My 2Cents!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A Newsletter all about Living with Abundance, Ditching Debt and Collecting Cash.
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------------------------------------------------------------------------------------------Janine Bolon, Editor janine@smartcentsinc.com
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In this issue -- Note from the Editor: Worms, Viruses and other Unspeakables! -- Down, Depressed and in the Dumps: Tips for Revitalizing Renewal -- Affirm Success! Written by Tricia Molloy -- August’s Book: “Divine Wisdom at Work” by Tricia Molloy -- Reader Question: Is this Investment Opportunity a Good One? -- Charity Highlight: BookCrossings.com -- Blog Spotlight: Money, Matter and More Musings -- WHO WE ARE
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Note from the Editor ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Dear Frugal Friends, I want to thank all of you who emailed, called and educated me on worms, viruses and spiders that wander about the internet. I appreciate your patience as my server administrator, Larene, worked at blocking the person responsible for cluttering up your inboxes with icky spam. Here is what Larene sent me last week,” I figured out how the newsletter was being broadcast without passwords and I sent a test. That was the email about being on the trail of terrorists. I have fixed the problem! Go ahead and send out your newsletter and keep making those middle class millionaires!” With that recommendation I now bring you the next edition of My 2Cents! While Larene was busy at work ferreting out a hacker, I was answering emails regarding depression, debt and affirmations for success. I have learned over many years on the debt-free living lifestyle how to renew myself from burn out and I wanted to pass these tips along to you in “Down, Depressed and in the Dumps”. Also, Tricia Molloy has written an article on ways you can affirm your success in your business or personal life. Tricia is author of “Divine Wisdom at Work” I’m reading her book this month and will post a review on my blog in the coming weeks. http://themoneymuse.blogspot.com/ We have a book give-a-way. Jan Geiger, author of “Get Your Assets in Gear!” has given me three signed copies of her excellent book to give out as prizes. What is the contest you may ask? Easy! You’ll need to read further for the details. Finally, check out this month’s reader question. I realize I answered a very similar question four newsletters ago, but I keep getting folks asking me, “Hey, Janine, What do you think of this Investment Opportunity?” Well, here are a few of my thoughts on rates of return that hit the 15-18% mark. Wishing you abundance, Janine Down, Depressed and in the Dumps: Tips for Revitalizing Renewal by Janine Bolon ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ We have all had the challenge of losing our zest as we trod the path of wealth accumulation and financial stability. No matter how strong our motives, vision or goals for financial freedom, there will come a time when we feel frustrated, bored or unfulfilled. It took Brad and I years to become debt-free and then it took us seven years of consistent effort to become financially independent. During my travel to wealth I had times when I wanted to throw in the towel and just BLOW cash. It would usually come after a particularly hard period of struggle. One such time occurred after the birth of our second child when my husband had been diagnosed with cancer and was undergoing radiation therapy while I was in my final trimester. I can remember sitting in my living room, rocking to ease my low back pain, and wondering if all this frugal stuff was worth the suffering I was feeling. I had swollen feet from hanging laundry and making jelly, a headache from negotiating lower rates on our car insurance and general malaise from lack of sleep. To say that I was a bit stressed during that point in my life is a major understatement. Two wonderful things came out of that experience for me. First, my husband is healthy. The cancer was caught early and destroyed. Woo-hoo! Second, I learned a whole new set of skills for handling stress, frugality and physical exhaustion. What you need during those dark days when you’re so tired you put the milk in the cupboard and the peanut butter in the refrigerator is this: five simple questions. The next time you’re really anxious about money and close to depression as you look at the bills due and no money in the account, ask yourself these questions. 1) What do I want? Usually my first thought when I’m tired is, SLEEP! For my clients deep in debt it is, MONEY! But then go a bit deeper and try to really think about what it is that you want. Usually for the first six months after a child’s birth all I really needed was sleep to get me feeling better. Those were the times I would give up on frugality and I would hire a sitter to come over and watch the kids while I slept. It was TOTALLY worth the expense for my better frame of mind. For those of you who answer, MONEY, do you really just need the credit agencies to stop calling? Many times we answer like this, “If I had more money, I would be fine.” I can assure you that is not always the case. Frequently you have emotional needs that are not being met. 2) What do I need to learn? This may sound silly, but I have found that when I am frustrated or feeling unfulfilled it is because I haven’t given myself enough reading time. For me, reading is learning. I relish sitting on a comfy couch, having a cup of tea, and reading a good book. When I don’t get enough of that, I become cranky and my attitude takes a nose dive into negative numbers. Maybe reading isn’t your thing, but what activity do you enjoy that is low-cost that you haven’t been giving yourself? Often something as simple as a walk will help elevate a your spirits. 3) What do I need to do? This question is a life saver for me!!! I find that when I get totally overwhelmed with all the activities and responsibilities in my life, a simple to-do list calms my nerves and lowers my stress levels. Often I find myself trying to keep too much in my brain. I don’t spend enough time with what is occurring right before my eyes in the “now.” When I’m starting to find myself getting depressed about all the things I need to be doing and how little time I have to do them all in, I realize that by writing them down I actually find ways to break them into smaller projects that can be managed in the 15 minute increments that life allows me. 4) What do I need to feel? Often when I have negative emotions, I notice that I have not taken the time to determine what my personal needs are. I have spent inordinate amounts times helping others and have forgotten to take a few minutes for me. So, when I get negative, I know (for me) that I need to feel peace. The best way for me to achieve peace is to meditate. I’m not talking about a super long time of sitting alone in a quiet room! Come on! With four kids and a husband who works from the house, quiet is a commodity that only comes after all sentient beings are unconscious in sleep! For me, I usually just need to take five or ten minutes and sit quietly in a chair focusing on my breathing. I know that this probably sounds ridiculous, but forcing myself to just focus on my breath and sit as still as my body will let me gives me peace. Figure out what you need to feel and then go about doing the behavior that will bring about the positive emotion you seek. 5) What do I want most right now? This is a very different question from number one that states, “What do I want?” What you want may take you days, months or maybe years to achieve. However, “What do I want most right now?” Will lead you to an entirely different understanding about what is missing in your life. I have found when I’m extremely frustrated, “what I need right now?” will guide me to some amazingly simple solutions for relieving my stress. Often it is a quick call to a girlfriend to vent my current situation. Sometimes it is a walk to the kitchen to grab a cup of tea. The break from the problem for five minutes is enough to give me the vitality to attack it anew. My emotions dictate my willingness to spend or save money. Because of this I spend a lot of time teaching others to address their emotional needs regarding money as well as life. If you find yourself becoming overly negative about your financial situation or the speed of the progress you are making then I recommend that you run through these questions. Quickly print them off and jot down the answers that first pop into your head. It will open up what is really troubling you. Now, if you end up having a problem you can’t fix immediately, then you need to ask a final question: “Who can help me with this?” I KNOW you’ll have someone come to mind instantaneously. I recommend that you email or call that person right then and chat with them. They will have the advice, system or point of view that will help you break out of your slump. As you move from debt to wealth to financial independence, realize that there are going to be days that you want to give up on your grand financial plan and chuck the frugal lifestyle! When this emotional state hits, before you grab the checkbook and credit cards take the five minutes to go over these questions. It will save you hundreds maybe thousands of dollars as you practice these renewing tips through the years. Affirm Success! by Tricia Molloy ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ What’s on your goal list? Working with ideal clients, mastering that new software or taking a dream vacation? Use affirmations to lead the way. Affirmations are powerful statements to remind us of our magnificent potential, despite what others may say or when our own ego plants that seed of doubt. Some clients resist using affirmations. They think it’s too simplistic or that the practice is out of integrity because I’m asking them to state something that may not be true yet. I tell them to trust that all reality begins in thought form. Most people are inclined to think and say (to themselves and others) statements that prevent them from moving in the direction of their goals, like: “I’ll never make enough money or have a healthy relationship or lose those final 20 pounds.” Affirmations help counter that habit with constructive, supportive thoughts. The most effective affirmations are short, positive and in the present. You might choose affirmations that state what you want to achieve, like: “I love my healthy, slim body” or “I am a successful, respected business owner.” Or you might use affirmations to focus on what is already true. Here are a few examples. If you want to be chosen for a supervisory position, your affirmation should include the qualities you possess that would serve you in that role. You might affirm: “I am a dynamic, empowering leader.” If you tend to wake up each morning wondering how you’ll ever get through your burgeoning to-do list, you might affirm: “I have more than enough time and energy to accomplish all my goals today.” If you are struggling with direction and finding the right resources to get the job done, you might affirm: “I am open to receive guidance and support.” Commit to write down your affirmations and post them prominently—on your bathroom mirror, on the dashboard of your car and at your desk. Consider writing them at the start of every day to keep them fresh. Say them out loud throughout the day. Incorporate them in your conversations with others. Here’s a tip I got from “The Secret.” To turbo-charge the power of your affirmations, add this simple phrase: “I am so happy and grateful now that…” When you combine affirmations with positive emotions, visualization and gratitude, you have a guaranteed formula for success in work and life. --------------------------------- Tricia Molloy is a seasoned entrepreneur, business consultant, speaker, trainer and author of Divine Wisdom at Work:® 10 Universal Principles for Enlightened Entrepreneurs. Visit www.divinewisdomatwork.com. Sign up to receive a monthly e-newsletter for more information and inspiration. -------------------------------- Free Book to the First Three Readers: “Get Your Assets in Gear” by Jan Geiger ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Jan has offered free, autographed copies of “Get Your Assets in Gear” to the first three readers who email me. I’ll be checking time and date stamps to verify the lucky winners. To submit your request for a free copy of Jan’s book, please send me your name, address and email with “Free Book Offer” in the subject heading. Send your request to: themoneymuse@gmail.com July’s book was “Get Your Assets in Gear” by Jan Geiger. Jan is a Certified Financial Planner for the Financial Network Corporation. If you are not one of the lucky winners to receive this book, don’t fret! You can order it on amazon: http://www.amazon.com/Your-Assets-Smart-Money-Strategies/dp/1598009354/ref=sr_1_1/105-8041759-5438061?ie=UTF8&s=books&qid=1181833620&sr=8-1 Read my review of her book on my blog, The Money Muse: http://themoneymuse.blogspot.com/ Charity Highlight: BookCrossings.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Usually when I highlight a charity for you, I’m looking for places for you to feel good (and safe) about donating your cash. This month I deviate from that objective due to the unique and wonderful approach of BookCrossings. I have registered several of my books to be “tracked” and for all you bibliophiles out there, you may enjoy doing a bit of service to this group as well either by donating books to the chase or becoming a member. This site was so fun and the idea so cool, I just had t share it with you! The following paragraphs I nabbed right off their site. BookCrossing.com is a labor of love that was conceived and is maintained by Humankind Systems, Inc., a software and internet development company with offices in Kansas City, Missouri, and Sandpoint, Idaho. Looking for a break from the doldrums of creating yet another e-commerce website (that's just what the world needs), or email server application (oooh, those are doubly exciting), Humankind partner Ron Hornbaker sought to create a community site that would be the first of its kind, that would give back to the world at large, and that would provide warm fuzzy feelings whenever he worked on it. BookCrossing.com was the result. The idea came to Ron back in March of 2001, as he and his wife Kaori were admiring the PhotoTag.org site, which tracks disposable cameras loosed into the wild. He already knew about the popularity of WheresGeorge.com (which tracks U.S. currency by serial number), and that got him thinking: what other physical object might people enjoy tracking? A few minutes later, after a glance at his full bookshelf, the idea of tracking books occurred to him. After two hours of research on the internet, Ron realized, to his surprise, that nothing like BookCrossing had been done on any significant scale. And so they went to work. By 3 A.M. that night, they had decided on the name (zero hits for "bookcrossing" on Google), registered the domain, and Kaori had sketched the running book logo on a crossing sign. The rest was merely execution. After getting the green light from his partners in the software company, Ron went to work programming the site from scratch the next day, and about four mostly sleepless weeks later, on April 17, 2001, BookCrossing.com was launched with a simple $500 press release, the last time money has been spent promoting the site. Members trickled in at the rate of 100 or so per month until March of 2002 when the Book magazine article was published. Since then, BookCrossing has been the focus of countless TV, radio, and newspaper features around the world, gets about 300 new members every day, has its own category in the human-edited Google Directory, and has been added to the Concise Oxford English Dictionary as a new word. The fact that it has captured the passion and imagination of around 567,158 people worldwide, so quickly, has been a welcome surprise for everyone involved. Give these guys a look at: http://bookcrossing.com Reader Question: Is this Investment Opportunity a Good One? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Dear Janine, Our neighbor's brother runs a company called XYZ Group. He essentially acts as a bank to make large commercial loans and since he is able to turn loans over in days rather than weeks is able to charge higher interest rates. He has a current deal that would make 18% for 6-18 months and claims to average 15%. The entire amount of interest gets passed to us. He has offered to manage our 10,000 (short-term savings) and our kids short and long-term as well with the option of monthly deposits that would get put into loans as they come in. What his family, (who are my neighbors) do is take loans out against their house and cars. All of the loans XYZ Group makes with this money are backed up with collateral, which makes this seem like a solid idea. He has been doing this for 7 years and has lived in the area all his life. He claims to have never lost people's money and is financially independent. We are considering taking out a 2nd mortgage. Are there any questions we should be asking? Advise? Warnings? We currently owe 80,000 on our house and no other debt. –Andrea Dear Andrea: This is not really my area of expertise since I’m not a financial planner or accountant or other trained financial professional. However, I get your question all the time! Yes, there are some questions you need to be asking. Here they are: • Have you and your husband opened IRAs (or some other investment vehicle) in both of your names? • Do you have 6 months of salary in your short term savings account? • Do you have 529 plans open for your kids? • Do you have your IRAs maxed out for 2007? Meaning, have you contributed all you can? If you have yes for all this, then chat this opportunity up with your accountant before you make any moves to mortgages and borrowing money to finance this thing. There may be taxes that affect the income from these loans as well as financial penalties you may not be aware. Find out what the cost is before you move on. If you haven't maxed out your ability to contribute to your IRAs (401k plans or other retirement vehicle) I would be very cautious about investing in anything that has such a HIGH rate of return. (At 15%-18% I would personally put on my sneakers and run as fast as I could in the opposite direction!) It is never good to put all your eggs in one basket. In my seminars I discuss the three areas of investing. You can find this in almost any book written by a financial professional. • cash/bonds (funds) • real estate • stock (funds) I am suggesting that you may want to be extremely careful moving in any one direction since you are on the wealth accumulation path. I have no idea if this plan with XYZ Group is solid or not. As a scientist I require data to make a decision. That means I have to see past years' work, extrapolation forecasts, etc. All I am trying to get across is that many of my clients become financially stable like you and then take ALL of their short term savings and dump it into a single investment. This is not the conservative approach to finances. I have always told you I am a conservative type investor. You want to ask yourself these additional questions: • If we take a second mortgage on the house and invest with XYZ Group, what happens if this opportunity fails? • If we borrow money that is not ours to make investments, is this wise/frugal/appropriate? • How many others have done this and it worked? How many have failed? • Have we called other people that XYZ Group has worked with and chatted with them? I'm trying to protect you in the long run from all sorts of investment opportunities that frequently pop up in wealth accumulators’ lives. Email after email that I get from clients tell me that they start saving money and have a nest egg for the first time in their marriages and then the single investment they made fails and they have to start over. Why not start small? Why go for a second mortgage? This is reason for a pause. How long did it take you to accumulate your savings? Is the risk worth the time it took to get the money? As you move through life from middle class to millionaire you will see that investment opportunities are EVERYWHERE and not all of them are for you or your family. – Janine Blog Highlight: Money, Matter and More Musings ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I found this blog through a friend of mine (The Money Monk) who thought this 20-something blogger had a lot of excellent opinions on personal finance and debt. I’ve read many of his posts and find his humor fun, wacky, and easy on the mind. If you’re looking for a place to start chatting with folks about personal finance strategies and debt reduction systems, give this blog a try. http://www.thetaoofmakingmoney.com/ Do You Have a Question or Charity or Blog for the Next Newsletter? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If you've got a question or charity or blog you want me to address in the next newsletter, please send it to themoneymuse@gmail.com with the subject line "Newletter Question/Charity." My 2Cents will feature a question and a charity and a blog each issue from the Frugal Friends Network. If you wish to remain anonymous, not a problem! Just state that in your email.
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