Sunday, June 30, 2013

What are you, a Nerd or Free Spirit?



What are you, a Nerd or Free Spirit?
By Keith Bunn Jr.
June 30, 2013

Nerd and Free Spirit

In most families, when it comes to finances, the husband and wife can be categorized as either a Nerd or a Free Spirit. The Nerd is someone who likes doing the budget because they feel like they are taking care of their family. It also satisfies their need to be somewhat controlling. The Free Spirit doesn't feel cared for, they feel controlled. They also seem to be irresponsible to the Nerds. 
This relational dynamic can be really stressful in you relationships, but it is something that is needed also, meaning, the Nerds need a Free Spirit in their lives so the have a life. The Free Spirits need a Nerd in their life so they are not broke and eating Alpo in their so called Golden years. It is these differences that can either break a marriage or make it awesome!

How Do You Overcome These Differences

Financially, the best way I know of to overcome these differences is to do a budget together. WHAT!? That's right, do a budget! By doing a budget together, you are opening the lines of communication between the two of you. You are also sharing your dreams, passions, and ideas of what your family's future may look like. If you've never done a budget before, this will probably not be an easy trip, but I guarantee it is well worth it. Because once you get that area of your life situated, once the doors of communication about money are opened, other doors will open too.

But Who Does the Budget?

The answer to that question is, Both of you do it. I suggest that the person who likes to write out the budget to do that part, but Both of you need to sit down and go over it together. Only then does it become "OUR" budget. You Both have a say on where the money goes.
Once the Nerd is done writing out the budget, slide it over to the Free Spirit so they can read it. Once that is done, you Nerds need to be quiet. Your opinions are on the paper, give the Free Spirits a chance to read it. After the Free Spirit is done reading, this is the point where the Both of you start talking about and possibly make changes to the budget. Oh, I forgot to mention. There is a phrase the Free Spirits can never say to the Nerds, and that is... "Whatever you want to do.", "Whatever you say." That is copping out on your responsibility to claim ownership to the budget.

Who's the Nerd? Who's the Free Spirit?

OK, here is a fun quiz to find out who's the Nerd and who's the Free Spirit in your relationship. Place a check mark on which best describes you.

1) You actually like balancing the check book. ___ or ___ You'd rather balance a spoon on your nose than balance the check book.

2) Rules are important and should be followed. ___ or ___ Rules are more like suggestions to be considered.

3) You are always on time. ALWAYS. ___ or ___ You show up "on time." Give or take 15 minutes.

4) You spend more time planning the vacation than the vacation itself. ___ or ___ Vacation are more fun when the calendar's blank and you just "go."

5) Recipes should be precisely followed. Like rules. ___ or ___ Recipes are suggestions. Just do a dash here and a dash there.

6) You read the introductions of books. They're in there for a reason! ___ or ___ You skip introductions. Then it's like you read more.

7) You organize your shirts by color, or you will when you get home. ___ or ___ You're doing good just to get your shirts hung up.

8) You can't wait for Dave Ramsey to teach about budgeting. ___ or ___ You're considering faking an illness the night of the budget lesson.

9) "Living for the moment" sounds irresponsible to you. ___ or ___  "Living for the moment" sounds like the soundtrack to your life.

10) Clutter is annoying and frustrates you. ___ or ___ It's not clutter, it's character!

This quiz is from Dave Ramsey's Financial Peace lesson: Relating with Money.

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!

Special Note: This will be the last blog posted on Sundays. Starting on July 8th, my blogs will be posted on Mondays. This move is mainly because people are always out and about on the weekends, especially during the summer months and I feel that this move will allow my message to be heard better. Oh, by the way! Checkout my Facebook page (link above) Monday, July 1st. I'll be posting the answers to the Nerd and Free Spirit quiz so you can see how big of a Nerd and Free Spirit you really are, lol.


Saturday, June 29, 2013

What students can do to pay for college.



What students can do to pay for college.
By Keith Bunn Jr.
June 29, 2013


I know this isn't the normal blog posting day but, I just read this article from the Wall Street Journal about student loans and how much of an issue it is in this country, and it got me thinking about what students can do to pay for college. Here’s what I came up with.

What students can do to pay for college.

1) Figure out what you want to do. How does that annual income compare to how much the degree will cost you? If the degree costs you 80 K, but only pays 40 K a year, you might want to think of doing something else.

2) Figure out where you want to go to school at and Why. If you want to go to a certain school because your friends are going there, that’s not a good enough reason. Figure out what school will give you the most bang for your buck? Remember, it’s the degree that you get is what is important, not where you got it.

3) Figure out if you can afford that school. If not, you can’t go there. Student Loans are off the table!

4) Is mom and dad able to help out? If so, how much and for how long? If not, what’s next?

5) Figure out what grants you can apply for.

6) Apply for Thousands and Thousands scholarships! I know that can be tedious and hard work, but so is paying off student loans for decades. Billions of dollars of scholarships go uncollected because no one simply applies for them.

7) Work to pay for college!!! Working just 20 hours a week while going to school full time WILL pay for in-state tuition. On the off times, bump your hours up to 40 hours or more. You’re going to school to get an education, not to play beer pong.

8) Don’t do anything extra like going out to eat, going on expensive trips, like “spring break”, etc… or go further into other forms of debt like using credit cards. I know you are use to the lifestyle your parents provided for you when you were growing up, but that’s their lifestyle, not yours. And by the way, it took them 40 years to get to where they are now. You’re just starting.

Remember, almost 50% of college students that go to college Don’t graduate! They don’t graduate because of other forms of debt, like credit cards, it’s not what they expected, etc… but they still get to bring home their student loans, without the degrees to help pay for them. Also, the majority of the college grads today are Not working in their fields of study. Not because they couldn't find jobs in those fields, but because they have chosen a different path to follow. 
I know these examples sound, and probably are harder to do than me just typing them on the computer. I know it is much easier to just go out and get a student loan, but like the article says, when you have student loans still over your head in your 30's, 40's, and 50's, it doesn't allow you to do certain things you want to do just because you can't. So think outside the box. Don't be like the flock of sheep that jumped off the cliff just because the lead sheep did. Be your own person and do this college thing right!

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!

Sunday, June 23, 2013

"Why Should I Save my Money? You Can't Take it with You?"



"Why Should I Save my Money? You Can't Take it with You?"

By Keith Bunn Jr.
June 23, 2013

Too many times I've heard people say, "Why Should I save my Money? You Can't Take it with You when you die?" And those people would be right, at least part of it anyways. You can't take it with you. The Pharaohs of old have proven that with tombs filled with treasures. But is your money only for the here and now? Is it only to be used for our enjoyment because we CAN'T take it with us? I say, no. I think if you're thinking that way, you should also be preparing for your funeral just because you never know. I mean, why not? You could die tomorrow!
In my opinion, the people who say things like that are just looking for an excuse to do whatever they want to do with their money, regardless of what its doing to their financial well being, or the financial well being of their family, and that's just sad, irresponsible, and selfish. The bible says, "But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever." -1 Timothy 5:8 -

Why We Should Save Our Money

There are only 3 things we can do with money. We can have fun with it, we can save/invest it, and we can give it away. So you see, having fun and enjoying our money is part of what we can do with our money, but its only 1/3 of it. What if we did all 3 parts? 
The simple fact is, we should all get our financial acts together so we do have some wealth built up. Not so we can just have fun with it, but so we can help others who are in need, live comfortable lives in our golden years, and so our families can be taken care of when we do pass away, because we don't know when we'll pass. We could die tomorrow at 19 years old or at 91. 
This path isn't easy at first but it is a better path for us all, and as time goes by it will get easier and easier.

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!

Sunday, June 16, 2013

What is Your Net Worth?



What is Your Net Worth?

By Keith Bunn Jr.
June 16, 2013

Good morning again,

First off, I'd like to wish all dads out there a very Happy Father's Day! This week's blog is going to be a shorty but goody.

How to Figure out Your Net Worth

How you figure out your net worth is relatively simple. Take a sheet of paper and list everything you have that has any kind of value to it. Whether it has debt attached to it or not. If you have any credit cards with outstanding balances on them, list them too. Here is an example...

Item                       Value      -       Debt       =        Equity

House                   $200,000        $75,000          $125,000
Car 1                         $3,000          $5,000             -$2,000
Car 2                         $1,000                 $0              $1,000
Savings accounts
Checking accounts
Credit card 1
Credit card 2


I think you get the picture. Once you have made your list, you add up and/or subtract everything in the "Equity" column. Whatever you come up with at the bottom is your net worth. If that number just so happens to be a million dollars, you are a millionaire. If your number is a negative number... well, it looks like you have some work to do. The math part is simple. It is remembering what all you have and looking up what they are worth that is going to be the most time consuming.

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!


Sunday, June 9, 2013

Settling Debt


Settling Debt

By Keith Bunn Jr.
June 9, 2013

Good morning everyone,
This week I'd like to talk about settling debt. This is different than using a debt settlement organization, which I don't recommend by the way. I'm talking about you calling up a creditor/collector and asking them if they will take less money than you owe to settle the debt once and for all.

The Do's and Don'ts of Settling

First off, I don't recommend settling on any debts if you have the money to pay them off. You signed up for the ride, now it is your obligation to finish it. But when you don't have the money to pay on the debt and you haven't paid on it for some time, you maybe able to settle on that debt for sometimes a quarter to a dime on the dollar. 
Now put yourself in the creditor's/collector's shoes for a bit. The only reason a creditor/collector will take less than what is owed is if they think they're not going to get anything at all, so if you are current with them, they won't settle. 
The first thing you must do is get on a budget. Give every dollar a name and stick to that plan. Part of that plan will be to save up some money so you can call up your creditors/collectors to try to settle with them. Once you have good portion of money saved up, call them up and offer it to them. Now they may or may not take your offer. They may even counter your offer, but if all you have, is all you have, don't agree on something you don't have, and tell them that, "Mr./Mrs. Jones, I don't have that much money right now, all I have is "this". I have a list of creditors/collectors that I can call to offer "this" to. If you don't want to take "this" as settlement, I'm sure one of them will. Are you sure you don't want to take it? No? OK Mr./Mrs. Jones, I will call you back in about a month or so when I have saved up some more money. Have a great day." and then hang up the phone. If they are not going to take your offer there is no sense dragging the conversation out. Just hang up, call the next creditor/collector on your list you want to settle with and offer them what you have. Keep doing that until someone takes your offer, and call all the others back when you have saved up some money again. Now in order for this to work, you have to have a reasonable offer. If you owe $5,000, don't offer them $100. That would just be insulting.

If They Take Your Offer

If you find a creditor/collector that will take your offer, ALWAYS, ALWAYS, ALWAYS get the settlement agreement in writing. If you don't have proof that the debt was settled, it wasn't settled. Once you have an e-mail, fax, or letter that has the creditor's collector's letterhead on it that says they will take "X" amount from you as "settlement in full" on your debt, then you can send them an over night check for the amount you agreed on. Once that is done, you need to staple the check stub to the letter you got from the creditor/collector as proof that the debt was settled and keep it for the rest of your life. Because this may come back and try to bite you in the butt again, and if you don't have proof you settled the debt, you will have to start paying on it again. This happened to us twice and all I can say is that I'm glad my wife is as organized as she is. She knew right where those papers were and sent them copies proving we had settled the debt.
Now there are some "never's" when it comes to settling debts. Never give any money to the creditor/collector until you have the settlement in writing. Never send the creditor/collector money with a check over the phone or electronically. That's a good way for the creditor/collector to clean out your account.

Taxes

There is one more thing you need to know. Settled debts are taxable. If you owed $5,000 and you settled it for $2,500, the remaining portion of the debt is considered income and is taxable and you may get a 1099 from the creditor/collector stating that. But don't freak out about that. If you are in a 25% tax bracket, you will only have to owe $625 in taxes for the remaining $2,500. I don't know about you, but I'd rather pay $625 than $2,500, wouldn't you?

Question

1) Have you ever considered settling on a debt before?

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!

Sunday, June 2, 2013

Financial Coaches Make Mistakes Too



Financial Coaches Make Mistakes Too

By Keith Bunn Jr.
June 2, 2013

Good morning everyone, with this weeks blog, I'm going to be a little transparent with you. Some people would think just because financial coaches help others with their finances, that we don't make mistakes with money, that's not true. Financial coaches are humans and we make mistakes just like everyone else, even with money, and in my opinion, any good coach will tell you that. Now, what I'm about to share with you wasn't really a total mistake on our part, but we sure did learn some lessons along the way.

Lesson Learned

What I'm talking about happened during the pop of the Real Estate bubble. My wife Julie just got a new job in a city which was an hour drive (one way) away from our home. I also worked in that city and we decided that it made no sense living so far away from where we worked, so we decided to move closer to our jobs. 
The problem was, we didn't make enough money to pay both the mortgage payment and rent when we moved so we rented out our home. Without going into too much detail on that, renting out our home was a disaster! The renters stopped paying rent, we started the eviction process (which was long and expensive), and we put the home on the market as a Short Sale.

Short Sale, Foreclosure, Deed in Lieu of Foreclosure

For those who don't know, short selling a house is just to the left of a foreclosure. What you are trying to do when doing a short sale is you are trying to sell your home for less than you owe and trying to talk your mortgage company into taking that as payment in full and you have to go through a bunch of hoops with your mortgage company to get one to go through, even if you have a good Realtor, which we had an awesome one. But when it comes right down to it, your mortgage company has the final say whether or not they will take any offers that are presented.
So in our case, our mortgage company was from out of state and had no clue what the market was like in our small town. So when we has a CASH offer, and presented that to them, they denied it. To make a long story short, we were running out of time and it looked like we were about to be foreclosed on, but we had one more trick up our sleeve to try. We offered the mortgage company what is called a Deed in Lieu of Foreclosure. That is where the mortgage company pays the home owner pennies on the dollar to just walk away from their home and it becomes the property of the mortgage company. Now, if a short sale is to the left of a foreclosure, a deed in lieu of foreclosure is just to the right. The thing is, the only way a short sale or a deed in lieu of foreclosure makes sense is if you have it in writing from your mortgage company that there will be no recourse towards you. Meaning, they will not come after you for the difference the house doesn't bring when the house is sold again. Example; if you owed the mortgage company $100,000 and the house was sold for $75,000, the mortgage company can come after you for the $25,000 difference, unless you have it in writing, "short sale/deed in lieu of foreclosure without recourse".
To our surprise, they agreed to our offer and with a quick inspection from the mortgage company and them handing us a check, we walked away. Now did that hurt our credit? Absolutely! Will what happen hurt our chances in getting another mortgage right away? Absolutely, but only for about 3 to 4 years. But we still have some debt to pay off yet and we still need to save for a huge down payment when we are ready to buy again. By that time, the 3 to 4 years will have come and gone. On top of that, we are not really worried about our credit. As I've said before, we don't worship at the alter of the "Great FICO".
Oh! By the way, we just learned the other week that our old house sold for about half of what the cash offer was that was presented to them for the short sale. That's what happens when you have to deal with mortgages companies that are from out of state.

Questions

1) Have you ever rented out your home before while waiting on the market to recover so you can sell it?

2) Have you ever considered doing a short sale or a deed in lieu of foreclosure?

The reason I do this is to give people hope and to try to inspire others. To make them think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or about your finances, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!