A couple of weeks ago, I called up Pizza Hut. I already knew what I wanted (2 large thin crust pizzas. 1. Ham & Pineapple. 2. Pepperoni & Sausage.) But, before I place my order, I ask what the specials are. The customer service person answered my question with a question: "How many people are you trying to feed?" A bit confused, I didn't know how to answer. Don't get me wrong. I knew the answer to his question... but I didn't know WHY it mattered to Yum Brands pizza hut specials. I answered, "Well, uh... Three, I guess." He then offered me the ONLY special available (for my parameters) was a single large at a rather robust price.
My next question: "Well, what if I had 100 people?"
His answer: "I guess I'd be trying to sell you a whole bunch of larges, I suppose."
Stop for a minute. In gaging the response that the ONLY special he could offer was based on how many people were going to consume the pizza in my home, I knew he could offer a better deal. Why, would he not assume that I also wanted to eat some of that pizza at lunch the next day... or cold for breakfast? Why would he not want a larger sale if he could land it?
I informed the sales person that I would love some pizza, but Papa John's would be supplying that pizza. Papa John's did, indeed land that order and it was delicious.
Fast forward a few weeks into today. I just got off the phone with a customer service person who was going to tell me it would be $129 + 169 to do a one-time service call OR, I could choose to pay $196 for a 6 month service contract to come service my acid neutralizer for our water treatment. I asked, "What would it cost if I paid once per year." Her response: "It would be $129 + 169 to do a one-time service call." This went on for what felt like an hour all while her phone beside her kept ringing and she would not let me explain that I REALLY wanted to pay once for TWELVE months... not once every SIX months.
For those of you who are mathematically challenged, there are two 6-month periods inside of 12 months... She didn't get that. And, I wanted a DEAL... a BARGAIN to pay once on 12 months vs 2x per year.
By the way, this their SERVICE department. The department that is in charge of getting money from the customers into their pocketbooks. The lady clearly refused to stop talking long enough to hear me explain the math of one payment per 12 month period vs 2 per 12 month period.
If you're tasked with answering the phones and offering service or products to someone, LISTEN. Listen to what they want... to the questions the customer asks. LISTEN.
I promise, it works better than not listening.
Monday, June 06, 2011
Tuesday, March 08, 2011
Response to Penny Maxwell's Blog
Recently, I read the blog of an acquaintance who was talking about saving money. She made some great points... but, if you're talking about how to save money, I've gotta put in my two-cents (pun intended). Here's my response:
Hi Penny,
Here are some points & responses to points:
1. Eat at home. This is not only good savings, it's also healthier. usually. A goode twist: Team up with friends and family and make larger meals together. You'll share the work, share the time, share the food. It's easier, more fun and less expensive. Once, in college, we had 25 people over at one house and everyone ate steak and multiple sides. we had more than enough left-overs for less than $5 / person.
2. Brown bag your lunch. This is healthy and a time saver. Get lunch over in 15 minutes and see if you can clock in early and get some overtime.
3. Buy staples in bulk. Be clear, this does NOT mean go buy 6 pairs of shoes. Nor does it mean going to buy 15 of something just because it's on sale. But when you buy Windex or Rice, buy them in larger containers. It'll save time and money.
4. Look for free stuff. CRAIG'S LIST! Freecycle!
5. Look for coupons. There are two ladies in north Charlotte (Mandy Devine & Renee Lewis) who actually do workshops on how to maximize coupons. These ladies have olympic type savings. the kind where you pay $12.00 for $120 worth of groceries. Penny, if you'll get in touch with rebekah goode, she has Mandy's phone #. I'm CERTAIN Mandy would be willing to put on a workshop for folks at FHC!
6. Free shipping. Definitely. Especially on my new iPad 2.
7. Rent movies. Or hulu! or Netflix. or go to someone elses house and team up on the movie renting.
10. Use the library. While you're their, pick up Dave Ramsey's Total Money Makeover. I have an extra copy on audio book. I'll happily give it to anyone who wants it.
11. Slash the incidentals. I have a better idea. Cut up your credit cards. Yes. Cut them up. Get rid of them.
12. Cancel the land line. While you're at it, cancel cable TV and rediscover the art of "conversation." Cancel that subscription you haven't used in 15 months.
Now for the hard part: (what, first my TV. now what?)
Each person reading this blog should consider going through Dave Ramsey's Financial Peace University. I know, I know. "but, our church does crown." Don't get me wrong, Crown is a great bible study on financial topics. (and the folks at crown will admit this) But Crown does not teach you the step-by-step HOW-TO's in saving money, getting out of debt & financial literacy. Unless you're in crown AND an insurance agent, you likely have NO IDEA what your insurance really covers. so here's my top 10 list of things to do:
1. Enroll in Financial Peace University (13 week course costs about $100) See daveramsey.com/fpu
2. Do a written budget. WITH YOUR SPOUSE! Both votes count and you give every dollar a name. On paper. On purpose. Each month for THAT month before the month begins. Which of you would begin to build a house without first doing the budget unless you get done framing it and you run out of money. and all your friends mock you, "look at this moron. started building a house and got half way done and run out of money."
3. Cancel your credit cards and stop using debt. It's not intelligent to pay $140 for a $85 outfit. so why do you?
4. Don't buy anything unless you have the CASH ON HAND to buy it.
5. Speaking of cash, use the envelope system for groceries, restaurants & clothing. Put cash in an envelope (yes, paper cash in a paper envelope) and begin purchasing with real cash. You'll be amazed. It's not possible to go over budget when you only use cash. Oh, no intermingling of the envelopes. Once the money goes in an envelope, it's in and can ONLY be spent on that category. HINT: over-fund groceries the first few months.
6. Stop using your plastic (debit & credit) at the grocery store. A Dunn & Bradstreet study shows that most people spend 15-25% more when using plastic than cash. And don't get fooled by gimmick points and rewards by CC companies. If you're spending 15% more and get 3% cash back, they still win. Stop thinking you're winning. their buildings are bigger than your house for a reason: they have a plan for your money when you don't!
7. Investigate and shop around your insurances. If you have whole life, consider getting 20-30 year level term in place BEFORE canceling your Whole-Life garbage insurance. Whole Life insurance is a rip-off. The only people who say otherwise are the people who sell it. NOTE: Only cancel whole life AFTER you have term in place.
8. When making big purchases, learn to negotiate. Negotiate on color, quantity, last-year's model. etc. Purchase with cash and ask the question: "What is the least you're willing to accept for." then SHUT UP. Let them talk.
9. Unless you have a million-dollar net worth, do NOT buy a brand new car. Dr. Thomas J. Stanley's research on millionaires and deca-millionaires shows most wealthy typically purchase used 1-2 year old vehicles with low mileage at a discount. Don't worry, I know all your excuses for why you think you "need" a brand new car, and they're wrong. Your total value of automobiles (cars, trucks, boats, motorcycles, seadoos, etc. if it's got an engine) should be less than 1/2 of your yearly income. and far less if you have a significant income.
10. Stop making excuses. Every single one of these line items represent a level of discipline most people are not willing to undertake. If you found yourself arguing with a line item, it's probably because you're unwilling to discipline yourself in that area. Is your car where you get your identity? Your clothing? The brand of bottled water? Your jeans? Isn't your existence more than these things?
Bonus: Consider there are only 3 things you can do with money. 1. Give. 2. Spend. 3. Save (investing fits here). You need to learn to do ALL THREE extremely well. But most adults are too pompous to admit they need to learn to handle money differently. But, if you did. could you possibly honor your Father more with it? And not just with giving. but in your spending and savings too?
You can read the entire discussion at: Penny Maxwell's Blog: Quick Tips for Savings.
Hi Penny,
Here are some points & responses to points:
1. Eat at home. This is not only good savings, it's also healthier. usually. A goode twist: Team up with friends and family and make larger meals together. You'll share the work, share the time, share the food. It's easier, more fun and less expensive. Once, in college, we had 25 people over at one house and everyone ate steak and multiple sides. we had more than enough left-overs for less than $5 / person.
2. Brown bag your lunch. This is healthy and a time saver. Get lunch over in 15 minutes and see if you can clock in early and get some overtime.
3. Buy staples in bulk. Be clear, this does NOT mean go buy 6 pairs of shoes. Nor does it mean going to buy 15 of something just because it's on sale. But when you buy Windex or Rice, buy them in larger containers. It'll save time and money.
4. Look for free stuff. CRAIG'S LIST! Freecycle!
5. Look for coupons. There are two ladies in north Charlotte (Mandy Devine & Renee Lewis) who actually do workshops on how to maximize coupons. These ladies have olympic type savings. the kind where you pay $12.00 for $120 worth of groceries. Penny, if you'll get in touch with rebekah goode, she has Mandy's phone #. I'm CERTAIN Mandy would be willing to put on a workshop for folks at FHC!
6. Free shipping. Definitely. Especially on my new iPad 2.
7. Rent movies. Or hulu! or Netflix. or go to someone elses house and team up on the movie renting.
10. Use the library. While you're their, pick up Dave Ramsey's Total Money Makeover. I have an extra copy on audio book. I'll happily give it to anyone who wants it.
11. Slash the incidentals. I have a better idea. Cut up your credit cards. Yes. Cut them up. Get rid of them.
12. Cancel the land line. While you're at it, cancel cable TV and rediscover the art of "conversation." Cancel that subscription you haven't used in 15 months.
Now for the hard part: (what, first my TV. now what?)
Each person reading this blog should consider going through Dave Ramsey's Financial Peace University. I know, I know. "but, our church does crown." Don't get me wrong, Crown is a great bible study on financial topics. (and the folks at crown will admit this) But Crown does not teach you the step-by-step HOW-TO's in saving money, getting out of debt & financial literacy. Unless you're in crown AND an insurance agent, you likely have NO IDEA what your insurance really covers. so here's my top 10 list of things to do:
1. Enroll in Financial Peace University (13 week course costs about $100) See daveramsey.com/fpu
2. Do a written budget. WITH YOUR SPOUSE! Both votes count and you give every dollar a name. On paper. On purpose. Each month for THAT month before the month begins. Which of you would begin to build a house without first doing the budget unless you get done framing it and you run out of money. and all your friends mock you, "look at this moron. started building a house and got half way done and run out of money."
3. Cancel your credit cards and stop using debt. It's not intelligent to pay $140 for a $85 outfit. so why do you?
4. Don't buy anything unless you have the CASH ON HAND to buy it.
5. Speaking of cash, use the envelope system for groceries, restaurants & clothing. Put cash in an envelope (yes, paper cash in a paper envelope) and begin purchasing with real cash. You'll be amazed. It's not possible to go over budget when you only use cash. Oh, no intermingling of the envelopes. Once the money goes in an envelope, it's in and can ONLY be spent on that category. HINT: over-fund groceries the first few months.
6. Stop using your plastic (debit & credit) at the grocery store. A Dunn & Bradstreet study shows that most people spend 15-25% more when using plastic than cash. And don't get fooled by gimmick points and rewards by CC companies. If you're spending 15% more and get 3% cash back, they still win. Stop thinking you're winning. their buildings are bigger than your house for a reason: they have a plan for your money when you don't!
7. Investigate and shop around your insurances. If you have whole life, consider getting 20-30 year level term in place BEFORE canceling your Whole-Life garbage insurance. Whole Life insurance is a rip-off. The only people who say otherwise are the people who sell it. NOTE: Only cancel whole life AFTER you have term in place.
8. When making big purchases, learn to negotiate. Negotiate on color, quantity, last-year's model. etc. Purchase with cash and ask the question: "What is the least you're willing to accept for." then SHUT UP. Let them talk.
9. Unless you have a million-dollar net worth, do NOT buy a brand new car. Dr. Thomas J. Stanley's research on millionaires and deca-millionaires shows most wealthy typically purchase used 1-2 year old vehicles with low mileage at a discount. Don't worry, I know all your excuses for why you think you "need" a brand new car, and they're wrong. Your total value of automobiles (cars, trucks, boats, motorcycles, seadoos, etc. if it's got an engine) should be less than 1/2 of your yearly income. and far less if you have a significant income.
10. Stop making excuses. Every single one of these line items represent a level of discipline most people are not willing to undertake. If you found yourself arguing with a line item, it's probably because you're unwilling to discipline yourself in that area. Is your car where you get your identity? Your clothing? The brand of bottled water? Your jeans? Isn't your existence more than these things?
Bonus: Consider there are only 3 things you can do with money. 1. Give. 2. Spend. 3. Save (investing fits here). You need to learn to do ALL THREE extremely well. But most adults are too pompous to admit they need to learn to handle money differently. But, if you did. could you possibly honor your Father more with it? And not just with giving. but in your spending and savings too?
You can read the entire discussion at: Penny Maxwell's Blog: Quick Tips for Savings.
Wednesday, November 03, 2010
Voting, football, root canals and thoughts on personal responsibility.
First off, let me apologize. I did my best. But I cannot say I did it right. I went to vote and did what I thought was the "right thing," but left resigned and relieved to know I am not the one ultimately in control of the situation (sitchyayshun).
Secondly, let me say I am a conservative. Not a republican! A conservative. If that offends you... well, go read someone else's blog (because my audience is SOOOOO LARGE... lol.) I do prescribe to the main tenet of the Tea Party (being fiscal responsibility, lower taxes, reducing deficit spending, reducing congressional spending, reducing the size of gov't, etc.) Granted, associating myself with the "tea party" has it's misconceptions.
My "team"
For most of my young, white, middle-class life, I have voted republican. I will admit, I have even voted a straight-line republican ticket before. Don't worry. I've repented. I'm scheduling some self-prescribed penance next week. Probably will begin with self-flogging and may throw myself into a thorn bush or two.
All sarcasm aside, I still tend to lean toward the "rhetorical right-leaning republican chatter." I am not saying I see much logic in staunch democrat platforms. I see the heart, just not the brains. Though it seems folks who vote only one party aren't really thinking. Consider your favorite football team. Just because a guy plays on that team doesn't mean he's any good. The same thing goes with politics. Just because the person is wearing "my color jersey" doesn't mean I like the way s/he plays. It seems voters are now looking more at the machine of politics as the problem, not the issues themselves. People are becoming more and more disenchanted with their party politics and realizing their friends, neighbors & coworkers aren't their enemies. Politicians make their living by dividing our nation and trying to duct-tape it back together after the elections.
Roger Clemens was sentenced to 30 years in prison and a $1.5 million fine for lying to congress. It seems, if you lie to congress, you can go to jail for 30 years. If they lie to you, they get to keep their job for another term. (Can't remember who first said it... but I'm stealing it!)
Or, as Thomas Sowell once said, "The welfare state [and politicians - my addition] is the oldest con game in the world. First you take people's money away quietly, and then you give some of it back to them flamboyantly." We as americans are disenchanted with our Government's promises. We're tired of the crap we're being fed and we want to know we are not being fed just to fatten us for the slaughter.
The voting process:
The process was grueling! Oh, sure. If you vote a straight party ticket, you're out in 5 minutes once you reach the booth. But if you're thoughtfully, yea... even prayerfully considering your decision... weighing each candidate... It can be burdensome.
Don't get me wrong. The right to vote on your leaders is precious. I wouldn't give it up. But, like most things which are worthwhile, it is difficult and requires more of the voter than just "showing up."
The Results:
The biggest "fear" we have is the potential of change for the worse... I suppose no change is better than a change for the worse. OR, we could see the folks we just elected rise to power to become the same garbage we just threw out. In fact, that is what I expect will happen and the largest proponent for term limits on congress.
This year the Tea Party did make an impact on the results. I believe most folks seeing a republican flip in the House and a much narrower democrat margin in the senate will be billed as a Tea Party "victory." I don't think that's the case. People feel the ship's course has been corrected due to turning the rutter hard right. The trend is set. It will take years... possibly decades to change the course of decisions made in the last 2 years. It always has. Not to mention, congressmen (and women) have a penchant for saying one thing and doing another. As long as you can distract a distinct majority of your voters with something sparkly, you can keep them away from your prize goose! So, congress has flipped. I'm sure there are back room discussions amongst the 112th congress how to satiate the discontentment enough that it's no longer boiling, but keep it hot enough for the next election cycle.
What does congress NEED to do:
As Mark Twain once said: "Politicians are like diapers; they need to be changed often and for the same reason."
Secondly, let me say I am a conservative. Not a republican! A conservative. If that offends you... well, go read someone else's blog (because my audience is SOOOOO LARGE... lol.) I do prescribe to the main tenet of the Tea Party (being fiscal responsibility, lower taxes, reducing deficit spending, reducing congressional spending, reducing the size of gov't, etc.) Granted, associating myself with the "tea party" has it's misconceptions.
- I am not racist.
My picks for future presidents include... actually, are currently limited to:
Dr. William H. Cosby, Jr.
JC Watts
Thomas Sowell - I am not a homophobe... nor do I hate those in the GLBTI community.
- I am not a rich white guy... White-ish, yes.
- I am not greedy
- I am not hateful
My "team"
For most of my young, white, middle-class life, I have voted republican. I will admit, I have even voted a straight-line republican ticket before. Don't worry. I've repented. I'm scheduling some self-prescribed penance next week. Probably will begin with self-flogging and may throw myself into a thorn bush or two.
All sarcasm aside, I still tend to lean toward the "rhetorical right-leaning republican chatter." I am not saying I see much logic in staunch democrat platforms. I see the heart, just not the brains. Though it seems folks who vote only one party aren't really thinking. Consider your favorite football team. Just because a guy plays on that team doesn't mean he's any good. The same thing goes with politics. Just because the person is wearing "my color jersey" doesn't mean I like the way s/he plays. It seems voters are now looking more at the machine of politics as the problem, not the issues themselves. People are becoming more and more disenchanted with their party politics and realizing their friends, neighbors & coworkers aren't their enemies. Politicians make their living by dividing our nation and trying to duct-tape it back together after the elections.
Roger Clemens was sentenced to 30 years in prison and a $1.5 million fine for lying to congress. It seems, if you lie to congress, you can go to jail for 30 years. If they lie to you, they get to keep their job for another term. (Can't remember who first said it... but I'm stealing it!)
Or, as Thomas Sowell once said, "The welfare state [and politicians - my addition] is the oldest con game in the world. First you take people's money away quietly, and then you give some of it back to them flamboyantly." We as americans are disenchanted with our Government's promises. We're tired of the crap we're being fed and we want to know we are not being fed just to fatten us for the slaughter.
The voting process:
The process was grueling! Oh, sure. If you vote a straight party ticket, you're out in 5 minutes once you reach the booth. But if you're thoughtfully, yea... even prayerfully considering your decision... weighing each candidate... It can be burdensome.
Don't get me wrong. The right to vote on your leaders is precious. I wouldn't give it up. But, like most things which are worthwhile, it is difficult and requires more of the voter than just "showing up."
The Results:
The biggest "fear" we have is the potential of change for the worse... I suppose no change is better than a change for the worse. OR, we could see the folks we just elected rise to power to become the same garbage we just threw out. In fact, that is what I expect will happen and the largest proponent for term limits on congress.
This year the Tea Party did make an impact on the results. I believe most folks seeing a republican flip in the House and a much narrower democrat margin in the senate will be billed as a Tea Party "victory." I don't think that's the case. People feel the ship's course has been corrected due to turning the rutter hard right. The trend is set. It will take years... possibly decades to change the course of decisions made in the last 2 years. It always has. Not to mention, congressmen (and women) have a penchant for saying one thing and doing another. As long as you can distract a distinct majority of your voters with something sparkly, you can keep them away from your prize goose! So, congress has flipped. I'm sure there are back room discussions amongst the 112th congress how to satiate the discontentment enough that it's no longer boiling, but keep it hot enough for the next election cycle.
What does congress NEED to do:
- Implement term limits on all congressional seats.
- Limit Congress "right" to vote it's own pay raises
- Sunset our current social security program for a more privatized system like that which congress receives
- Replace income taxes with the Fair Tax or a Flat Tax
- STOP deficit spending
- Stop fiddling with the friggen economy
- Cut spending as a whole
- Cut gov't programs
- Cut gov't control over industries like: Education, Health Care & energy
- Stop all bail-outs
- Create a decisive immigration policy (honestly, i'm for more open borders w/ mexico)
- Stop frivolous law suits
- Develop a REAL PLAN to end our wars abroad and bring our folks home
- End our current welfare system
- Get to their jobs of maintaining nat'l security & some modicum of infrastructure
- and, finally... leave us alone
- Oh, sure... there's more. But I don't have all week.
- Little, if anything.
- Make an attempt to overhaul or repeal "Obama-care."
- Likely try to REVISE Obama-care with an equally unappealing option.
- Stagnate for 2 years to build more discontentment for a 2012 election.
As Mark Twain once said: "Politicians are like diapers; they need to be changed often and for the same reason."
Saturday, August 28, 2010
When to settle for less?
(Names changed)
In a recent conversation with Deanna, we were discussing when it's a good time to settle a debt. It turns out Deanna & her husband had a sum of medical debt which had been acquired over the past year. In the course of our discussion, Deanna asked when it was appropriate to let a debt go to collections in order to negotiate a settlement. We discussed their specific financial situation to find out where they were positioned in order to address the debt.
Deanna & her husband had amassed approximately $10,000 in medical debt. Outside their mortgage, their financials looked pretty normal with amounts of credit card debt, auto loans, student loans & various other typical financial line items popping into place. As we looked down the page, the couple listed about $14 - 15,000 in savings.
With the couple considering defaulting on the medical bills (which are usually due in full within 30 days of service) we began to discuss how collections & settlements tend to play out. For the most part, creditors and collectors will only settle a debt which they feel they are not likely to be paid. Almost all collectors will need some proof that you're not going to be able to repay the loan. Occasionally, bankruptcy is considered as a way out of the pressure of debt. Unfortunately, bankruptcy is usually not a good solution and is frequently taken prematurely or unnecessarily.
In Deanna's case, she & her husband clearly had the ability to pay for this out of savings. However, she expressed great concern over liquidating such a large amount of savings. We asked a few more questions pressing further to see what other options may be available to either rebuild savings or absorb some of the blow of the financial hit. Here are some of questions we offered to consider in order to develop other options:
On your current budget, how quickly could you rebuild your savings?
Do you have anything you could sell that could bring in enough cash to cover all or most of the medical expenses?
Would you be able to move down in car in order to reduce other debt and thus increase cashflow to rebuild savings faster?
Does your husband have a company car that may allow you to sell the other car?
Are there areas in your budget that you could tighten for a brief time that would allow you to rebuild your savings quicker?
Then we presented a situational thought... As we are followers of Christ, I feel it's best to offer thoughts under the lens of the golden rule: "Do to others as you would want them to do to you."
"Deanna, If you had loaned $10,000 to a friend or worked a the equivalent of $10,000 worth of time at your job and the person decided to not pay you. How would you feel if you found out they didn't pay you but still had $15,000 in savings?"
It is understandable how difficult it is to part with nearly 2/3 of one's savings. In today's economy, financial security seems to be a commodity which easily evaporates. As we look at our finances, it is clear that we must bring our creative resources and combine them with our sweat equity to create financial options which allow us to keep our dignity as well as honor our word. I believe Deanna and her husband are now better equipped to address their financial situation with other tools that may keep their savings more in tact and still allow them to pay the full medical bill.
In a recent conversation with Deanna, we were discussing when it's a good time to settle a debt. It turns out Deanna & her husband had a sum of medical debt which had been acquired over the past year. In the course of our discussion, Deanna asked when it was appropriate to let a debt go to collections in order to negotiate a settlement. We discussed their specific financial situation to find out where they were positioned in order to address the debt.
Deanna & her husband had amassed approximately $10,000 in medical debt. Outside their mortgage, their financials looked pretty normal with amounts of credit card debt, auto loans, student loans & various other typical financial line items popping into place. As we looked down the page, the couple listed about $14 - 15,000 in savings.
With the couple considering defaulting on the medical bills (which are usually due in full within 30 days of service) we began to discuss how collections & settlements tend to play out. For the most part, creditors and collectors will only settle a debt which they feel they are not likely to be paid. Almost all collectors will need some proof that you're not going to be able to repay the loan. Occasionally, bankruptcy is considered as a way out of the pressure of debt. Unfortunately, bankruptcy is usually not a good solution and is frequently taken prematurely or unnecessarily.
In Deanna's case, she & her husband clearly had the ability to pay for this out of savings. However, she expressed great concern over liquidating such a large amount of savings. We asked a few more questions pressing further to see what other options may be available to either rebuild savings or absorb some of the blow of the financial hit. Here are some of questions we offered to consider in order to develop other options:
On your current budget, how quickly could you rebuild your savings?
Do you have anything you could sell that could bring in enough cash to cover all or most of the medical expenses?
Would you be able to move down in car in order to reduce other debt and thus increase cashflow to rebuild savings faster?
Does your husband have a company car that may allow you to sell the other car?
Are there areas in your budget that you could tighten for a brief time that would allow you to rebuild your savings quicker?
Then we presented a situational thought... As we are followers of Christ, I feel it's best to offer thoughts under the lens of the golden rule: "Do to others as you would want them to do to you."
"Deanna, If you had loaned $10,000 to a friend or worked a the equivalent of $10,000 worth of time at your job and the person decided to not pay you. How would you feel if you found out they didn't pay you but still had $15,000 in savings?"
It is understandable how difficult it is to part with nearly 2/3 of one's savings. In today's economy, financial security seems to be a commodity which easily evaporates. As we look at our finances, it is clear that we must bring our creative resources and combine them with our sweat equity to create financial options which allow us to keep our dignity as well as honor our word. I believe Deanna and her husband are now better equipped to address their financial situation with other tools that may keep their savings more in tact and still allow them to pay the full medical bill.
The 2003 (AKA Bush) Tax Cuts
First off, there is a site (mytaxburden.org/) that will help you see how the expiration of the '03 tax cuts will affect you.
Let me be clear, the tax cuts were only a small tidbit of what americans really should fight for. I am a firm believer that income taxes (taxing and punishing productivity while rewarding consumerism) are immoral. That's right. I said IMMORAL. It's wrong to tax productivity as it serves as a deterrent to those who would be productive. It is equally wrong to reward indolence, laziness & consumerism at ANY income level. I'm not saying that people shouldn't consume... but when consumerism is encouraged, it will lead to gross consequences. Consider a parent which encourages their child to eat anything they want, all the time from a very young age. Obesity is likely to be a problem for the child in the coming years. However, if constraint & discipline are taught... then when the child does consume (food or otherwise), it will more likely be handled in a healthy, moderate fashion.
I am not a Bush fan. I really thought he was more than a lame duck in his last term. Like him or not, the Bush we had at the last 5 - 6 years of his presidency was seriously lacking. However, I'd also like to point out that the extreme left & dems are pushing the moniker "Bush" in front of the 2003 Tax Cut plan. Since the Bush name is out of vogue among most political pundits & spectators, those on the left side of the aisle are putting the "Bush" name on anything they want to sweep away.
So, if you comment... before you comment, ask yourself:
1. Have I, ME, MYSELF... researched the information?
2. Is it possible the presentation of the name "Bush" is what is fueling my dislike, distrust or disdain?
As this is planned to be a very brief post, I want to start a discussion... First of all, go to the site linked above (mytaxburden.org/) and fill out the form.
Here are my questions:
Have you done the form on the link above?
Would you mind sharing the results? (just curious)
What are your thoughts on how the expiration of the '03 "Bush" Tax Cuts will affect you?
Do you think these tax changes are right, justified or fair? Explain
Let me be clear, the tax cuts were only a small tidbit of what americans really should fight for. I am a firm believer that income taxes (taxing and punishing productivity while rewarding consumerism) are immoral. That's right. I said IMMORAL. It's wrong to tax productivity as it serves as a deterrent to those who would be productive. It is equally wrong to reward indolence, laziness & consumerism at ANY income level. I'm not saying that people shouldn't consume... but when consumerism is encouraged, it will lead to gross consequences. Consider a parent which encourages their child to eat anything they want, all the time from a very young age. Obesity is likely to be a problem for the child in the coming years. However, if constraint & discipline are taught... then when the child does consume (food or otherwise), it will more likely be handled in a healthy, moderate fashion.
I am not a Bush fan. I really thought he was more than a lame duck in his last term. Like him or not, the Bush we had at the last 5 - 6 years of his presidency was seriously lacking. However, I'd also like to point out that the extreme left & dems are pushing the moniker "Bush" in front of the 2003 Tax Cut plan. Since the Bush name is out of vogue among most political pundits & spectators, those on the left side of the aisle are putting the "Bush" name on anything they want to sweep away.
So, if you comment... before you comment, ask yourself:
1. Have I, ME, MYSELF... researched the information?
2. Is it possible the presentation of the name "Bush" is what is fueling my dislike, distrust or disdain?
As this is planned to be a very brief post, I want to start a discussion... First of all, go to the site linked above (mytaxburden.org/) and fill out the form.
Here are my questions:
Have you done the form on the link above?
Would you mind sharing the results? (just curious)
What are your thoughts on how the expiration of the '03 "Bush" Tax Cuts will affect you?
Do you think these tax changes are right, justified or fair? Explain
Friday, August 27, 2010
Term vs Whole Life policies
In a discussion with a person who promotes "good deals" on their FB page, we were discussing life insurance and which is a better thought. They had posted a link promoting Gerber Life insurance.
First of all, Gerber is a baby food manufacturer. Secondly, you shouldn't have insurance on a child (infant or non-income producing child) except for enough to bury the child should the unthinkable happen. It's not a way to replace income. The child doesn't PRODUCE an income. So, what is the insurance protecting against?
Even for those who are income producers or the odd child that may actually produce an income for their family, Gerber life insurance is a RIP OFF. I mean no offense. It's just a fact. Most healthy people should purchase 20 year level term for a FRACTION of the price of gerber's whole life policy. If a person HAS whole life, they should get their term in place before canceling the whole life / cash value insurance. The BEST deals to find insurance in this area is Zander Insurance...
If you're up for finding a deal... best price... you should consider looking into Zander Insurance... Again, I don't sell insurance. Nor do I make money off of insurance. If you'll notice from my FB profile (Goode Money) I do offer Dave Ramsey's Financial Peace Class for my church and community. But I don't sell insurance. In fact, I don't sell any financial product other than education.
You may want to consider looking into Dave Ramsey and see what he says about ways to save money. He actually has a video (about an hr long) somewhere on his site that are OUTSTANDING ways to save money... Ways that truly are Trifty Common Sense.
I suggest Zander simply because I know their reputation. I neither work for nor represent Zander in any fashion except that I like their company.
If this somehow offended you or other readers, consider something that really is a bargain other than whole life insurance... Just run a calculator and you can see that it's actually a rip off. The only people who believe in it are the people who sell it... I say again. I. DON'T. SELL. INSURANCE. So I profit nothing / lose nothing if you do or don't.
Example: Pulling a quote for me
35 year old male in NC
$500,000 policy for whole life is roughly $100-250/month
$500,000 policy of 20 year level term 24.06/month (actual quote from Zander Instant Quote)
The trick: invest the difference!
Do just the cursory calculation of $25 vs $100... investing $75/month into a good growth stock mutual fund which has averaged 12% (stock mkt avgs since the inception of the stock market) from age 35-70 (i.e. 35 years) is a total of $900 invested each year.
$75 invested monthly for 35 years yields $482,636.46
And this is not even "financially sophisticated" practices... This is park the money in a mutual fund. It's not even doing high end technical mumbo jumbo.
Now, let's look at the math from the high end!
Same 35 years... now investing $225/month into the same growth stock mutual fund totaling of $2,700 invested annually...
$225/mo invested monthly for $35 years yields: $1,447,909.39
If i'm half wrong, you're almost a millionaire... and no magic beans... and your HEIRS keep the money after you die...
What gerber doesn't tell you up front in bold letters: when you die... THEY keep the cash value savings of the policy. not your heirs.
I promise, I'm not trying to SPAM your posts. Just pointing out bad deals when I see them... especially when folks say they're actually GOOD deals. It's just not true.
Now, if you're uninsurable and all you HAVE is whole life... DON'T cancel it. Something's better than nothing. But If you can choose... the better deal by far is 20 year level term.
A great article: http://www.zanderins.com/term/term_vs_cash_value.pdf
First of all, Gerber is a baby food manufacturer. Secondly, you shouldn't have insurance on a child (infant or non-income producing child) except for enough to bury the child should the unthinkable happen. It's not a way to replace income. The child doesn't PRODUCE an income. So, what is the insurance protecting against?
Even for those who are income producers or the odd child that may actually produce an income for their family, Gerber life insurance is a RIP OFF. I mean no offense. It's just a fact. Most healthy people should purchase 20 year level term for a FRACTION of the price of gerber's whole life policy. If a person HAS whole life, they should get their term in place before canceling the whole life / cash value insurance. The BEST deals to find insurance in this area is Zander Insurance...
If you're up for finding a deal... best price... you should consider looking into Zander Insurance... Again, I don't sell insurance. Nor do I make money off of insurance. If you'll notice from my FB profile (Goode Money) I do offer Dave Ramsey's Financial Peace Class for my church and community. But I don't sell insurance. In fact, I don't sell any financial product other than education.
You may want to consider looking into Dave Ramsey and see what he says about ways to save money. He actually has a video (about an hr long) somewhere on his site that are OUTSTANDING ways to save money... Ways that truly are Trifty Common Sense.
I suggest Zander simply because I know their reputation. I neither work for nor represent Zander in any fashion except that I like their company.
If this somehow offended you or other readers, consider something that really is a bargain other than whole life insurance... Just run a calculator and you can see that it's actually a rip off. The only people who believe in it are the people who sell it... I say again. I. DON'T. SELL. INSURANCE. So I profit nothing / lose nothing if you do or don't.
Example: Pulling a quote for me
35 year old male in NC
$500,000 policy for whole life is roughly $100-250/month
$500,000 policy of 20 year level term 24.06/month (actual quote from Zander Instant Quote)
The trick: invest the difference!
Do just the cursory calculation of $25 vs $100... investing $75/month into a good growth stock mutual fund which has averaged 12% (stock mkt avgs since the inception of the stock market) from age 35-70 (i.e. 35 years) is a total of $900 invested each year.
$75 invested monthly for 35 years yields $482,636.46
And this is not even "financially sophisticated" practices... This is park the money in a mutual fund. It's not even doing high end technical mumbo jumbo.
Now, let's look at the math from the high end!
Same 35 years... now investing $225/month into the same growth stock mutual fund totaling of $2,700 invested annually...
$225/mo invested monthly for $35 years yields: $1,447,909.39
If i'm half wrong, you're almost a millionaire... and no magic beans... and your HEIRS keep the money after you die...
What gerber doesn't tell you up front in bold letters: when you die... THEY keep the cash value savings of the policy. not your heirs.
I promise, I'm not trying to SPAM your posts. Just pointing out bad deals when I see them... especially when folks say they're actually GOOD deals. It's just not true.
Now, if you're uninsurable and all you HAVE is whole life... DON'T cancel it. Something's better than nothing. But If you can choose... the better deal by far is 20 year level term.
A great article: http://www.zanderins.com/term/term_vs_cash_value.pdf
Friday, August 13, 2010
The Big Banks
Wow! I can't tell you how often I've heard bad things about the big banks (Bank of America, Wells Fargo, Citi, etc). Why do the big banks treat their customers so crappy? I think it may have to do with the fact that they think you're just a number. In reality, you are... just a number to them. You're a bank account number, a social security number, a drivers license number... you're just a number in their system.
My dad once told me about being able to walk into a bank and being greeted by name by the local tellers. Well, partially that was a product of small-town USA! But, there is some truth to having a place where "everyone knows your name" because it was a goode name (pun intended). This is why I would recommend most folks use a local credit union or community bank to do most, if not all, of their banking. Most of these smaller establishments have the ability to work with their brains & hearts where policy & procedures bar a big-box bank from moving.
Not to mention, many of the smaller banks have made less risky loans in the recent past as the capital is less available to them to guarantee such loans. Smaller banks are often more capable of working to the benefit of their customers as many of these banks are actually OWNED BY their customers. The bank president & tellers are all sitting in church with their customers on Sunday... this keeps them in check as they're more responsible for how their business is run.
Also, many of the big-box banks like Bank of America, Wells & Citi are nazis in their collection department. Their collections folks are frequently using intimidation techniques & bullying those in financial hardship. Their collections departments break federal law on a daily basis.
I actually saw a facebook status post from a pastor friend of mine that mentioned that Wells Fargo was being difficult to work with. I don't know exactly what he was talking about, but I will say that it doesn't surprise me.
Word to the wise, pastor: don't do business with them. I'd move EVERY dime I have away from them... I'd move the church's money, too!
My dad once told me about being able to walk into a bank and being greeted by name by the local tellers. Well, partially that was a product of small-town USA! But, there is some truth to having a place where "everyone knows your name" because it was a goode name (pun intended). This is why I would recommend most folks use a local credit union or community bank to do most, if not all, of their banking. Most of these smaller establishments have the ability to work with their brains & hearts where policy & procedures bar a big-box bank from moving.
Not to mention, many of the smaller banks have made less risky loans in the recent past as the capital is less available to them to guarantee such loans. Smaller banks are often more capable of working to the benefit of their customers as many of these banks are actually OWNED BY their customers. The bank president & tellers are all sitting in church with their customers on Sunday... this keeps them in check as they're more responsible for how their business is run.
Also, many of the big-box banks like Bank of America, Wells & Citi are nazis in their collection department. Their collections folks are frequently using intimidation techniques & bullying those in financial hardship. Their collections departments break federal law on a daily basis.
I actually saw a facebook status post from a pastor friend of mine that mentioned that Wells Fargo was being difficult to work with. I don't know exactly what he was talking about, but I will say that it doesn't surprise me.
Word to the wise, pastor: don't do business with them. I'd move EVERY dime I have away from them... I'd move the church's money, too!
Subscribe to:
Posts (Atom)