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In nature, only things happen when people
do them under pressure.  It is the pressure
that causes us to take action.

In school, remember pulling those all-nighters
to finish those term papers or to study for that
final exam?  We all knew the dates when they
were due, but the majority of us would wait until
the last minute.  When we feel the pressure to do
something, we will do it.  If there is no pressure
then we tend to not take action; we are all great
procrastinators.

Here are some examples of when people will
take action with their money:

• Not until the financial emergency happens do
they scramble to find the money to pay for it

• Not until nearing retirement will people begin to
save for it

• Not until their children graduate from high school,
then they start to save for their child’s college
education

• Not until the credit cards are maxed out, they
need to defer the student loan, are behind 2 months
on the car payment and 6 months on the home
mortgage, the pressure has reached the boiling
point and then they seek help to change their
financial situation

Creating a financial plan under pressure is dangerous.
There is an easier way which involves no pressure at all.
It may feel a little uncomfortable in the beginning since
anything new does, but in the long run you will be
financially secure.  The easiest way is simple: Start saving
now and be consistent each and every month.  Don’t
procrastinate.  Don’t wait for the pressure to move you.
Move yourself now by being a doer, not a pressure cooker.

Let me share a story with you that took place twelve years
ago.  I can relate to the ultimate pressure anyone can feel.
It was not until I found myself living in a dingy motel room,
jobless, having chronic pain, a broken relationship, shut off
by my family and eating ham sandwiches out of an ice chest
that I finally knew I needed to make some changes.  I know
what pressure and pain feel like.  My saving grace was that
I had money in the bank, my emergency fund.  Without it
I probably would have put an end to the pressure and would
not be writing this newsletter for you.  That event changed
my life.  That was my wake up call, my rock bottom.  I made
a commitment to the world during that time period.  If I
could overcome it and get myself out of the hole I put myself
in, I would make it my mission to help people overcome
their financial challenges.  So this is why I write these
newsletters, why I wrote a book on the subject of debt free
financial independence, and how I’ve come to speak and coach
people about their finances.  I started this revolution so that
people can live with money on their terms instead of everyone
else’s.  I don’t want anyone to suffer the way I did.  The pressure
and pain is too much to bear.

Since I did make it out of that hole, I am here to help people
at whatever life stage they are in when it comes to money,
whether they don’t know where their money is going every
month, need some advice on how to plan their finances, or are
on their last lifeline feeling the pressure of their debt load.

If you can remember just one thing from Tim Mann, remember this:
Go against nature and start planning your finances TODAY
and continue to be constant with the plan until you reach your
debt free financial independence.

 

In the theme of Halloween this week, I am writing a special Halloween Edition.

On occasion I have been asked, “How does Money on Your Terms
work for couples?”  My answer: All the fundamentals and steps
work the same.  You just work to get rid of the Y in Your and make
it Our.  When couples are able to focus on their money in terms
of a financial team, they are more likely to create the life they’ve
always been dreaming about together.

Let’s face it, money is the number one reason for relationships dying.
Financial misfortune and hardships will continue to happen if
both parties are not on the same page when it comes to money.
Until ‘death do you part’ it will be a struggle.  We all know that
in relationships, opposites usually attract.  You have two parties with
decades of conditioning and different personalities about money.  We just
can’t ignore our money differences.  Thinking you can wave a magic
wand and expect things to work themselves out will be a life of
the living dead.

So, what can couples do to make the Y disappear?  Here are
a few key areas to shine the light on with your flashlight to see
through the fog of your relationship and money.

Lift the Spell
First, you have to be totally open about money.  Communicate.
The quality of your relationship is based on the quality of your
communication.  If you think you can quietly sweep the money
issues under the rug with your broomstick, you are practically
asking for a spell to be placed on you.

Rise From the Dead With a Party
Money can be used to seek power, so the wise thing to
do is never use money to take control in your relationship.
Create a fair spending plan together.  It may take a few
months to adjust to the new plan, but clarity brings things
to life.  Knowing where your money goes every month will
shine a light on the darkness.  Hold spending plan parties at
the beginning and middle of the month to track your spending
to make sure you are on the right track.

You Deserve a Treat
In my book Money on Your Terms, I explain that both parties
are entitled to have their own money to spend freely on goodies.
I call it your Free Fund.  Each month, set a predetermined dollar
amount aside for each of you to buy those treats for yourself that
works within the spending plan, while still giving yourselves the
opportunity to reach your financial goals.

Be the Superheroes in Emergencies
Couples stress levels usually reach the boiling over point
when an unforeseen emergency shows up and there is no
money to cover it.  Be the superheroes by having your emergency
fund in place just in case the transmission goes out, Susie breaks
her arm, or one of you gets laid off.  Work on a goal to save one
month of expenses, then two, then three until you reach seven
months of expenses.  Why seven?  In this economy people on
average are taking six months to find a new job.  Plus, 7 is a lucky
number and a metaphor for success.

Throw a Pitchfork into the Debt Monster
If both of you are going batty because your credit cards are
maxed out, you have two hefty car payments and you barely
are able to stay afloat with your mortgage, chances are this
is causing unrest in your relationship.  The tombstone is placed
in many relationships when debt becomes the problem.  Have
a healthy debt level that is manageable.  Your debt load is
considered healthy if it is 36% of your monthly gross income.
If you have a level higher than 36%, throw a pitchfork into it
now.  It’s time to be the destroyer of that monster called debt.

Working on these key areas will set the foundation for how
you deal with money in your relationship.  Once you get a handle
on this, you can work on a plan to kill your debt completely
and become the king and queen of wealth building.  You want
the relationship to work, so lift your spirits by making money
work for both of you!  When you work together you will increase
your chances of continuously having the moonlight shine on
you and your relationship.  And that’s something to howl about.

Remember back when you were a kid?  You wanted
that new toy from the toy store, to eat that piece of
candy before dinner and feel like a grown up by
staying up past your bedtime.  And how where
you able to accomplish all this?  You negotiated
with your parents.  You mastered the art of negotiation
during childhood.

In the majority of countries around the world, it is
a common business practice to negotiate.  Even the
hot noodle lunch from the local street vendor
is negotiable.  It depends on how hungry someone
is and how far down they want to negotiate the price.

In the United States, people rarely negotiate when
it comes time to buy goods and services.  Everyone has
ingrained negotiation skills, but when it comes to
their money, the skills are dormant.  Most people
don’t bother and pass up hundreds of opportunities
to save money on purchases.

Sad but true facts:

• People have a habit of paying the retail price
• People have a habit of paying add-on fees
• People will even pay above the asking price,
thinking they were the lucky one!

Remember the Cabbage Patch Kid fad and hot
real estate markets?  Even car dealerships try to
put a markup above the MSRP: Manufacturing
Suggested Retail Price, when they have a new
car in demand.  When you continually pay full price,
succumb to their extra fees and bow to markups,
you’re giving away your power by living on
their terms; not yours.

Why are people apprehensive in negotiating
with money?  Some fear losing in the deal, they
don’t want to come across as greedy, believe it’s
not going to make a difference anyway or they
think that negotiation is not always possible.

None of these reasons are true if you look at
it differently.  Look at the negative in a different
light and you get a more empowering picture:

Fear of losing – You haven’t received anything yet.
If you continue paying for everything at the
suggested retail price, you are the one losing
more of your own money.

Don’t want to come across as greedy – Did you
ever consider that maybe the other side was
the greedy one?  Charging you add-on fees,
inflated service charges and huge markups
above wholesale.  They’re the greedy ones, not you.

It is not going to make a difference – Sure it’s
going to make a difference.  It will make a difference
in your bank account with less money in it.

Negotiation is not always possible. – Develop the
mindset that negotiation is possible and you will
start to seek out those opportunities to get a better
deal — and keep more money for yourself.

When you were a kid you were not hesitant
to negotiate, so why should you be now?  If your
dream is to have more money in your life, it’s time
to rev up those skills you developed at a younger age.
With all the money you save by negotiating, invest
into income producing investments where
money works for you.

So use those skills you mastered in the art of
negotiation in childhood.  Start to have money
on your terms instead of everyone else’s.
You will be surprised at how much more
money is in your bank account as a result.

In our culture today, everyone wants the quick fix
and easy route. We live in an age that if instant results
don’t happen we give up and look for something else
that might get us there a whole lot quicker.  Sure, I would
like the easy way in life, but I have to accept the fact that
‘If it was so easy, everyone would be doing it.’  This holds
true too as you are building wealth. There are no shortcuts,
no get rich quick schemes.  The majority of people come
from a place where they haven’t learned the value of patience
in their lives, and will give up on their dream of being wealthy
way too early because they’re convinced that their dream
needs to come right away.

Have you ever eaten instant oatmeal or Cup a Noodle soup?
You needed something in a hurry to satisfy your hunger.
After eating it though, it really didn’t seem that satisfying.
You missed out on having the real thing.  Well, there
are a lot of instant, get rich quick opportunities out there
trying to satisfy your appetite of being rich.  They’re not the
real thing either.  Don’t fall for their shortcut promises.

I will be the first to tell you that I used to be the most
impatient person on earth.  I wanted instant gratification, felt
entitled and had the ‘I deserve it NOW’ attitude.  I tried several
shortcuts on my way to building wealth and found them to be
the Cup a Noodle approach; not that satisfying.  After too many
days of eating Cup a Noodle soup, I finally realized that the
shortcuts would actually take me longer.  The two ingredients
that I was missing were: Patience and consistency.

Have you ever heard the quote, “Life is a marathon, not a sprint’
by Dr. Phil?  The same is true for building wealth.
It’s: Your Money, Your Life.  Think of it as running a marathon
instead of trying to complete the 100 meter sprint as fast
as you can.  Slow and steady is the ticket in this financial race.

– Building wealth through dividend paying stocks or mutual
funds requires a plan of consistent contributions.

– Building wealth through real estate requires
consistently finding great deals on properties.

– Building wealth through a business requires
consistently working with your niche and brand to
provide the best value to your customers.

And all three require a whole lot of patience along the way.

Now, it will seem like nothing is happening for a while
and the immediate results that we all hunger for will be
lacking.  However, by building something consistently
and patiently you are putting in motion something that
will take off down the road.

So as you are building wealth, remember this is
a marathon-not a sprint.  What you consistently do now
will pay off in the future and ultimately be more for your
benefit than jumping into something short-lived today.

Time races by so fast!

The same thing happens when trying to fund a retirement
account.  The years go by so fast and people end up playing
catch up while they try to save for retirement.  We believe
there is always enough time to save, but procrastination is
a major factor that keeps our retirement accounts on empty.
Before people realize it, they’re scratching their heads
wondering why they didn’t save for their golden years.

The National Institute on Retirement Security did a study
on working-age households in the U.S. and found that more
than 90% are not saving enough for retirement.  Some other
shocking numbers found: 45% have nothing saved and those
who have savings that are nearing retirement age only have
$12,000 in their retirement accounts.  Who can live off $12,000
for the rest of their life?

There is always the thought that ‘Social Security will take care of me’.
With the US government having 16 trillion in debt and a
government shutting down, who can count on this fiasco to
be part of their retirement plan?  And those that think their pensions
are secure need to have a back-up plan in place.  Look at what is
going on in Detroit; Unions are fighting to keep their pensions off
life support.  Furthermore, with major corporations like United Airlines,
Delphi, U.S. Airways and many more terminating their pension
plans for employees, nothing seems to be secure in today’s world.

I hate to be the bearer of bad news, but I’m the type that likes to
have all my ducks in a row to avoid problems before they happen.

Now, most people are wondering: ‘Well then, where is the money
going to come from?’

The answer: From the leaks!

Have you ever driven a car that leaked oil?  Have you ever had
a leaky faucet that continued to drip water?  A drip here. A drip there.
It doesn’t seem like it will cause havoc.  But those small drips
can cause bigger problems in the future.

Daily drips are also happening in people’s wallets.  There is
a continuous separation of you from your money.  Those gourmet
burgers, lattes and frappuccinos, the muffin to go along with
that frappe, and those second and third Appletinis are examples
of continuous leaks.  The extra $3 to $10 daily purchases really
add up quickly.  Just $3 a day of leaks in your pocketbook adds
up to $90 a month that could go toward your retirement account.
$10 a day takes away $300 a month from funding your
retirement account.

How do you stop the leak?  Start a saving plan for retirement, TODAY.
We have all heard the old cliché, ‘Pay yourself first’.  With the
billions of choices out there separating us from our money,
this practice seems to be lost.  Make it the new normal in your
life by paying yourself first every month.

If your employer offers a 401(k) plan, then talk to
your Human Resource department to get started.
When you fund your 401(k), you receive a tax break.
Your contributions are taken out by your employer before
income taxes are deducted. This means you lower the
amount of income you pay taxes on.  In addition,
the majority of employers will match a portion of
your contributions dollar for dollar.  Why give up free money?

Also, I would advise opening and funding a Traditional IRA
or Roth IRA at your local discount brokerage house.  I prefer
a Roth IRA over a Traditional because of the tax advantages,
but both accounts grow tax free.  The main advantage of a
Roth over a Traditional is: All of the contributions you make
to a Roth can be withdrawn penalty-free at any time, for any reason.
Also, you can use your Roth IRA as your emergency fund since
the contributions you made can be withdrawn tax free.

If you have a plan in place then work toward increasing
your contributions, because time will pass you by
before you know it.

Start dripping your money into your retirement account
instead of letting it flow into everyone else’s pocket.

How many people really enjoy going to a job 5 days a week?

We know the stats:
80% are unhappy at work
20% love their work

I used to be a member of the 80% club when I had to
work to make money. I was programmed to get an education,
get my foot in the door, and work my way up the corporate
ladder and live for today by spending my hard earned money.
Well, I tried that path, and trust me, this path got old after:

Hitting the snooze button at 4:30 am
Jumping in the shower still half asleep
Throwing on the suit Driving in traffic
Dealing with my boss
Working hard throughout the day at a place I did not want to be at
And then driving back home in traffic only to do it again for another
four days each week.

I thought to myself: ‘There’s got to be a better way’.
The better way came once I found out how rich
people make money. It really boils down to two ways
of working: Broke people work hard, spend all their
money as fast as they get it and have to work harder
the rest of their life. They continue to live paycheck to paycheck,
car payment to car payment, and credit card payment to
credit card payment. Rich people, on the other hand, work smarter
by loving what they do, take a portion of their money to invest it
in income producing sources and eventually money works
for them in the future.

After realizing this and doing the daily grind, I decided
to focus my energy on the way rich people do it. Once the light
bulb went off, I wanted a piece of the action just like them.
So I educated myself on every aspect of having money
work for me.  I wanted options and you better believe the
daily grind was my motivation to find those options!

Once I started to have money work for me, I found that
it works harder than I ever could work and it works for
me 24/7. There are a gazillion forces out there steering
you away from having money work for you.  Don’t buy into them.
The best part is you can start small– $1 is all it takes to open
a savings account at a bank.  With another $1 you can
open a brokerage account and get the ball rolling of
investing in Mutual Funds or Dividend Paying stocks.  Just type
discount brokerage in a Google, MSN or Yahoo! search
to get a list of different firms.

To learn about how the stock market works, you can
take free investment classes at your local discount broker’s office.
They have ongoing educatioal classes to help their clients
understand investing so they can make better informed decisions.
Now, a one-time $1 investment is not going to change your
financial picture.  But consistently saving and investing will
develop your confidence that money really can work for you.

There’s never a better time than now. Set up your Freedom Plan today.

Are you finances in order to handle those financial emergencies
while you are making other plans?

According to a survey conducted by the National Foundation
for Credit Counseling, 64% of Americans don’t have enough cash
on hand to handle a $1,000 emergency.

I don’t want it to rain on anyone’s parade, but you never know when:

That car transmission will go out
That lay off from your job becomes a reality
You get sick and can not return to work for the foreseeable future

We all want to believe it will not happen to us.  I use to believe this until
I had these above events happen to me at different times in my life.
It becomes extremely stressful financially when unforeseen circumstances
show up in life with nothing to fall back on.

Most of us have heard the old school of thought:

 “Save your money for a rainy day.”

The old school way is to put money away when times are
good so when times are not so good you have money.
Somewhere over time, this concept has been replaced with the
new school of thought:

“Borrow the money for a rainy day.”

With the new school concept you can fund your problems
with a credit card or borrow the money from the bank.

The problem with the new school of thought is you are
increasing your odds of creating a financial hole that can
be hard to dig yourself out of.

Besides, if you loss you job what bank is going
to lend you the money?

Living just six months on a credit card can create
a payback plan for the next 15 years.

This new school model is living a life of financial instability.
Why put that much stress on yourself when you can
do something about it, NOW?

There is a much easier plan that has been around
for hundreds of years, but uncommon in today’s
world – funding an emergency fund.

Think Old School

Grandma stuffing money underneath the mattress
makes sense when planning for financial stability
by funding an emergency fund.  Although you don’t
need to revert back to the mattress stuffing days,
you can put the money into a bank.

An emergency fund can be started at your local
bank by placing money into a liquid account – preferably
in a savings account paying you interest.  The money needs
to be liquid so you can take it out immediately with
no penalties.  It is not advisable to have an emergency
fund where the money is parked in a CD, the stock market,
or the bond market.

How Much to Save

Financial colleagues say your emergency fund
should be able to cover at least three to six months’ worth
of expenses in case you get sick or you lose your job.
This is practical when economic times are stable and
the job market is strong, however, in today’s economic
environment it is not so practical.

My advice is to have at minimum 7 months
of expenses saved.  According to the Bureau of Labor
of Statistics, 40% of unemployed workers are taking
over 6 months to find a new job.  Three months is barely
enough time and before you know it 6 months
will be at your door step.  Put the odds in your favor
by having enough saved.

Getting Started

If you currently don’t have an emergency fund
then make it a priority to get one started.  It may
seem out of reach to save 7 months’ worth of expenses
in the beginning.  The best way is to take small steps.
Set a goal to save one month of expenses then two
then three and so on.  If you take it in steps and make
it manageable you will have a better chance of
establishing a full fund.

What I found is, once I had an emergency fund
in place the unforeseen events decreased.  It was when
I didn’t have one everything seemed to want
to work against me.

So, forget about the new school and go back
to the old school way of saving for a rainy day
like Grandma did.

Grandma will be proud of you.

Have you ever walked into the local mall
looking to buy one item and then found
yourself walking back to your car with bags
full of stuff you never anticipated buying.

I definitely have…

How does it happen?  Blame it on the impulse buy.

Impulse buying is common behavior in the world, today.

Businesses know how to activate every cell
of our 5 senses to trigger our muscles to purchase
on impulse.

Making that impulsive purchase feels good in
the moment, however, the thrill is short lived when
you look at your empty bank account and your
maxed out credit cards at the end of each month.

Having cabinets, closets, and garages full of stuff
that collects dust is a sure sign of impulse
buying gone bad.

The problem with impulse buying is – it takes money
away from building a solid financial future where
money works for you instead of you working for it.

Many years ago, I heard a multi-millionaire make this statement,

 “You can’t get rich if you are giving everyone else your money.”

This really hits home if you would like to have a future
with financial independence…

One way to tackle the impulse buying habit is to meet
it half way.  What I suggest is to have what is called
a Free Fund.  Every month you give yourself a certain
amount of money to spend freely.

With a pre-determined amount set aside each
month you have  leverage on your side.

When you do your Spending Plan (aka budget) for the month,
allocate a portion of your money toward your Free Fund.
This way you are in control, spending money that is already
calculated  into your Plan.   Since most people are conditioned
to buy on impulse, here are some additional tips to help
you get the edge on keeping the impulse buying urge at bay.

1. Buy things that have a good return policy when the thrill wears off
2. Don’t shop with people who are a bad influence
3. Go shopping with a list
4. Never go to the grocery store hungry
5. Ask yourself, “Is this purchase a need or want?”
6. Keep your Spending Plan in mind
7. Make saving money fun.

So the next time you are influenced by the
forces of the impulse buy, remember it is on
your terms and not on their terms.

I felt energized to write this special report this week.

How Seminar Scammers are targeting vulnerable
people into buying their worthless courses and
mastermind programs to the tune of $10,000 to $100,000.

Last week all the headlines read about how
Trump University was a fraud.  The Attorney General
of New York filed a law suit against Donald Trump
for promising to make students rich but instead
maneuvered them into expensive and useless
seminars that caused financial hardship to many.

I attended the introduction seminar of Trump University
in Woodland Hills, California back in 2007.  It was a sales
pitch from beginning to end with very little content
trying to lure the audience into going to his University.
I had a very bad feeling about it as I walked out of the
room that night.  I never purchase these types of courses
because they are excessively overpriced and have
the common theme of:

“I Have a Dream for You”…

I am sure many of you have heard it before.
The presenter gives you his snake-oil spiel, on
how you can quit your job in one to two years.
Then from all the money rolling in you can travel
the world because you don’t have to work.
As an added bonus, you will be living in your dream
home and driving your dream car in no time.

I think anyone would pay $25,000 to $50,000 to
have this come true.  The truth is life doesn’t work
this way.  I have studied hundreds of thousands
success stories.  Not one of them ever talked about
how this type of pipe dream came true.

If you ever hear this type of presentation
in the future. Don’t walk out of the room, RUN…

They are a complete scam exploiting you of your money.

Now, some trainers are providing real value to
their students and go that extra mile to educate and help
people. Furthermore, they offer a fair price to do it.
I would like to commend those that are doing it the right way.
However, there are some really bad apples that are
giving the seminar industry a bad name.

Hopefully, this is just the beginning by using Trump University
as the example.  It would be great if more victims would
come out and state their case to the various government
officials around the world to expose and rid the environment
of these rip-off artist.

Tom Antion, an internationally acclaimed expert in Internet
Marketing for small businesses and a veteran full time
professional speaker is working toward the goal of cleaning
up the seminar industry.  He has taken on the role of consumer
advocate where he has a Television show and Documentary
in development to expose seminar speakers robbing people
for enormous amounts of money.  He has even created his
own Antion’s Army to further the cause.

You can go to his link to read about the various seminar
scams out there so you won’t get ripped off.

http://www.antion.com/top20seminarscams.htm

I am in full support of Tom’s mission.  This Thursday September 5th,
I will be interviewing him on The Money on Your Terms show 8 pm PST.
We will be discussing how these seminar scammers are working
the rooms to take people’s money.

So listen in on how to never fall for these sharks trying to take
a bit out of your wallet.

Just stay away from those “I Have a Dream for You” overpriced courses.

The worst is yet to come…

This is the trend when co-signing for someone that otherwise
would not be able to qualify for a loan on their own.

But wait a minute – What if?

There is no if, ands, or buts…  Period.

When you Co-sign with another person you are flirting with
dangerous waters. There is no way out once the ink dries
from your signature on the contract.

Now some of you are probably thinking:

Are you having a bad day, Tim?

– I want to help my brother purchase his first home. 
– I want to help my girlfriend get a new car.
– I want to help my daughter buy a yogurt franchise with a SBA loan.

It will not work out the way you are hoping.

They want something they can’t afford.  You feel like you are doing
the right thing, but you are helping them with something they
just can’t handle.

Here is the reason why I am firm on this one.

1. Cosigning = your loan
2. You are binding yourself to a legal document
3. You are putting your own credit score at risk
4. You can eventually destroy a friendship or family relationship
5. You could end up being sued for repayment
6. The odds are you will be the one paying off the loan

Banks are smart, they loan money to people that can show
they are qualified to repay the loan.  When you cosign, guess
who they come looking for when the borrower stops making
the payments?   YOU

Most people go into this blindly thinking their friend or family
member would never let them down since they just did
them a favor.

There is no favors here.  Do them a favor by not letting
them get a loan they can’t qualify for.

In my book Money on Your Terms, I wrote that the
Federal Trade Commission did a study where they found that
75% of all co-signed loans are ultimately
repaid by the co-signer.  Not the original borrower.

This stat shows that the odds are against you.  There is just too
much risk involved.

My advice, avoid this like you would avoid the plague.

Just stay away from co-signing with others who can’t qualify on their own.