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

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

What is financial freedom? It’s different for everyone. To some it may be having no debt at all and a fat savings account.  To others it may be having just a house payment and a few thousand dollars stuffed under the mattress. Here are a few key points to keep in mind:

• You get to decide.
• Don’t let anyone/anything decide for you.
• Envision your typical day when you’re retired.
• How does that lifestyle make you feel?
• Start working today to fund that lifestyle.

We are constantly bombarded with advertising in all forms.  These things tell us how to think, act, dress, live, and be.  This creates a conditioned mind that buys into consumerism without much thought.

This has been going on for decades.  You can break free of the conditioning of society.  Try going on a TV diet for a week.  You won’t believe how much clearer your thoughts will be.

Financial freedom is what you decide it is.  Dare to define it on your own terms.  You’re the master of your own dollar destiny!

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

Copyright © Greg Whitaker, All Rights Reserved

My name is Greg Whitaker and I want to help you achieve FINANCIAL FREEDOM.
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