Don’t Let the Fox Guard Your Financial Henhouse

This economic meltdown has left many people dazed, bewildered, and scared. Watching your 401(k) shrink to a 201(k) can be a very unsettling experience. If you want to protect yourself from these types of experiences here is something to keep in mind…Never invest in anything you don’t understand.　

It’s important to realize that stock brokers and commission based advisers don’t make money by investing. They make money selling investment products…whether you make any money or not.　

Unfortunately most people believe these types of advisers have some specialized knowledge that will somehow “magically” make their clients money. They mistake apparent reality for reality.　

The reality is that most commissioned advisors aren’t concerned about you making money. They are only concerned with whether they make money or not, and they only make money when youyou buy their products. Trusting them to help you make wise investment decisions is like trusting the fox to guard your henhouse.　

Here is a great quote from the book, “Empire of Debt” by Addison Wiggins:　

“Wall Street is doing nothing evil; it is merely doing its job – separating fools from their money.” “The root of the misconception is the nature of investing, at least, the public form of it. The idea of it is that a man can get rich without actually working. All he has to do is put his money “in the market” by handing it over to Wall Street, and through some magic never fully described, it comes back to him ten fold. There must be some science to it, he imagines, some wisdom that investment geniuses came up with years ago that – like penicillin or quinine – is now available to him. But it is not so. Instead, the whole edifice of Wall Street is built on a hollow wish: that you can get something for nothing.”　

My advice is before you invest in something you don’t understand, take some time to educate yourself. Remember, no one will care as much about your financial security as you will. In the meantime, invest in your debts by paying them off as fast as possible. That way you are guaranteed a rate of return equal to the interest you would have paid.

Can Debt Settlement Help Pay Off Secured Debts?

Most people know that debt settlement is a viable option for anyone who is struggling with unsecured debt, such as credit cards. In fact, it’s often the only option that really makes any sense. It’s certainly the best alternative to bankruptcy.

But what about secured debts like mortgages, cars, student loans, etc.? Can debt settlement help a person burdened with these debts as well? You may be surprised to find the answer to that question is a resounding…YES…but not in the way you may think.

Let me explain. You see, secured debt can’t be formally included into any debt settlement plan because the loan is secured with collateral. Your mortgage is secured by the house. If you don’t pay your mortgage as agreed, the lender can simply foreclose. In the case of an auto loan, the lender can repossess the car and sell it at auction, leaving you owing any deficiency balance.

This is why most people see debt settlement as being limited to only unsecured debt. Unfortunately, those who see debt settlement in a limited way includes the consultants in the debt settlement industry. Their training has been limited to focusing on just unsecured debt, as opposed to a more holistic approach.

The goal of the Debt to Prosperity Power Plan TM is to help you become totally debt free, including your secured debts as well. So how can you use a settlement plan to pay off secured debts? Let me show you:

You may have heard of a concept known as “power payments.” This is sometimes referred to as a debt snowball strategy, which works like a snowball rolling down hill. As the ball continues to roll it gains speed and momentum.

The concept is simple, you focus your energy and resources to pay off one debt at a time, while paying just the minimum on all the others. When that first debt is retired, you add the resources you had been paying on it to the next one in line until it is paid off. Then you keep repeating the process until all your debts are gone.

Here is how you can use this strategy with debt settlement.

Let’s assume you are paying $400 each month into a settlement account. The plan shows that all your unsecured debt will be paid off in 36 months. At the end of the 36 months you will have $400 to do with as you wish. Now let’s say you add that $400 a month to your car payment. If your current car payment is around $400 you are in essence doubling up on payments (the $400 you were already paying on the car, combined with the $400 you are now adding to the payment equals a new monthly payment of $800). This means your car loan will be paid off twice as fast (the snowball is gaining momentum).

Once the car loan is paid off, take the $800 and add it to the next debt you want to focus on. This might be your second car, student loans, you mortgage or any other debt you select. Continue to repeat this process until all of your debts are gone and you are totally debt free!

By following this process you can use your debt settlement plan as a springboard to a totally debt free and prosperous future. You may be amazed to find that the average person using this process can be totally debt free (including their mortgage) in just a few short years as opposed to the decades it will take using conventional repayment plans.

To find out how quickly you could be totally debt free using this strategy, try the calculator you will find at:

http://www.prosperitypowerplan.com/calculators/accelerate.html

A 3 Step Plan For A Prosperous Future

A recent survey conducted by Gallup shows that more and more Americans are worried they may never have enough money to retire. The survey shows that confidence in traditional retirement plans like Social Security and 401(k)s is the lowest it has ever been. Only 4 out of 10 people surveyed expressed confidence in their 401(k) plans.

On the other side there was a tremendous spike in the number of people who feel they will need to keep working (at least part-time) once they retire.

So why are so many people facing the prospect of spending their “golden years” working under the “golden arches?”

The problem for many is that they have no plan, and if they do have one it isn’t working. Because their plan isn’t working, they themselves will need to continue working well past traditional retirement age.

It doesn’t have to be that way. The simple reality is:

“You won’t have to work forever, as long as your financial plan does.”

The D2P plan is a proven financial plan that really does work to make sure you can retire with dignity, and even retire early if you want. So how does this financial strategy work?

5 Important Lessons To Learn From This Recession

My mother used to often tell me: “It’s an ill wind that blows no good.” Unfortunately this economic meltdown will be nothing more than an “ill wind” that has left many as devastated as the Midwestern farmer in the “dust bowl” days if they fail to learn the critical lessons it is trying to teach. But before you pack up your family and belongings and head to California in defeat, like some image from The Grapes of Wrath, read on.

Here are five important lessons you can take away from this recession to make your life better and more prosperous in the future:

Mom, Apple Pie, Baseball and…Debt Settlement!

You may find the title of this post a little bewildering. You are probably wondering what these four things have to do with each other. Well, what if you replaced the words Debt Settlement with Chevrolet? Would it make more sense to you?

For many, the images of mom, apple pie, baseball, and Chevrolet conjure up images of American life in a simpler, more stable and predictable time. It was a time when families enjoyed picnics, summer barbeques in the back yard, and cross country drives on Route 66. It was a time when you went to school, got a good job, and started a family. You knew if you worked hard you would earn a decent living, be able to provide for your family, and your company would reward you in your retirement years.

These icons have become known as “Americana.” So what does debt settlement have to do with all this? Well, let me explain…

Are the Financial Experts Losing Their Minds?

In my recent posts I warned against the efforts of economists and financial experts to manipulate us into reducing our savings and increase our spending. As I have stated, the logic they employ is simple…increased spending will help to improve an economy in meltdown. While it may be true that you can help the national economy by spending more of your hard earned money, the result on your own personal economy may not be so beneficial.

Now a new wrinkle is developing. Many so called experts recently started encouraging consumers to avoid trying to get out of debt…

Prosperity Is A Matter Of Perspective

People often ask me what the difference between wealth and prosperity is. My response is usually that wealth is usually measured by a person’s material possessions. Prosperity on the other hand, is a way of thinking and living. It’s not just a matter of abundance or lack of money or possessions.

I recently received an email that contained a simple story that does a great job of explaining the concept, unfortunately I don’t know who the original author is to give them credit. If anyone knows who wrote this story please let me know so they get the credit they deserve, in the meantime here is how the story goes:

What Would Happen If We All Saved More Money?

In my last post I discussed how some experts in the media are trying to encourage us to reduce our savings. Their argument is that our newfound penchant for saving money is hurting the economic recovery. They point out that if we want to help others we should reduce the amount we save and start to spend again.

Now I like to think that I am a fairly open minded sort of guy, so I decided to consider the possibility that maybe I’m not always right. Maybe their argument has some merit. In order to give their argument the serious consideration it deserves I asked myself a simple question:

“What would really happen to our national economy if we all saved more and spent less?”

Is Saving Money a Violation of Civic Duty?

My mother always told me “every cloud has a silver lining” and the silver lining in the storm cloud of our current economy is this…millions of Americans are trying hard to spend less and save more. The savings rate is actually increasing for the first time in decades. People are giving up the conspicuous consumption that has marked our spending habits, and frugality is now “chic” even among the wealthy.

How Money Smart Are You?

How Money Smart Are You?

When it comes to matters of personal finance how smart would you say you are?  Are you smarter than a 5th grader?  How about a high school senior?  Be careful before you answer that question because there will be a test at the end of this post.

 Several years ago, I read an article from the Jumpstart Coalition which stated that financial literacy among high school seniors was dismal at best.  The average student who took their financial literacy test  scored just over 50% which equates to an F.  So how did the average high school senior fare this time around?  Well, the average score has jumped to a whopping 52% which is still equates to an F- (if there is such a grade). 

Obviously the need for better financial education in our school systems is evident.  If students aren’t learning to be smart with money in school, where are they going to learn how to properly manage their money?  The answer is…from their parents.  Studies show that most children learn more about managing money from the example and advice of their parents than any other source.  

So if you have kids here is a question for you.  How prepared are you to give your children the financial education they so desperately need?  If you don’t have kids that doesn’t mean you are off the hook.  You still need to be smart about money if you want to avoid the money traps that lenders like to set.

Let’s face it, financial institutions often benefit from our lack of knowledge when it comes to financial matters.   They profit by getting us into debt, as well as charging fees for just about everything (late fees, over-the-limit fees, transaction fees, etc). 

The greater our financial knowledge, the easier it is to avoid those traps.  Understanding your finances will make it easier for you to save money, get out of debt, stay debt free and build a secure financial future.  It will also help you teach your children how to be debt free and prosperous by avoiding the mistakes you may have experienced.

So how smart are you about financial matters?  Click on the link below and take the test:

   click here to take the test

After you take the test let me know how you did or feel free to leave a comment.