I’m blogging this because in recent months I’ve realized something. I need to refocus my commitment to financial discipline. I always apply 10% of my gross income to pre-paying my smallest balance debt first. What I realized today is my wife Lynn and I aren’t both doing that.  No fault, we just got lazy.

• Couples need to be on the same page financially
• Bills are paid together
• Budgeting is done as a team
• Grocery shopping is done together, when possible.
• Major purchases are discussed ahead of time
• No “secret” savings accounts or credit cards the other spouse isn’t aware exist
• Money is the #1 cause of marital problems

Late last year we hit a comfort zone with our efforts toward debt freedom. We got a little lazy and made some cash purchases we don’t normally make. We got even lazier and pulled out the plastic end of last year.  I paid off most of the plastic with saved cash, but there’s a small balance left.

So Visa is getting a piece of my action every month.  Greg got stupid and decided he needed a “business partner” who gets a share of his monthly profits.  You don’t need any business partners with credit card names.  It’s a losers game.  I paid a $17k credit card mountain off in 12 months in 2006.  I can handle this $3,100 mole hill, but it’s just irritation with myself for slipping.  Know what I mean?

Went to a used book store today.  To stay on track I bought Dave Ramsey’s “Financial Peace University” in a box.  The CD’s alone are worth 100 times the purchase price.  So I get to brush up on my knowledge base and get inspired to keep my game sharp.  That fuels my coaching/teaching efforts.  When privileged enough to be asked to help someone, I like to be prepared.

I encourage you to develop financial discipline if you don’t have it.  If you do have it, keep it focused and fresh.  Never stop learning.  Read a book on the subject.  Listen to an audio teaching.  And most importantly, share your knowledge with others.

As the great Jim Rohn said “Everybody wins when somebody shares.”

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

Take a look at the BRANDZ(tm) Top 100 most valuable global brands report. This speaks volumes to human behavior.  What we buy most is what’s most important to us.

Of the top 10 global brands, Marlboro is 8th & McDonald’s 4th. It comes as no surprise that the top 2 killers of Americans are heart disease and cancer (1.1 million deaths). Source: Deaths: Final Data for 2007, table B, The Centers For Disease Control.

Those deaths are strongly related to what we consume, what we buy. What we buy most tells us what’s most important to us. Heart disease and cancer are primarily diseases of affluence. Affluence means abundance. Abundance of what, tobacco and junk food? I don’t know, but 1.1 million deaths really make you think.

Don’t get your shorts in a bunch about the disease comments. I lost both my parents to cancer before I was 40. They passed away 13 months apart. I’m not judging here. I just want you to stop and think about what you buy. What’s most important to you? How do you spend your time?

So what does any of this have to do with money? It has everything to do with money. If I’m spending more than I make, that’s an abundance problem. Just as when I’m eating more calories than I burn, that’s an abundance problem. What’s the old saying? Too much of a good thing……

The question “What do you buy?” is the same as “What are you eating, drinking, or doing?” If you aren’t happy with what you’re getting, stop doing what you’re doing. If you want different results with your money you have to take different action. No area of your life is immune to this rule, especially money.

I want you to win in the area of your finances. Just take an honest look at your results. Ask yourself “If I could change one thing about my finances, what would it be?” Realize you are 100% responsible for your current situation. No one wins the blame game.

I’ll close with a few book recommendations from Larry Winget, The Pitbull of Personal Development.  He’s a 5 time Wall Street Journal & New York Times bestselling author. I’ve read one of them and gave a copy to a friend.

• “You’re Broke Because You Want To Be”

• “Shut Up, Stop Whining, and Get a Life!”

• “That Makes Me Sick”

You are 100% responsible for YOUR economy, and that means 100% in control of changing it if you want to!

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

Just what is broke?  What is financially free?  The two terms are relative.  Broke or financially free to you might be something completely different to your neighbor.  Here are a few thoughts:

• Broke is zero money in savings/checking, no assets to sell for cash.
• If you have debt on an “asset”, it’s not an asset.  It’s a LIABILITY.
• If you’re employed and broke, then you’re just “temporarily unfunded.”
• Ever been broke, busted, and thoroughly disgusted?
• Broke means something needs to be fixed, repaired, or changed.
• What’s really broke is the way we think about money.
• Financially free means monthly passive income exceeds monthly expenses.
• Passive income means income earned if you decide to stay in bed.  SWEET!!
• Do you know if/when you’ll be financially free?
• Why do we envy and/or respect people who are financially free?

Huge tip.  Stop taking financial advice from people who are broke.  If someone gives you financial advice, ask them about their current financial health.  What results are they getting?

As of this writing I have an $80K mortgage balance and $3,200 Visa balance.  I pre-pay the Visa as much as my budget allows each month.  That’s 10% of my net income toward pre-payment.  When that’s paid off, I’ll pre-pay the mortgage the same way.  My wife Lynn and I hold title (no debt) to both our cars. Slow and steady wins the race.

I’m willing to bet you spend more time thinking about money than you spend thinking about:

• sex, (abundance or lack thereof)
• your relationship(s)
• your health
• God

It’s really a choice.  Broke or financially free?  What do you really want?  If you’re broke and want to change it I suggest getting out of debt fast.  If you’re not in debt and working toward financial freedom, teach someone how to do what you’re doing.  Assuming you’re happy with your current results.

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

Powerful video. Want to know how the money system really works? This video explains that and a whole lot more. Beware, once you know something you can’t not know it.

“The bold effort the present (central) bank had made to control the government … are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.” – Andrew Jackson

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

If I’ve learned anything in life it’s simply this.  Wanting something just isn’t enough.  I have to also be willing to take immediate, decisive, and continuous action.

• “What you do speaks so loudly that I cannot hear what you say” – Ralph Waldo Emerson
• “Action will destroy your procrastination” – Og Mandino
• “Opportunities multiply as they are seized” – Sun Tzu
• “If you don’t have daily objectives, you qualify as a dreamer” – Zig Ziglar
• “Success is getting what you want; happiness is wanting what you get” – Ingrid Bergman
• “Winning is not everything but wanting to win is” – Vince Lombardi

People occasionally come to me for coaching or consulting around their finances.  I always try to remember to ask them one simple question, “If you could change one thing about your current finances, what would it be?”  The most common answer is “If I could just make more money.”  There’s a lot of wanting in that statement.

I think I want more money.  I think I want to get out of debt.  I think I want to learn how to invest.  This is how most of us think when it comes to money matters.  All the wanting in the world never got me anywhere.

When it comes to unhappiness or wanting change I love what my Mom used to say, “Greg, when your plate is full you’ll walk away.”  Thank you Mom for that awesome kernel of life wisdom.  I’m passing that kernel on to you today.  You may say you want to get out of debt.  You may say you want to make more money.  But until you decide and act, nothing will ever happen for you.

I speak to small groups of people about finances on occasion.  It’s probably my favorite thing to do.  I always try to recommend a good book; one I’ve personally read and acted on as a result.  I’ve come to realize a very rare percentage of people will actually go get the books and read them.  That’s OK.  My job is to share the information.  I can’t make people want change.

Jim Rohn said “That’s why they put the good stuff up on the top shelf.  You have to stand on the books you’ve read to reach the top shelf.”

So you say you want to be financially free?  I began that journey 5 years ago.  I’m still on that journey.  It takes commitment and action to stay the course.

As Les Brown put it, “Wanting something isn’t enough.  You must hunger for it.  Your motivation must be absolutely compelling in order to overcome the obstacles that will invariably come your way.”  Thank you Les.

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

Podcast: Play in new window | Download

Click here for audio blog: Rigged Game

They’re printing it faster than you can save it. The Federal Reserve prints money at will. That’s what causes inflation. Don’t listen to a word Federal Reserve Chairman Ben Bernanke says inflation is. Quantitative Easing or QE is the double speak used by ivy league economists to explain this wanton printing of money.

– The Federal Reserve Act became law in 1913, therefore
– Congress surrendered its power to borrow/create money to a for-profit corporation.
– Today we call that “outsourcing.”
– The Fed is NOT a part of the US federal government.
– The Fed admits this & adds “yeah but” we are subject to Congressional oversight.
– That’s like hiring the fox to wire a security system in the hen house.
– The money you hold in your pocket is nothing more than a promissory note, it’s DEBT!
– Congress borrowed it from The Fed and the paper money you hold is the IOU.
– If Congress couldn’t borrow from The Fed you’d be taxed to death, literally.
– Every year Congress automatically spends more than the prior year, never less.
– Budget cuts are cuts to the proposed amount Congress wants to spend.
-Not the amount they are currently spending or spent last year.

If you print money it’s illegal. If The Fed does it it’s called “Quantitative Easing”.
What does this all mean? It’s simple. The more money that is printed, the less your existing dollars are worth.

A famous painter produces an original work of art and it sells for $1 million. Limited supply, high value. If he paints the exact same piece of art 10 more times, the value of the original drops. High supply, lower value.

Remember when VCR’s first came out? They were heavy, bulky, and expensive. Not that many people owned one. Once they got lighter, smaller and cheaper everyone was buying them. High supply, lower price. Same concept as the art. The same concept with money. Paper money isn’t magical or mystical. It’s no different than widgets at Wal-Mart.

Every time The Fed prints money it’s causing inflation. If you are a saver and earn your income from interest bearing investments (CD’s for example), you are being punished by inflation. The US economy is built on a false premise. The premise being economic growth, fueled by debt, will continue forever.

This is totally contrary to the laws of nature. Everything has a cycle of birth, growth, maturation, and death. Every empire in history has gone through this cycle. The American Empire is no exception.

The Federal Reserve says the economy is recovering. That’s a blatant lie. We are experiencing hyper inflation. Gold is near $1,500/ounce. The higher gold goes, the higher inflation is. Gold is the only TRUE barometer of inflation. As paper currency is worth less, gold is worth more.

You’re playing in a rigged game. The system is built to try to keep you in debt from cradle to grave. This is why getting out of debt is so important to your financial future.

I want to help you escape the rat race. It’s possible to get off the tread mill of hyper consumerism. You have to stop charging up & paying down credit cards. You have to stop trading up your car every 4 years. You have to stop refinancing your house when interest rates drop a point or two.

As Dave Ramsey reminds us: this is 20% math and 80% behavior modification. The US government & The Fed are not modifying their spending behavior, but you can modify yours.

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

The answer to the question “What is Money” is probably as clear as muddy water for most. You think you know what it is because it’s something you don’t really stop and think about. It’s like putting your pants on in the morning. You don’t think about that, you just do it from force of habit.

– money thoughts are habits
– they’re formed when we are very young
– most keep them an entire lifetime
– very few people ever consciously change them
– they are directly tied to our self esteem
– thoughts of unworthiness show up in our money habits
– money thoughts can be changed
– it takes practice, practice, practice
– messy car, messy house, messy money
– money is an expression of energy/God

We spend more time thinking about money than we are aware. How much do I have? How much do I not have? When am I getting some more (payday)? Why can’t I get more? Why do rich people have so much? Why do rich people keep all the money? How can I get rich?

In The US we place so much emphasis on money. How much you do or don’t have is a way we measure people’s worth as human beings. “Lifestyles of The Rich & Famous” did nothing more than perpetuate class envy. The proverbial carrot was waived in front of peoples faces and that fueled hyper consumerism. Buy stuff and be somebody.

Listen to what people talk about in social circles, really listen. In my experience I’ve found most would rather discuss TV, sports, divorce, or sex than discuss their finances. Money is so taboo, it’s actually humorous.

It all goes back to the thought: How much we do or don’t have is a way we measure our worth as human beings. This is a huge error in thinking. What is money? It’s what you think about it. Your thoughts define money. Money doesn’t define you!

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved

You’ll love this nifty little debt reduction planner. I plugged in the average US credit card holder’s balance and this is what it looked like: $17,500 balance, 19% interest, min. monthly pmt. $525 (3% of balance), time to payoff: 22 years, 5 months. Total interest paid $17,900.

Guess what? The bank doesn’t really want you to pay that credit card off.

– never use credit to buy a depreciable asset
– The US is the largest debtor nation in the world
– revolving debt is a disease in The US
– debt is a contract
– you contract your future labor for goods/services
– your creditors are your business partners
– they get a portion of your profits each month
– when a bank finances your purchase, YOU are the only asset

If you’re serious about getting out of debt you need to see what you’re dealing with. Write it down. See where the money is going and track your spending (budgeting). Open that check book register and look at all expenditures for 30 days. You’ll probably be surprised at what you spend each month.

Pay particular attention to eating out at restaurants and entertainment. Cut back on things you can live without. Commit a set amount of money out of your budget to pre-pay your smallest debts balance. You add this commited amount to your minimum payment each month. Watch it shrink!

You’ll be surprised what a difference adding just an extra $100/month to a debt can do. Start with the smallest balance debt, pay it off. Roll the extra and minimum monthly payment from that debt up to the next largest debt balance. Lather, rinse, repeat. Use the debt reduction planner to do “what if” scenarios. So, when will you be debt free?

To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com

© Greg Whitaker 2011, All rights reserved