Emergency Preparedness – Family Values.  (Paraphrased from Vanguard Group’s Money Whys)

     Seventy percent of parents believe that children today have a sense of “entitlement,” according to a 2004 study.  In other words, kids expect “to get whatever they want whenever they want it.
     Does that hit close to home?  Then consider the example of a couple in suburban Philadelphia who taught their children the value of money.  They started with allowances in grade school, moved to checking accounts in high school, and then implemented a creative program for college education.
     In elementary school the kids got “paid” every week for doing household chores and could spend it pretty much as they chose.  As a result, they took great care of whatever they bought – much better than if something was just handed to them.
     As teenagers the kids opened checking accounts and paid their own insurance premiums to drive.  Missed payments meant no driving.  They learned that paying bills takes discipline and planning.
     In college, an incentive-based program had parents paying for everything if GPAs were 3.5+.  Below 2.5 parents paid nothing.  In between they paid different percentages and the child made up the difference from savings and summer jobs.
       The statement “there ain’t no free lunch” contains all the financial wisdom of the ages.  Start teaching your children now, regardless of their ages.  Parents, this takes discipline and planning, also.
CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

Emergency Preparedness – The 50 Year Home Mortgage is On Its Way.
 

QUESTION:  Considering 18% credit card debt, and 6% home mortgage debt, which will cost you the most money in interest expense during the repayment period?
     Most would say this is a NO BRAINER – 18% is more than 6%.

     ANSWER:  When repaying the first year’s payments on short-term credit card debt (5 years or less), about 45% of the monthly payment is applied to principle.  When repaying the first payment on long term mortgage debt (30 years) less than 19% premium is going to principle.  That means that the 6% loan is really costing over 80% in the early years of your repayment schedule, and it will take until the 222^nd of  360 total payments before 50% of your monthly premium actually goes to principle, with the rest being interest.  Do the math at www.interestratecalcultor.com for charts, graphs, and repayment schedules.
     Question:  Why will a lender let you close credit card debt to your home mortgage when you refinance?
     Answer:  Because he is dumb like a fox and knows how to get the most interest charges out of you.
     For more information contact (your emergency preparedness specialist).
CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

Emergency Preparedness – Feel Good Debt;  Good, Better, and Best.

     “I owe, I owe, it’s off to work I go.”  How can I ever feel good about my debts?
FEEL GOOD – pay off your student loans and cars.
FEEL BETTER – pay off your credit cards and pay cash for all your purchases.
FEEL BEST – pay off your house mortgage and use the payment money for retirement and missions.
     It doesn’t matter what everybody says, there is no greater feeling than to be mortgage free.  Pressures disappear when you know you are not obligated to anyone.  Everybody who says different are those who want to put you in to debt – to them. 
     It doesn’t matter the investment market returns, the best investment you can make is in yourself.  Paying down your mortgage is guaranteed to save much more interest than uncertain investment returns.  Look at your best investments and ask if, in their best performance years you would have had more increase in after-tax and after-tithing returns than you would have saved in interest, paying down principle on your mortgage.  Your home is your best investment because you get to live in it.  You can’t do that with gold, diamonds, stocks and debentures.  Besides, the prophet says it’s a good idea to be debt free.
    For more information contact (your emergency preparedness specialist).

CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

Emergency Preparedness – Taxes, Value and Cost.
 

     “If I hire a painter to do the house, it will cost $3,500.  I’ll have to earn $5,000, pay taxes and tithing and I’ll have enough for the painter.  If I paint the house myself, materials will cost $300 to $400.  What’s my time worth?
     If this man paints his own house, he is obviously getting the best deal – adding value at the lowest cost and minimal taxes.  In fact, in America, self-made blessings always receive the best tax breaks.
     But, if this man painted his own house in England, soon after completion of the project the local tax assessor would pay him a visit to establish the value added to his property, and assess a “value added” tax equal to the total tax due as though a commercial painter had done the job.  Thank heaven value added taxes have not arrived here yet.
     Time spent productively can be more valuable than money, and is still not taxable.  Spend your time wisely to generate savings and improve skills.  Improved skills can eliminate a lot of bills.
     For more information contact (your emergency preparedness specialist).
CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

Emergency Preparedness – Self Sufficiency or Social Security?

     “Americans Not Saving Enough,” read the TV headline, as two matronly Mall shoppers walked by.

     “That’s ridiculous,” said one of the women.  “I bought four pairs of shoes and saved $60.00.”
     Socialism is when you expect others to provide for your needs with tax dollars from somebody else.  How quickly we surrender our own accountability when someone else makes a guarantee, especially when participation is mandatory and the future is protected by policy makers in government.
     Since the late 1970’s study by Alan Greenspan, most have believed that Social Security would not survive post-war baby boomer retirement that would start in 2007.  Likewise, most have done little to budget for the expected failure by having a systematic savings in 401,403,457, or IRA programs that allow pretax contributions as incentive.  Taking personal responsibility includes recognizing that the time will come when you will be incapable of working and will have to live on money storage.  I have never met anyone who had too much of that, and many people experienced forced retirement earlier than expected.
     Those who have command of their own savings are in command of their future.  To be self-sufficient is to be prepared in all needful things in life, including money storage.  Get started or add to yours right now.
     For more information contact (your emergency preparedness specialist.)
CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

   Payor:  “Good news:  interest rates are down.  I’ll refinance and borrow more.”

   Payee:  “Bad news:  interest rates are down.  Where can I get a better return and less risk?”

   “If I was offering an investment that you could put your money in and get an immediate 50% return, you’d beat my door down to buy it,” said the financial advisor.  “Look at your mortgage amortization and see how much you will save in interest expense if you just pay extra on your house payments.”

   No matter the market condition, it will always be a win/loose situation between borrowers and investors.  But this truth is always constant – if in debt, early repayment is always your best investment.

   No matter the investment risk, return on investment is always taxable.  Eliminating debt not only nets more in saved interest expense than most investment returns, but it is risk free and tax free.

   “Be not thou one of them that strike hands, or of them that are sureties for debts.  If thou hast nothing to pay [if you owe nothing], why should he take away thy bed from under thee?”  (Proverbs 22:26-27)

   For more information contact (your emergency preparedness specialist).

CATCH THE VISION, GET FACTS, DEVELOP SKILLS AND BE PREPARED.

   On 2 November 1979, two days before Islamic radicals took over the Tehran Embassy with 66 US hostages, a senior official and his family were trying to escape by car to the west.  After four hours of driving, the man stopped to buy fuel and food for his family.  Tourists traveling abroad will attest that usually the American dollar can buy anything at any time in any country in the world.  Our currency is baseline in valuing all other currencies. 

   On that day every Iranian seemed to know the uneasy situation would soon shatter.  The man was able to buy gas, but even an offer of $100 for a box of oranges was flatly turned down.  He could obtain no food. 

   There is currently about $1.6 trillion in the domestic money supply.  The Eurodollar foreign money supply is estimated to be over 5 times that amount   Dollars are everywhere.  But Brigham Young said that the time would come when “. . . a bushel of gold will not buy a bushel of wheat.”  Is the issue here clear?

   Preparedness is knowledge, resources, and tools of need – food/water, clothing and shelter.

   Get it ?  Get it!!!!.

    For more information contact (your emergency preparedness specialist).

CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

   The old axiom “them that has, gets,” implies that those who control tools and resources can increase their holdings.   However, a second axiom says “them that got, has to work harder to keep it.”

   Your financial success is dependent on learning the difference between precious ore and overburden.  The truly impoverished are those who lack resources of any kind, and are denied opportunity.   But many that “got” stuff can become overburdened when many unnecessary possessions become a financial drain due to reoccurring maintenance, insurance and tax expenses.

   Rent your toys is sage financial advice given highly compensated professionals.  It is good advice for the rest of us, too.  Keep your costs low and keep your life uncluttered.  You’ll sleep better knowing you have little lying around to get stolen.  Typically that which we need we only have to pay for once; whereas, that which we want will come with the aforementioned reoccurring costs.  Don’t get buried with overburden.

   For more information contact (your emergency preparedness specialist).

CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.

   In l992 Hurricane Andrew was the nations most costly natural disaster of the century.  But in 2003, Hurricane Isabel, hailstorms in Dallas, and the California fires combined to almost exceed the dollar cost of Andrew’s devastation.  Add to these losses the fact that from 1999 to the end of 2002 the US Stock Market suffered its worst period since the l929 crash.  You were lucky if the net worth in your retirement plan or investment portfolio didn’t sink by 40-50%.   Mortgage rates went down, but total debt went up.

   Since the beginning of the century inflation has pushed prices and the cost of living up an average 9.5%, with necessaries like gasoline jumping a whopping 36% this year alone. 
   Is your budget feeling the pinch yet from all of these things that are entirely out of your control?  Is there something you can do to counter these negatives to your pressured budget?
   The entire Old Testament is filled with one major testimony from the Lord, that He will not only lead His  children in light and truth, but will fight their battles.  Today it is a real battle to find the truth about living better with less.  But, your emergency preparedness specialist (- - - - - - - - - -) can help you.
CATCH THE VISION, GET FACTS, DEVELOP SKILLS AND BE PREPARED.