8 Myths About Money I grew up on a farm in Nebraska. My family had always worked hard for their money, and as a result, I always equated working hard with making money, with no idea that my beliefs could not have been further from truth. As I educated myself on human behavior and financial strategies, I learned that it’s actually the people who make their money work hard for them, rather than the people who work hard for their money, who end up with more of it. Since creating my millionaire-making program, I’ve learned that I was not alone. There are many people who shared this same myth.
Much like our views about many things — people, relationships, food, and health to name a few — our beliefs came from our parents, our teachers, and other adults in our lives. And it goes back even further, beyond them, back to the circumstances through which they lived, or what they learned from their parents, what their parents learned from their parents, and so on. These beliefs are ingrained, and because they’re usually subconscious, the cycles are continuous — until someone breaks them. You can break the cycle. Beliefs about money are many and varied, but in my research, I’ve discovered that there are a few that predominate.
Money is scarce. Several of us have parents or grandparents who lived through the Great Depression, an era that rooted an entire generation in a scarcity mindset. These people passed onto their children the idea that money was in short supply and that when it did surface, spending had to be limited and saving was imperative. If any of the following ever crossed your mind—“A penny saved is a penny earned,” “Don’t dip into savings,” or “We can’t afford it” — then you have this perspective and rainy days loom ominously. Money doesn’t grow on trees. These threats create a fearful relationship with money.
Money is evil, dirty, or bad. Several of us have parents or grandparents who believe that the road to bad places is lined with green. They’ve only ever seen the drawbacks of the rat race, the downside of the money chase, and the audacity and indulgence of those with too much money. Some even believe that wealthy people are bad people. Novels and films often highlight the idea that it’s the crooked ones who make the money. The meek shall inherit the earth. Such prophecies create a hands-off relationship with money.
Money comes monthly. The most common way to make a living is to be employed, either with a company or as a skilled professional, with a weekly wage or an annual salary. Historically, this provided the safe, sure thing required by heads of households. Yet, that level of risk was usually balanced with an equal level of reward — low and low. For most, even those who do very well, working for a company or as a skilled professional is a constrained opportunity. Except for the outrageous exceptions, the average CEO of the average company making six figures a year will still experience only a small increase in salary during his or her lifetime. Slow and steady wins the race. Such fables create a cautious relationship to money.
Money is not for me. Some people feel that they don’t deserve to be wealthy or that there is only so much of the millionaire pie to go around. Creating wealth and financial freedom is available to everyone. It is our right to be wealthy, and my hope is that people take their space and know they deserve it. By making money, you are not taking it from someone else; this isn’t Bonnie and Clyde Go to the Bank. By making money, you create a greater capacity to contribute, and it’s your duty to do this. Better them than me. Such adages create a defeated relationship to money.
Money is a man thing. There was a time that men made and managed the household money. That time was not so long ago, and some of you may have grown up with such conditioning. Though there are gender tendencies, for example, men tend to carry more money in their pocket than women and are more likely to invest than women, the reasons behind this are not genetic; they are realities falsely fabricated from years of conditioning. Women and men need to understand that money knows no gender. One of my programs that really resonates with up and coming wealth builders is “Wealth Diva: A Man Is Not a Plan.” This is a must-do seminar for every man and woman, and the daughters and sons they love. Let him bring home the bacon. Such perceptions create an apathetic relationship to money.
Money is good medicine. For some people, retail therapy goes a long way; there’s no difficulty a new blouse can’t cure. At the moment, we live in a culture of consumerism, and many of us use money to fill the unsatisfying holes in our lives. Some people grew up with a sense of entitlement about money, assuming their parents or a trust fund would always pay for everything, and in the process, they became careless about what they had. This is a vicious and unproductive cycle. The new car gets old, the closet fills up with clothes, and the toys pile up in the playroom. This is not to say there aren’t wonderful things to buy and spend our money on; after all, money should be fun. But as with overeating, too much spending on the wrong things can get any of us feeling sluggish and sad. Shop till you drop. Such bombarding messages create a disrespectful or nonchalant relationship to money.
Money is always a menace. For too many of us, money was always a problem. Bills were a hassle, keeping up with the Joneses was exhausting, entrepreneurs were considered nuts, and one’s station in life was, well, stationary. And getting rich would be worse. Money can be such a burden, not to mention all that paperwork and responsibility. These views of money create a perspective that money is actually a problem, not a solution. It’s hard enough just to survive, let alone thrive. Such pessimism creates a negative relationship to money.
Money talk is taboo. Many of us have been brought up to believe that conversations about money are in bad taste. Money and financial success, and failures, are considered personal subjects that shouldn’t be discussed and certainly shouldn’t be taught. Few of us asked our parents how much money they made, and even now, there are people who don’t know their spouse’s salaries. The results have unintended consequences and have created a world where very few people are having real conversations about money and finances, the very conversations they need to learn and succeed. These things are not discussed in polite society, dear. Such a scolding creates an ignorant relationship to money.
In each of these examples, it’s clear that unless your parents made a conscious choice to think and act differently, they conditioned you to have the same mindset as them. If you make a decision to break this cycle, you will have the opportunity to teach your children to have more productive beliefs about, and a more profitable relationship to,money. As you come to understand the beliefs you hold, you will work to change them. Through the action steps in this process, and with the help of mentors and respected friends, you will change your behavior. By sharing your desire for new beliefs and asking your mentors and respected friends to help you spot the subconscious limitations you may be putting on yourself, you will teach your brain to follow your behavior. Begin now by restating your beliefs. For example, if you’ve discovered that you hold any of the above examples as beliefs, you will
1. Change “money is scarce” to “money is abundant” and support a courageous relationship to money.
2. Change “money is evil, dirty, or bad” to “money is good and acceptable” and create a hands-on relationship to money.
3. Change “money comes monthly” to “money comes from a range of sources” and create an opportunistic relationship to money.
4. Change “money is not for me” to “who better than me for money to come to” and create an empowered relationship to money.
5. Change “money is a man thing” to “I can and will know about and understand money,” and create a thoughtful relationship to money.
6. Change “money is good medicine” to “money is a tool to help make my life better” and create a respectful and concerned relationship to money.
7. Change “money is a menace” to “money is a solution” and create a positive relationship to money.
8. Change “money talk is taboo” to “money talk is vital” and create a knowledgeable relationship to money.
You can see how much better it is to be courageous, hands-on, opportunistic, empowered, thoughtful, respectful and concerned, positive, and knowledgeable than to be fearful, hands-off, cautious, defeated, apathetic, disrespectful and nonchalant, negative, and ignorant. The choice is yours and it looks like you’re well on your way. You’ve already taken a huge step by deciding to actually take the first step. By making the decision to start right now, you have created the opportunity to raise your financial consciousness and change your life.
Copyright © 2006 Loral Langmeier from the book The Millionaire Maker McGraw-Hill; December 2005;$24.95US/$00.00CAN; 0071466150
Loral Langemeier is a master coach, financial strategist, and team-made multimillionaire who reaches thousands of individuals each year. She is the founder of Live Out Loud, a coaching and seminar company that teaches her trademarked program Wealth Cycles.
You have several options when it comes to eliminating and rising above the debt that has taken over your life. One of the best options is debt consolidation. In this article, we will discuss the top ten reasons you should consider debt consolidation over any other form of debt relief method available.
Reason to Consolidate Your Debt #1 – Lower Your Interest Rates
One of the best things about debt consolidation is that more often than not, you will have the opportunity to lower your rates of interest. Instead of several different interest rates, you will obtain one interest rate, that is far lower than the many combined. Typically, when you consolidate your debt, you keep that same interest rate as well. It does not tend to fluctuate as your original debt interest rates may.
Reason to Consolidate Your Debt #2 – Lower Your Stress Levels
Debt can cause a great deal of various feelings, afflictions, and this can be on both a personal and mental level. When debt begins to take control of your life, instead of the other way around, many things can happen, such as:
Problems At Work
Lack of Concentration
Debt consolidation allows you to focus more on your life than your debt.
Reason to Consolidate Your Debt #3 – Improve Your Life
When you consolidate your debt, you are taking the necessary steps to improve your life overall. You will find that your health is better, your relationship are better, you feel better, and best of all, your credit starts to improve, and more doors will open for you. When you are making an effort to get yourself out of debt, more people are willing to give you a chance. Therefore, you may be able to finally purchase that home you have been wanting or even find a better place to live, within your means of course.
Reason to Consolidate Your Debt #4 – One Payment
Perhaps the reason debt is so stressful and hard to manage is because of the various different payments that you must make each month. These payments are generally different dollar amounts, due on different days, and this alone can be enough to throw you for a loop. With debt consolidation, you have the opportunity to combine all of your payments into one easy to manage, easy to remember, and affordable payment.
One payment is so much easier to handle each month, than many payments. You will find that when you start making these payments on time, every month, life just because easier and more importantly stress-free.
Reason to Consolidate Your Debt #5 – Learn From Your Mistakes
Many debt consolidation programs offer a variety of other services as well, such as debt counseling, budgeting, and financial management. Once you have consolidated, it may be a wise decision to take advantage of these other services; they are typically free. You can then start on the road to a new, debt free, and financially stable lifestyle.
We all make mistakes, learning from them and knowing how to manage your finances properly, is the best way to ensure that you never become submersed in debt again. Again, debt is a part of every day life, knowing how to manage it and living within your means can be one very positive benefit of debt consolidation.
One of the single largest financial purchases a person makes in a lifetime is a home. And more often than not, a home mortgage is required to fund the purchase. But how many people have been told, that the current way a mortgage is paid off, is like a cancer on our financial health? The mortgage and banking industry has offered to the unsuspecting public the 30-year fixed amortized mortgage the most expensive mortgage, a financial cancer akin to the cigarette industry offering cigarettes.
US consumers have had no other choices, but to use a mortgage, that only benefits banks and mortgage companies. Now a revolutionary mortgage program is available that will show them how to pay off their home mortgage in as little as 7 years.
Enter Money Principal Group, a company located in Utah, founded by Ariel Metekingi, anative of New Zealand. Their premier innovative mortgage product, The Mortgage Eliminator, is based on a 30 year+ proven Australian industry standard and model in use by over a third of homeowners in that country. It was later introduced to the New Zealand market, where homeowners there achieve similar results; paying off their debts and mortgage on average of 6-10 years.
This powerful new tool to combat the current financial plague of debt combines amortgage and a full-service bank account. The new “all-inclusive” type loan creates huge savings in interest payments and loan payoffs in one-half to one-third the time requiring little to no change to current spending habits or income.
How does it work? Homeowners deposit income and other assets into the newmortgage account and since it allows access like a checking account, expenses are paid out from it by check or ATM card. The fundamental part is, that when the homeowners’ money isn’t being used it sits in the mortgage account, reducing the daily loan balance on which interest is computed. This saves on average hundreds of thousands in interest over the life a typical loan and reducing interest means more money for principal; so the homeowner builds equity faster and owns their home sooner.
“What this does for homeowners, is it empowers them to take control of their financial health,” says Ariel Metekingi, founder and president of Money Principal Group. “With this new loan program, a homeowner can combat the financial cancer known as consumer debt plus current mortgage options and it allows the homeowner to reach their goals sooner in life, rather than later. This isn’t a mystical trick of numbers; it is simply taking away the interest spread banks earn and is given back to the homeowner.”
There are three steps that the consumer can take, in order to reduce their mortgage payout and enjoy a home paid off in as little as 7 years.
1. Decide what your goals are
One of the first steps with The Mortgage Eliminator program is to have a clearer picture of where you are heading financially-speaking, and decide on what kind of goals you’d like to reach. First take a look at where you were five years ago. What kind of expectations did you have than? Did you plan on certain things to happen by now? If they didn’t happen, do you have the willingness to make changes to reach those goals?
Goal setting is important, because it allows you to create a flexible plan and schedule to put into place and stick to. Imagine where you’d like to be in 5 years. What would you like to accomplish?
Let’s say some of your goals are to have an emergency fund of at least one year of your current income and you’d like to reach that amount in, say, 2 years. And another goal, (if you have a child or children) is to set aside a college fund. And lastly, you’ve been dreaming of that sports car you’ve always wanted since you were a teenager.
Now that you have some goals in mind, what would it take to reach those goals? And keep in mind that your household income will probably remain constant.
Are there current investment options or debt elimination options, which can help you reach those goals?
Using your flexible mortgage account through The Mortgage Eliminator can greatly increase your ability to save interest and money and free up resources to help you reach those goals. And it doesn’t have to drastically change your spending habits or current household income. Just determine your budget and where the money you make is spent in your life.
2. Set up a budget
The next step in paying off your mortgage quickly is to look at your current spending habits and create a budget. How difficult is this? That depends on your level of commitment and your ability to discipline yourself into reviewing your budget.
One way that helps homeowners is through the included budgeting software and personal coaching and review available with The Mortgage Eliminator, from Money Principal Group. Studies show and human nature reflects this, is that if we have tools AND a personal Coach to help create and maintain a budget, we’re far more likely to succeed. Money Principal Group states that over 90% of its’ clients achieve success with The Mortgage Eliminator system.
Think of having a coach for your personal financial education, just like a great tennis star has a coach or golf professional has a coach. How many of us rely on a coach to become financially wealthy?
With The Mortgage Eliminator, you’re given that important part, a coach to review, create and stick to a budget that creates positive cash flow, which will take you to the next steps of paying off your mortgage in less time, without any change to your current income or spending habits.
3. Get a financial review and analysis
Everyone’s financial situation is different and completely unique. Imagine your situation as the human body and financial debt (including a mortgage) as a cancer. Before a surgeon would operate on a patient, a complete review of the symptoms and where tostart cutting, is done, BEFORE the surgeon performs one cut.
Think of a financial review and analysis as the same thing as “surgical review” on your situation. What kind of mortgage are you in now? Are you a first-time homebuyer? Are you in an ARM loan and now may need to switch to a fixed rate loan?
What is your financial “picture” and your current budget? Your income, expenses, current debt and your short-term and long-term goals factor greatly into the financial review and analysis.
In order to determine just how quickly you can pay off your current debts and mortgage (or how fast you can pay off your first home, if you’re a first-timer), a financial “snapshot” or review must be completed. Taking a look at your entire picture of income, debts, and how it relates to your goals, is the crucial step, in determining how best you should start your plan.
What is the strategically best way for you to reach your goals? With a financial review and analysis from Money Principal Group, a plan is created to show you the best options that HELPS YOU in reaching those goals quickly. Only a loan that SAVES YOU MONEY is offered and if it doesn’t make strategic, financially sound sense for you, it’s not offered and a different course of action is suggested.
Is this new loan product and system for everyone? Yes, if you can achieve the simple disciplines of budgeting and currently have positivecash flow or are willing to review your budget to recover funds to create significant positive cash flow. You must be coachable and allow the your goals to dictate your planof action. If you’re willing to do that, the payoff is unlimited and getting rid of debt and your home mortgage in 6-10 years is no longer a dream, it’s a reality.
“The ability to be mortgage free within 6-10 years, quickly eliminate consumer debt and free up existing income to start a significant investment program for the future is a now a reality. This can all be possible without requiring any additional income or reducingstandard of living. The Mortgage Eliminator has empowered the individual in New Zealand and Australia to impact positively on their own financial destiny in ways, which traditionally, many could not otherwise achieve.” says Metekengki. “It is now available for the US, to achieve the same level of financial success and freedom, already experienced and proven in these international markets.”
For more information on how you can be debt-free and pay off your home mortgage in as little as 7 years, and experience the savings with the Money Principal Program using their proprietary calculator, visit www.PDXLoan.com or call 1-800-862-0784
College loans are the most affordable option to pay for school. The two biggest benefits of college loans are:
1. Lower interest rates than other student loans
2. Repayment is postponed until you are out of school.
Mainly there are two types of college loans.
1. Subsidized college loan: The government will pay the interest on the loan while you are in school and during deferment and grace periods. However, students must demonstrate their “financial need” to be eligible for a subsidized student loan.
2. Unsubsidized college loan: Student is responsible for all the interest, although payment is deferred until graduation. All students are eligible for the unsubsidized college Loan.
Some reasons why college loans are best :
1. At present, interest rates are at an all-time low, i.e. 3.37%. In school rates are lower, at 2.77%.
2. No credit check or collateral is required.
3. No co-signers or guarantee fee required.
4. Flexible repayment and tax deductions options are available.
5. You can qualify for even lower rates with an Automatic-debit discount of 0.25% plus an interest-rate reduction of 2.0% after 48 consecutive on-time payments.
6. College student loans are eligible for student loan consolidation.
7. You owe no payments while you are in school.
How to apply for a college loan?
Before applying for a college loan you should make a search on your own. For a perfect search you should go to financial institutions and all the student loan companies available in your area. Ask them about their terms and conditions. Consider a student loan with the least student loan consolidation rate. Local search for a college loan is not enough, you are recommended to see websites of student loan companies, which provide better options and then compare your research and choose the best option suitable to you.
Don’t postpone it anymore. Get yourself a college loan as early as possible. Most people are not making wise financial decisions. Be different…
If you think about it, the most grueling part of the car-buying process, after agreeing on a price, is acquiring the right kind of loan for your new or used car. Most consumers enter the car dealership completely unprepared for the loan application process, and that lack of knowledge and planning is costing them millions of dollars every year.
If you want to create a win-win situation for you and the car dealership you purchase your car from, there are five steps to take before you sit down at the negotiation table: get your credit report, surf before buying, go local, speak the language and be prepared to negotiate.
1.) Get Your Credit Report
You can’t pick up a personal finance article, magazine or book that does not refer to the importance of knowing what is on your credit report. Despite the fact that modern media has been beating us over the head with this advice for the past couple of decades, most people do not know their credit score or check their credit report on a regular basis. You can get a copy of your report by directly contacting the three credit bureaus: Equifax, TransUnion and Experian (formerly TRW).
Not knowing your credit score and the details of your credit report before applying for a car loan is a monumental mistake. You want to have any blemishes on your report resolved before you apply for a car loan, because the results of your lender’s credit inquiry directly impact your interest rate.
Your credit report includes: basic information about you – name, address, social security number, etc.; your late payments, any outstanding debts you have, the amount of credit available to you; any public records on you such as judgments and bankruptcies; and inquiries into your credit from potential employers or lenders.
And just because you have caught up late payments, cleared outstanding debts or cleared up any judgments does not mean these blemishes are automatically removed from your credit report. Sometimes, you need to follow up with the creditors to make sure they report your reconciliation of debt to all three credit bureaus.
In addition, identity theft and/or fraud can result in false, unfavorable records on your credit report. In January 2006, the Federal Trade Commission reported that more than 686,000 people reported identity theft and fraud complaints in 2005. Stolen identity and fraud can result in major credit report issues.
2.) Surf Before Buying
You’ll be far less tempted to impulse buy, driving away from the car dealership with a car you can’t afford if you have established boundaries in your mind before you begin.
You can save big money on your car loan if you have a budget and type of car in mind before you go shopping. One easy way to accomplish this is to go online and check out different car dealership websites.
You can compare and contrast vehicle makes, models, styles, features and pricing.
3.) Go Local
There are many national auto websites, but did you know that many local car dealerships are now online as well? The advantage of working with a local car dealership can outweigh working with the manufacturer or a national website when you want the best in quality customer service, a relationship for the lifetime of your car and the best deal on your auto loan.
The advantages of getting a loan through a local dealership is similar to the reason every town in America has a locally-owned restaurant that has regulars: local businesses have a sincere investment in the community. That interest often leads to better customer service, a more customized approach to selling, and the ability to get you a better loan than you will receive from a lender who doesn’t know – or care – who you are.
Lastly, the local dealership may have more than one location, increasing your options for finding the car you need but offering the same uniform auto financing options. For example, Conklin Cars Salina, a car dealer in Kansas, is also a Hutchinson car dealer and a Newton car dealer. So, if a customer goes to one dealership and does not find what they need, they can visit another location and expect the same quality customer service.
4.) Speak the Language
There’s nothing more frustrating than going through the entire car-buying process, thinking you have a good deal, and learning down the road that you were taken advantage of – simply because you had no idea what your sales rep was talking about.
From dealer holdback to Rule of 78s , make sure you have an understanding of some of the basic industry terms that could be thrown at you during your transaction. With this knowledge, you won’t misunderstand the details or find yourself being signing a contract or paperwork that you don’t understand.
5.) Be Prepared to Negotiate
If you’ve followed the four previous steps in this article, you will be armed with the necessary tools to negotiate the best rate possible for your car loan. There’s nothing wrong with shopping around and checking with other lenders to see what kind of rate they can offer you, but you must remember that numerous inquiries into your credit report may go against you.
And, when you go through the dealer for your auto loan, the sales rep wants a long-term relationship with you. This motivates them to work harder to get the best rate possible for you. In contrast, an online or off-site lender’s interests begin and end with the loan – but the car dealer wants you to: come back and have your car serviced, return when you want to purchase your next car, and tell your friends about them, further strengthening the dealership’s reputation in the community and increasing business.
Before you sit down to get your next auto loan, take the time to do a little homework so that you can feel confident about securing the best deal for your auto loan. Investing a little time and effort before making the deal can go a long way in creating a win-win situation for you and the car dealership.