Archive for the ‘debt reduction’ Category

Ways NOT to Save Money-and Other Good Reads!

Tuesday, March 16th, 2010

Daniel, at  Sweating the Big Stuff, posted this on Ways Not To Save Money-which I think is a good reminder of the trap that can grab you, with the rationalization of being frugal.  Being frugal, is not the same as being “CHEAP!”

I would like to add another couple of thoughts.  He mentions consumer traps.  The wholesale clubs are a great place to “not save money”.  Mainly because of all the temptations.  It is hard to resist all the great stuff at great prices.

To protect against this phenomenon, you definitely need a strong will, and a list-buy nothing unless it is on the list.

Watching TV certainly doesn’t cost anything, except when you are paying for 1000 channels of satellite tv, with the ginormous NFL, NCAA football, Nascar and movie  package comes in at a cool $150 bucks a month…..

Add in the wasted opportunity, when you coulda’  been reading a book on personal finance, (THE MILLIONAIRE NURSE comes to mind) getting free continuing education on the computer, or exercising (also can be free).

Another good read, by the Financial Samurai, is about working to make money, instead of following your passion. I think a lot of folks, unfortunately, are being given the opportunity to follow their passion-cause they lost their jobs.  That certainly can be looked at as an opportunity, rather than a crisis.  If you have always wanted to do _________, then if you have no job-go for it!

At Out of Debt again, there is a great story about Shopping at Whole Foods-my wife would have had the same sense of disbelief about a 6 buck pepper!

151 Days Off, (how bout that name for a blog), has written a post about not getting too uppity( Southern Speak) , if you are making progress in your walk towards financial freedom.  I don’t think that is likely for me, as I dig my way out of attempting to be a real estate baron in Florida-before the crash.   If anyone says they have never made a financial mistake-then run, don’t walk to the nearest exit….

All of these bloggers are in the Yakezie Challenge, which is a self -help/group support lesson in getting the word out about your blog.   I appreciate what they are doing to help the new folks on the blog-block get recognized.  Sometimes it gets lonely writing, and wondering if anyone is reading.  So look for other great posts from other members of the Yakezi Challenge. (I do love a challenge!!!)

Enjoy these great stories, I did!

FHJE69GFNCJE

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More Money For Millionaire Nurses

Wednesday, January 27th, 2010

You have decided to make a huge change.  You have decided to quit spending more than you earn.  You look at your spending plan.  You add up your payments, and bills, then add up the income-and damn- your extra money- to put against your debt-there is NONE!!!!!

What can “Millionaire Nurses do, to break through the log-jam and make progress?

We have discussed this a few times:

  • Sell stuff-yard sale, e-Bay, consignment-to raise money
  • Getting rid of some of your payments-use cash raised above to add to the sales price of that 4 wheeler to pay off the note-one more payment gone-Cha-Ching!!!!  (Substitute boat, big screen, Harley or whatever toy you are making payments on.)
  • Earn extra money!

EARNING  EXTRA MONEY

Earning extra money–let me go talk to the boss, for a raise-well, that does work sometime, but let’s just pretend you are still in nursing school-( I know, what a nightmare!).     What can you do?

  • Tutor your friends, especially if you are strong in a certain subject like Anatomy, or Chemistry.  Put up a sign on the bulletin board at school, advertise on Craigs’ List.  See what the going hourly rate is.  Just make sure you don’t get carried away and have it hurt your progress to your degree.
  • Car pool-pick up others, and have them pay towards gas and car maintenance.
  • Get a room-mate or rent out a room or couch- if you have one.
  • Start a blog, and monetize it-if you can write, and are creative.
  • If you are a savy-social networking expert, (spend too much time on facebook) advertise your services to old people like me to help them set up their page, teach them to post.  They will pay you, and probably feed you, mother you, and you never know, you might find a mentor.

OK, so you are working as a nurse, and no your boss says, no raises this year.  What can you do?

  • You, too, can tutor nursing students.
  • Work extra shifts, and over-time.
  • you too, can rent out one of your rooms-maybe to a nursing student-be a landlord and a mentor!!!!
  • Carpool to work-to share expenses.
  • Second job-either in nursing, or in your hobby area-catering on the weekend if you like to cook and you work weekdays.  Find a “temp” agency, and get on their list.

Now, I think you get the picture.  Get creative.  Let nothing be sacred.  Get after your debt.  Remember, as you pay down your debts, you will have more money to put against the remaining bills, so the process speeds up-unless your “spending demon” awakes from the dead!

Then, when you are finished knocking the debt off, you will remember how hard you worked, and

never go there again.

Tell us your stories or ways you have earned extra money-legal or illegal-(JUST KIDDING!!!).

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Economics 101 for Millionaire Nurses!

Sunday, January 24th, 2010

Economics, just the word scares a lot of folks.  They start thinking of pointy headed nerds, with pocket protectors, and slide rules- using big words to tell people how bad things are out in the real world-like we didn’t already know…..

I found this definition of economics online:  “The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems.”

Just the definition puts most people asleep.  What I found a little surprising, was that economics is a social science.  When I think of social science- I usually think psychologists, social workers, and anthropology.

I thought economics was “mathematical”.  Most social scientists that I know, would run from a calculator-so I learned something today….

One of my ways that I give back to society (one of the most important tenet’s of “Millionaire Nurses” -giving back) is serving on our city council-yes, I am a politician!!!!  You might think I do it for the money, but the 300 bucks a month that I get paid, doesn’t go far when I miss at least 10-15 business days a year from my medical practice.  ( I need to learn more about  “economics” myself.)

Now I am not telling you this to pat myself on the back. I consider it a privilege to serve my community- that has provided a great living for my family  for the last twenty-five years.  I also have learned a lot, by going to seminars, and educational opportunities to help become a better councilperson.

Today, I had the opportunity to hear a round-table discussion about the current economic downturn, to help cities manage their budgets. To assist us in providing the services citizens expect from city government, with the severe downturn in revenue from the drop in sales tax revenue, and other fee’s that normally support local government.

The featured speaker, was Dr Jeffery  Dorfman, Professor of Economics at the University of Georgia.

I am happy to tell you, he was neither pointy-headed, nor boring, and certainly didn’t sound like a nerd.  He gave a great presentation on the current economic situation facing our country, and by extension our state and city governments.

My “take home” points from his presentation were:

  • The recession is now over, but until consumer confidence returns, it may not be obvious to you or I.
  • When you are out of work-it doesn’t really matter whether we are in a recession-the household affected is in their own version of a “depression”!
  • This recession, while severe, is comparable to recessions in the sixties and early 80′s, though it will probably take longer to recover, than those past recessions for various reasons.
  • City and State politicians should plan their spending based on conservative estimates of revenue, using the good times to put money in  reserves, so when times are bad, they have a cushion.  This, to prevent having to curtail services, fire people,  or raise taxes-when it is the most harmful for the citizens, who are already struggling.

Now how does that relate to “Millionaire Nurses”?  Obviously, a lot, or I wouldn’t be writing this long post!

This is exactly what I am trying to stress to my readers.  The huge benefits you and your family will have , when you put aside money in the good times-(also known as the “Super-duper emergency fund”).  Limiting your spending to less than you earn, and limiting your borrowing so that you can continue to prosper when times are bad.  Millionaire Nurses are not struggling because of  living beyond their means.

So thanks, Dr Dorfman for an enlightening presentation-the Georgia “Dawgs” are lucky to have you.

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Going Into Debt-Do Millionaire Nurses Do It????

Saturday, January 23rd, 2010

Debt is a way of life in the good ol US of A.   We really don’t even think about borrowing money for a car, putting the kids braces on a credit card, or even that most productive of home appliances, your big screen-6o months of easy payments-no interest!

Till you are a day late with a payment on payment 59.  Then the interest on the whole 60 months becomes due.

Won’t that day feel like the day the last patient  threw up all over you, after drinking a fifth of cheap wine….

Flexo, at Consumerism Commentary has written a great post on 5 debts to avoid. These include:

  1. Pay-day loans-because of high interest.
  2. Loans on your expected tax refunds-again because of the high interest rate, These loans are also used to entice people to buy things that wouldn’t ordinary buy-”it won’t cost you anything but your tax refund!!!!”
  3. Gambling debts-it is one thing to gamble your money away-another to gamble away money you don’t even have.
  4. Rent to own debt-this one gets people, cause they don’t think of it as debt-so they pay what amounts to a high price for an item, that basically is equal to a huge interest rate.
  5. Debt on  an item that is going down in value-cars, mobile homes are the two most common items here-although any appliance debt, four-wheeler, boat, …….could qualify.

Now, he goes on to say that student loan debt, and house mortgage debt, and even car debt in occasional limited circumstance is justified.  Now, because the “right” of home ownership is so deeply ingrained in our country, that the thought of putting off  home ownership – until we can pay cash-would seem crazy to most.  So, my feeling is mortgage debt is ok, as long as it meets reasonable  criteria-see this post.

The problem with student loan debt, is that it is so easy to get these days, people borrow money for living expenses, not just tuition-that might mean expensive apartments, bar tabs, car payments, etc.  You wake up the day after graduation, so excited to get that first job, at 40,000 bucks a year-whooo-hoooo.   Then you realize you borrowed 125,000 dollars for that degree, and if you are lucky you might pay if off with your first social security check-forty years down the road.  And no, most student loan debt is not bankruptable-it is yours forever.

That leaves car debt, and I have written so many times about car debt lately, that I am not even going to go there.

So, for those of you who say,”What am I going to do now.  I have been borrowing money to make ends meet for years!”

Well, you are at the right place.  That’s the whole point of  “The Millionaire Nurse”.  To teach you how to make goals, plan your spending, and make the correct decisons that will allow you to prosper for the long haul, rather than just feeling good today!

So think twice about going further into debt.  If I can  make you think twice about borrowing money, before you execute, then I have done my job.  The rest is up to you-Good Luck!

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Cars: A Love/Hate Relationship for Millionaire Nurses! Or What to do When You Can't Make the Payments!

Thursday, January 21st, 2010

Cars-an American passion-but what can you do when your dream becomes a nightmare, cause you can’t make the payments?

Cars-a rite of passage for sweet 16′s-I know, in some places it is now 17 for the driving age, but not here in the South-especially in farming country.  Kids here are driving tractors by age 8, and the pick-ups in the fields by 10.

So it’s not a surprise that car debt is also almost a religion.  Paid for car-who does that????

I am reminded of an old MAD Magazine cartoon-”You remember MAD Magazine don’t you??”  For you twenty-somethings-it was a smart-alec illustrated magazine for tweens-was around a long time-”Spy vs Spy!” was my favorite.  Actually, it is still around-check it out…

Anyway-I digress while waxing nostalgic-The cartoon had a picture of an elephant in the back-yard of suburban America, with the caption-”The only reason there is not an elephant in the yard of every American, is no one has offered one for 60 interest free monthly payments!”

Well, I thought it was funny…..

In these challenging financial times, many people find they have more car than they can afford.  What can you do when your car is upside down and you are struggling to make your payment?

  • Well, you can have a yard sale, put you and the kids to work in extra jobs, eBay, consignment and raise the difference to get clear title.  Then sell that ugly lump of coal (they are not as cool looking when you are behind on your payments….)
  • You can go to a credit union or local bank, especially if they are holding the note-and ask them to release the title, so you can sell the car-make sure you get the full Kelley Blue Book, retail value.  You would sign a note for the difference-and pay it off as quickly as possible.
  • You can let the note-holder take back the car.  They will then sell it at a small part of its value, and then will try to collect the difference from you.  (Yes, the proverbial Take-Back Man).  Your credit score will take it in the……..

What do you do for transportation?   Raise enough money to buy an old vehicle, that is in adequate mechanical shape to get you to work.  You may have heard of “Two Buck Chuck”the wine, this might be “Thousand Buck Truck”, the Whine…..

Anyway-then save like crazy, to upgrade your ride, as  your financial condition improves.  Tell your friends you are just being like Warren Buffet-who is said to drive an old pick-up around Omaha….

What if you leased your car and you can’t afford the lease payment-well then you are just screwed…..

Well, not really-you basically have the same options.  Get out of the lease by paying the lump sum pay-off, which is likely  substantial.  Try to find someone to assume the lease payments-if your lease-holder will allow.  Or, just turn it in-again, there is abig credit hit for this-plus they too, will come after you for the payoff when they sell it.  See this article on Edmunds.com for their suggestions.

So now you are saying-”If I had the money, I wouldn’t be in this shape, so what good does this info. do me???”  Well, that is a valid point-which is why I wrote this post.

If you don’t have car debt-don’t go there.  If you do, try to pay it off as quickly as possible.  Paying yourself a car payment every month for a lifetime, will make you a true “Millionaire Nurse!“-unless you are a near senior citizen like me….Every debt you have is a potential risk-no one can see the downside when your  “new car fever”  strikes, so watch out for it.

Reading this blog is like the flu vaccine-an ounce of prevention…. and all that.

So, be careful out there, as the guy in “Hill Street Blues” used to say.  Car payments are evil!

So, let us know, if you love or hate your car or car payment-let us hear your car stories.  Let us hear the name of your car……

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Twelve Ways to Not Become a Millionaire Nurse

Saturday, November 28th, 2009

Remember the song,  The Twelve Days of Christmas, listing all the things “my true love gave to me”.  I thought in honor of the season, I would give Twelve Ways to not becoming a Millionaire Nurse.

So here goes:

  1. Not paying attention to my money-no spending plan, budget, or clue of what to do.
  2. Paycheck runs out before the month does.
  3. Buy/lease a new car.
  4. Purchase any item without planning/study of item and how it fits into your budget.
  5. Not having an emergency account.
  6. Borrowing money for college, beyond the bare minimum, and not being able to pay the student loans off quickly. (Such as borrowing $100,000 for a job that pays $25,000/year-just doesn’t make sense, but people do it all the time.
  7. Carrying a balance on a credit card.
  8. Forgetting  those once per year bills and not saving for them- such as insurance,  or taxes.
  9. Shopping without a list/plan.
  10. Eating out/fast food daily.
  11. Borrowing money for routine purchases-not saving and paying cash  for the new “blank” that you really need.
  12. Not saving money for retirement, and building wealth.
  13. Wasting time-TV, online, video games, reading celebrity mags.

Yes I gave you a baker’s dozen just to see if you were paying attention.  Which to me is the number one thing that will help most folks manage their money-just pay it a little attention-give it some love as the saying goes.  Make it a priority in your life to learn about and understand how money works, how savings grow over time in an interest bearing account.  Learn what your money mistakes are and make a plan to deal with it.

And if you need Emergency Money Resuscitation, check out my free ebook.  I will also send you my free mini-course on personal finance.

Please let me hear from you about your most common problems involved in managing your money-I want to help, and the way to getting better is to admit the problem, so please make a comment or ask a question.

I have also posted this question-” What are your most common money mistakes ?” over at Cash Commons-check out those answers too.

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Emergency Money-Five Ways to Raise Money in a Hurry!

Wednesday, November 18th, 2009

One of my strongest recommendations for people trying to get out of debt, beside goal setting, and planning is the emergency fund.

See this post for more information about the super-duper emergency fund, that I recommend all  of you have and the reasons why.  For today’s post, I want to give you a few options for how to raise an emergency fund account in a hurry.

  1. For nurses, overtime is frequently available.  On one of the wards that I work, there was a sign about overtime available to work the night shift, because of a temporary nursing shortage on that wing.  Two or three extra shifts at time and a half, can raise a thousand bucks for a small emergency fund in a hurry.
  2. Sell books and text books.  See this blog post from Money Blue Book on helpful hints for those of you who haven’t sold any books online before.
  3. Have a yard sale-while this tried and true method for raising a few bucks may seem old hat, in this economy people are shopping more than ever for a bargain.  Go in with friends, and make it a fun day, in addition it will  help clean out a few closets.
  4. A second job-if overtime is not available-and these days those overtime shifts can be harder to come by, a second job working an extra weekend a month, or a couple of shifts extra on your off days-can help you pile up emergency cash.  Most nurses can find work in their field, but if not delivering pizzas or other short term work can help fill the coffers-remember this is for emergencies!
  5. Sell a toy-(no I didn’t say sell your boy).  If you have a Harley, boat, extra vehicle, jet ski ……. You get the idea.  Put it on the block.  Do an internet search to find out the going price and get it gone.  If you have no emergency money, you have no business with a toy or toys anyway-and you need to be working extra right now, not playing.

So look at the above list and find which way suits you to help build your emergency fund.  Maybe do some of it all-having a cash cushion or margin can be a life saver for those of you trying to work your way out of debt.  It can be the difference between just a bad day-having to dip into savings for a new set of tires, or an expensive medical emergency. Compare that to blowing weeks or months of hard work trying to lower your debt, then having to reach for the old credit card to pay for an emergency expense-then having to start all over.

Good luck!

For more ideas for “Emergency Money Resucitation” go to my website for my free ebook, packed with money-saving ideas.

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Debt: How Much Does Yours Cost

Friday, November 13th, 2009

Matt at the Five Cent Nickle has a great post today on determining how much your debt is costing you in real money this year.

The idea here is to add up your interest costs on your credit cards, your mortgage, your car payment, and any other loans you may have.  You will need a little time, a calculator, and your statements or bills.  If your statement doesn’t separate your interest from principle, then you may have to call the holder of that debt to get the information.

When you add up the numbers and see the amount of interest you are paying during a year, it can open up your eyes to the true cost of debt.

I had a patient this week, a long time smoker, who decided she was ready to quit.  Why, after thirty plus years ,did she make up her mind this week?  She had in a sense “looked at her debt”.  In this case, she was watching her older sister, on a ventilator from COPD, (a chronic lung condition common in smokers for you non-nurses) suffering and unable to breathe on her own.  In her case it allowed her to look into her own  future- so to speak.  She was seeing herself, 10 years down the road, if she didn’t quit the cigarettes.

So, after years of encouraging her to stop smoking-she finally was ready to talk about it.

So let this weekend be the time you find out what you are spending on your debt-how much the interest on your debt is costing you-and vow to make changes in how you manage your finances.

If you think you don’t know how, go to www.themillionairenurse.com, sign up for my free ebook, “Emergency Money Resucitation”.  An additional freebie will be an emailed mini-course on managing your finances.

Let me know here how much interest is costing you on your debt this year, and did it open your eyes on why you need to eliminate it as fast as possible.

And again, please send our blog link to your friends and family, who you think may benefit from our advice or who you think may just enjoy our writing….

 

PS If you want an email reminder of a new post-sign in in the box on the bottom right of the blog.

Have a great weekend.

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Starting your own business: How to finance it

Tuesday, October 27th, 2009

I frequently advise people who have debt and are having trouble making progress on paying it down to raise their income.  Starting your own business is one way of doing that.

Now nursing is generally a good field for getting extra work.  Overtime shifts are frequently available even in this time of budget cuts.  If they are not available, then a part-time job using your nursing skills, such as doing  insurance physicals,  or working in weight loss clinics may be an  option.

Another option is adjusting your shift so that you can work regular hours in another facility-such as working 2 twelves on the weekend twice a month-that can bring in almost 1,000 bucks a month.  A great way to make progress paying off student loans or other debts.

Another option, if you have an urge to be your own boss is to start your own business.  The types of businesses nurses have started are limitless.  You can start a home health or elder care business, and hire nurse assistants to sit with elders.  You can get into multi-level marketing if you have a salesman’s personality.  You can even start a franchise.

The secret to starting your own business is starting slow, making sure you understand the business completely.  As you have probably heard 4 of 5 new business’s fail-you don’t want to be one of them.   So do your due diligence, study the competition.  Volunteer to work for someone already int the business to learn the ropes.  Check with your local small business organization, or chamber of commerce to see if they have a mentor program for new start-ups.

The other precaution is not to go into debt to fund a business.  Save your pennies, start slow, and use part of the proceeds to grow.  Your uncle may have money he is willing to lend, but your holiday meal may be ruined having to look at his suspicious eyes if your business is failing that he “invested” in.

The public library has many resources and books to read on writing a business plan, marketing, managing personnel, so do your homework.

The advantages of being your own boss are numerous, but so are the responsibilities.  If you have started your own part-time business as a nurse, please send us your comments and suggestions for others.

 

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