HANDLING UNEXPECTED FINANCIAL SETBACKS & CHALLENGES!

I have been stressing that being debt free is the way to live life. A good friend suggested that I talk about how to respond to financial challenges if you are not debt free and how to approach this.

First of all, financial challenges are not life threatening and you need to keep things in perspective. This morning I talked to a friend who had to rush his 16 year old daughter to the hospital for emergency surgery. He had quick change in his perspective as to what was really important in life.

Whatever challenges you are facing today remember that 5 years from now this will be but a memory and chances are that you will be facing new challenges.

Let’s say you just lost your job, you are heavily in debt, and have few, if any, cash reserves. Things to consider:

1. Immediately contact your creditors and let them know of your circumstances and your desire to pay off your debt. I am positive that they will be open to working with you. Even if you only send in $10/mo. , it will show your willingness.

2. Look at what you can sell. If you owe money on a car, see if you can sell for at least what you owe on it and buy a used vehicle to tide you over. Get rid of the payments.

3. Do not hesitate to take even low paying jobs. It will put food on the table.

4. Get rid of cable or satellite T.V., cell phone, and any other services that you do not need.

5. No more spending on eating out, movies, etc.

6. Above all do not lose hope or faith.

Realize that literally millions of people have faced similar challenges and they overcame.

Perhaps, in hindsight, you will see that this happened in your life to direct you into a new life path that propelled you to into a brighter future!

Jacques
CreatingWealthThatLasts

WHAT TO DO IF YOU GET THE PINK SLIP? IT ALL DEPENDS!!!!!!

As part of my day to day business, I meet lots of people who are in not so good financial shape. They literally seem to owe money on everything: cars, boats, credit cards, loans, T.V.’s, you name it, their paying on it.

The sad thing is that some of them will go totally bust if they should lose their jobs. For some people getting a pink slip is really not too stressful, as they have no debt and a reserve of cash for at least 6 months. Does that sound like you? If not then getting the pink slip will be a BIG deal and very stressful.

So what do you do if you have debt and no reserves? Start now! Don’t wait! Don’t procrastinate!

It might seem impossible to you at this time but don’t lose heart. Believe me, if I can do it, you can do it! You cannot Create Wealth That Lasts with ongoing debt as part of your lifestyle.

I have previously talked about how most financial people talk about good debt and how this is something you need. Nobody needs debt. If you believe this lie, then it will be very difficult for you in the long run.

I do believe that buying a home is something you need to do and you might need some debt to start this process. However, you don’t need a Mc Mansion! In today’s housing market, you can find good buys that will suit your needs.

Did you ever consider that you can get a 15 year mortgage instead of a 30 year mortgage for not much more monthly payments, if you can cut done on other areas-like cable T.Y. for instance? Yes, I did say cable T.V.

Seriously, start to picture yourself debt free, see yourself as relaxed and content. The day will surely come when you will find that the albatross around your neck is gone and your are FREE indeed.

Being debt free is a noble goal for you, your family, and your posterity!

Jacques
CreatingWealthThatLasts

MYTH: SECRETS OF THE SUPER WEALTHY !

Do you get as many emails as I do about getting the secrets of wealthy people and how to get rich overnight and you need to respond right now for only $47 before the price goes up?

People sometimes look for a quick way out of their mess. That’s why lotteries are so successful. ( I don’t believe all the hype as how this is helping government pay bills through the money raised by the lottery). The lotto is a tax on poor people and on people who can’t do math.

There is no such thing as easy wealth and there is no such thing as MONEY SECRETS ! People want a sure thing and there is no such thing. There is inherent risk in everything in life. Just going outside your home is a risk.

What do rich people do? They save, they spend less than they earn, they look for deals, they don’t buy to impress their friends, they expect to increase, they are prudent, and they don’t expect the government to bail them out.

Rich people do not work 9- 5. That’s job mentality. They work however long it takes. If you have a day job, what could you be doing in your spare time to develop new skills: take courses, classes, explore starting a business part time, etc. The opportunities are everywhere !

The Internet is a true equalizer. Everyone has the opportunity to develop a business, but don’t be fooled. There is no such thing as an overnight success and earning 6 figures in 90 days. You must pay your dues and learn, learn, learn and implement, implement, implement.

Patience and persistence are key elements. The rich have multiple sources of income. They might have jobs but they almost always have a business on the side that might become a full time business. They are not afraid to take calculated risks.

These are not secrets but principles. One major key to getting rich that I have already mentioned and this is worth a million dollars. SPEND LESS THAN YOU MAKE! That is the starting point. If it will make it easier to swallow, I’ll tag it as a SECRET of the SUPER WEALTHY !

Jacques
CreatingWealthThatLasts

MORE MONEY MYTHS! WHY ARE WE WORRIED ABOUT THE BANKS?

The whole U.S. seems to be focused on banks and what we must do to keep them afloat. What do banks do? They lend money. That’s how they make money. Lets imagine that everyone stopped borrowing from banks ( that includes credit cards) and they saved and paid cash for everything.

First of all people would still spend the money, which would spur the economy, and the only ones not making lots of money would be the banks. I have a home in Bangor, Me. and the major buildings going up are banks and drugstores. It seems there’s a new bank being built on every corner!

The myth is that if people don’t borrow from banks the economy will suffer. Wrong, wrong, wrong! There are 6 billion credit card offers going out every year. Why? It’s a big money maker. It’s a rip off if you ask me and highway robbery with the interest rates they charge.

We keep seeing that consumer confidence is down. All they are really measuring is how much people are putting on credit. Believe me if everyone was out of debt consumer confidence would be sky high.

Saving and investing causes an increase in wealth while borrowing creates bondage, poverty, and more banks on the corner. Do I sound negative about banks? Maybe. Did you every have to go for a loan and made to feel like you where not worthy to sit in the chair in front of the loan officer who was probably making not much over minimum wage?

I use credit cards in my business and personal life and pay off all balances at the end of the month and my wife and I use this to get air miles on different airlines. We accumulate enough points to get several free tickets every year.

In the last 10 years we have started doing this we have never been late on a payment. This past Christmas we went to Florida for 12 days and when we got back our credit card bill had come in at about the time we left. We sent our credit card payment immediately and it was one day late. A $30 late fee. Give me a break.

Americans don’t need to keep borrowing enormous amounts of money every year to keep the economy afloat. That is a lie.

Get debt free. Stay debt free. That will make for a more sound economy in my book!

Jacques
CreatingWealthThatLasts

MONEY MYTHS CONTINUED !

Some people may find that I sound harsh at times with my comments. I do not mean to offend anyone, I am just providing my opinion. After struggling with debt for so many years, I know firsthand that debt is a CURSE. It keeps you in bondage and you think that you can never live without debt and you will never be able to afford anything without borrowing or using a credit card.

How many college graduates are starting out life with huge credit card debt to go along with college loans and they do not realize how long it will take to pay this off if they only pay the monthly minimums.

Another pet peeve I have is car loans and car leases. When my son was in the United States Airforce he was stationed outside of Boston at Hanscomb Airforce Base and had gone out to buy a used car. He is a good negotiator and got a good deal. He was shocked to see how many of his buddies had bought new cars or trucks at $25,000 to $30,000 a pop and had signed to pay loans for 4-5 years!

The car salesmen loved these new recruits. Myth: Car payments are a way of life, you’ll always have them. No! Drive a dependable used car.

A couple of years ago, we helped our daughter buy a second hand 2002 Mercury Sable. The car had 35, 000 miles and we picked it up in late December for $8,500. My wife did the negotiations, she is much better than I am. My daughter has 65,000 miles on her vehicle at this time and it is running fine. By the way, it’s paid off and she is saving for another car.

Same way with leasing a car, even if it’s for business. Use a calculator and you will quickly see that a lease is the most expensive way to operate a vehicle.

Have you heard this: You can get a new car at zero percent interest? A new car loses over 60% of its value in the first four years, that is not 0 %.

What to do. Put money aside every month, whatever the amount and save instead of getting credit. You can find excellent bargains on used vehicles. Once you buy the vehicle, keep putting money aside monthly, just as if you where making a car payment. You are paying yourself to buy your next vehicle cash.

Try it, you’ll like it.

Jacques
CreatingWealthThatLasts

MONEY MYTHS !

It’s really amazing to hear all the financial pundits on the news. If you believe everything they say we are all victims !. It’s not our fault we are in debt and it’s the government’s responsibility to get us out of debt.

This is a dangerous lie. The government does not produce anything. It spends! Any time it uses money, in any form, it is coming from taxes or printing extra money which creates inflation. Government intervention is not the answer.

As the government gets more involved it leads to socialism and then: total government control. Our present economic system is based on spending and not saving. Americans today are saving practically nothing. We are in debt to our eyeballs.

Ever hear the saying: good debt and bad debt. Baloney! All debt has a risk to it and all debt has to be repaid-with interest. The word mortgage comes from two French words: Death and grip. In other words, a mortgage is a death grip!

Debt will keep you in bondage and will keep you poor your entire life and it does not matter how much money you can be making. Multi millionaires might be paying $20,000 and up per month on a mortgage. Give me a break!

Life is not about outdoing the Jones’s. It’s about living a quality of life that eliminates undue stress in our lives. Believe me once you are debt free you’ll feel like you’ve lost 100 lbs off of your shoulders.

Myth # 1: You house is an asset. Wrong! An asset is something that produces income. How much income is your house producing? You are paying a mortgage, taxes, insurance, utilities, etc.

In other words, money is going out and not coming in. Hey, what about appreciation and making a killing on selling your home? First of all you have to live somewhere. Where will you go? Second of all, as your house appreciates-your taxes are going up. I would guess that in today’s market your house has lost value.

Keep tuned in!

Jacques
CreatingWealthThatLasts

WHO CAN YOU TRUST FOR FINANCIAL ADVICE?

I just finished reading an article in Forbes Magazine about the glut of people who call themselves financial planners. Most financial planners make their money by actually selling you products and earning commissions by buying and selling stocks in your portfolio. There are also financial planners who charge a fixed price.

If you consider the recent Madoff scandal with celebrities, multi-millionaires and even billionaires losing large portions of their fortunes, who can you trust? Most people feel they do not have the financial know how to make investment decisions or the time to devote to this and they look to so called experts to handle their hard earned money.

I could never understand how recent college graduates from prestigious schools would get high paying jobs on Wall Street making investment decisions. They made six and seven figure incomes even if the investments they recommended lost money for their investors.

My take on this: a scam! Sounds harsh! What do all the pundits say: Invest for the long haul: 20-40 years. What if you’re at the end of 40 years and everything gets wiped out? What then?

Even the big wigs in this industry don’t even beat the market most of the time. I personally have lost faith in the stock market. I still have money in a 401K and I will keep it there but I am not putting any more money in the market. That is my personal decision. Feel free to disagree.

I have found that I am more comfortable with a conservative view and I know that there is no get rich quick scheme. So what do we do with our money? I have most of my money at this time in CD’s that are staggered and have different maturity dates and rates of interest. I am also looking into real estate in prime markets that are underpriced. I am not looking for fixer uppers but solid real estate that is on the market at a good price.

Yes, real estate goes up and down but at least you still have the real estate in the long run and it does not evaporate into thin air.

I have one area where I have never lost money and I can sleep well at night knowing that my money continues to work for me at all times. I invest heavily in God’s Kingdom! The returns are multi-dimensional and God is the best investor in the business!

This goes well beyond the tithe (This is another topic in itself and I will not elaborate on this). When you really do not know what to do with your money, invest it with God. You will never go wrong and you will never lack!

Jacques
CreatingWealthThatLasts