safety. Buy traveler's checks which can quickly be replaced if lost. If your credit card is stolen you may not have another credit card available to purchase any necessities.
6. Buy traveler's insurance. Buy traveler's insurance. This will reduce the costs of medical bills that could accrue if you get sick on a cruise ship or flight and prevent you from going into debt.
7. Use restraint. Use restraint while on vacation. Don't buy everything you see . If you know you will be tempted don't even go into the store. Buy items or souvenir gifts at flea markets or only buy items that are on sale.
8. Snacks. Buy snacks and a few drinks and pack them in your suitcase before you leave. This will tide you over when you get hungry while on vacation until you are able to eat a full meal. This will also help you save you money that you would spend on midnight snacks.

If you want to take a vacation and cannot afford it, here are 5 simple things to do in the meantime:
1. Visit local caverns.
2. Camp out in your backyard.
3. Spend the day at a water park or amusement park.
4. Take a road trip and go camping a few hours or at a local camp park.
5. Go sightseeing in your local area.

The most important thing to do while on vacation is - have fun, but don't overextend yourself by splurging on unnecessary items. Create a small list of items you want to purchase and stick to it. The worst feeling is to return from vacation and get credit card statement in the mail for items charged while on vacation.

Do You Really Need a Car

Since the recession many Americans have been forced to make financial sacrifices and cutbacks to reduce spending that they normally would not have considered. One big expense that most Americans have is their car. Consider selling your car to improve your financial situation.

I know, life without a car can be devastating and you will have withdrawal symptoms. You will start considering what people will think if you don’t have a car. Forget about what people think and consider your future. Do you want to be debt free or do you want to be 65 and still working because you don’t have get enough in Social Security to pay all of your expenses. It is never too late to change and take charge of your finances to prevent a financial disaster.

The cost of owning a car includes depreciation, sales tax, gas costs, interest (car loan), maintenance and repairs, and insurance. Depreciation is approximately 46% of the total cost of the car over 5 years. The average sales tax charged each time you pay for maintenance or repairs on your car can range from 3-5%. Filling up your gas tank can be expensive and can cost up to $20,000 over a 5 year period assuming an average of 12,000 miles driven per year using regular gas or 26% of the sales price. The average interest on your car loan over a five year period is 12%. Insurance can range from $1,000 - $5,000 a year or 10% of the sales price. Owners can spend as much as $80,000 in insurance over the life of their car.

According to Edmonds.com, if you purchased a car that costs $21,500, over five years, it will cost $33,438 to drive the car. If you are struggling with debt consider selling your car can help you pay off debt. Here are 14 ways to live life without a car.
1. Cost. Americans spend 20% of their income on cars which can range from $300-$800 a month which includes gas, car payments, insurance, maintenance, registration fees and taxes, parking, tools and repairs.
2. Repairs. Many car owners spend hours at the car dealer or repair shop waiting to get their car repaired. Think about what you could with your time if you didn’t have to sit in the car dealer all day.
3. Rent. Rent a car to go on long weekend road trips. Even if you don’t own a car keep your driver’s license up to date in the event you need to drive a car.
4. Kids. If you have kids it may be difficult to get around and go to all of their activities without a car. In that case, consider carpooling, use a shared car service like Zip Car, public transportation, bike or ride a motor bike.
5. Bad Weather. Don’t try to ride your bike in the snow and use caution when riding in the rain.
6. Eco-friendly. Getting rid of your car is good for the environment and reduces your carbon footprint. It also helps you to live a healthier life by allowing you more opportunities to exercise.
7. Options. Consider your lifestyle to see if selling your car is the right option for you. If you are disabled or have more than one child, it may not be possible to live a life without a car. However, you can reduce your driving your car.
8. Resources. You can use tools like www.walkscore.com to find services and attractions in a certain neighborhood that can be useful if you bike or walk.
9. Alternate. Keep your car as an alternate method of transportation. Do a test to see how much money you can save if you don’t drive your car for a week, and then try it for a month. Use the extra money to pay down debt or create an emergency savings account.
10. Move. Consider moving to the city or a downtown area to eliminate the need for having a car. Consider getting a job that is closer to a downtown area or train station.
11. Bike. Buy a bicycle and look for roads that have bike lanes to travel onto ensure you can ride your bike safely. You can also buy a motorbike or scooter to get around town.
12. Carpool. Consider joining a carpool to get to work or to take children to school events or other events.
13. Taxi. Take a taxi if you need to get somewhere and don’t want to bike or walk.
14. Shopping. If you are walking consider getting a wheeled cart to carry groceries or other items. Also consider shopping online.

Are You Afraid of Money

Hearing the word money makes many people cringe. Some people are in debt because they cannot overcome the fear of money. The single key to overcoming the fear of money is to determine the root cause of your fear. Examine life experiences associated with money during your childhood or early adult life. Negative thoughts become negative feelings. Negative feeling become negative words, negative words become negative actions. If you continuously make negative statements about your financial situation you will manifest those statements into reality. To change the way you think about money you have to be willing to make scarifies. Here are 6 steps to begin changing the way you think about money:

1. Remove the following phrases from your vocabulary: I can't, I don't have, I will never be able to, I am a loser, I am broke, I have nothing, I don't have any money, I will have to work until I am 65, I will never be able to buy a house, the more I make the more I will spend, money is the root of all evil, money just causes you to have more problems, I am not good with money, etc.
2. Be thankfu. Be thanks for and be responsible with what you have. If you cannot be thankful and responsible for what you have now, how will you be able to handle your finances if you gain more in the future?
3. Go back. Think about your childhood and identify any traumatic or painful experiences or beliefs you had about money and write them down.
4. Write down your thoughts. Write down why you felt that way. Next write down how those thoughts have affected you as an adult. Ask yourself if you truly believe those thoughts, have they just become habits or someone else's thoughts projected on you. If they are someone else's thoughts projected onto you then you can easily eliminate those. If they are your own thoughts, then you had to make a hard decision and commitment to yourself that you will stop having negative thoughts about money.
5. Take action. Each time you have a negative thought or make a negative statement about money or your current financial situation and immediately write down why you feel that way. Then write down a positive statement that is the exact opposite of that negative thought. If you need additional reinforcement buy some books on positive affirmations. You can also put an empty jar or water bottle somewhere where you will see it often and place $5 in the jar every time you think or speak a negative thought about money. Repeat this for 30 days. (Experts state it takes 23 days to make something a habit) By the end of 30 days you will have begun to change your thoughts about money. Whatever money you have in the jar after the 30 days use that money to pay a bill, put in a savings account or investment account.
6. Set goals. Set a monetary goal that you wish to accomplish and a deadline for that goal, i.e. I will pay off my Visa credit card by December 30, 2011. Once you accomplish your first goal continue to make additional financial goals and continue this throughout your life and you will see your financial situation improve and your negative thoughts turn into positive ones.

You must believe that money does not make you smarter, nicer, more successful, and more intelligent or a better person. Your character determines all these things not money. If you were a mean person when you had a few dollars you will continue to be a mean person when you have more money.

Make this affirmation, "In the past I have used my negative thoughts to create debt but from this day forth I will use positive thoughts to create wealth." I leave you with one of my quotes, "Money has the ability to generate debt or generate wealth, you make the choice".

20 Ways to Save Money Now

Many consumers nowadays are trying to find more ways to save money. However, some consumers refuse to save money and continue to have bad spending habits that will only lead to financial disaster. Many consumers don’t understand the true benefits of spending less than you have, saving money and creating a monthly budget. These are tools to help you get out of debt, pay for unexpected expenses and prevent you from getting into debt. These are things everyone should embrace with open arms.

Many people want to know why should I save money. I have enough to pay my bills; I can’t take it with me, what’s the point. Different people save for different reasons. You can save for many different reasons such as: unexpected expenses, a vacation, to start a business, pay for education, plan for retirement, home repairs, estate planning, buy a car, a wedding, down payment on a house and more. It is a great feeling to have money to pay for things you need instead of using your credit card and paying the balance off 6, 9 or 12 months later. Here are 20 ways to save money.

1. Pack your lunch for work every day.
2. Buy drinks from the grocery store instead of the newsstand at work or coffee shop or, better yet, drink water – it’s the best thing for your health and it’s free. Reduce all unnecessary spending (i.e. only buy necessary items).
3. Use direct deposit to send your paycheck directly to your bank.
4. If you get a raise, save all or most of the money received from the raise. For example, save $5 or $10 a week or whatever you can afford. Set a goal that you want to save $100 within a certain time period. Once you have accomplished that goal, set another savings goal and continue doing that. The next time you meet your goal, you will realize that you have saved a great deal.
5. Buy what you can on sale, instead of paying the regular price.
6. Use coupons or shop at a wholesale store such as Sam’s Club or Costco.
7. Buy whole foods, such as vegetables, grains, beans and fruits, instead of processed foods. This way you aren’t paying for the processing costs.
8. Check your local health food store to see if you can buy foods, such as grains, seeds, nuts, spices and legumes, in bulk. This way you aren’t paying for expensive packaging.
9. Carpool.
10. Take public transportation to work.
11. Cancel your cable service or get the cheapest plan possible.
12. Cancel your cell phone service or get the cheapest plan possible.
13. Reduce the amount of long–distance calls you make per month.
14. Shop around with various banks to find a checking account with no monthly fees.
15. Buy a midsize or compact car until your debts are paid, because this results in a cheaper monthly payment.
16. Finds ways to reduce home expenses by buying energy efficient appliances, ceiling fans, programmable thermostats, fluorescent light bulbs and lamps, or hot water insulator jackets.
17. Donate items not being used to a charity. The amount can be written off on your taxes.
18. Rent movies instead of going to the movie theater.
19. Turn the lights out when you are not in a room.
20. Turn the heat and/or air conditioner off when you are not at home or set at a low energy saving temperature which can be found be calling your local utility company.

Financial Help for College Grads

According to the Federal Reserve Bank of San Francisco the unemployment rate for college graduates in 2010 was over 8%. According to EPI’s new paper, The Class of 2010, recent college graduates under age 25 the unemployment rate is 9%. Monster.com has a special section on its website for recent college graduates to help them find jobs. USAjobs.com has federal job listings by college major.

According to Pianalto, recent college graduates don’t experience skill and geographic constraints because they tend to be highly educated and mobile. College graduates have suffered worse in this economy than any other group and are having a hard time finding a job. Trying to find employment during a financial crisis can limit total earning potential over the life of a college graduates’ career.

Another factor college graduates have to worry about is the debt accumulated while in school. If they are unable to find a job, they are also unable to pay their debt. When you find a job focus on paying down debt. Here are some financial tips for recent college graduates to help you reduce debt and improve your financial situation.

Housing
1. Stay at home for at least a year after graduation. If you have to live on your own buy an efficiency, studio apartment or loft. You can get a roommate but you have no control over whether they pay their rent or pay on time.
2. Your housing costs should be no more than 35% of your total net income (after taxes).

Auto
1. Skip the car. Don’t buy a car your first year of employment. Catch public transportation; borrow your parents’ car or a friend’s car when needed. If you must buy a car buy a used car.

Paying Down Student Loans
1. Use caution with consolidation. Consolidating student loans combines your loans into one payment but may or may not provide you with a lower interest rate. You may not be eligible for various student loan forgiveness programs if you consolidate your student loans.
2. Pay more than the minimum monthly payment. Your loan accrues the greatest interest in the first 2-3 years of the loan.

Investing (401K's/IRAs )
1. Start with your company's 401K. Contribute as much as you can to your retirement account. You will need at least 70-80% of your income during retirement and will need a minimum of $1,000,000 to retire.
2. Focus on long term growth. You have to be willing to leave your money untouched for the next 5 to 10 years. Otherwise you won't be able to see the benefits of your money growing.

Spending/Budgeting
1. Create a budget. Make your budget flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income. This will help to readily see the areas where you can reduce expenses. Create an emergency fund that is enough savings to pay your bills for at least 9 to 12 months.
2. Reduce your credit card debt. Pay more than the minimum monthly payment.

Managing Credit Card Debt
1. Stop spending. Don't spend money you don't have. This will result in your owing more money. Use your credit card for emergencies only.
2. Setup a payment plan. Setup a payment plan with each of your creditors to pay off your debts. Identify any terms and negotiations you would like to make and stick to the terms.

Credit
1. Order a copy of your credit reports at annualcreditreport.com and fix any errors.
2. Get current on any delinquent accounts.

Financial Planning
1. Use a broker or financial advisor to setup your retirement account.
2. Buy insurance. Buy health, life, disability insurance.

NFL Players are Just Like Us When It Comes to Money

Many NFL players go from a low to middle class lifestyle to upper or wealthy lifestyle in an instant and are not taught how to manage their finances and are not sure who they should or should not trust. Many NFL players are taken advantage of because of their financial status. In other instances they succumb to guilt from family and friends to take care of them, peer pressure, impulse shopping, unable to say no to those asking for money, living above their means, trying to impress others, being overcharged, or bad investments which causes them to lose their homes, have their cars repossessed or file for bankruptcy due to their bad spending habits and poor financial choices.

Many players buy things that have no value and have very little assets. Some forget to pay taxes, don’t keep track of their finances, make bad investments, get caught up in scams and lack basic business knowledge. This lack of financial experience and financial literacy education causes NFL players to buy things they can’t afford and try to portray a certain image that is difficult to live up to.

Approximately 40% of NFL players end up bankrupt after retirement. According to MSNBC approximately 380 players of the total 1,700 players live paycheck to paycheck. The average rookie salary is $320,000. When players get paid, after they pay taxes, pay their agent, publicists, accountants, lawyers and others on their payroll, pay for their lavish lifestyle with a home, multiple cars, jewelry, clothing, helping family and friends they have very little left.

Some NFL players are borrowing money from friends due to the lockout. Some players are getting payday loans called “lockout loans” provided by lending agents. Lockout loans for more than $60,000 can have interest rates as high as 36%. The NFL Players Association in advance of the lockout advised players to save at least 3 game checks and find additional ways to make money but many did not follow this advice. The NFL Players Association also provides financial seminars and classes for players who do not heed the advice provided or may not understand the advice provided.

Many players get caught up in the media frenzy and hype and want to give the appearance that they are wealthy when some are just one paycheck away from bankruptcy. Some players retire and don’t realize they are in financial ruin and need help until they retire.

Many players feel guilty by pressure from family and friends to take care of them financially which can cause a heavy financial strain on players. Family and friends see players on television and don’t realize how many expenses players have each month due to their lifestyle.

Many rookie players try to keep up with the spending habits of some of the veteran players and end up filing bankruptcy or foreclosure on their homes. In many instances players are taken advantage of by lawyers, accountants, agents and others who steal or do not keep their clients informed about their spending habits. In other cases, clients are advised about their poor spending habits but continue to spend until all their money is gone. The NFL Players association, lawyers, accountants, publicists and all who are on the payroll of the players as well as the players themselves are to blame.

My advice to all NFL players, read all books written by Warren Buffet who has lived in the same house for 50 years, drives himself everywhere, does not have security or a bodyguard, never travels by private jet, does not socialize with high society, makes popcorn and watches television, does not carry a cell phone, does not have a computer on his desk, buys clothes from the department store and is an expert in managing his money. You are experts when playing on the field, now it is time to be experts in managing your money – you owe it to yourself.

10 Tips to Manage Your Money

Everyone fears the word budget but don't be afraid. A budget is your lifeline to financial peace. A budget helps you know how much money you earn and spend each month. A budget is called many different names but the main goal of a budget is to help you live below your means. Nothing stays the same forever which is especially true today. Here are 10 helpful tips to help you manage your money.

1. Needs vs. Wants – buy more needs vs. wants to help reduce expenses.

2. Reduce spending – buy in bulk, on sale, at discount stores, online or use coupons, buy generic brands. Try websites such as groupon.com, coupons.com, freecycle.org, ebay.com or craigslist.com to find bargains.

3. Groceries – don’t go shopping when you are hungry, buy items on the lower shelves and ask about specials, join store clubs to get alerts on discounts.

4. Banking – open accounts with little to no fees, ask about discounts and specials, and establish a relationship with the branch manager to get alerts about specials and new products and services that could save you money. Don’t use check cashing stores or cash checks at the liquor store.

5. Driving – buy gas in the morning, combine nearby trips on the same day, keep the trunk empty, keep tires at the proper pressure level, get regular maintenance on your car, look for the cheapest gas and buy a gas efficient car, ditch the gas guzzler. Drive the speed limit to also save money on gas.

6. Medical – buy at least basic medical insurance for you and your family, get a prescription card and fill prescriptions at discounts stores such as Wal-Mart or Walgreens to save money, negotiate medical services to save money and ask about programs for uninsured or low-income patients.

7. Insurance – buy insurance for health, life, disability and your home. Buy bundled services to save money, buy homeowners and car insurance with the same company and ask about discounts.

8. AAA – triple AAA offers lots of discounts with partner companies that are not advertised, ask each company you do business with if they give discounts to AAA members.

9. Compare – Comparison shop before making a purchase to get the best deal. Use sites like bizrate.com, nextag.com and pricegrabber.com.

10. Clothing – shop at discount stores, buy clothes in off-season, check out discount racks at stores and ask if stores if they honor competitor coupons. Buy a few jackets and mix and match pieces to stretch your wardrobe.

Has America Lost Its Common Sense

Webster’s defines common sense as “sound practical sense, good judgment.” Waiting until the last minute to solve a problem is an example of not using common sense. Common sense is used in all aspects of one’s life including finances.

Unless you became sick, lost your job or received a reduction in pay and were previously able to pay your bills but then filed bankruptcy or foreclosed on your home, your lack of common sense prevented you from making good decisions managing your finances. Instead of filing for bankruptcy you could develop better spending habits which takes hard work and sacrifice. However, if you want something badly enough, you will do whatever it takes to accomplish it – this includes managing your finances, saving money and getting out of debt.

Many people work hard to try to get a handle on their finances but continue to be unsuccessful and in some cases repeatedly make the same poor decisions. It may seem like everyone is in debt or that everyone has bad spending habits, but that is just you trying to convince yourself that you behavior is normal. Well – it’s not. Being in debt and having bad credit is not normal.

You cannot do what everyone else does, even if they make the same amount of money as you do, live in the same neighborhood, send their kids to the same school and activities. Everyone’s situation is different and you can’t judge a book by its cover. Lack of financial common sense can cause you to:

1. Pay your bills late
2. Spend money you don’t have
3. Have no savings account
4. Don’t know how much debt you owe
5. Have bad credit
6. Buy basic necessities such as food and gas for your car with a credit card because you don’t have the cash
7. Get denied for credit
8. Hide from your creditors
9. Avoid paying your debt
10. Make a large purchase with upfront fees, hidden fees or unfavorable terms
11. Continue to apply for credit hoping that eventually a company will approve you

If you financial life is out of balance, your entire life will be out of balance. If you don’t think you have common sense, you can read books and read articles on how to develop your common sense. Common sense increases your confidence and self-esteem. Common sense can prevent you from buying a large flat screen television with your credit card and taking all year to pay it off.

Having financial common sense will cause you to:
1. Create a budget
2. Manage your money
3. Live below your means
4. Prevent you from buying something if you don’t have the cash to pay for it
5. Know how much debt you owe
6. Downsize or downgrade your lifestyle
7. Have a savings account
8. Have good credit or continuously work to improve your credit

Common sense is being able to think for yourself and being open-minded to different views and opinions. Financial common sense helps you to plan ahead which can be effective when using a budget or spending plan. Creating a budget makes you accountable for your spending.

Financial common sense also shows you more about yourself. If you spend money you don’t have, it shows your true character –what you believe in, what makes you happy, what you are good at, and what you are not good at. The lack of financial common sense can cause you to be an impulsive spender, have an emotional attachment to things, have the need to show everyone how much money you make or cause you to live in a fantasy land and live a lifestyle you truly cannot afford.

Financial common sense will minimize your chances of making bad financial decisions that will affect your future. Financial common sense can ensure you have an emergency savings fund and buy more needs versus wants. Financial common sense will help you to know how to get the most value for your money when making purchases. Financial common sense will help you to know how much you spend, how much you earn and how much you owe.