Let Freedom Ring!

As July 4th approaches, my thoughts are drawn to the concept of freedom.  We were created to experience and live in freedom.  From the first day humans were created, God instilled in us free will, and all throughout scripture you see God's desire for us to live in freedom.

Many of us though choose various forms of bondage in our lives.  Considering this is a finance blog, I will deal with one form of bondage that holds a majority of Americans, DEBT.  According to the Census Bureau, the median debt owed increased by nearly $20,000 since 2000, and that's after being adjusted for inflation.  I guess the song "Sixteen Tons" was right, "another year older and deeper in debt".

We were not created to live in bondage and God is clear that debt is bondage.  Proverbs 22:7 says "the borrower is slave to the lender", yet in our infinite wisdom we say to leverage debt to make money.  That works for a short amount of time and then eventually blows up.  It happened in the 1929 stock market crash, when people were borrowing up to 90% of the money needed to buy stocks, and we did it again with the recent housing market crash.  I and many others are now wishing we had heeded God's warning.

Let me encourage you to live a different way.  One that gives you freedom from your lenders and allows you to live better.  You CAN get out of debt!  After paying off $40,000 in debt, my wife and I have an extra $1,000 a month to be used for giving, savings, retirement, or spending.  It was like receiving a $12,000 a year raise.  In fact, it was actually more because focusing on getting out of debt helped control our other spending as well.  We still have the house to pay off, but we removed some large shackles from our monthly income.

There is freedom available, but it takes planning, determination, and hard work.  Gaining freedom always requires sacrifice, but it's worth it on the other side.  Like I said earlier, we were created to live in freedom.  One of my favorite scriptures is Galatians 5:1 which says "It is for freedom that Christ has set us free. Stand firm, then, and do not let yourselves be burdened again by a yoke of slavery."  If you're in bondage, get out, and if you are debt-free, stand firm and don't let yourself become a slave.  Now is your time to let freedom ring!

If you need help getting started, check out these blog posts:
   Financial Health - Where To Begin?
   Budgeting Basics

My 2012-2013 Reading List

Learning is not just a phase in our lives that we leave behind us at graduation.  If we want to be effective and get more enjoyment out of our careers, families, spiritual lives, and even hobbies, we need to be lifelong learners.  I have just started embracing this principal and this is a list of books that I have either read in 2012, or plan on reading by the end of 2013. (I actually listen to them on Audio book)

• The 21 Irrefutable Laws of Leadership by John C. Maxwell (Leadership)
• Accidental Genius by Mark Levy (Creativity)
• Basic Economics by Thomas Sowell (Economics)
• The Bible (Spiritual)
• EntreLeadership by Dave Ramsey (Business/Leadership)
• Financial Peace Revisited by Dave Ramsey (Personal Finance)
• The Hobbit by J.R.R. Tolkien (Fiction)
• How to Stay Motivated by Zig Ziglar (Motivation)
• In a Pit With a Lion on a Snowy Day by Mark Batterson (Spiritual)
• The Millionaire Next Door by Thomas J. Stanley (Personal Finance)
• Not a Fan by Kyle Idleman (Spiritual)
• The Now Habit by Neil Fiore, Ph.D. (Motivation/Habits)
• The Power of Habit by Charles Duhigg (Habits)
• The Purpose Driven Life by Rick Warren (Spiritual)
• Sun Stand Still by Steven Furtick (Spiritual)
• Thou Shall Prosper by Rabbi Daniel Lapin (Spiritual/Career/Business/Personal Finance)
• What the Most Successful People Do Before Breakfast by Laura Vanderkam (Motivation)
• The Willpower Instinct by Kelly McGonigal (Motivation/Habits)

It may seem like a lot of books, but I listen while I'm doing other things like exercising, walking the dog, relaxing, or driving.  I'm always looking for a few more books to listen to, so give me your suggestions in the comments section.

Give Til It Hurts - What I've Learned After Two Months

At the beginning of the year, I made the decision to give 'til it hurts.  After two months of working my plan I have learned a few things.  Here are five of them.

1. Giving doesn't hurt that bad.  Setting a plan on how much to give and then trying to spend it all is not as painful as you might think.  I'm actually finding it's harder for me to get rid of all my gift cards and dollar bills each month than I thought and it's more fun than pain.  It is awesome to just go up to someone and hand them a $5 gift card, just because.
2. The Blood Bank needs your platelets as much as your blood.  Apparently my goal of giving blood was not lofty enough because you can donate platelets every two weeks and whole blood every eight weeks.  I now have a goal of donating whole blood six times and platelets and additional six time this year.
3. It's hard to not get something in return.  In addition to the usual euphoria you feel in giving, I found that I ended up getting something out of the deal.  One of the first gift cards I gave was reciprocated with a free meal to In-n-Out that the person couldn't use.  Even giving blood has it's rewards by earning points to spend on things like free movie tickets.
4. Joining the Bone Marrow Registry is easy.  I was surprised to find that joining the registry was actually quicker and simpler than the preparation to donate blood.  You fill out your information and a questionnaire.  Then they send you a kit, you swab your mouth, and mail it back.  That was it.  I do know that if I get called on for the marrow transplant, there will be more involved.
5. Giving 'til it hurts can be contagious.  After discussions about giving, my wife was inspired to try and do something for others.  She went out and bought long stem roses for Valentines day and my youngest daughter, Lexie, handed them out to all the ladies at the Senior Center.  I couldn't be prouder when they featured her in the Senior Center Newsletter.

What act(s) of kindness have you committed this year?  Let me know in the comment section.

5 Ways To Mess Up Your Small Business

There are more small businesses in America than ever.  It seems like everybody has a small business either as their main occupation or on the side.  Even a Pastor is considered self-employed.  As a bookkeeper, I have seen how these five things can mess up your business and possibly your life. I will lay out the way to mess things up and then what to do to avoid that unpleasantness.

1. Don't bother keeping track of your income/expenses.  Here is the best way to mess things up. According to the Small Business Administration, the number-one reason for small business failure is poor record keeping.  You need to track everything if you want to succeed in your business.  Get QuickBooks and/or hire a bookkeeper and start tracking your income and expenses, then use the reports to see where you are making and losing money.
2. Get into debt.  Leveraging debt is good right?  No, it increases risk exponentially.  Almost all of the most successful companies do not get into debt, including the credit card companies.  Why? It can turn a small mistake or misjudgement into bankruptcy.  Don't be afraid to grow slow and minimize your risk.  If you are in debt, get out quick! Read Proverbs 22:7.
3.  Co-mingle your finances.  Mixing your personal and business transactions is a great way to mess up your accounting and possibly get you in trouble with the IRS. Instead, open a separate checking account for your business and don't pay personal expenses from it.  This will make your life a lot easier.  When you want to pay yourself, it's called an owner's draw.  Take out the money and then spend it how you want.  It will keep you from the nightmare of figuring out what was a business and personal expense.  In addition, if you pay a bookkeeper, you are paying them more because they are inputting all those personal expenses. (This also makes tithing easier because you can tithe off of the draw you took that month).
4. Hide stuff from the IRS.   Not only is it dumb financially, it's illegal!  The IRS is not known for their mercy and it may even land you in jail.  Just keep everything above board, pay the taxes you owe on time and I promise it will work out better for you in the end. Besides, if you ever go to sell your business, you will be undervaluing it if you are not reporting all your income, losing up to $4 for every $0.25 you didn't pay in taxes.  Pay $4 later to save $0.25 today, now that's a great plan.  And don't forget to set aside money for your estimated taxes. (25% of your profit should do it)
5.  Don't set goals or targets.  How do you know where you are headed if you don't have a destination?  It is important to figure out what your goals are for the month, quarter, and year.  Then take a few minutes to figure out where that will land you.  If you want to run your business full time, figure out how many clients/jobs you need to accomplish that.  If you have been keeping records, you should be able to project from that.  Whatever your goal is, know where you want to be and what it will take to get there. For more information about how to set SMART goals, check out my post called Setting Goals That Matter.

 This is not an all encompassing list but it does give you a starting place and chances are, you are doing one of these.  For a more comprehensive book to help you maximize your business, I recommend Dave Ramsey's Entreleadership.  If you are a small business owner who is looking for a sensible bookkeeping solution (shameless plug) I offer a service called Bookkeeping Kept Simple starting at just $50/month.

Let me know in the comments section some other ways to mess up your business.

Setting Goals That Matter

We all have dreams that we want to come to fruition, but year after year I noticed my dreams would be as far off as the day I dreamed them up.  That all changed in 2011 when I heard Dave Ramsey talk about setting goals for your life.  That year, I accomplished more forward momentum on my dreams than in the previous five years.  I am now on my third year of setting yearly goals in seven areas in my life and I am loving it.  Not only am I achieving more, but the purpose of my life is becoming clearer all the time.

We all start with a dream, that dream must turn into a vision, a vision must turn into goals, goals into action, and action then turns your goals, vision and dreams into reality.  Here are some basics to setting goals that matter in your life.

The Wheel of Life:
    Zig Ziglar identified seven areas that you should be growing in.  In order to keep the wheel turning smoothly, you should be working on all these areas. (If seven is overwhelming, pick one that jumps out to you)

Each one of these areas (Financial, Spiritual, Physical, Intellectual, Family, Social, Career) is important and should not be neglected.  I know that for me, a couple of these come much easier than others, but after finding my goal in each area, my life has a better balance.

Keep Your Goals SMART:

Specific: You need to define what it is you want to accomplish.  "Lose weight" is not specific, but "lose 15 pounds" is.
 Measurable: Will you be able to know if you reached your goal?  Make sure you have a way to measure your success.
Attainable: "Write a book" is specific and measurable, but can you do it in a year?  Perhaps "Outline the first 10 chapters of a book" is more attainable.  My very first goal was to get out of debt, but it was not attainable in one year so I had a three year plan. (It actually took two)
Relevant:  Is this a goal that matters?  Is it leading where God is leading or do you have impure motives?  Figure out if it is what you really need to be putting your energy into.
Time-Bound: You have to have a time frame on it.  The clock will keep you on track and motivate you to keep moving forward.  Be sure to set checkpoints to see how you are progressing.

Here are two more important tips about goal setting:

1. These goals should be your own.  You won't succeed unless you are passionate about it.
2. Write them down!  I wrote my goals on the closet door next to my bed.  They were the last thing I saw when I climbed into bed at night and the first thing I saw when I woke.  If you do not see them regularly, you will let them slip down the priority list.

 How to determine what your goals should be:
    Step 1: Pray - Seek God for direction
    Step 2: Seek Council/Read - A close friend can give you suggestions and feedback about the goal you are setting.  You can also read a book about the area you are stuck on and I promise a goal will jump out at you.
    Step 3: Test it against the SMART method - Make sure it passes all the requirements or you may set yourself up for failure.

I hope that gives you a starting point for setting goals that matter in your life.  If you would like to get more detail on how to set goals you can check out my Setting Goals That Matter seminar by clicking the links below.  You will get real life examples that can clarify the process as well as a list of resources in the "Wheel of Life" areas.
    Setting Goals That Matter - Audio
    Setting Goals That Matter- Handout

If you are struggling to stay motivated, check out my recent post called "Finding Your Motivation"

 

Give 'Til It Hurts

Last summer I was a part of something at my church called "Servolution".  It focused on serving others, going as far as using a Sunday to serve others rather than hold a service. I was so inspired that I wanted to do something big in 2013.  I wanted to give 'til it hurts.  And in the same way Servolution inspired me, I hope my plans might inspire others, so I'm putting myself out there.

This year I plan to...

• Donate blood 6 times (You can donate every 56 days)
• Give away a $5 food related gift card to a hungry person every week (friend or stranger)
• Give away a $5 gift card (food or other) to a random person every week (friend or stranger)
• Always carry $1 bills on my person to give to anyone that I see in need
• Volunteer at least 100 hours this year
• Help at least 1 person move this year
• Help people with a major project they have at least 5 times this year
• Join the Bone Marrow Donor Registry

I have always had ways that I was comfortable giving, but if I wanted my giving to "hurt", I knew it would require giving of my time, money, and my body.  There are people around me that are in need of a resource I have.  Whether it be blood, time, a strong back, or a meal, I can make a difference in a lot of lives this year by giving in a measured and strategic way.

Here's where you come in. Will you considering doing one of these with me? I know there is a resource that you have been keeping all to yourself, but could benefit those around you.  If you have been reluctant to give your time away, please consider volunteering in your local church or other non-profit organization.  If money has a hold on you and might hurt a little to give away, please considering loosing money's grip and begin systematically giving.  If you are healthy but rarely give blood, will you consider donating even three times this year?


If you have plans (or are making some now that you’re thinking about it) to give of yourself this year, please have the guts to share it with others in the comments section. Like me, I know you have no interest in simply bragging about what you’ll do this year, but imagine what we could accomplish together if, by putting ourselves out there, we actually start a chain reaction of giving 'til it hurts!  I will be posting my experiences as the year progresses and would love to hear how you’re doing it too.  Let's make a difference together with the awareness that giving our blood, sweat, and treasure just might hurt a little.