7 STEPS TO FINANCIAL FREEDOM

What is financial freedom? More than just a dollar amount on your paycheck, financial freedom is a state of mind. It’s the comfort of knowing you’re debt-free. Getting started with eliminating debt is easier than you think. If you follow these seven simple steps, you’ll be on your way.

1. Change the way you look at money – renew your mind!

We tend to think of money as the enemy, a scapegoat for all of our financial woes. Learn to look at money as a means to living comfortably, not the cause of your struggles. Ultimately, we are the ones who decide where our money goes. It’s not like dollar bills sprout legs and go buy a new TV, right? Money discussions can be uncomfortable for many married couples, but talking is an important first step. A good book on this is “Secrets of the Millionaire Mind” by T. Harv Eker or “Rich Dad, Poor Dad” by Robert Kiyosaki.

2. Get out of debt – owe no man anything!

Living with debt is more than a financial drain and mounting interest. It’s also constant worrying over whether you can pay your bills. Here’s the most effective (and simple) way to tackle your debt:

Start by paying off the credit card with highest interest rate. Set some specific goals here. How much extra can you pay each month? Always make more than the minimum payment. Once that card has been paid off, start working on the bill with the next highest interest. Throughout this process, you should be paying the minimum on all of the credit card bills you have. Check out this free e-course on getting out of debt (http://www.youneedabudget.com/index.php#order).

3. Don’t create any more debt – be a wise steward!

Now that you credit card balance is down to zero, you want to keep it that way. To remain debt-free, all you have to do is spend less than you take in. Easier said than done? Maybe. This is another opportunity to have a good heart-to-heart talk with your spouse about both of your spending habits.

Some people recommend cutting up all your credit cards. However, keeping one credit card as a safety net in case of emergency is perfectly fine. Keep only one card, take it out of your wallet, and put it some place less accessible – such as your family’s fire safe. The time it takes to get out the card will serve as a “cooling off” period.

4. Create a budget – count the cost!

Budget can be an unpleasant word – like ‘diet’. But don’t think of it as depriving yourselves – think of it as investing in yourselves. Which sounds better: one dinner at your favorite steak house or going to be every night knowing you’re debt-free? Think of your budget as an opportunity to cast a vision together as a couple. What’s important to both of you? Your spending should reflect your values, what you hold most dear in your heart. Here’s a simple software program you can use for creating and keeping your budget together (http://www.youneedabudget.com/index.php#order).

5. See where it goes – make a list and check it twice!

For an entire month, track everything you both spend money on – down to the last penny. Evaluate whether you are prone to making impulse purchases. Also, look at whether advance planning will help. For instance, plan your meals at least a week in advance. Multiple trips to the grocery store mean multiple opportunities for impulse purchases.

6. Start saving – plan for the future!

Build yourselves a nice cushion of cash. After you’ve lowered your debt and begun living on a budget, you should money to put into a savings account each month. When an emergency arises, you’ll have cash to cover the expenses – no need to borrow money or use a credit card.

Seek wise counsel about different kinds of accounts you can use to save money tax-free. For example, you can contribute to a 401(k) and steadily build a nice nest egg – and the difference in your net paycheck is so small you might not even notice it.

You’re not limited to stocks, bonds, and savings accounts, either. There are a lot of pretty creative ways to save money that you might not have considered before. Check out www.liveoutloud.com for some great ideas.

7. Get insurance – get yourself into good hands!

If you don’t both have enough health insurance, one accident or illness could devastate you financially. Even if you have insurance through work, evaluate whether it’s enough to prevent a financial crisis. Consider getting supplemental insurance if you believe you’re underinsured. Also, don’t overlook disability insurance. Should you find yourself unable to work, debt is guaranteed to mount. You might think extra insurance is too expensive – but you’re wrong! For most young adults, life insurance and disability insurance cost less than a dollar a day. You’ll never know unless you ask – so call around and start learning about your options.

Small changes add up quickly. Don’t let bad money habits wreck your marriage. You’ve got to both be committed to this goal if you’re going to make it happen. Financial freedom is closer than you think. Don’t wait a minute longer to achieve your dream – start on these seven steps today!

ABOUT THE AUTHOR

© Jewell R. Powell, the Marriage Coach and author of Marriage 101: Building a Life Together by Faith. For more information, visit www.marriage101.us

Many people were struggling financially when the economy was booming, but are still struggling now. Suddenly though, they feel very comfortable blaming their situation on the bad economy.

Conduct an honest self-evaluation. Are you broke because of the bad economy or because of the following other reasons?

1) Mismanaging Money

Problem: Some people are very guilty of overspending on unnecessary items. Others have no idea what a budget is.

Solution: Write down all your transactions, and total them up at the end of the month. It sounds tedious, but in two months you’ll realize how much money you waste. $300 on fast food, $250 on video games, $500 on clothes. You’ll be a changed person forever.

2) Mismanaging Your Personal Credit

Problem: Many have ruined their credit with unpaid bills and loans, late payments, bankruptcies, and more. Now they can’t even buy a car (let alone a house) without paying 20% interest rates.

Solution: Get a copy of your credit report and a calendar, and come up with a 3-5 year plan to fix your credit. Call your lenders and tell them you are serious about paying them back, and ask them to reduce what you owe. Many times, they will comply. Remember that just $50 a month for 4 years can pay off $2,400 worth of debt.

3) Not Learning A Trade Or Skill

Problem: Many never took advantage of the opportunity to attend college or learn a trade. Now, they are stuck with minimum wage jobs and no expertise to start a company of their own.

Solution: Discover what skills you are naturally good at, and teach yourself more. Find the right books, take an online class, earn a certification if possible, and get rolling. Its never too late to start.

4) Not Saving Money

Problem: Too often, people don’t put money away. Many don’t even have savings accounts, let alone a retirement plan.

Solution: It may be sunny for a while, but one day it will rain. Hard times are inevitable. Put as much money as possible away, so that when you need it – it will be there. Think about it: Had you done this 5 years ago, you’d probably have a little bit of money to get you through this bad economy. Open up a savings account today, and use it.

ABOUT THE AUTHPR

Dante Lee is the 27-year old CEO and president of Diversity City Media based in Columbus, Ohio. Sign up for his free daily blog at www.DanteLee.com

Sacramento, CA (BlackNews.com) – In response to heightened media coverage of issues related to climate change, The Research and Policy Institute of California (RPIC) analyzed the perceptions of minorities throughout the state — African Americans and Latinos.

Of five key priority issues affecting minorities to date, global warming was consistently ranked the lowest priority, according to the survey. Findings in the survey also indicate minority communities are under-educated on legislative measures and policies intended to combat global warming.

Education and awareness on environmental issues and legislation appears to be low — and frequently absent — within the minority communities, based on RPIC’s findings.

"Education is a key factor in the lack of awareness about environmental legislation and the many components within the legislation that goes beyond just providing a cleaner environment or improving air quality," said Casanya Ursery, Executive Director of RPIC.

RPIC surveyed nearly 200 community leaders throughout the state to serve as a broad indicator of how educated their communities are and the perceptions they have regarding proposed state legislation such as Assembly Bill 32, the Global Warming Solutions Act passed in 2006.

The community leaders surveyed consisted of public policy leaders, civic leaders and key influential business leaders in the state’s African American and Latino communities. Organizations who participated in the survey included the California Black Chamber of Commerce (CBCC), the California Hispanic Chamber of Commerce (CHCC), and the state’s National Association for the Advancement of Colored People (NAACP).

Though education and awareness on environmental concerns was not high, overwhelmingly respondents of the survey placed the development of renewable energy sources as the most pressing environmental priority.

"African-American and Hispanic small businesses and families will be hardest hit by the higher electricity, fuel and food costs resulting from AB 32, and yet this survey shows that there is very little known about the state’s proposed climate change plan in our communities," said Aubry Stone, President and Chief Executive Officer of the CBCC.

Responses in the survey revealed African American and Latino communities would be unsupportive of environmental policies and measures that could cause financial hardship. Only 17 percent of respondents believed their communities would support increased energy costs to consumers that are intended to promote improved environmental conditions.

"Small businesses in the Hispanic and African-American communities are the economic backbone of many neighborhoods throughout the state. They are already challenged by higher energy costs, and AB 32 could impose even higher costs. Before the state finalizes its climate change program they need to proactively reach out to these important stakeholders," said Eligio Nava, Chief Executive Officer of the CHCC.

The survey also indicated that 88 percent of respondents believed the state should evaluate whether implementation of the proposed environmental legislation would impact lower-income families.

"This survey provided a very strong indication that minorities are concerned this may become more of a detriment than an overall benefit to them and their communities," Ursery said.

For more information about the survey, log on to www.calresearch.org

Create Your Own Recession Insurance by Starting Your Business

Financial fear and economic pessimism dominate the airwaves and news pages these days as economists debate whether our country is in a recession. But millions of families across this country already know the answer: They are experiencing their own personal recessions, as the economy slows, the dollar weakens, and homes go into foreclosure.

Many people are looking to their employers for clues they can gain as to their own financial futures: Will their jobs still be around? Will their hours stay steady? Will they be able to survive?

But there is another way to try to help secure your family’s financial future. And that is by looking at yourself. That’s right, you. Critically examine your life to see what you are good at doing, what you like doing, and what you know how to do that can make you money. It’s time to put your talents, skills and abilities to use so they create income and wealth for you and your family.

Launching your own business – even on a part-time basis – could be a realistic way to get through an economic recession and build your family’s financial future. You may find your business grows from a part-time venture to a full-time position. I launched my first company on a part-time basis while working for a newspaper. Two years later, I was working full-time for myself. 

Entrepreneurship isn’t for everyone, of course. But it may be for you. It’s an intimidating undertaking for many because they do not know what to expect or fear they already do not have enough money or other resources to be successful. Proper assessment and planning can help you objectively answer your questions, as well as position you for entrepreneurial success.

Here are four questions to get you started figuring out if entrepreneurship is for you:

Four critical questions for those considering entrepreneurship

1. What do I do well that can also make me money?

2. Am I willing to educate myself about starting and growing my own business?

3. Am I willing to adjust my schedule to fit my business into my day?

4. What financial resources do I have available to me?

The first question answers the basic query about what you will offer that will be marketable. It’s not enough to just start a business and hope customers will come. You must know early on that you are providing something the market finds valuable.

The second question helps you assess whether you will be willing to invest the time – and money – into educating yourself about business, your new company and other critical matters. Work with a coach who can help you navigate business start-up and growth. Read books and articles about your area. My latest book, Zoom Power: Your Key to Hitting Your Personal, Business and Financial Targets, is a good resource for people struggling to achieve their goals and dreams. This book helps you develop the mindset to see your business to success. It also helps you create a practical plan to go from thinking to doing.

The third question goes to your commitment of time. Running a business – even a part-time venture – is a serious commitment. If you are not willing to dedicate the time to establishing your business, then it will not succeed. 

The fourth question addresses financing your business. You must consider how you will support your business in its start-up and growth. Will you use savings? Loans? Will you reinvest money into the business? Will you reduce your personal expenses and use that money for your business?

Entrepreneurship is the means to achieve financial stability, security and ultimately, freedom.  Maybe you’re good at doing the job your employer pays you to do. Can you turn that skill or ability into a business of your own? Perhaps you have a story to tell or you have a wealth of knowledge about a particular subject area. If so, maybe you would want to consider writing a book about what you know and turning that book into a business. Or maybe it’s time to turn your hobby into a business.

Entrepreneurship could be the answer to your family’s financial concerns.

ABOUT THE AUTHOR

Monica Carter Tagore is an entrepreneur, author and columnist. She also is a mentor who helps people publish marketable books. Sign up for her free Ambitious Entrepreneur newsletter at knowledgewealthseries.com.

Columbus, Ohio – There is new research by the Center for Retirement Research at Boston College about the retirement crisis debate. This is sparked by recent academic articles that question whether Americans are, especially African Americans, facing a retirement income crisis.

The Issue: Soaring oil prices, rising health care costs, declining retirement benefits and the uncertainty of Social Security and Medicare make many doubt they have what it takes to build financial security.

This is particularly true for African-Americans who are behind in accumulating wealth with an average net worth of $6000 compared to $86,000 for other US households.* This has to change – to stop the disparity from widening.

WHO: Keith Millner, President of Nationwide Financial Network, is available for interviews to discuss this topic and shed light on some of the research that says – 73% of African Americans males surveyed said they were forced into retirement by factors beyond their control – unexpected job loss, disability or illness. The score was only 33% for the general population.

94% would like to stay in their own home during retirement. This compares to 81% for the general population.

Research also indicates that 45 percent of households will be at risk of not maintaining their standard of living in retirement.

WHEN: Telephone and face to face interviews are available

>HOW: To arrange an interview—contact Bob Cunningham at (614) 249-3091 or cunninb1@nationwide.com.

Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $160 billion in assets. Nationwide ranks #104 on the Fortune 500 list. The company provides a full range of insurance and financial services, including auto, motorcycle, boat, homeowners, life, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com