I’d like to introduce you to a really simple, cool concept called “a dime of every dollar”. It’s nothing new. A few ways to describe it are tithing, paying yourself first, or saving for a rainy day. Whatever you choose to call this simple idea, I promise you (from my own experience) it’s POWERFUL!

– saving a dime of every dollar takes discipline
– it’s a habit that doesn’t take long to form
– once you start, you’ll be amazed how easy it is
– your money thoughts affect every area of your life
– your checkbook ledger is the window to your soul
– where you spend says what’s most important to you
– more money won’t solve your problems
– more money makes you more of what you already are
– terrible with $25k/year? You’ll be worse with $50k/year

Let me clarify an important point that tithing is different from saving money. One you give to where you’re spiritually fed, the other you keep in your pocket. And if you’ve never done either one that’s OK.  I’m simply trying to help you wrap your mind around the idea.  10% of your income should be used for something other than debt payments, living expenses, or just blowing it.

If you work Monday thru Friday for 40 hrs, then 4 hrs/week is 10% right? So a dime of every dollar just means from 8am to 12noon (4 hrs) on Monday you’re working for you! You’re going to set that money aside each payday and either save it or give it somewhere that is important to you.  Notice I said “save” or “give”, not SPEND.

You are not a consumer as consume means to destroy or use up.  You are a creator, a giver, a source of life.  Saving money means you care about you. Saving for investing, self-care, or a vacation? Saving money isn’t that hard to do. You just have to get started today!

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

© Greg Whitaker 2011, All rights reserved

Did you know the average US household with a credit card has a balance of $14,750 (per Federal Reserve Report 02/2011)? If the minimum required monthly payment is 3%, that’s $442 a month going to the bank! I can think of better ways to spend $442 a month. Keep in mind that credit card bill is probably from stuff you don’t even use or have any more.

– Credit cards are income stealers.
– Einstein said the most powerful force in the universe was Compound Interest
– Compound interest is money the lender earns from you while they sleep.
– Interest paid on borrowed money is RENT.
– The Federal Reserve prints money at will. About $3-4 Billion a day, lately.
– The more money they print, the less your existing dollars are worth.
– That’s inflation and it’s intentional
– Inflation is a tax, plain and simple.

Here’s some credit card perspective. A $2,000 retail purchase @ about 19% interest would take you over 30 years to pay off. That’s assuming you just made minimum monthly payments. That’s exactly what the bank wants you to do.

It’s called the minimum monthly payment trap. Don’t get caught in it. You get robbed of your future potential wealth when you charge your purchases and carry a balance. Before you buy something on credit stop and think, do I really need this item? Most of the time the answer is no.

Here’s a tip. Take the smallest credit card balance you have. Add to the minimum monthly payment as much extra money as you can each month. I recommend 5-10% of your net income. If that’s a stretch, less than 5% is a good place to start. It’s called pre-paying your debts.

Cheap, easy credit is the only reason there’s a middle class in the US. I hate to say it, but it’s true. You can’t borrow your way out of debt. You have to pay it off. Getting rid of those income stealers, credit cards, is a great place to start. Will it happen overnight? No. Will it be worth it? Yes. And YES, you can do it. Take action. It’s the only way anything happens.

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

Copyright © Greg Whitaker, All Rights Reserved