There are a number of people who look to me for financial tidbits because of either where I've been or where I'm going. I will admit that life has taken me down some pretty fine roads from mansions to destination islands and some days I've felt like a freakin rap star (minus the filthy lyrics, naked women and platinum chains of course). But let's not get it twisted thinking everyday is a life in the sun. Unless you're the beneficiary of a trust fund or your family reunion occurs in a WMO (Wealth Management Office), you will find turbulence on the road to riches. No one climbs the ladder to success escalator style. If they tell you otherwise, they're not being honest. Disaster can strike the best of us whether or not you feel you did anything to deserve it. Should you find yourself in this position, there are some fundamental things you can do to recover.

When I completed undergraduate school, I was provided a job offer with Burlington Industries in Rutherfordton, NC managing a shift of textile workers. Because both my parents had worked in that industry I wasn't exactly thrilled about joining them although I would have likely gotten on the management fast track. Nearing graduation, I had three revolving accounts totaling about $5k and an auto loan with roughly a 3K balance that I paid religiously on time. My plan was to eliminate my debts after crossing the stage and the full time job would have made it happen quickly. The issue was I wanted to aim a bit higher than Rutherfordton so I applied to Harvard to study Ukrainian. Surprisingly I got accepted and while that meant new potential opportunities later, continued fulltime study meant part-time work at best and more buddy time with my debts. I was told whatever I do, don't live in South Boston because my year round tan would not be welcomed for employment. I didn't believe it and was forced to find out the hard way. I couldn't buy a job or a vowel to spell one in South Weymouth, MA. With that came "you owe us" letters and phone calls and eventually collection accounts from my creditors.  (For the complete Harvard story, read the chapter entitled Lack of Money Never Stopped Me in my latest book Slide 68).

I Owe, I Owe, So Off to Work I Go

I left school a bit early and decided to join the workforce. Knowing I was starting my career in financial ruin, I wasn't sure which bill to pay first. Week one on the payroll, I picked a bill at random and called the collection agency. To my surprise, they were just as desperate to get something as I was to give it. I ended up settling the account for about 50% of what was owed. In total disbelief, I thought just multiply that concept with all your accounts and ignore those costly credit repair services. In short, I locked down my lifestyle and paid off all my debts within a few months. They all laughed at me when I was invited to lunch with colleagues and I responded, "I'll go but I ain't eating". I brought my lunch every day in a pink bowl but the only thing mattered to me was my mission.

My friends were sitting around talking about how we're getting paid tomorrow and they're already broke. The conversation continued with a discussion of credit card debt. All around the room I heard $5k, 8K, 12K, etc when they all finally looked at me and noticed I hadn't said anything. When they asked how much junk debt I had and I responded "none". They thought I was some kind of genius. They had no idea how I questioned the very existence of God during that horrendous two year period on how He would let me suffer and allow my accounts to go to collection agencies when I worked super hard to never be in that position. Free of frivolous debt, I nixed the apartment concept, bought a townhouse and five years later sold it and walked away with several hundred thousand dollars. Schewwwww - good thing He didn't listen to my plan! Feeling full of myself, I looked at my credit cards and did the Jim Carey Pet Detective rant motioning, "Can you feel that baby? Huh? Huh? Huh?"

Tricks of the Daily Money Trade

Obviously housing is the big dollar expense that holds people hostage for decades. If you own one, you can cut 7-9 years off your obligation with one extra payment a year. If you can't find one extra payment, divide your mortgage into 12ths and add that amount to your monthly payment to get the same result which eliminates those costly "cut your mortgage" programs. The most expensive fragrance on the common market is new car smell. As much as I love fine automobiles, not one of them is worth the new price. Either sit in a dealership for six hours at a minimum playing ping pong with the sales team to lower the price or buy A-1 used.

Another thing you can do to add a little cushion to your wallet is editing your budgeting process. Think fast. What's 7-6-4-9-4-8? I haven't a clue but I do know 0-0-0-0. As you make purchases, be sure to record zeroes in your ledger's cents column. For example, if the purchase price is $34.54 write it in your ledger as $35 or 36 even. Learn instant % off tricks of the trade to avoid sticker shock at the register. If an item costs $128.99 and it says 15% off, within seconds you can determine what that means. 10% off is $12.89 or roughly $13. An additional 5% off is roughly $6. $13+6 is $19 but I'd round to $20 and within seconds I'd know the purchase price is roughly $109. Ohhhhh. Yeah I know right:).

From Credit to Life Scores

With those computer whiz kids running rampant, be sure to get your free credit report every year and ensure you don't suddenly live in Alabaster Alabama driving a new Mercedes S550. Assuming you didn't make purchases or move doesn't mean your credit report agrees with you. Speaking of kids, let's tackle the final point. With the US education rankings being what they are, your kids must get formal schooling if they want a shot at moving out one day so take advantage of the various college savings programs. Still, you have to take living in moderation and remember that this is your life. I've seen people live like misers passing on every opportunity to live a little only to have the kids after being grown and gone return to "borrow" piles of their well saved Tahiti money. Ensure your kids live a good life with you, not because of you. No one respects your money the way you do, especially when you punch out of life. They'll buy a BMW and say you would have wanted them to.

Some guys have all the luck. I'm not one of them. You can plan with the best of them but at some point life may happen. If it does, don't assume you're at the end of the road, you just have to detour around the disaster. Don't eva-eva-eva-eva-eva-eva-eva give up and eventually you'll walk away from the deal a winner. The year is nearly half over. If your money game isn't right, stay on it and a little prayer never hurt. Keep your questions and comments coming.  Let's work.