Improving Your Credit Score

Your Credit Score is probably the most important number associated with you. More important than your Social Security number, even. How can this be?

Your Credit Score tells things about you like if you are responsible, if you are a good person to loan money to, what your interest rate will be, if you will be hired for that big job. Your Credit Score is suppose to be gauge for risk factor for anyone who is going to be loaning you money, or even hiring you. Of course, there are circumstances when your score may be out of your control, but those moments are what we call life.

There are many reasons your score may not reflect you in a positive way. Medical bills and unpaid bills are 2 of the biggest reasons I have found to be an issue for most people. That, along with a lack of credit. Yup, not having "enough credit" is a bad thing too. To find that "perfect" balance, here are some tips:

- Pay your bills on time. Paying bills on time, for my clients, is often an issue because if they had the money to pay their bills on time they wouldn't need me. Paying your bills on time is important because it builds a history of being financially responsible. Even if you are only paying the minimum amount due, make sure it's on time. If you can't pay a bill on time, call and let the company know. They will probably work with you.




- Having a credit card is important in your Credit Score. Having a credit card does a couple things for you. Part of your credit score is HOW LONG you have had that card, your HISTORY of paying revolving debt, and your CREDIT-TO-DEBT RATIO. Your credit-to-debt ratio is how much avaliable credit you have compared to how much debt you have. Use your credit card for small purchases and try to pay the balance off every month. Most people carry a balance, so make sure you are paying, at least, the minimum payment due each month.





- Have an Emergency Fund. An emergency fund gives you room to live when life happens. An emergency fund stops the use of credit cards for emergencies. The emergency fund gives you room to breathe when something unexpected happens. A good rule is to start with a goal of $1,000 and work your way up to 6 months of BASIC expenses.





- Educate yourself. Learning the methods and tips of good financial habits is something most of us weren't taught growing up. There are too many personal finance blogs out there to use the excuse of not knowing better. There are too many people willing to help you learn the right things to do financially. You can only use the "I was never taught" excuse for so long before you have to teach yourself.





- Plan YOUR work! Work YOUR Plan! Sit down and develop a plan. Plan for things you want, for things you need, and for things you need to want. Have a plan A, B, C, even a plan Z if you need it.





- Check you credit report. You get one free report from each of the 3 companies once a year from the government at http://www.annualcreditreport.com/ . There are also other ways to keep an eye on your credit. Your bank might offer a service to monitor your credit, things like this usually come with a fee so keep that in mind.




These are small but important things you can do to make sure your credit is where you need it to be. You have a life to live, don't let your lack of financial knowledge keep you from living the life you want.

If you need assistance, contact us by email, Facebook, Twitter, Phone.

personalfinance4thepeople@gmail.com

http://www.facebook.com/#!/PF4TP

@peoplesfinance

202-431-8008



Ponder This...

Money is better than poverty, if only for financial reasons. — Woody Allen

Be Careful! It's a Trap!

Pay Day Loans suck! They are a trap designed to hold you hostage for as long as possible. I would even say Pay Day Loans and those who run Pay Day Loan places are evil.



They prey on those who need financial assistance and education the most. Offering money with high interest rates attached to it. They offer no financial advice and serve no real purpose, besides preying on the misfortune of others.

Pay Day Loans become a cycle. Once a loan is taken out, the interest makes it very hard to get out from under the loan. Next thing you know you are giving the loan place your whole pay check to pay for the loan, or loans, you have taken out. Then you have to take out more loans just to survive, until the next pay day when you use that check to pay off the loan you took out the pay day before. It's a trap!


All you are doing is handing over YOUR hard earned money!

I know times get tough and we have to do what we have to do to make it to another day, but what good do Pay Day Loans do? They don't teach people about financial management. They don't offer a way out of debt. They do continue the cycle of poverty.

Look around and see where the Pay Day Loan places are. Who is their target? More often than not, you will find Pay Day Loans places in areas where the community is already in financial trouble. You find them in minority neighborhoods. You find them in cities close to rural areas. Why? Because those are the people who need financial education the most due to their low economic standing.

The New York Times had an article on Pay Day Loans awhile back and a few parts really stood out to me:

"While such lending is effectively banned in 11 states, including New York, through usury or other laws, it is flourishing in 39 others. The practice is unusually rampant and unregulated in New Mexico, where it has become a contentious political issue. The Center for Responsible Lending, a private consumer group based in Durham, N.C., calculates that nationally payday loans totaled at least $28 billion in 2005, doubling in five years.

The loans are quick and easy. Customers are usually required to leave a predated personal check that the lender can cash on the next payday, two or four weeks later. They must show a pay stub or proof of regular income, like Social Security, but there is no credit check, which leads to some defaults but, more often, continued extension of the loan, with repeated fees.

In many states, including New Mexico, lenders also make no effort to see if customers have borrowed elsewhere, which is how Mr. Milford could take out so many loans at once. If they repay on time, borrowers pay fees ranging from $15 per $100 borrowed in some states to, in New Mexico, often $20 or more per $100, which translates into an annualized interest rate, for a two-week loan, of 520 percent or more."

I can't place all the blame on Pay Day Loans. I can't place all the blame on the people who use them. I can't place all the blame on schools. I can't place all the blame on society for not properly educating about money. I can't fully blame society for the cycles of poverty; making Pay Day Loans appealing.

A piece of the blame should be shared. People have to do what they must to survive and Pay Day Loan place take advantage of this. The people who use Pay Day Loans need to develop an exit strategy, no matter how bad their current financial situation happens to be. Have a plan for getting out from under the loans and building a strong financial foundation. Find organizations or individuals that educate AND help you build this foundation. Take control of YOUR money!

As the old saying goes, "Give a man a fish and he will eat for a day. Teach him how to fish and he will eat for a lifetime."

If you find yourself in Pay Day Loan hell or are considering using Pay Day Loans, let us help instead!

Wanna Retire Early? Do this...

Yahoo! Finance had an article recently about 6 Secrets of Early Retirees. In this article stastics show the difference between people who are able to retire early (or at all) vs those who wait to save for retirement.



The best time to start thinking about retirement is now, while we are still young. Remember compound interest is our best friend in this high stakes game of retirement russian roulett. The longer and more ways our money can grow the sooner we can retire and hopefully live as we choose.

I talk a lot about savings; savings for short term, medium, and long range goals. Of course this would be a long term goal, to retire...one day. The typical retirement age is 65, I don't know about you but I don't want to be sitting at someone else's desk, doing someone else's work at 55, 60, or 65.

When I first got into personal finance, I spent a lot of time thinking about retirement. At first, "experts" were saying a million would get you by in retirement. I don't even know how many millions "they" say now. But all I know is to be able to retire, I have a long way to go - not just in terms of years, but money. I know I am not using my resources as I should be, but the first steps in saving for retirement is to pay off/down debt. Once you have this "extra" money from the debts, you can funnel it into retirement accounts.

If your company offers a 401(k) match try to at least meet that, even if you are paying down debt. It's like free money. Then once you are able you can open a Roth IRA to personally fund your retirement. The key is to be able to put away as much as possible, as early as possible. Remember, compund interest...



The Yahoo! article found that people who are able to successfully retire early (or at all) have these charaistics:

1. Save for retirement outside of just their workplace plan: 69% of early retirees do this vs. 60% of those who plan to retire after 65 and 49% of those who say they'll never retire.

2. Defer a high percentage of their salary into a retirement plan: Early retirees defer a median of 10% vs. 6% for those who plan to retire after 65 or don't plan to retire.

3. Start saving at a younger age: The median age early retirees begin saving is 25 vs. 30 for those who will retire after 65 and 31 for those who never plan to retire.

4. Have a thought-out retirement savings strategy: 71% of early retirees have either a written plan (16%) or a non-written plan (55%), while just over half of those who plan to retire after 65 do and just one-third of those who will never retire do.

5. Be very involved in managing and monitoring their retirement accounts: 71% of early retirees say they are very involved vs. 58% of those who will retire after 65 and just 45% of those who say they will never retire.

6. Have saved the same amount or more since the recession began: 71% of early retirees are doing this compared to 61% of those who will retire after 65 and just over half of those who never plan to retire.



What are you doing now for retirement, later?

20 Money Lessons for 20 Somethings

We all wish we could have gotten GOOD money advice before we got into the habit of BAD money moves. Well, over at Personal Dividends, they gave 20 Money Lessons for 20 Somethings...



- Overdrafting is expensive: When you spend more money than you have in the bank, it’s going to cost more than just putting that money back. Overdraft fees can add up and get very costly. Don’t throw money away; keep up with your balance and keep your spending within it.

- A budget is necessary: Budgets sound boring but we do so much better when we’re disciplined. Set up a budget and stick with it so you have enough money for your needs and maybe even your wants.

- Credit cards aren’t evil if you know how to use them properly: While some may tell you not to get a credit card, or why you don’t need one, that doesn’t mean credit cards are the root of all evil. It’s all about using credit cards properly: buy something with the card and pay it off in full every due date.

- Your credit will follow you: Just when you thought you got away with not paying that bill a few years ago, it will come back to haunt you. Late payments stay on your credit for 7 years, and by that time, you’ll probably be ready for a new job, a new home, or new credit, and late payments may prevent that from happening.

- An emergency fund will come in handy: You may have heard that shit happens because it does. You’re not immune from emergencies. Have an emergency fund for when you have your moment of need.

- You can start a successful business: You don’t need a lot of money to start a successful business. If you have the motivation and an idea, you can get it done. Don’t procrastinate; start your business today.

- Don’t get stuck in the rat race: You may have heard that a desk job is for you and moving up the corporate ladder is the way of life, but that’s not the case. If you’re not feeling it, it may not be for you. Explore other options!

- Insurance is another emergency fund: I once heard in a Chris Rock movie that insurance is “in case shit happens”. Sounds like an emergency fund, doesn’t it? You should be insured for your health, your car, and your home at the very least. Better safe than sorry.

- Invest in what you want to invest in: If you want to invest, don’t let someone else make decisions for you unless that’s what you want. If you have an idea of what you want to invest in, go for it. You’re young enough to be more adventurous in your investments.

- Children aren’t cheap but they don’t have to break the bank: So many people rant about how expensive kids are, calculating the costs for 18 years to be almost a quarter million dollars. If you are frugal and spend your money in a smart way, they won’t break the bank and you won’t be broke raising a child.

- Don’t get too comfortable with loans: Loans aren’t free money and you have to realize that with every loan comes an interest rate. Don’t get comfortable taking out numerous loans because you’ll have to pay them back and some.

- Retirement is closer than you think: You may be in your 20s and think you have years to think about retirement, but it’s closer than you think it is. If you start saving now, you’ll pat yourself on the back later. Even if it’s $20/month. Put it in an interest bearing account and watch your money grow for 30 years.

- Save for a goal instead of just splurging: When you have some extra pocket money, it may be burning your pocket to be spent. Instead, have a savings goal and once you meet it, then cash in and spend your money.

- The IRS is watching: If the IRS sends celebrities to jail for tax evasion, they will do the same to you. Do your taxes every year.

- You aren’t getting social security: That’s a monster within itself. Your grandparents may be getting it but don’t hold your breath. Look into 401(K)s and IRA accounts.

- Don’t forget your will: Unfortunately, we’re not immortal and we don’t know when we’re going to go. Think about who and what you want included in your will.

- Your finances will combine when you get married: Even if your spouse and yourself decide to keep your finances separate, you’ll still be tied if you share things like a home, a car, a business, or children.

- Divorces are expensive: Don’t get married just to get married. Divorces are expensive. Try to choose your partner wisely before jumping the broom.

- Renting is not throwing your money away: You may have heard that renting is throwing money away but that’s not the case. You’ll have a place to live, hopefully you remembered to get renter’s insurance, and you’re still paying for the same things you’d pay for in a bought house.

- You need a lot less than you think: We live in a culture where over consumption is expected. Not saying you need to be a minimalist, but it’s wise to think about living with the bare necessities.

Those are some great tips and give great prespective to your financial life and will make your overall life even more simple. Take these lessons and learn from them....

Go forth and use what you now know!!

PF4TP: We're Here to Help

Personal Finance 4 The People (PF4TP) aims to reach out to those individuals who lack financial education including budgeting, saving, prioritizing, and debt reduction and management all while instilling the importance of being Financially Independent. Financial Independence occurs when an individual has control over their finances and has at least a basic understand of their cash flow allowing them more control over their daily lives. We realize this journey is a whole personal make-over and we provide support for those moments during the journey when all seems impossible and one step forward leads to two steps back. With a societal focus, PF4TP focuses on those types of behaviors that are often cyclical and universal to those who are minorities in the general society who are underemployed, unemployed, or disenfranchised by a system that is failing to meet its own expectations. We teach that controlling one’s Financial Independence allows for a sense of empowerment that alleviates stress, as they will have an Emergency Fund, debt management skills, an understanding of priorities, and even possess the knowledge to pass this information to their children so future generations will not be trapped in the negative cyclical patterns. Alleviating this stress from their lives will, in turn, alleviate stresses from their communities as the residents will provide newly increased tax revenue into their communities; resulting in a positive cyclical effect on the community as a whole.

With a background in Sociology, PF4TP sees the “big picture” of how these underserved groups are being disenfranchised by their lack of financial knowledge and the lack of financial education provided to them. Cycles of negative financial habits have been passed from generation to generation leaving these groups underserved and disenfranchised more and more each generation. PF4TP firmly believes with education and guidance those who want to be Financially Independent should be able to set financial and life goals and reach them.

What sets PF4TP apart from other financial type businesses is our focus on personal finance from a societal view point. Believing this understanding of the importance Financial Independence leads to individual and communities these groups represent – often times overlapping – becoming more productive and self-sustaining.

Aside from working with individuals, we intend to teach basic financial classes where the education will be accompanied by optional guidance just as one would receive if they were working with PF4TP on an individual basis. Ideally, we aim to work with community organizations, churches, and schools to teach financial education as an additional aspect of the services provided.

Becoming Financially Independent is not just an individual accomplishment, it is a community accomplishment!

Plan YOUR work! Work YOUR Plan!
Email: personalfinance4thepeople@gmail.com
Blog: http://personalfinance4thepeople.blogspot.com/
Twitter: @peoplesfinance
Phone: 202-431-8008

How to Limit Student-Loan Debt

Student loans SUCK!I think I will be paying mine off for the rest of my life. I may have to give Sallie Mae my first born child, but at least I would be out of debt. But there are things you can do to help keep your loan amounts down or help you pay off what you have already.

Upromise is a good tool for earning money towards your Sallie Mae loans. You can link your debt and credit cards, store discount cards, and even get family and friends to do the same. When you buy things from places affiliated with UPromise you can either get a discount or a percentage towards your loan. The amounts are small...but small amounts count jsut as much as large amounts. UPromise also has coupons that either give you a discount simply by using your cards or you get a percentage of the price. UPromise also has partnered with a bunch of stores where if you buy online through the UPromise website, you get discounts or percentages.



I also do surveys on E-Rewards and have that linked to my UPromise. Once I build up enough money, I buy whatever amount I qualify for and send it to my UPromise. My plan is to earn so much money as possible through the surveys and every six months cash the money in and send it to UPromise. Then at the end of the year use what I have earned to put towards my loans. It's a small amount but, it's basically FREE MONEY towards my loans.

There are a lot of things you can do to help pay off your loans, as I find them I will share....



I came across this article from Kiplinger about How to Limit Student-Loan Debt that I found pretty interesting.

Here are the tips Kiplinger listed...

Choose a school that fits into the family budget. Families seem to be learning that picking a school is an economic decision as well as an academic one. In a survey by Fastweb.com, 45% of students ranked “quality of major” as their top reason for choosing a school. But “scholarship or financial assistance” (43%) and “total costs” (41%) came in a close second and third -- even higher than “academic reputation” (38%).

Among students who leave school with no debt, 85% graduated from public colleges, according to a report by Mark Kantrowitz, publisher of Fastweb.com and FinAid.org. Selecting an affordable school doesn’t have to mean sacrificing quality. To find public and private schools that deliver both, see our Best College Values special report.

Bypass the four-year route. Starting at a community college and transferring to a four-year school can save a lot. You can also slice a year off your expenses if your child takes Advanced Placement courses in high school or qualifies for college credits through the College Level Examination Program.

In Kantrowitz’s study, half the students who graduated with no debt graduated from a community college (one-third graduated from a public four-year college). Other hallmarks of students who graduate debt-free: They tend to spend less on textbooks -- $1,000 or less per year (see How to Cut College Textbook Costs in Half -- or More) -- and are more likely to live at home with their parents.

Use money you don’t have to pay back. It’s never too late to save, especially if you live in a state that gives you an income tax break for contributions to state-sponsored 529 plans (find the best 529 plan for you). Visit FastWeb.com to look for scholarship and grant money from schools and other sources where your student’s grade point average or other achievements would make him a standout (for inspiration, read about a student who put himself through school with zero debt).

If you must borrow, borrow smart. Start with government-sponsored loans, which offer flexible repayment options -- such as lower payments and deferral -- and fixed interest rates. These include Perkins loans, for eligible students, and Stafford loans, which may be subsidized if your student qualifies. Also look into PLUS loans for parents or a home-equity line of credit. (For more information on student loans, go to StudentLoans.gov.) With that combination you shouldn’t need private loans, which carry a variable interest rate and generally require a co-signer (see Be Wary of Private Student Loans).

Apparently, many students don’t realize that federal loans are the most attractive. “A majority of undergraduates who take out risky private loans could have borrowed more in safer federal loans instead,” reports the Project on Student Debt.

One of our young staff members here at Kiplinger told me that the financial-aid office at his college steered him to private loans before he had exhausted his federal borrowing. He spotted the mistake, but not every student is so savvy. The Project on Student Debt found that “counseling and information at critical decision points can really help borrowers make smarter choices.”

It’s also smart to pay all or part of any loan interest as it accrues so that it isn’t added to the balance that has to be repaid. And remember that even the best student loan can be a dual-edged sword, encouraging a student to borrow more than he should.

Know what you’re getting into. Use the Student Loan Advisor calculator at FinAid.org. It provides an estimate, based on starting salaries of various professions, of the maximum in student loans your child should take out and how much it will cost to pay it back.

One rule of thumb is that students should try to limit their total borrowing to no more than their expected starting salary when they graduate. FinAid warns that “if you borrow more than twice your expected starting salary, you will be at high risk of default.”

Choose a marketable major. Moody’s is right on the money in suggesting that students pick fields of study that are in demand. That doesn’t mean your child has to major in engineering or computer science. But if she’s majoring in economics, it couldn’t hurt to take accounting. If she’s studying history or government, she could learn a foreign language. And if she insists on studying something as precarious as journalism, she should minor or concentrate in another subject -- such as business, health or computer skills.

Guest Post: How to Live According to Your Needs?

Sanni Kruger, of Holistic Money Manager, is a finance coach helping people to become competent and confident money managers who live within their means without stressful money concerns. She assists her clients in reducing their debts whilst building up savings, as well as clarifying their desired long term vision and learning how to expand their resources to reach it. Her self-help book “Making Friends with Money – How to start feeling wealthy without waiting till you’re rich” is available from http://www.holisticmoneymanager.com/self-help/ Sanni is also a motivational speaker with over 30 years experience of speaking to groups of any size on a variety of subjects.


In my last blog I quoted Imran Khan saying that he lives according to his needs, which he believes to be the secret of contentment. But how do you actually identify what your real needs are?

Oddly enough seeing what we actually spend our money on can give us the most important clues. Here are a couple of examples from my finance coaching work:

The first is a young student, who I’ll call Karen. We worked together during the summer before she went to university. Karen was in the habit of buying cans of soft drinks here and there when she was out and about. Like all my clients she was encouraged to start keeping a record of all the money coming in and going out. Instead of adding the amounts she paid for the soft drinks to her “grocery” category she created a separate one, because she was curious to find out how much she actually spent that way.

After 4 weeks we sat down together and added up the small amounts, varying between 40 and 60 pence. She called out the amounts and I added them up. When we were finished I said something like: “£46.80”. She burst out spontaneously: “WHAT?!?! – I’m not paying that!” In that instant Karen realized that she didn’t need those drinks to quench her thirst. Instead she started refilling a small plastic bottle with tap water and carried that around with her.

The other example involves a young couple, which I’ll call Jim and Natalie. At the time they had a 2-year-old and a new baby. Because of some health issues Natalie needed Jim’s support and they would do the weekly shop together as a family. Once they had loaded up their trolley after going through the checkout, they would stop in the café for a cup of tea and a scone before heading home.

Just as Karen did, Jim and Natalie recorded the money they spent in the café separately from their grocery shopping, and we added it up at the end of a month. This time it amounted to something just under £30. On hearing that, they both said: “Our sanity is worth it! We’ll find that money.” They had identified that they needed that time to recharge their batteries before bundling the kids back into the car, load the shopping, go home, unload the kids and shopping, and then stow everything away.

In the process they also discovered that our real needs are much more than a roof over our heads, food in our bellies and clothes on our back. That there are emotional and spiritual ones, too. And that almost all of them involve money at some point. That’s why I always encourage my clients not to change their spending habits when they start keeping a record of their money. That it is a fact finding mission, and that nobody, but themselves, will make any judgments on their spending habits.

You can find detailed instructions about creating and keeping records in my self-help book “Making Friends with Money – How to start feeling wealthy without waiting till you’re rich”, which is available from http://www.holisticmoneymanager.com/self-help/



Thanks Sanni!

Plan YOUR work! Work YOUR plan!

My personal and professional motto is Plan YOUR work! Work YOUR plan!

My dad tells me this all the time...and he got it from his mother. Everything I do in life, I try to have some sort of plan for every situation. I'm a Capricorn, It's in my nature to be a planner.

Planning is a great way to get out of debt and stay that way. You develop a plan to attack your debt, your budget, and your savings goals. You plan as best you can for emergencies. You plan for vacations. You plan for new clothes. You plan...

The plan always changes, so you can't take it personal. Keep planning until you find a plan that works best for you.



From the blog Cash The Checks, here are some ideas for your planning:

- Write down all of your debts. use your credit report as well as your statements to see what you owe. Write down who you owe, what kind of debt it is and the amount.

- Create a budget. In order to tackle your debt, you need to set money aside to pay it down. But first, you’ll need to see where your money is going to see how much you can contribute towards your debt.

- Be patient. While it may have taken 1 year to accumulate this debt, it can take you many more years to completely wipe it out. Don’t be discouraged. This plan you’re creating just proves that there is light at the end of the tunnel.

-Decide what to pay first. You’ll want to tackle your worst debts first. Try paying off those with the highest interest rate first. If you have some smaller debts, get rid of those as soon as you can too. This can have a psychological benefit and, if listed on your credit report, will have its status changed to paid which will raise your credit score.

- Savings. While the goal is to pay off your debt, you should not ignore your savings account. In fact, the lack of having any savings is likely the reason you’re in debt. Unless you keep your savings account funded you’ll just continue to rely on credit.

- Sell your stuff. We all have a lot of extra junk we don’t need. Now is the time to get rid of it. Have a yard sale. You can sell gold, sell diamonds and other jewelry. Put up your old electronics on eBay. You will declutter your home and make some money in the process.

Do you have a plan for your financial and personal lives?

Wednesday's Lunch Time Financial Time: How to Save Money in 20 Minutes

Each Wednesday, PF4TP brings you a financial tip to help you on your journey towards Financial Independence! Enjoy!

From Yahoo! Personal Finance - Organize Your Finances and Save Money in 20 Minutes

7 Ways to get on Track Financially

Lately, I have been writing a lot about getting out of debt and getting on track financially. We don't realize how simple becoming Financially Independent is. Yeah, it takes work, lots of time, and dedication but it's more than worth it in the long run.

You can live your dreams. You just have to work for them and plan.

1. Stop overspending.


Really, stop! If you can't afford it (and it's a want), you don't need it. Track what you do spend by using something like Mint.com to see where you might be spending too much and change your habits accordingly. Use this information to create a budget.

2. Make more money.


Turn a hobby/skill/telent/passion into extra income. Sell old books. Make Ebay and Craigslist your new best friends. Work more hours. Take on a second job. Become a tutor. Try to bring in at least $100 a month in extra money...

3. Pay down those credit cards and other debts.


With all this extra money you now have coming in, pay down your credit cards and debts. Use Dave Ramsey's Snowball method to pay down your debts. Make a list of all your debts in order of amount you owe and work your way down the list, one debt at a time.

4. Build an Emergency Fund.


Open a savings account with an online bank, like ING, that gives you a higher interest rate than regular savings accounts. You can't immediately touch this money, so plan well! Set ING to take a set amount out of your regular bank account every payday, of an amount that works for you, and forget about it. Before you know it, you will have money for emergencies.

5. Stop using credit cards as often.


Instead of using your credit cards to buy things, save to buy the things you want. Learn to delay gratification and implement a 24 hour rule on purchases over $100. Think it over. Do you really need it? Right now? Make your credit cards work for you...once you have paid them off use them once a month to buy something small and pay off the balance each month.

6. Downsize if necessary.


If you cant afford to live where you live move or get a roommate. If your car payments are too high or gas is costing you too much, sell your vehicle and get a cheaper one. Downsize your life to a life you can afford.

7. Strip away the non-necessities.


If necessary, get rid of everything that isn't a need for the time being. Focus on your monthly bills, debts, and savings goals. As you clear debts you will have more money a month to do what you please with. Get back on track before you spend on wants.

It seems like a lot of work, and it is, but it is worth it in the end to see your dreams come true and to live the life you want....

The Get Rich Slowly Philosophy

I LOVE Get Rich Slowly. I guess you could say...it's the blog that started it all. Most of my philosophies on finance come from this blog in some form.

JD, of GRS, came up with fourteen tenets of the Get Rich Slowly philosophy. Check them out:

Money is more about mind than it is about math. That is, financial success is more about mastering the mental game of money than about understanding the numbers. The math of personal finance is simple — spend less than you earn — it’s controlling your habits and emotions that’s difficult.

The road to wealth is paved with goals. Without financial goals, you have no direction. If you have no direction, it’s easy to spend money on things you’ll regret later. But if you’re saving for a house, your daughter’s college education, or a trip to Europe, your goal will keep you focused, making it easier to spend on what’s important and ignore the things that aren’t.

To build wealth, you must spend less than you earn. Basic math, yes, but it’s important. Successful personal finance is all about building positive cash flow. By decreasing your spending while increasing your income, you can get out of debt and build wealth.

Saving must be a priority. Before you pay your bills, before you buy groceries, before you do anything else, you should set aside some part of your income. If you have to start small, start small. Even $25 a month is good. As you earn more and develop better habits, save as much as possible. (My wife saves nearly a third of her paycheck!)

Small amounts matter. Your everyday habits have a huge impact on your financial success. Frugality and thrift help build good habits, and make a real difference over time. Plus, there are tons of opportunities to flex your frugal muscles.

Large amounts matter, too. It’s good to clip coupons and to save money on groceries, but it’s even better to save on the big stuff like buying a car or a house. By making smart choices on big-ticket items, you can save thousands of dollars at once.

Slow and steady wins the race. The most successful folks are those who work longest and hardest at things they love to do. So try to find ways to make frugality fun, and recognize that you’re in this for the long haul. You’re making a lifestyle change, not looking for a quick fix.

The perfect is the enemy of the good. Too many people never get started putting their finances in order because they don’t know that the “best” first step is. Don’t worry about getting things exactly right — just choose a good option and do something to get started.

Failure is okay. Everyone makes mistakes — even billionaires like Warren Buffett. Don’t let one slip-up drag you down. One key difference between those who succeed and those who don’t is the ability to recover from a setback and keep marching toward a goal. Use failures to learn what not to do next time.

Do what works for you. Each of us is different. We have different goals, personalities, and experiences. We each need to find the tools and techniques that are effective for our own situations. There’s no one right way to save, invest, pay off debt, or buy a house — and don’t believe anyone who tells you there is. Experiment until you find methods that are effective for you.

Financial balance lets you enjoy tomorrow and today. Being smart with money isn’t about giving up your plasma TV or your daily latte. It’s about setting priorities and managing expectations, about choosing to spend only on the things that matter to you, while cutting costs on the things that don’t.

Action beats inaction. It’s easy to put things off, but the sooner you start moving toward your goals, the easier they’ll be to reach. It’s better to start with small steps today than to wait for that someday when you’ll be able to make great strides. Get moving.

Nobody cares more about your money than you do. The advice that others give you is almost always in their best interest, which may or may not be the same as your best interest. Don’t do what others tell you just because they hold a position of authority or seem to have a persuasive argument. Do your own research, get advice from a variety of sources, and in the end, make your own decisions based on your own goals and values.

It’s more important to be happy than it is to be rich. Don’t be obsessed with money — it won’t buy you happiness. Sure, money will give you more options in life, but true wealth is about something more. True wealth is about relationships, good health, and ongoing self-improvement.

Seems simple right? Sure it is!

I Want A Pay Raise!

If you are anything like me, you NEED - not want - a raise. Wages just don't seem to match up with the cost of living these days. There are things you can do to bring home more money; like get a part time job, freelance, work overtime, sell your stuff, and all the other things I mention all the time...or you could ask for a raise (if you truly deserve one).

The Standard Advice For Getting A Pay Raise
Of course, most advice on asking for a pay raise is pretty apparent. For instance, most people think it’s a good idea to approach a supervisor when the company is doing well. This makes total sense as it’s the same thing when you’re trying to communicate with an obstinate spouse. Bring a “tough” subject up when the timing is good, and you’ll get a better shot at getting what you want. You want things to be “win-win” here. By contrast, if the company stock suddenly does a $700 swan dive, save your talk until the following month or decade.


Another piece of standard advice: update your resume with any new skills you’ve learned at your job. Something like “outsourced the entire company phone tree to a central location in Eurasia” sounds terrific. “Perfected my fantasy football team roster in just three tries” may not be so relevant. Don’t discuss the number of YouTube videos you’ve watched since the quarter began, though. But what’s better is that you keep learning new skills so that your performance will support your request for a raise or promotion.

Don’t be shy about what you’ve accomplished for your department or company. For instance, you could mention the range of clients you’ve brought into the company. Clients who spend thousands or millions a year on your products are prime. However, if you’re in retail, you don’t need to bring up the squadron of power walkers who only come in to use the bathroom.

During the negotiation itself, be aware of your body language and try to sound calm. Leave the pepper spray in your desk!

Monday's Entrepreneur: Computer Solutions Center

Every Monday at PF4P, we like to start the week off on a positive note, so we bring you stories of people like us who have turned a passion, hobby, talent, or skill into something that provides them with either full-time or part-time income.

*Scroll Down For Update*

Computer Solutions Center is based out of Cleveland, OH - but arrangements can be made to work with you if you live out of the Cleveland area.



Computer Solutions Center does a lot of tech work including:

Building Custom Computer Systems
Repair
Upgrade
Operating systems installations
even unlocking cell phones

Work with:

Windows
Mac OSX
Linux

If they can’t fix your computer, no one can! – most times even those computers you thought were dead!

They offer a flat rate of $40 for labor, plus parts which are usually found at a very cheap price. Just like other members of the PF4TP family, Computer Solutions Center is out to provide an affordable, quality service as its main goal – not making a quick buck off of you.

To hear more call 216-924-3747 and ask for James or email computersolutions.jc@gmail.com for more info.



...And as always....tell 'em PF4TP sent you!

Overcoming Financial Mismanagement

We all make mistakes. We all mess up. It's part of life.



I always joke about "admitting the problem is the first step to fixing the problem" but it's true. Just like they say in AA, admiting you have a problem is the first step to recovery...

Here are somethings you can do to help get yourself back on track after a financial mismanagement:

1. Acknowledge the mismanagement
The first order of business is to stop viewing financial mismanagement as anything less than a problem—which is exactly what it will become if it isn’t corrected. Most of us know when we’re going astray, and one of the best forms of evidence is the amount of time spent denying it to be true.

2. Bring it before the Lord (or whatever you believe in)
God knows what we won’t admit, and He’s greater than our problems, habits and attitudes. No matter how entrenched they are, if you’re walking in faith, you’re not walking alone. Pray deeply, and keep your eyes and ears open for answers—they’ll come.

In Psalm 46:13 we read:

God is our refuge and strength, an ever-present help in trouble. Therefore we will not fear, though the earth give way and the mountains fall into the heart of the sea, though its waters roar and foam and the mountains quake with their surging.

Pray for discernment, openness, resolve, wise counsel, peace and provision—you’ll need them all. He rarely drops a solution to our problems in our laps, but He will give us the abilities we need to work it out ourselves.

3. Have a plan
Whether you’ve been building excessive credit, living above your means, or not earning or saving enough money, you’ll need to have a plan of action. The plan will have to be specific, with monthly, weekly or even daily activities that will move you closer to your goal. And it will have to be written. You can set it up as a mission statement describing the ultimate goal, but you may also need to set up spreadsheets that will remind you what you need to do each day and also to enable you to track the steps that will get you there.

4. Consult with others
Find others who you trust to give good advice and who can not only encourage you in your effort, but also hold you accountable. Accountability is important since financial mismanagement comes about precisely because it’s done in private. When you tell others what your situation is and what you intend to do about it, you’ll feel more compelled to follow through.

5. Put the power of forward motion to work for you
You may not succeed every step of the way and you might even take as step back every now and again—and that’s OK. As long as you continue moving forward overall, you’ll get to your destination soon enough. With that in mind, resolve to do something each day that will move you forward. If you take a step back today, vow to take two steps forward tomorrow. You can move slowly, but do it relentlessly.

6. Take small steps
Accomplishing a small, doable goal is far better than failing at an impossible one. You probably won’t save $1,000 in the first month if you’ve never saved money before, but you may be able to save $100 with little difficulty. You can increase it to $200 after a few months, which will be easier since you’ll already have the savings habit rolling. You’re trying to create new habits that will last a lifetime, and that’s best accomplished in small steps.

7. Be ready to move outside your comfort zone
Comfort is a close ally of financial mismanagement because much of what we do in life is driven by the desire to avoid being uncomfortable. But that may be exactly what you’ll need to be in order to make constructive change.

If you’ve been living beyond your means, cutting back on spending won’t feel good at all, especially in the early stages. Similarly, if you’re trying to get out of a career that isn’t working out for you, you’ll have to learn new skills or even return to school. None of that will feel comfortable, but it will be necessary to make the changes that you want.

8. Look past the obstacles
Here’s where you can engage your imagination. Think deeply about the fact that you have no money saved—how bad does that feel? Now imagine that you have six months living expenses in your bank account—how good does that feel?

One of the factors that makes financial mismanagement difficult to overcome is that we don’t know how it will feel if a problem didn’t exist. We might come to consider a problem to be permanent. The key is to develop the ability and habit of looking past the problem, not living in it.

9. Keep records of your progress and celebrate your victories
You probably won’t accomplish your financial goals quickly, so it’s best that you have a series of short term goals that you can measure along the way. Keep track of the increases in your savings account or the decreases in your credit card balances. This is important because you’ll need to see progress. Though you may not see it in any given week or month, if you see it over the longer term you’ll be encouraged to keep moving toward the finish line.

When you do achieve a short term goal, feel good about it and reward yourself for reaching it (in a way that doesn’t undo the goal you just reached in any way!) Change always feels most uncomfortable at the very beginning, but as you move forward it gets easier—and more rewarding.
We all want financial independence, but it can never be attained if you’re dealing with chronic financial mismanagement. If you can turn those bad financial habits around, and get them working in your favor, financial independence will be just a matter of time.



Remember: there is going to be road bumps in life, don't let them stop your progress. They are just road bumps NOT A BRICK WALL!

40 Things About Money

*If you want happiness, spend your money on experiences, not on stuff.

*A financial goal not written down and with no deadline, is only a financial wish.

*The only person that will truly ever care about your money is you.

*There is no single way to manage your money correctly.

*You can have anything you want in life, as long as you prioritize it.

*Investing in index funds, isn’t average.

*The goal for an investor is to earn the highest return after-taxes and expenses.

*99% of financial news is meaningless.

*The 1% of financial news that does matter isn’t on TV.

*Investing really can be as easy as putting your money in a good targeted retirement fund.

*The best investment, is an investment in yourself.

*You have a limited ability to save money, and an unlimited ability to earn money.

*You control what’s possible, by what you believe is possible.

*Money without time, is worthless.

*You don’t have to make money back, the same way you lose it.

*Compound interest really is magical.

*The fastest way to decrease your net worth, is to borrow money to buy an asset that depreciates.

*It’s not about how much you make, but how much you keep.

*You can borrow to pay for your kids college but not for your retirement.

*For a young investor, it’s better to focus on how much you save, rather than focusing on a marginal increase in investment returns.

*An employer match is an immediate return on your savings.

*Money can make you money, which can make you money.

*The goal of money, is to manage it to reach your goals in life.

*Investing is simple, it’s just not easy.

*The purpose of a budget isn’t to determine where your money went, but where your money should go.

*The unexpected will happen, an emergency fund is your insurance.

*The cheapest insurance is self insurance.

*What can’t be self insured, must be insured.

*It’s better to actively manage your life, not your investments.

*You can only change one financial habit at a time successfully.

*When trying to change a financial habit, make that change as small as possible.

*Your environment, shapes your decisions.

*Information, doesn’t lead to action.

*You don’t lack willpower.

*You overestimate how much money you need to live your desired life.

*Money is a tool to get what you want, it’s not the end goal.

*Your mind is your greatest asset.

*There’s a small correlation between your salary and happiness, but only to a certain extent.

*If you THINK you can afford to buy something, you can’t.

*Life isn’t about money, it’s about time.

Hobby = EXTRA Cash??

Everyone has a hobby/skill/talent/passion they love to do. Why not turn that into extra income to help get you to where you want to be?

When speaking to my clients, I stress the need to make extra money...no matter what their situation is. Everyone has something they can do...tutor, making something, working with kids, teaching something, sell thing you dont need or use, walk dogs, become a freelance writer, help an elderly neighbor with chores around the house, design webistes, open a lemonade stand....

I started a business helping other with their finances. I want to run a basketball clinic in the summers. I loved collecting trading cards as a kid, I want to open an Ebay store or something. I have so many things I love to do and am passionate about that, given the time I could turn into something to make extra money...

1. Get Organized
Taking on multiple tasks or jobs, takes skill and dedication. Put together a game plan and find the best ways to save time and money, since both of these are essential to productivity.



2. Start Small
When first starting out you need small expectations and high hopes. It takes time to build a reputation, earn people’s trust and show consistency. Start small so you won’t overwhelm yourself, your family or your wallet.



3. Learn Everything
Learn everything you can about your hobby, take classes, read books, and research whatever is available. Use other people’s testimonies of success or failure, so you can put your best foot forward. As humans one of our strongest assets is our thirst for knowledge and the ability to constantly improve.



4. Stay Dedicated
Think about your hobbies and projects carefully, so you can be successful and keep progressing. Failure doesn’t equal quitting, it just means you have to keep trying and learn from your mistakes.



5. Be Passionate
The ultimate goal of a hobby is to learn something new and have fun, so if your only doing it for the money it will show. If you’re passionate and enjoy your work, it will be evident to others and they will be impacted positively.



What do you love to do that can earn you extra money?

5 Rules for Smart Credit Card Use

Is this you?



It doesn't have to be. Follow these 5 Rules and take control back from the credit industry!

1. Only Spend Money You Actually Have
It’s important to remember that credit cards don’t represent “extra” money; your credit card balance is essentially borrowed money. If you don’t pay off your credit card balance, you will have to pay interest on it. This is when things start to get expensive as a credit card user. Make sure that when you use your credit card, you already have the money to pay off your purchase.

2. Pay Off Your Balance Each Month
This was hinted at in #1, but it bears repeating: Pay off your balance each month. Smart credit card users don’t carry a balance because it becomes too costly. Instead, make it a point to pay off your balance each and every month. You can reap the benefits associated with your credit card without having to pay interest.



3. Watch Out for Fees
Be aware of the fees that are being charged. While a credit card with a generous rewards program that you will use can be worth an annual fee, most cards just aren’t worth the fees you pay. Also, watch out for foreign transaction fees, high late payment or over the limit fees, and other charges that might be part of the program. Also, be wary of credit card protection plans that will charge you a fee. This is especially important if you are trying to pay down debt and still have a credit card balance. You don’t want to be paying these fees.

4. Get a Rewards Program You Will Use
When choosing amongst credit cards, it is usually better to choose one with rewards. However, you want to make sure that you are choosing a rewards program that you can actually use. Check to see what restrictions there are, and what kinds of fees might be charged for redeeming your rewards. If you don’t travel much, an airline rewards card might not be the best option. However, if you have a long commute, a rewards program that gives you extra points or cash back for gas purchases can be of great benefit to you. Consider the rewards as you use your credit card.

5. Use Your Credit Card for Rewards
The savviest credit card users know that they will get the best benefits when they use their credit cards a great deal. A credit card is convenient, and you can earn rewards and cashback. You should use your credit card for everything you can, from gas to groceries to online purchases. When you use your credit card for regular, everyday, budgeted spending, you can reap the rewards without paying the interest. This is a good way to rack up the rewards or earn hundreds of dollars in cash back each year.

Easier said than done. I know. At least it's a start!



Ready? Set? Go!

Anatomy of a Credit Score

From Get Rich Slowly

Your credit score plays an increasingly important role in your financial health. But what is it? And how does it affect what you pay for loans and credit cards?

Your credit score is a single number that indicates your creditworthiness. This number is derived from various pieces of information contained in your credit report. Your credit report is accumulated by various credit agencies — credit card companies and banks and other financial institutions, who pass along information about how much you owe, how well you pay, and how long you’ve been a customer. Your credit score determines the types of credit you can obtain, and how much you will be charged in interest.



In general, your credit score is based on the following:

According to Fair Isaac, the company behind credit scores, these factors are accurate predictors of future credit performance. That is, these are the things that best indicate how great a credit risk you are. (For some people — such as young adults who don’t have a lengthy credit history — the importance of each category may be somewhat different.)



For more detailed information about the components of your credit score, check out the following pages at myFICO:

What’s in your score?
What’s not in your score?
Improving your FICO score.
myFICO states that the median credit score in the United States is 723: half of the population has a score of 723 or above, and half of the population has a score of 723 or below. myFICO also provides the following table, which indicates how your credit score affects what you pay for a loan:

For a $216,000 30-year, fixed rate mortgage:
If your FICO®
score is: Your interest
rate is: …and your monthly
payment is:

National interest rates as of 02 June 2006
760 – 850 6.33% $1,341
700 – 759 6.55% $1,373
680 – 699 6.73% $1,398
660 – 679 6.95% $1,429
640 – 659 7.38% $1,492
620 – 639 7.92% $1,573

How much can you save if your credit score is 760 instead of 699? In the example provided above, you would save $57/month on interest payments. That’s $684/year.

A recent federal law gives consumers access to their credit reports, however it costs extra to obtain your credit score. Your credit score is not an actual component of your credit report.

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.

If you’d like, you can obtain reports from all three credit reporting agencies at once. Or, you can stagger your requests, possibly requesting one report every four months from a different agency. There are three ways to obtain your credit report:

Order it online at annualcreditreport.com.
Call 1-877-322-8228.
Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

21 Things That Will Change Your Life Forever

Life is hard! It's a fact. And we often make life harder by doing this that are counterproductive to what we say we want out of life. There is no fool proof plan or set of instructions to leading your best life, but open yourself to making these 21 things apart of your everyday life and see how much things seem to change for you...

I love this man! ET The Hip Hop Preacher is so motivational



1. Take Small Steps
A baby learns to crawl before it can walk, and it learns to walk before it can run.

Most people expect rapid life changes. If they’re wasting their time at a soul-sucking job, they expect success and fame within six months.

I’m not saying it isn’t possible, because it is, but in most cases it’s not going to happen.

People who need life changes now don’t realize that it’s not going to make them happy anyway.

All they want is their dream of a future without any problems. When they get there, reality sets in, so they set another goal.

And on it goes.

Take small steps. Enjoy the process, and have fun.

Those small steps will eventually evolve into quantum leaps.

2. Take Quantum Leaps
Something I’ve learned in life is that changes can happen in an instant. Old pains, fears, and negative emotions can vanish and be replaced by something more useful.

We don’t live in a black and white world.

Quantum leaps are tipping points.

As you keep taking one step at a time, you will eventually reach a tipping point where everything shifts.

The problem is that most people never get to those shifts. They take a few steps, complain, whine, and give up.

They stop drilling when they are about to hit gold.

3. Accept Where You Are
It has taken me a long time to realize that it is ok to be who I am. A lot of things about me may seem contradictory to the image I present, but these things make me who I am. Once I learned to embrace EVERY part of me things began to change.

My best friend and I joke that we are a different breed, but in reality we are. At least I know that I am. I have my great attributes and my not so great attributes; I have attributes that people have always made fun of me for such as reading, being shy, and helping others. But those things make me who I am and have in some way have made me be more successful and more driven.

Each day it gets better, and I’m okay with that.

Things come and go. People live and die. Your life feels good, and it feels bad. The more you accept this, the easier it is to change your life.

4. Be Patient
I have had this dream of finding something that I am passionate about and using it to help others, now that I have found it and am making progress I am learning to be more patient. A business doesn't start and grow overnight.

I stumbled a lot in the beginning. I make mistakes, I fail, and I give up in frustration more times than I’d like to admit.

I'm begining to see results as I became determined to succeed and focused.

There will always be problems. But they don’t have to clutter up your whole life.

Be patient with your progress.

You can change your life. Sometimes it just happens in its own time.

5. Forgive
We all have memories—painful memories.

What you may not realize is that the person hurting you with those memories is you.

You are the director of your mind. While the event may have happened in the past, it’s you who keeps playing them over and over again.

Reliving the past will get you nowhere. That’s why it’s essential to forgive and forget all those people in your memories.

When you do this, your life will begin to change. It takes a lot of energy to keep those memories running.

6. Heal
Healing yourself goes hand in hand with point #5. When you know that you can let go of past memories, fears, and obstacles, you become confident.

Most people aren’t ready for life changes. All they want to do is complain. They avoid any and all solutions, because they are comfortable where they are.

And that’s fine with me, but if you make that choice, you have no right to complain or make excuses.

You either choose to be where you are, or you choose to change your life. It’s always up to you.

7. Face Your Fears
When you face your fears, possibilities open up. I still have a slew of fears waiting to be faced, but I’ve come a long way since I started.

And that brings up another important point.

This is not about comparing yourself to someone else. This is about comparing yourself to you.

How much have you learned since last year? Have you moved forward? If the answer is yes, then you’re doing well.

8. Kill Your Excuses
Your excuses are mere illusions.

You may have excuses about why you can’t follow your passion and build an online business, but are they really true?

If you really wanted to, you could make those excuses disappear, and when you do, you know what’ll happen?

That’s right.

Your life will change, once again.

9. Take Responsibility
Since talking with more and more readers, clients, and people in general, I’ve started to notice a scary pattern.

That pattern is the lack of responsibility. I see people wanting to change their life, but they aren’t willing to take responsibility.

They wait for a white knight (or black, depending on your preference) to sweep in to save the day and make change effortless and comfortable.

I hate to burst your bubble, but it’s not going to happen. When you take responsibility for the life you’ve created, you can begin to move forward.

If you’re blaming someone else for your situation, you’re stuck.

10. Follow Your Heart
And what would an article of mine be without me telling you to follow your heart?

If you’ve been reading my articles, you know that I keep writing about following your heart, and there’s a reason it keeps popping up.

As I’ve been living my life, I’ve started listening to my heart more and more.

And when I say following and listening to your heart, I mean it in the broadest sense of the word. It can mean anything, such as following your gut, intuition, feelings, or going with the flow of life.

When you begin putting the pieces together, and taking responsibility, and healing yourself, you will naturally begin to follow your heart.

11. Follow Your Passion
If you drive up to a gas station, fill your car with the wrong kind of fuel, it won’t run very well, if at all.

That’s what most people are trying to do in life. They are listening to outside influences, and that’s when all the “shoulds” come in.

You want to do your research and know that there’s potential, but if you don’t do something you’re passionate about, your car will run out of fuel sooner or later.

It is your passion that will fuel your journey for the rest of your life.

12. Meditate
Ever had the experience of your mind racing out of control? It almost feels like you’re going crazy, doesn’t it?

A great way to calm yourself (and your mind) down is to meditate. Even five minutes of meditation can do wonders.

Did you know that a feeling can only stay in your body for about 90 seconds (chemically)? If it stays longer, you are doing something to maintain it.

You have to throw wood in the fire to keep it going.

Meditation is a great way to break that spell. So is exercise. So is eating. So is sex.

But I think one of the healthiest ways is to meditate and notice what’s going on.

13. Express Yourself
I find writing extremely therapeutic. It’s something I love to do. It calms me. It’s inspiring, and it infuses my life with serenity.

I highly recommend you take up journaling or just writing down your thoughts after every day. If you’ve tried to solve problems in your head, you know it doesn’t work. Your mind is too scattered for that.

You can have a conversation on paper, freewrite, and solve problems easily. It has the ability to change your life completely.

A great book on freewriting is Accidental Genius by Mark Levy.

14. Comfort Zone Kill
If you want to change your life in the most positive sense, get comfortable with being out of your comfort zone.

When you’re learning something new, you will bump into the walls of your comfort zone.

Your spirit wants to be free. It’s when you put yourself into a little box that it feels the need to rebel. You will start feeling bored, and restless.

You don’t have to suddenly infuse your life with discomfort. All you have to do is dip your toes from time to time.

15. Flow
Let’s face it. You don’t know what you want.

Sound harsh? Let me explain.

Most people think they know what they want. They make five and ten year plans, acting as if nothing will change during that time.

I’m on board with making plans and setting goals. But I don’t like rigidly sticking to them. You will miss opportunities if you do this.

In fact, you will miss life.

It’s like driving with all the windows painted black except the front window. You see where you’re going, but you miss everything else.

Accept that life brings you possibilities. You don’t always know where your life will go. If you go with the flow, it will take you where you need to be.

16. Focus
In order to change your life, you have to change your focus.

If you don’t take control of your mind, it will run amok. You will focus on the negative. You will imagine the worst possible scenario.

So, how do you focus?

You take it step-by-step. Meditate five minutes a day. Take a walk and notice how your body feels. Relax and stop stressing.

And when you do that, the way will open up.

17. Read
I love reading.

We live and die by stories. My life has changed several times by simply reading a book. I really need to compile a list of my favorite books into a post. Oh well, another time!

The stories you read have a profound effect on how you view the world. You can be stuck on a problem, and the solution can pop into your mind while you’re reading something completely unrelated.

Your mind does not work sequentially. You can be reading something, then something goes click, and your life changes forever.

And as you’re reading these very words, it causes you to think, doesn’t it?

In order for you to make sense out of the funny letters you see here, you have to go inside, and make sense out of it from your own map of the world.

Change is inevitable. It’s all about in what direction you’re changing.

18. Befriend the Unknown
You never know what you need. Remember point #15, going with the flow?

When you’re open to the unknown, which really is possibility, you accept that life may bring you something negative to teach you a positive lesson.

At one point I was looking up at the sky and asking “Why?”

And I’m not at all religious. But it helped me realize what’s truly important in life. It isn’t money, or material wealth, although those things can be nice.

You just never know what life will bring, so you might as well become curious.

How will the seemingly negative turn to positive in your life? What are they teaching you?

19. Reclaim Your Personal Power
Stop looking for others for approval. Just like taking responsibility (#9), you have to reclaim your personal power.

You know what to do. You can feel it. You just haven’t been listening to that inner voice til’ now.

It’s easy to give the decision to someone else, but it’s your life. The sooner you realize that, the more fun you will have.

What do you want to do right now?

If you don’t know, then start somewhere, because action will bring clarity.

20. Accept Failure
You will make mistakes.

And you won’t even know if they are mistakes when you make them, because mistakes and failures are skipping stones to success.

You only fail if you give up, so if you never give up, you can never fail, only learn, and grow.

21. You Are Always More
And above all, remember that you are always more than you think you are.

You are more than your problems, more than your fears, and more than your body.

It’s only when you focus on your problems and believe them to be you that you get into trouble.

So, remember to relax, because life is way too important to take seriously