Corey Stokes

How to Find Financial Peace?

Robert Kiyosaki describes the financial problems of today as “being caught in the rat race.” What this means is, every day we are striving to make financial progress, but it seems that we never have the forward motion we want. In other words, we feel that we are running in circles. We resolve, on a yearly basis, to make changes to correct this, but our efforts bear little fruit. This is truly a tremendous problem. Debt is so ingrained into our thinking that we believe it is necessary for financial stability. The truth is, however, it is not! It is for this reason why so many are screaming, It is time to get out of the rat race! It is time that we begin realizing the results that our efforts demand.

Every day we are bombarded with content telling us what we need. We need a new car at new lower financing rates. We need the latest technology, with a payment that is equivalent to a mortgage payment. And we need the latest credit card that gives superior awards we can use towards travel. But do we really need these things? Or, Can you imagine life without debt? Can you see a life where a student does not have a loan; grasp the idea of a car that doesn’t have a note; or foresee a time that you have a home with no mortgage? For many, the answer is no. Our notion of what financial stability is is skewed. We believe if we can make our minimum payments, then our finances are stable and affordable. Even that says our view of affordability is incorrect. If you have to make payments, then this begs the question, is it really affordable?

The very definition of financial stability dictates that we don’t have to worry about making payments. The idea of financial stability says we can afford life. Meaning if you need or want it, you simply pay for it. If I were to tell you that gaining financial peace is within your grasp and you can have it, would you believe me? The truth is, finding financial peace is something that we all can choose. The question is will you do what you need to do to get it?

What do you need to find financial peace?

First, stop letting others dictate what you need! We all should have a firm grasp on our own notion of financial stability. This definition will help us to see that debt is not a financial tool. It is actually a financial hindrance.

Second, we should all have a plan, to help to improve our financial position. This plan tells our money what we want it to accomplish, and not the other way around. The plan will help us to see that we are in the driver seat and have control of our financial life.

Finally, we should all re-evaluate our plan consistently. The goal of the plan is to help you reach your financial endeavors. If it is not, then make the necessary adjustments, so you are reaching your goals.

The product, debt, is sold to us so forcefully that it is hard for many to see life without it. That, however, is exactly what we need and strive for. A life without debt. If we can see a life without debt, we can begin to see a way forward. That vision will help us to recognize that we can get out of the rat race and find our way to accomplish what we resolve to do every year, find financial peace.

Resources

Dave Ramsey – Total money makeover
Robert Kiyosaki – Rich Dad, Poor Dad
Chris Hogan – Everyday Millionaires
Chris Hogan – Retire Inspired
Corey Stokes- Financial Coaching Services

Why you need a $1,000 Starter E-Fund

I recently had a conversation with a buddy about debt and credit cards. I told him that I do not use credit cards and have not used them for over a decade. He was shocked and asked how I did it? He wanted to know how I lived without credit cards? The short answer is, years ago I have made up my mind that I will not use credit cards to finance my life. Like my friend assumed, beginning to live a credit card free was not easy. In 2008, as gas prices started to rise, I struggled with maxed-out credit and to find a way to make ends meet. A family friend came to talk to us about a book and a program he’d heard about being debt-free. His excitement and enthusiasm about it got me excited. He shared his books and videos of the Total Money Makeover with us, and that kind act changed my life. Listening to Dave Ramsey helped me to see that living life on credit was hurting my ability to finance my life. From then on, I made every effort to only use cash and implement his methods of money management. So, with my buddy’s question, the cycle continues.

If you are familiar with Dave Ramsey’s baby steps, you are familiar with baby step 1 – Save $1,000 as a baby emergency fund. This is how we began to ween ourselves off of the use of credit cards. In the beginning, everything was an emergency, we were constantly revising our budget, and this baby emergency fund was in place to provide our family with a buffer between us and life.

My friend thought this was the coolest idea (I wished I could take credit for it) and went home to discuss it with his wife. About a month later he told me how much he valued my advice and began to tell me how having the baby emergency fund in place helped him to stay away from using his credit cards. “This has been a huge help for me,” he told me. He then continued to ask me for more financial advice.

In the grand scheme of things, $1,000 is not a lot of money. But when you are trying to get out and stay out, of debt, it could make a world of difference. That is exactly what it did for me and my family. Here’s an example of what I mean … Recently, my car window fell off the track… well a small tiny piece on the regulator broke. When I brought it to the dealer to get it fixed, they told me it would cost just north of $800 to repair. This time around, I just wrote the check and fixed my window (after price checking and looking for discounts, of course). Twelve years ago, my Chevy Malibu needed a repair, which would have cost $1,000. Given my shocked state of mind and my lack of resources, The dealer convinced me that the car was not safe to drive and to use my car as a down payment on a new car. Fully loaded complete with a car payment of $500 per month. If I had this $1,000 in place then, I could have just paid for the repair instead of being talked into a new car. When you know better, you do better. Today, the baby emergency fund allowed me to stick to my conviction of not using credit.

So, why do you need this $1,000 starter emergency fund? Because life happens and I can truly say that most household emergencies in my home were, and still are, less than $1,000. I believe that the worst time to accumulate more debt is when you are going through a hard time. Dave even suggests a $500 fund if $1,000 seems too big of a challenge; you have to start somewhere. Maintaining this small amount in your bank account provides a bit of space to allow you to pay off credit card debt without adding more. $1,000 allows you the financial freedom to pay that speeding ticket, small appliance repairs, blown tire, or your kid’s school thing that you forgot to budget for but can’t ignore. $1,000 give you a slice of peace.

There is one thing to remember about maintaining this baby emergency fund, though. Having it in place is great! But when you use it the priority, after the emergency is over, is to rebuild your emergency fund so it is there to use the next time you have an emergency.

To my friend trying not to rely so heavily on credit cards, I say take the plunge! Cut them up and close them. $1,000 is just the beginning. With zero debt, growing your baby emergency fund into a fully-funded emergency fund will be a piece of cake!

“The goal of an emergency fund is to give you peace of mind when something happens” – Chris Hogan –

5 Tips for Finding Financial Peace

Robert Kiyosaki describes the financial problems of our time as “being caught in a rat race”. Every day we are running and striving to make great strides in our financial lives. As hard as we are running, however, we ultimately end up in the same place that we started; our results not showing the amount of effort that we are putting in. This is because we have all been lied to. We have been made to believe in this lie so heavily that it is engrained into our everyday lives, it is in our belief system. That lie is Debt.

Dave Ramsey asks his listeners and readers, can you imaging life without debt? A student, without a loan? A car, without a note? A home, without a mortgage? Can you picture going to make a purchase without using a credit card? or going into a store and paying for the items in your cart with your bank account/cash. Many of us cannot. We live life with a notion of financial stability as making all of your minimum payments, and making them on time. It’s not until those payments start to cause us pain, that we start to see the effects of debt.

If I were to tell you that gaining financial peace is within your grasp and you can have it, would you believe me or would you cling to the belief that you have to have debt in order to survive in life? The truth is, financial peace is within your grasp and you can learn how to obtain it. The question is will you do what you need to do in order to get it?

Over a decade ago, I began my own financial journey. I was determined to reach the picture of financial peace I had in my mind. For years, I had bought into the lies and the myths about money. I had several credit cards, that I was making the minimum payments on, I had a student loan that was around for years, going form forbearance to forbearance, and a wonder of how to get by until the next payday. This was not the financial peace that I sought. What I was looking for was the ability to maneuver through my life, without worrying how I would afford it. I wanted to buy a gift for my wife, or take my children to a movie without worrying if the rent check would not clear. Financial peace for me meant, being able to afford the life that I wanted to live. Today, I can honestly say I have reached financial peace.

How’d I get here, you ask? It started with a quote from Abraham Lincoln. “If I had 8 hours to cut down a tree, i’d spend the first 6 hours sharpening the saw.” This quote is more commonly attributed to Author Stephen Covey in his book 7 Habits of Highly Effective people. Habit 7 is Sharpen the saw! Continuing to grow and develop myself has helped me to get to this point in my life. Here is a few things that I learned about finding financial peace.

1. What is your definition of Financial peace.

According to Cashcow, one definition of Financial Peace is being able to afford the lifestyle that you want to live. In order to to live that life you must define it. Chris Hogan, author of Retire Inspired, says you must dream in HD, and create a plan to get there. On that journey to live out your plan, is where financial peace is found.

2. Debt is Dumb

Dave Ramsey Asks a question to his audience that completely made sense in my head. If I were to hire you, to fix your own financial life. Would you continue doing the same thing as you are doing? Probably not. your first step would probably would be to eliminate debt, and increase savings. So why then, is this the hardest thing to do. Society thrives on debt. If you ask anyone what is the number one resolution in the world, guaranteed they will say get out of debt. So let’s start our financial journey there. Get it in your mind now, that debt is dumb. You don’t want or need debt.

3. What happened to the cookie jar?

My grandmother had an actual cookie jar on top of the fridge where she would put cash “for a rainy day.” Today, most people use credit cards/debt (if you really need to know why this is a bad idea, look at number 2 again). I’m not suggesting going back to a physical cookie jar, but having a stock pile of cash around for a rainy day, is a great idea. When you’re in debt and an emergency happens the last thing you want to do is go deeper into debt. there a several notions of where your cookie jar should be, the bottom line, though, is you need to have one.

4. Have a map to your destination.

Today, when we set off on a trip, the first thing we do is set the address in the GPS so we can follow the route. Winning with money takes the same types of strategy. A GPS for your money is called a budget. Just like you wouldn’t start a trip without a either a destination in mind or a map to get there, a month should not be started without a plan to help you meet your financial goals for that month.

5. Take control of your Wealth building tools.

When I first read Robert Kiyosaki’s book, I fell in love with his idea that your assists should be your wealth building tool. But I didn’t like how he got there. The concept, however, is great. Chris Hogan, put’s it like this. If you build enough wealth (earning at least an 11% return on investment), to where you can live on 6%, you will never touch the principle. Your assets at that point will be buying your wealth building tools and funding your life. Before we get to that point though, our greatest wealth building tool isn’t currently working for us. It is working for Visa, MasterCard, Discover, Wells Fargo, Bank of America, Salley Mae… etc. If we can take back our biggest tool, then we can start to see and make a difference in our worlds.

Resources

7 Habits of highly effective people

Total money Make over

Rich Dad, Poor Dad

Retire inspired