Monday, September 29, 2008

12 Reason's your Credit Score does not Matter!


Just finished up the 3rd of four Financial Management Classes at my church. I taught on the "Reality of Debt Free Living". Everyone was jacked up and ready to destroy their debt, but to the surprise of many what got the class energized just as much was when we discussed Credit Reports and Scores!

It's amazing how the media, the government and these credit card companies have brainwashed a majority of the population into believing that you cannot function in our economy without debt so you have to have a good credit score!

My stance on credit is to live DEBT FREE. Therefore my stance on credit scores is, WHO CARE'S!? I'm not trying to get into debt so I don't care what my credit score is. I am not saying don't worry about paying your bills on time or pay those that you owe money to. Walking in financial integrity is very important and is a must. My point is who needs a credit score if your goal is to live a debt free life!

Uh ohhhh I now I touched alot of nerves out their! So I created a list of 12 Reason's your Credit Score does not Matter(humorous but serious):

  1. Your goal is to be debt free! Make sure you actions line up with your goals!
  2. Cash is king. When you have money in the bank people soliciting your business will listen. That includes mortgage companies and insurance companies
  3. Last I saw you can pay cash for anything
  4. If the car rental place won't take your "Debit Card" (meaning a card that's linked to the cash in your bank account) find one that will!
  5. If the hotel won't take your "Debit Card", find one that will!
  6. With a savings plan you can buy and drive debt free cars forever!
  7. You can utilize your own cash in a savings account for overdraft protection instead of a line of credit or credit card.
  8. Any business that will not accept your debit card is one less business that you should patronize.
  9. I've never heard a millionaire say they became rich off of frequent flier programs and cash back from credit card purchases.
  10. You haven't even taught your teenager how to handle real money. Why do you need to "build their credit up?"
  11. 10% off my first purchase and a free t-shirt is not worth getting caught in the debt cycle.
  12. How many people do you know that didn't get a job because of their credit report?
It can be tough to go against the grain at times, but you always come out stronger and better at the end! A key I've learned over the last several years is that whatever the rest of the people are doing do the opposite! When everyone is buying you should be selling! When everyone else is selling you should be buying! Well guess what! Everyone is trying to get their credit score up! LETS DO THE OPPOSITE!

Live Debt Free & Prosperous!

Thursday, September 25, 2008

Are you attending the budget meeting?

We are at the time of year that many major companies of the world are setting up their annual financial budget meetings! What do they do during these meetings? In simple terms:
  1. They review if they are on track with this years financial goals
  2. They set financial goals for the coming year.
  3. They then ask themselves do these short term goals (1 year) line up with our long term goals (5-10 years)
  4. They plan how they are going to achieve these short term goals.
Not only is it important for these mega billion & million dollar companies to have these meetings but it's important for you and I to have these meetings for our personal finances.

Here are 7 steps to set up your annual budget meeting:
  1. Schedule the meeting! Specific time(s) and date(s)
  2. Invite everyone that needs to be their! i.e. your spouse, maybe your accountant. Hey if your single don't forget to invite yourself!
  3. Review your financial goals for this year, are you on track? If you don't have any set. Then set some for the remainder of the year!
  4. Set your financial goals for 2009!
  5. Then ask yourself do these goals line up with my long term financial goals? (Do you have any?)
  6. Then ask your self what is the "Next Money Step" that I need to take to achieve these goals?
  7. Review your progress towards your goals at least once a month and make adjustments as needed.
If you don't have a plan for your money, you had better believe that someone else does! Advertisers, credit card companies, banks, Pay Day Loan places, drug dealers the list goes on and on. There #1 goal is to remove you from your money! You must set short and long term goals for your money. Your "Next Money Step" is to attend your budget meeting!

Carlos Frank
Financial Coach
website: www.nextmoneystep.com
Picasa Album: http://picasaweb.google.com/nextmoneystep/NextMoneyStep#

Wednesday, September 24, 2008

False Financial Prosperity



As a Financial Coach, I've coached and spoken in front of hundreds of people over the last 5 years and what I've found is that people spend most of their time and money "looking" prosperous on the outside but are miserable on the inside. They leave their big homes and pull up in the nicest cars and step out looking good with the new dress and fine clothes. They "look" prosperous on the outside but are broke on the inside!

The problem is many people try to fix internal problems with external things but that is impossible! Prosperity starts on the inside. Nothing you can put on, drive, eat or live in can fix internal problems. You must renew the way you think about money! When you do this you will make wiser decisions with your money! You'll give more, save more and spend wiser!

Ready to renew your mind about money? Contact me at carlos@nextmoneystep.com for a free 30 minute consultation!

Live Debt Free & Prosperous,

Carlos Frank
Financial Coach, Author and Speaker
Visit my website: www.nextmoneystep.com