http://youtu.be/u92ArkyuPeo

Open your mind to the idea of living on 70% of your net income. What’s up with the other 30% you say? You’re going to do some cool stuff with that remaining 30%.

That goes toward a good personal finance plan of:

1) Giving 10% of your income to charity
2) Investing 10% where you choose
3) Saving 10% for an emergency fund and beyond

This keeps you from living check to check, week to week. You have to have a solid personal finance plan. It starts with, of course, debt elimination. But along the way you should give to charity and put some money in savings.

Ideally, your plan could look like this:

1) Save $1,000 emergency fund.
2) Pay off all debt except the house, start with smallest balance debt first.
3) Once all debt except house is paid, save 3-6 months living expenses to finish your emergency fund.
4) Invest at least 10% of income, where you invest is your choice.
5) Pay your home off.
6) Keep investing, building wealth, and giving.
7) Teach everyone you know to do the same thing along the way.

So, if you’re spending every dollar you make on debt and living expenses there won’t be anything left when it’s time to stop working (retire). Get started now on the road to pay off debts and achieve financial freedom.

To Your Financial Freedom,
Greg Whitaker

http://www.youtube.com/watch?v=-y9wX7OILX4

What’s important to you? I bet I can tell you. Just let me see your checkbook register. Where you spend your money tells the world exactly what’s important to you. What’s your personal finance plan?

We pay top actors/athletes $50 to $100 million dollars a year to simply entertain us. Yet we pay the average teacher and police officer less than $50,000 a year. Being entertained is more important to us than anything else.

We’re entertaining ourselves to death. It’s costing us our future. If what you say is important to you doesn’t match where you spend your money, you’ve got some work to do.

Payoff debts, get a personal finance plan. Get it all cleaned up. Yes, you can do it!

To Your Financial Freedom,
Greg Whitaker

© Greg Whitaker, 2011 All Rights Reserved

http://www.youtube.com/watch?v=wbkTuFJVrXI

You can’t go in to get out. What’s that you say, Greg? I’m saying you can’t go IN debt to get OUT of debt. Try telling that to a local bank whose radio commercial I recently heard.

This was the gist of the ad. Use their credit card and you could earn points toward reducing the balance of your mortgage. Notice the word COULD is in italics here. This is one of the oldest and most pathetic enticements used by lenders to sucker you in.

Earning points to use a credit card is really juvenile if you think about it. It speaks to the child in us. If you’re a good little boy/girl and you behave correctly (use their credit card), they’ll reward your good behavior with points! What are they, brownie points? Are we talking Boy Scouts and merit badges here? No, we’re talking about your hard earned money.

The bank would have you believe that if you go into debt with a credit card, it’ll help you get out of debt with your mortgage. Asinine to say the least. Trust me. You’d never earn enough points to pay your mortgage off. If you did, your credit card balance would be so enormous you’d never pay it off. Revolving interest is not part of a good personal finance plan.

A $3,000 credit card purchase @ 19% interest, making minimum monthly payments would take you nearly 30 years to pay off! Don’t fall for the BS the lenders are using to try and get your business. You’ll never get debt free using credit cards.

This ad tells me banks know you are getting much smarter than in the past. You’re slowly realizing that it’s smart to prepay your mortgage. When you do that, the bank makes less profit because you pay them off faster. So they’re trying to make up that loss with credit card interest payments going from your pocket to theirs.

Remember: When you pay interest to borrow money you’re just renting someone’s money! Interest paid is nothing but rent. Don’t be a renter. Be an owner. Pay cash.

I challenge you to shred one credit card this weekend. Go ahead, live on the edge.

To Your Financial Freedom,
Greg Whitaker

http://www.youtube.com/watch?v=H14QV6YBqqk

If you’re thinking about financing your college education, think twice. Look at a cheaper alternative like online accredited universities. The cost of an average private university in The US is about $27,000 per year. Back in the early 70’s it was about $3,000 per year. That’s an 800% increase!

The government is making it easier to borrow money to go to school. Do you really want to have a 4 year degree and be over $100,000 in debt before you’re 25 years old? That’s not a smart personal finance plan. It would take you many years to become debt free and you’re just getting started.

Education is a product. Services rendered, money paid. Look at your options before you dive into student loan debt. And by the way, you can’t include student loans in a bankruptcy.

To Your Financial Freedom,
Greg Whitaker

http://www.youtube.com/watch?v=BPoltsloDXE

With all the news coverage about the ill state of financial affairs in The US, it’s important to understand the true definition of a budget cut.

What it’s not:
When a politician says budget cut, that’s referring to a cut in the proposed amount of money Congress would like to spend in the upcoming year. It’s not a cut in the amount of money that was spent the year before or that’s currently being spent.

All government programs (ie: Medicare, Medicaid, Social Security) are on auto pilot to increase every year. So Congress automatically spends more money than they did last year. As a result the size, scope, and power of government increases each year.

Example: You make $50,000/yr and spend every penny on living expenses. You aren’t saving a dime. Come end of the year you decide you want to live on $75,000 next year. But you don’t increase your income. So you just borrow the extra $25,000 and hand the IOU to your neighbor, a friend, or a stranger.

That’s how Congress does it each and every year. They spend more than they did the year before. And they keep borrowing money from The Federal Reserve to do it. The paper currency you hold in your purse or wallet is the IOU. Will The US ever be debt free?

What it is:
A true budget cut should be correctly referred to as a spending cut. This begins first and foremost when you –
1) STOP BORROWING MONEY. You can’t borrow your way out of debt.
2) Decrease your expenses. This means you have to live on less than you make.
3) Pay off debts.
4) Save and Invest.

That’s responsible money management.

Until you can do 1 thru 4 above, it’s tough to complain how inept Congress is with your tax dollars. Start cleaning up your own house first. Then, along the way, expect it of your elected officials.

The best book I’ve ever read on this subject is:
Common Cents: A Retiring Six-Term Congressman Reveals How Congress Really Works-And What We Must Do to Fix It – by Timothy J. Penny; Major Garrett

Get the book. Read it. Pass it on to a friend.

To Your Financial Freedom,
Greg Whitaker

http://youtu.be/HNbsN5Usc34

When it comes to making things happen in your life, thinking about it just isn’t enough. You’ve got to move into action. Over analyzing things and not taking action keeps us stuck on the couch.

When it comes to personal finance, action is key. Want to become debt free? Action is key. Make a plan, execute the plan. Stick to the plan.

Don’t let your mind fool you into thinking that just thinking is enough to get things done. Are you doing what gets you paid or just doing what keeps you busy?

To Your Financial Freedom,
Greg Whitaker

http://youtu.be/RkQbe_ThZIk

Ok, you’re debt free. So now what? You’ve got options. You can save, invest, spend, or go back into debt.

A good personal finance plan should include, saving, investing, and giving. Becoming debt free is awesome. And once you get there, don’t be foolish with your money. Have a plan. Stick to it.

There’s real estate, stocks/bonds, or a savings account. Each with a different rate of return and level of commitment. The hardest, but most rewarding, is investing by buying assets that produce cash flow.

Remember, inflation is a tax. If you don’t put your money to work, inflation will rob you of your wealth. Put your money to work for you.

To Your Financial Freedom,
Greg Whitaker

http://www.youtube.com/watch?v=dRlZuTZTZBI

Try to get in the habit of giving away a portion of your income. 10% is commonly referred to as tithing. If you aren’t a church goer no biggie. Give to a person, place, or organization where you are spiritually fed.

If 10% is too much, don’t sweat it. Try 5%, or 2% or an amount that you’re comfortable with. The point is to just get started.

When you give a portion of your income back, it’s an opportunity to participate in the unlimited abundance of the universe. Let it be a normal part of your personal finance routine.

You’ll be surprised how easy it is once you get in the habit. And believe it or not, you can give away a portion of your income and still become debt free!

To Your Financial Freedom,
Greg Whitaker