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Greetings!
This is the monthly newsletter of Sherer Financial Coaching, we hope you find it useful and entertaining. If so, please forward it to someone you know who might like to be on our mailing list.
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Keep The Change
So you just finished one of our Dump Debt! classes and you're ready to go! You've had it with living paycheck to paycheck! You're finally ready to do something about it. You start by gathering all of your financial stuff from the far corners of the house. (So that's where those pink fuzzy slippers went!) You take your pile of paper stuff and sit down to see where you are financially. Hmm.. Wow! did I really buy all that stuff? Well, OK so you had to have the Time-Life collection of "The best of the Mommas and the Poppas" who could blame you? Potato of the month club? Yup, I can see how that would be tempting. OK, so your spending habits weren't working for you.. But that was the old you, now you're the new you! The new you wouldn't even recognize the old you if passed each other on the street.. Hey! Is that old me wearing my new shirt!
So now that we've decided to do something about our situation.. We've got to do some things.
1. Take stock of your current situation.
2. Identify which habits you're going to change.
3. Prioritize spending and come up with your new plan.
4. Keep going even when the novelty wears off.
So you've got your net worth sheet filled out right? You know where you're starting.. You know what the mission is.. (Mission Impossible music please.. No wait.. Just Mission Really Hard music please..) The mission.. to put our cash flow plan together on paper so we can execute the plan in real life. When you actually put the "Cologne of the month club" down on paper (Ooh.. this month is "Muskrat Heaven") It seems a little silly next to things like say..food.
Anyway.. where was I.. The mission.. to have some money left over to use as an accelerator margin. All right, so maybe you weren't tempted by the "cologne of the month club".. You would never spend your money on anything so silly. And still you don't have any money left over? Well.. let's dig a bit deeper then. Hmm.. Gym membership.. $85 cell phone bill, $100.. Getting out of debt, priceless. Some things that we've convinced ourselves we can't live without.. We can live without. Now I'm not telling you to do without them forever, just while you're starting out on the road to freedom. You'll have stuff again.. Just don't let the stuff have you. How deep are you willing to dig?
Keep up with those activities that breed success..
You get paid tomorrow and you haven't got your cash flow plan done? No Time? Oh, I see.. American Idol is on.. Yep.. I know it's easier to skip it, but doing the cash flow plan every pay period is crucial to success. You'll have to make sure you keep up with it long after the novelty of class wears off.
When you first start on the road to any goal.. you're motivated. Sometimes that motivation can wane a bit along the way but those that are successful in life know that you will win when you do those activities that breed success.. Then rinse, lather and repeat!
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Yes, But Does it Stay Crunchy Even in Milk?
Credit crunch? I don't think so.. Vivian Snyder had good taste. She walked into a California BMW dealership and leased a new convertible. The manager congratulated her on her new $100,000 leased BMW. Woo hoo! Viv must be loaded right? Well, no, actually she was on disability.. The convertible ate up half of her $2500 monthly disability check. How did Snyder get BMW to go along with financing the car? When filling out the application, Snyder and the salesman put down what Snyder could be making if she weren't on disability. Vivian reportedly told the salesman about her $2500 disability checks but the salesman put down what he thought Vivian needed to qualify for the car. Somehow the figure on the application turned into $8600 a month when it showed up at BMW Financial's office. Apparently BMW didn't feel the need to double check any of her information and let her lease the car. No credit crunch here..
Shortly after driving the car off the lot, Vivian came to her senses and figured out she'd never be able to make the payments. She tried unsuccessfully to return the car to the dealership. The worst part? Snyder had taken $30,000 out of her retirement account, all that she had, for the down payment.
Eventually the media got involved and started their own investigation into the fraudulent lease application. In the end, no one admitted to any wrong doing, but Snyder was allowed to return the car.
So are banks really getting tighter? You don't have to look far to find the answer.. A quick trip on-line turns up an ad from Orchard Bank that reads "The best card for people with bad credit." Hmm.. can there be a best card for people with bad credit? Maybe the ad should read "The best anchors for people who are drowning."
There are plenty of people who need to realize the answer to their problems is not borrowing more money.. There are also plenty of banks out there that are still going to lend money to people who may not be in a good position to pay it back.. and those with the ability to pay it back will have no trouble at all borrowing.
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What are you willing to do for success?
Diligence
Proverbs 10-4 says "The hand of the diligent makes one rich". If we are going to win, we must be diligent. OK.. that sounds good, but what does that mean? Well, it means we have to show up every day ready to do what it takes to win today! Diligence is showing up every day, ready to fight one more day even though it may be easier not to. Diligence is discipline combined with excellence in everything we do. Author Dave Ramsey said that "Diligence implies marathon, not sprint." Diligence means doing those actives every day that will cause us to move forward towards our goals.
Author and television personality Larry Winget tells a story in his book "You're Broke Because You Want To Be" about growing up on a farm. One day there was a new calf born on the farm, and even though Larry was a little boy, he could pick the calf up and carry it around. Larry's father told him "If you pick up the calf every day of it's life and never miss a day, you will be able to pick it up even when it is full grown, but you have to pick it up every day." Larry's father explained that the calf would grow just a little each day, but it wouldn't grow so much that he couldn't pick it up the next day. Larry was skeptical but picked up the calf and said "Day one." The next day Larry again picked up the calf. No problem. "Day two." Larry continued this for about a week, then he got busy, played with his friends and missed a day. The next day Larry went to the barn and it was really hard to pick up the calf. Larry's dad smiled and said "You can't miss a day. If you want to do the impossible, you can't miss a day." Larry got busy again and missed a few days. The next time he went to the barn with his father, he couldn't pick up the calf no matter how hard he tried. Larry admits he had no idea if he could continue to lift the cow as it approached 500 pounds as an adult, but never forgot the lesson. If you want to achieve the impossible, you can't miss a day.
It's daily discipline that makes achieving things possible. Chances are, the more worthy the goal, the harder it will be to accomplish. That goal won't care if you're tired, bored, or haven't been out to eat "in forever" it's still out there on the horizon waiting for you to do what it takes. You have to work on it every day. Spend a little less, save a little more, read a little more, do a little more.
As Larry's dad said, you have to do it every day, you can't miss a day. If you want to be successful over time, you have to do the things that will make you successful every day or it will be harder to do those things. Eventually you may stop doing those things all together
Think about the activities that you do on a daily basis. Which activities take you closer to achieving your goals? Which activities take you further away from achieving your goals? If you are trying to lose weight, are your daily eating habits reflecting your goals every day? If you are trying to get out of debt, are your daily activities reflecting it?.
"Do, or do not, there is no try."
- Yoda "The Empire Strikes Back"
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We're looking for partners
We'd like to find some folks to partner with us. If you treat clients like you'd like to be treated.. If you have the heart of a teacher.. If you have the highest degree of integrity and you're in the financial services field advising clients on real estate, investing, insurance, accounting, taxes or estate planning, we'd like to meet you! We are looking to build a team that can help us better serve our client's needs.
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Events
To those of you who participated in our March class at NCC.. Thank you! You were a great group! If you enjoyed our "Dump Debt! Build Wealth! Live Free! class, tell your friends!
Did you know you can bring a Dump Debt! Build Wealth! Live Free! seminar to your workplace, church or group? What a great way to have your friends join you on your journey!
Ask us about bringing a seminar to your Group!
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Sponsor Spotlight
 Looking to buy or sell a home? You need a Realtor that produces results, not excuses. You need a high-octane Realtor. That's why I personally recommend Dennis Snell. Dennis sold us our home and his service was exceptional. Dennis is a full-time Realtor and has been a life long resident of the Lehigh Valley. With over 12 years experience, Dennis has received numerous awards including the Ambassadors Club, Executive Club and Million Dollar Club.
Dennis has specialized experience fulfilling the needs of senior citizens as well as corporate relocations. A big plus is Dennis' ability to draw on his experience as a general contractor to help determine if a house will fit a client's specific needs.
Dennis holds a BA in history from Moravian College and has been married to his wife Mary Ann for 34 years. Dennis covers the entire Lehigh Valley and works out of the Weichert Realty office at 2330 Schoenersvillve Rd. in Bethlehem. If you need a high-octane realtor you can trust call Dennis Snell at 610-392-1831.
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Whatever your goal, strive to be great, then help others!
Sincerely,
Eric Sherer
Sherer Financial Coaching
Phone: 610-570-0948
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