The Truth About Debt

If you have been subscribing to Copia's Journal, you will remember that I started you off on steps to taking a closer look at your cash flow and creating a budget. One of the things you have to know is how much money is flowing in and how much money is flowing out. That seems simple enough. Yet, so many Americans are so far into debt that more is flowing out than there is coming in.

One of the things an investor learns is the true difference between good debt and bad debt. Very few people understand how to correctly use debt. I read so many published articles that incorrectly explain good debt (probably because the author has to justify their own debt).

It is very simple, good debt is debt that makes money for you, period. Any other debt is bad. As long as you are honest with yourself when accessing your debt you can decide what kind of debt to have, if any. Take the steps to learn to swing the pendulum and use debt to create cash flow and then buy the things you want to support the lifestyle you desire.
Believe me, it is sweet sensation when this paradigm shifts. Learn how to make money work for you instead of the other way around. Debt is really a good thing when it pays for itself and puts cash in your pocket.

Love, Jules

Personal Finance From the Inside Out

My life changing Personal Finance From the Inside Out class begins this week! This is a 4-week intensive - fun and amazing!

CLASS BEGINS in Carmel on:
Thursday, January 21, 2010 6:30pm to 8:30pm
(Note: In February I will offering this course through conference calls, so you don't have to live in the Monterey Bay area!)

• In this class, we take a look at our attitudes around money and ask our selves what financial freedom means to us.
  
• We take a look at how simple, or not as difficult as it may seem, to achieve financial freedom.
  
• We learn some simple guidelines for how to set up a budget and follow the budget.
  
• We learn fun and creative ways for goal setting and list what needs to happen to obtain those goals.
  
• Journaling happens!
• We take a Money Personality Test; get to know your personality around money.
  
• Learn to start thinking about how you can invest and empower yourself around money! ... and more!

Do you realize that more than 85% of the households in this country are run by women? Yet where did we learn to do this? Slowly over the last 40 years, men have turned this job over to the women! And women make excellent money mangers when taught all the skills!

If you live in the Monterey Bay area and want to sign-up, please email me NOW at: jewleyd@comcast.net. Class begins on Thursday, January 21, from 6:30 p.m. to 8:30 p.m. We meet for four (4) Thursdays. The cost is $250.00 and you may bring a friend for FREE!

Warmly,
Julie

Book Review: A Girl Needs Cash

Of course I loved this book! Joan Perry writes about how we women should take charge of our financial lives – with a “girl power” attitude. Joan sings the same song I do! Nobody is going to come along and take care of our financial life; banish that “White Knight Myth”. We are completely capable of knowing what we want, setting our priorities financially and taking action. We do this in our family lives, in our social lives, career lives, and I certainly hope our sexual lives! Joan points out that women are in a financial revolution and I sense that she is right -- I love that! Joan breaks through some of the misconceptions that maybe the culprit which keeps many women financially captive. Joan explains how to review spending habits and develop new sources of income to create the kind of life you want to live. Singing the same one again -- That is what I do in my class Personal Finance from the Inside Out (but I take a different approach). Ladies, no matter how old you are or where you are at in your life, it is time to take charge of your financial life. Learn some new attitudes and thoughts around money. A Girl Needs Cash is an important book to read and I think it should be in every woman’s library.

Enjoy,

Jules

Back to School: Personal Finance From the Inside Out

Do you realize that more than 85% of the households in this country are run by women? Yet where did we learn to do this? Slowly over the last 40 years, men have turned this job over to the women!

This class is a lot of fun ... we take a closer look at the household income and expenses; Like my friend Ahnalisa says, "Cash in and cash out, it is like the breathe of the household".

CLASS BEGINS: Thursday, August 27, 2009 6:30pm to 8:30pm

• In this class, we take a look at our attitudes around money and ask our selves what financial freedom means to us.
  
• We take a look at how simple, or not as difficult as it may seem, to achieve financial freedom.
  
• We learn some simple guidelines for how to set up a budget and follow the budget.
  
• We learn some goal setting and list what needs to happen to obtain those goals.
  
• Journaling happens!
• We take a Money Personality Test; get to know your personality around money.
  
• Learn to start thinking about how you can invest and empower yourself around money! ... and more!
  

If you live local in the Monterey Bay area and want to sign up, please email me directly at: jewleyd@comcast.net I will eventually teach this course over the internet, so keep in touch if you are interested!

Cheers,
Julie

Book Review: Suze Orman's 2009 Action Plan

Last month the ladies of the investment club that I belong to chose to read Suze Orman's new book. I also suggested that the readers of my monthly journal (free newsletter) read it along with us. Well, I did indeed read it and here is what I think about out it.

Her usual message comes through loud and clear, "you must commit to taking action". There is just no room for taking the back seat when it comes to understanding your financial situation and knowing what you need to do with your money.

Suze first spells out very briefly the current global credit crisis. I love her parable, "Our economy is like a patient who was rushed to the hospital in critical condition. After months of aggressive intervention ... the patient is still in the Intensive Care Unit, but the prognosis is that eventually there will be a full recovery. In the meantime, the patient will move into a rehabilitation facility and start to get back on his or her feet. Before too long, the patient will be stable enough to go home, though it might be years before he of she is back to full health".

So what do you do with your money while you ride this "rehabilitation" time out?

The chapters in Suze's book are organized in nine (9) areas of money: Credit, Retirement, Savings, Spending, Real Estate, Paying for College and Family which includes insurance and job loss. Suze lists multiple scenarios for each of these area. So you must read through (a very easy read) to see which scenario might best fit your situation. Then she tells you what to do with an "action plan" for each scenario.

Please be diligent and research any advice no matter how "expert" someone maybe. For example, if you do not understand or know what a treasury money market fund is or an EFT is, then educate yourself and learn. It is important to understand why her action plans are good at this time during a general economic downturn. The economy changes and goes through its cycles; money grows well in one investment during a down turn but then may performs poorly when the economy is booming. Thus, through learning you will also see that money can grow through investments no matter how the economy is doing. I always say, "create your own economy"!

So Suze's book is a great place to start, but there is more work to be done. So get your 2009 action plan started if you have not done so already already.

When fear and doubt are in control you may make decisions that feel "right", but the biggest risk is giving in to your emotions. Do nothing rash". ~Suze Orman
Suze's Ormans 2009 Action Plan

Personal Finance From the Inside Out

I finished teaching my beta three-week course today! I'll be asking my students if they are willing to write a review and then share what they said with you.

I am going to make a few changes and improvements based on the feedback from those ladies who took this first class from me. Thanks ladies for all of your constructive feedback and support!

I am offering two more (but for four-weeks this time) Personal Finance From the Inside Out courses on Thursday, March 19, 2009 at two different times.

Do you realize that more than 85% of the households in this country are run by women? Yet where did we learn to do this? Slowly over the last 40 years, men have turned this job over to the women!

This class is a lot of fun ... we take a closer look at the household income and expenses; Like my friend Ahnalisa says, "Cash in and cash out, it is like the breathe of the household". In this class, we take a look at our attitudes around money, ask our selves what financial freedom means to us. We take a look at how simple or not as difficult as it may seem to achieve financial freedom. We learn some simple guidelines for how to set up a budget and follow the budget. We learn some goal setting and list what needs to happen to obtain those goals. Journaling happens! W e take a Money Personality Test; get to know your personality around money. Learn to start thinking about how you can invest and empower yourself around money! ... and more!

If you live local in the Monterey Bay area and want to sign up, please email me directly at: jewleyd@comcast.net I will eventually teach this course over the internet, so keep in touch if you are interested!

Cheers,
Jules

Investment Club Meeting: May

I started a women's investment club four years ago. I had always wanted to learn about investing in the stock market and investing in real estate. So I decided to start a club. Three of my friends (after asking many) decided to join me and help start one.

The investment club meets once a month; the second Wednesday of each month. We are structured as a general partnership complete with by-laws. We do have club dues and currently invest in the stock market together with those funds.

Last night was our May meeting. We just started a journaling series (we do many activities around the theme of money besides investing) and I want to share with you the activity we did last night.

Last year, one of the club's members discovered a book called “The Energy of Money,” by Maria Nemeth. As a club we occasionally like to read books together. We have started to explore this book chapter by chapter together. Last night we each wrote and shared our "Money Biographies'. It was fascinating to write about and hear about the negativity around money that we each were exposed to while growing up. We each had positive ideas around money while growing up too. And our stories were so different from each others. Already I can see that the author, Maria Nemeth, is demonstrating that our ideas about money can be debilitating or empowering.

The club will work from chapter 2 at our August meeting.

Today I "Pray to God and Row to Shore"

Some days only appear to be bigger challenges than they really are.

Fact: Today I woke up with a little anxiety knocking at my door. I have $30.26 in my checking account and I do not have a job lined up. What am I going to do about that?

There are others facts about today that I am acknowledging and am grateful for: Today I have a roof over my head, food in the cupboards, PG and E is paid, my children and I are healthy and I am resourceful. And if I really think about it, I am even grateful that I have that $30.26!

But I still need to do something about it! So I choose acknowledge the anxiety, and tell it to go away. It does not serve a purpose today to have any anxiety.

I walked in my first half marathon (13.5 miles) in Sand Diego June 2007 with and organization called Team in Training. I was walking down the highway about 4 miles from the finish line when I looked up to read a huge banner hanging on an overpass. It read: "Obstacles are what you see when you take your eyes off the goal". Wow! It struck me! Could life really be that simple? Do I focus my attention to the hot air, tired feet, the chitter-chatter in my head that wants to doubt, those around me who are struggling or those who are passing me? Or do I remember I have been trained by coaches, I have plenty of water, electrolytes and some carbs with me, I am in a rhythm at a comfortable pace, doing great and with every step I am closer to my goal? It was amazing to experience the two perspectives in an instant. It was a learning moment about perception and attitude. Obstacles are there if I look at them, pay attention to them, focus on them. And they really don't appear to be so important or intrusive if I focus on the goal and the good things around it.

Today all is well – really! I will “Pray to God and row to shore”. This means, I will go through my household belongings and have a garage sale to generate some cash. Meanwhile, I will go look for a job!

Organizing My Household Budget

I pulled out all of my bank statements and receipts all the way back to January 1, 2008 and over the course of three days entered everything into Quicken. I have version 2004. It was installed on my laptop when my laptop was purchased. I knew I needed to take an overview look at my out-going expenses. Remember, I am not employed at this time and I need to know how much money to earn to cover my living expenses: Cash flowing in and cash flowing out; it is like the breath of the household.

Okay, I have calculated that currently a comfortable life style for me and my kids requires earning at least $4,000.00 a month. I will get some child support, but at this point I do not know how much that will be. I do need to find another place to live. The house I am in now is a rental and the owners are putting it on the market. I'll be looking for a new place and decreasing my rent. I need to move by June 30, 2008.

Although my mother taught me all I know about budgeting and I feel I do it very well, I picked up a few books to read up on the latest and greatest in budgeting and financial planning. So over the course of the last six months or so I have been reading. I'll write reviews and tell you more about those books later. And I will also tell you now that I started a women's investment club four years ago ... and I will tell you more about that later too. The books I read were very helpful in planning my monthly household budget. I came up with seven (7) basic groups: 1) Income, 2)Must Have Essentials, 3) Important Essentials, 4) Amusements/Luxuries, 5) Savings, 6) Investments, and 7) Giving Back.

In summary, what this means is that after I entered all of my deposits and receipts, I took a look at my spending habits and determined which expenses are Must Have Essential; the absolute musts like rent, groceries, electricity, auto insurance and so forth. Then I determined what was an Important Essential; important enough to keep, but if I absolutely had to I could eliminate like the cell phone, education costs, gifts during the holidays and birthdays, recreational fees for my kids to play sports and things like that. Next, I determined the Amusements/Luxuries. These things are all about having fun which is very important, but in a crunch I can go without for several months like, dining out, going to plays, weekend outing, vacations, pedicures and so on ... Now you might really feel a pedicure is an Important Essential rather than an Amusement/Luxury or an automobile is an Important Essential rather than a Must Have Essential. Then you would determine what works best for you; what suits your personality and life style. The group called Savings is for saving for those big ticket items that I dream of having like a newer car or taking the kids to Hawaii. The group called Investments will be used for future investing. This is my path to financial freedom and I'll talk about that later. And last but not least is the group for giving back. I want to donate to causes and programs I believe in on a regular basis.

Please note that I am all for and have the mind set to generating more income rather than cutting back. But it is crucial to know where the money is coming from and where the money is going to in order to set goals and plans in place to generate more income.

In an upcoming article, I'll talk about how I divide up the income to feed each group I defined today and share a little about financial goals.