20 Family Activities That Are Under $20

Every summer it feels like our only family activity options involve spending $50 or more, so I am always trying to find fun things for the family to do without blowing up the budget. Here are 20 things that a family of four can do for under $20.  This list has a few specifics to Sonoma County, but I'm sure you can find similar activities in your area as well.

1. Go Down To The River (Cost: Gas$) - There are several Russian River beaches that are free.  Pack a lunch and some water related activities to have an afternoon of family fun.  My favorite free beach is in Monte Rio. If you have $13 to spend, you can rent a canoe for an hour. 
2. Head To The Beach (Cost: Gas$ + Parking$) - What better way to spend a day with the family than the beach trip.  It is also a great way to beat the heat if you live in Sonoma or Marin counties.
3. Swimming (Cost: under $20) - Swim sessions are expensive, but the whole family can go to the pool once this summer for less than $20. Check out your local pool rec times and prices and go have a blast.  You can get really thrifty if you know someone with a pool; now your outing just became free.
4. Golden Gate Park (Cost: Gas$+Toll$) - Go into the city and spend a day at Golden Gate Park.  There are many things to do there and you can find free parking.  Bring a few bicycles and ride around, or ride the free shuttle on weekends. You will need to pay for gas and The GG Bridge toll as well as any attractions you want to enjoy.
5. Farmer's Market (Cost: $0-$20) - Your local Farmer's market is a great outing.  You can often get Kettle corn for little money, then check out the booths and local entertainment.
6. Family Bike Ride and Picnic (Free) - Get out and ride to your local park to have a picnic with the family.  You can get family time and exercise all in one.
7. Apple Picking (Cost: under $20) - Go with the family to pick some apples from a local farm.  Prices are around $2 per pound, so you can get enough apples for the next couple weeks for under $20)
8. Visit the Library (Cost: Free) - Get yourself a library card and check out a few books for the kids to read.  Most Libraries have reading programs that allow the kids to earn points and prizes.  If all else fails, you can even rent a movie from the Library and try the next activity.
9. Movie Night In (Cost: $0-$1.29) - Don't go out to the movies, have movie night in.  Pop some popcorn and head down to Redbox to get yourself a movie.  It's not as great as being outdoors, but sometimes you just need a night in.
10. Movie Night Out (Cost: $14) - 3rd Street Cinemas in Santa Rosa shows movies for $3.50.  If you want the theater experience and don't mind watching a movie that has been out for a while, pack up the family for a movie experience that costs less than $20.
11. Movies In The Park (Cost: Free) - If you can't get enough movies, look for a local movie in the park. Your next family movie night is just a Google search away.
12. Free Concert (Cost: Free) - There are a lot of places to go for free concerts.  Take the family and experience some live music.  Click Here for a list of Sonoma County outdoor concerts.  There you will find free and paid concerts to choose from.
13. Howarth Park (Cost: $0-$20) - This park has various activities to choose from for little or no money.  You can ride a train, or even take a pony ride.  If you bring your bikes, you can ride around the lake for free as well.
14. Get Dessert Downtown (Cost: under $20) - Take some time to window shop downtown and get dessert with the family.  Downtown Petaluma has several places to stop for a dessert, with Powell's being the ultimate candy experience.
15. Backyard Camping (Cost: under $20) - Set-up your very own campground in the back yard.  Get out the tent and sleeping bags, get hot dogs and smore's for the BBQ and spend the night under the stars.
16. Random Acts of Kindness (Cost: under $20) - Show a random act of kindness as a family.  It could be anything from helping a friend move to going (as a family) to the grocery store to put together a $20 food box, then giving it to a homeless person.  Get creative and have fun while teaching your child(ren) about generosity.
17. The County Fair (Cost: around $20) - This will be difficult to bring in under $20, but it is possible.  The Sonoma County Fair has pre-sale discount tickets of $8 per adult and children 12 and under are free on Fridays.  That doesn't give you a lot to spend while you are there, but there are various shows and exhibits that you can see for free. Update: Donate blood at Blood Centers of The Pacific (Santa Rosa Facility) and receive a free entry to the The 2014 Fair.  Offer ends 8/8/14.
18. Shop The Dollar Store (Cost under $20) - Go to the dollar store as a family and pick out games you can play together.  They sometimes have puzzles and other activities, or you can make up your own games.  $20 goes a long way.  It's also a great place to get treats for some of the other activities on this list.
19. Chuck E Cheese's (Smaller Kids) (Cost: $5-$20) - If you have little ones, there are few things that they enjoy more than Chuck E Cheese's.  You can get a few tokens and let them loose.  Hints: They will charge $0.33 for each token, but the machines will take quarters, so ask for quarters or bring your own.  You can also buy the little toys at the end of your time there at an exchange rate of 100 tickets per $1.
20. Check Your Community Calendar (Cost: $0-$20) - If you still need things to do, events are listed on your local community calendar.  Who knows, you might find something new to do that won't cost you a penny.  Check out the Sonoma County Event Calendar.

Your family can have fun without spending a ton of money.  If you do everything on this list, you will be pushing $400 for the entire summer, but if you do one a week, you will have plenty to and still have money for groceries at the end of the month.  If you need help finding the money to do family activities, check out my Budgeting Basics blog post and start getting the most out of your money.

5 Essentials For Debt-Free Vacation Planning

My family and I just returned from a Disneyland vacation that could have easily turned into a vacation we'd continue to pay for long after our return.  We work so hard all year, the last thing we want is to still be paying off our last vacation when it's time for the next one.  Here are the five essentials to having a fun, debt free vacation.

1. Save for It - Saving up for your vacation will not only keep you from going into debt, but  having worked hard to make it happen will actually allow you to enjoy it more.  In addition, you will not feel any guilt over racking up more debt.
2. Choose Wisely - Carefully determine how much you can or want to spend on your vacation and choose a vacation that is appropriate to that amount.  $500 may get you a vacation camping in a state park for 5 days, but a trip to Disneyland will run you $1,500 or more.  Want to go to Europe?  That will be thousands.  To help determine the appropriate vacation, use the next step.
3. Budget Everything - I know that it seems like drudgery to create a budget, and besides it's a vacation!  If you don't want your vacation to turn into a money fight for its entirety, not to mention the months that follow it, you had better make a budget.  Don't forget the little details like gas or tips, it's these things that add up quick.  Once you have a budget, you can determine if that particular vacation is right for you.
4. Leave Room for the Unexpected - Something will come up that you had not planned for. It could be something like a flat tire or an unexpected stop to see the largest ball of twine.  Things will come up and it's a bummer to say no to every unexpected thing, so leave some room in the budget for them.
5. Track All Spending - You have to do this in order to keep within your budget. The simplest way to track expenses is to track only that day.  Know exactly how much you need for the day and track that so you don't go over. The easiest way to track your spending is with cash, but many of us are worried about carrying a lot of cash around with us.  You have two options, you can just hit the ATM and get the cash you need for the day, or you can carefully track each purchase to ensure you are not going over.

These five things are essential for anyone that doesn't want bills to follow them home.  Though the planning feels a lot like work, you will have a lot more relaxing vacation and feel great about it when you return home.

The Giving Paradox: 5 Reasons Why Giving Benefits You

We have all heard that it is better to give than receive, but why is that?  Is there some magical reason that giving might allow us to receive more blessing?  How is it "What goes around, comes around"?

The reality is that systematic giving, such as tithing, can actually be a blessing to you.  Though we don't give in order to receive, giving is truly an investment, not only in this life but the next.  In Matthew 6:21, Jesus says, "Where your treasure is, there your heart will be also."  Perhaps there is something that happens in our hearts when we give that sets us up to perceive and receive God's blessing.

Here are five reasons why giving blesses us:

1. Giving takes the focus off ourselves - When we are so focused on ourselves that we are unyielding with the resources God entrusted to us, it affects the way we interact with others.  Others will pick up on our inward focus and be less likely to trust us.  This will affect our ability to create the needed connections in the marketplace that will help us succeed.
2. Giving feels good - When we spend money on ourselves, the euphoria does not last long and soon we are left with remorse over wasting money on something that didn't actually make a lasting difference.  If you used that same money on others, you will get the same euphoria, but are not left with remorse because you actually made a lasting contribution.  This affects your own self confidence because you feel good about the choices you are making, which in turn affects how you approach your career and are likely to use that confidence to take bold steps forward in life.
3. Giving draws us close to God - The initial step of deciding to give 10% of our income requires a lot of trust in God.  This step allows us to trust in Him rather than in our money, talents, or abilities.  We all trust people that we have close and intimate relationship with.  You can't have intimacy without trust, and I promise that trusting God will help develop your intimacy with God.
4. Giving creates opportunities - God promises that He will pour out blessing on us when we give and this is usually in the form of opportunities.  It's the sudden promotion, that new client, or the unexpected gift.  Look around you, givers tend to have more opportunities.  At a minimum, it will help you see the blessings in your life because you are not focused on yourself and your negative circumstances.  A few of God's promises regarding giving are found here: Malachi 3:10-11; Luke 6:38; Matthew 7:7-12
5. Giving develops contentment - A giver tends to be comfortable with their current stuff level.  Because you have taken the focus off yourself, you will begin to realize your significance, rely on God, see opportunities clearly, and be less likely to try and seek significance in the accumulation of things.  You'll know that the high of the next purchase cannot compare with that of giving, and you will no longer try to impress your friends and neighbors because it doesn't compare with the intimacy you now have with God. Besides, when you aren't spending everything you make, you are able to invest it and build wealth for the future. 

God has blessed my family in all five ways listed above.  There are many more reasons why giving is a great benefit to yourself and others, but hopefully these five are enough to get you excited about tapping into your generosity potential.  Please remember that the true reason to give is not to bless ourselves, but to bless others.  The giving paradox is that when we give expecting nothing in return, we often receive a great blessing.

If you want to be generous, you will need a plan.  Check out my post about budgeting and debt to really maximize your giving potential!

We Are On The Same Team! - Marriage and the budget

Financial arguments are sited as the number one reason for divorce.  With the help of Dave Ramsey, I want to give you three quick tips to get you and your spouse on the same team and rowing in the same direction when it comes to spending, saving, and debt.

1. You need to see yourselves as one unit - You cannot just ignore the financial issues by setting up separate checking accounts and hope that the problems go away.  If you can see yourselves as one and on the same team, it will help eliminate competition and resentment toward each other in the area of finances.
2. Get on a budget - I know at least one of you in the relationship thinks "budget" is a bad word, but it is the only thing that will reduce the friction and give you peace of mind.  Budgets are just telling your money where to go instead of wondering where it went.  It does not mean that you can no longer buy things for yourself, it just means that you planned for it at the beginning of the month.  For more help on getting a budget started, check out my blog post Budget Basics: Taking the pain out of budgeting.
3. Set up a monthly meeting - At the beginning of  the month, sit down and decide on the budget.  One of you will prepare the rough draft.  Let the nerd in the relationship handle this, and if you are reading this blog, it's probably you!  Once the rough budget has been created, you have a meeting (no longer than 17 minutes) with your spouse and ask them to change at least one thing.  Both of you need to have a say in your spending otherwise one of you will feel like you are in prison.  The only stipulation is that the budget has to balance.  If your spouse wants to take $100 from groceries to spend on date night, let them.  If you use my budget basics, you will be on a cash system and can't overspend.

With those simple tools, you will hopefully start moving in the same direction.  Just know that there will still be friction and a lot of adjustments to the budget as you figure this out, but at least you will be working toward your goal of financial health.

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.

Financial Health - Where To Begin?

Unless you work in a financial industry, you probably don't think a lot about finances.  We all want to achieve financial health, but where do we begin and how do we know we are on the right track?

There is piece of mind knowing there is a plan for your financial future and knowing that it's rooted in biblical principal.  I have found a simple way to get on the right track financially that doesn't require a finance degree to understand.  Dave Ramsey talks about the 7 Baby Steps and I want to share them with you.  As of the date of this blog post, I am currently on step 2 and just months away from beginning step 3.  It is simple, but it isn't always easy.

Dave Ramsey's 7 Baby Steps:

1. $1,000 Emergency fund - Your first step to financial health is to stop borrowing and the only way to do that is have some sort of emergency fund.  This will keep you from hitting the credit card if something comes up and sets you up for success on step 2.
2. Debt snowball - Pay off every debt except your mortgage.  This includes, but not limited to, credit cards, automobiles, home equity limes of credit, student loans, etc.  Start with the smallest debt and work your way up to the largest debt.  It is like a snowball rolling down a hill because you roll your previous payment on to the next debt every time you pay something off.  Don't be afraid to sell stuff, starting with that new car.
3. 3-6 Months emergency fund - Now you can begin to build an adequate emergency fund.  This is 3 - 6 months of expenses in a savings account or money market.  You need to be able to get to it in case of emergency so don't put it in CD's or bet it in the stock market.
4. 15% for retirement - Begin putting 15% of your income into your retirement.  Don't be a financial burden to your children because you wanted stuff now.  Plan for the future.
5. Save for college - Don't let your children be saddled with enormous student loans.  Start saving for their education if College is in their future.
6. Pay off the house early - Get rid of that final debt and live DEBT FREE!  How amazing would that be?  Don't believe the lie that there is good debt and bad debt.  Proverbs 22:7 says "The borrower is slave to the lender", so end that slavery.
7. Build wealth and give it away - It's not time to blow through your money.  Build your wealth and give like no one else.  What a joy it is to invest in eternity through giving.  You can enjoy the fruit of your labor, but I'm pretty sure you will get a bigger kick out of spending it on others.

In order for you to do these 7 steps, you will need a budget.  You can check out my post titled "Budget Basics" to help you get started.  Like a said earlier, it's simple, but not easy.  It is a lot better than being a slave to your financial situation or having no idea if you are headed in the right direction though. Now, go get financially healthy.

If you have any questions, please post them in the comments section below.

Wealth Creation Through Giving?

We have all heard that it is better to give than receive, but why is that?  Is their some magical reason that giving might allow us to receive more blessing?  My hope is that by the end of this post, you have a better understanding about how giving away wealth can actually build wealth.

We all understand the concept of Investing but tend to put giving in the spending category.  The reality is that systematic giving such as tithing can actually build wealth.  Though we don't give in order to receive, giving is truly an investment not only in this life, but the next.

Here are five reasons why I view giving as a great investment:

1. Giving takes the focus off yourself - When we are so focused on ourselves that we are unyielding of the resources God entrusted to us, it affects the way we interact with others.  Others will pick up on your inward focus and be less likely to trust you.  This will affect your ability to create the needed connections in the marketplace that will help you advance.
2. Giving feels good - When we spend money on ourselves, the euphoria does not last long and soon we are left with remorse over wasting money on something that didn't actually make a lasting difference.  If you used that same money on others, you will get the same euphoria, but are not left with the remorse because you actually made a lasting contribution.  This affects your own self confidence because you feel good about the choices you are making, which in turn affects how you approach your career and are likely to use that confidence to take bold steps forward in life.
3. Giving draws you close to God - The initial step of deciding to give 10% of your income requires a lot of trust in God.  This step allows us to trust in Him rather than in our money, talents, or abilities.  We all trust people that we have close and intimate relationship with.  You can' have intimacy without trust, and I promise that trusting God will build intimacy with God.
4. Giving creates opportunities - God promises that He will pour out blessing on us when we give and this is usually in the form of opportunities.  It's the sudden promotion, that new client, the unexpected gift.  Look around you, givers tend to get more opportunities.  At a minimum it will help you see the blessings in your life because you are not focused on yourself and your negative circumstances.  A few of God's promises regarding giving are found here: Malachi 3:10-11; Luke 6:38; Matthew 7:7-12
5. Giving develops contentment - A giver tends to be comfortable with their current stuff level.  Because you have taken the focus off yourself, you will begin to feel significant, rely on God, see opportunities clearly, and you will be less likely to try and seek significance in your stuff accumulation.  You'll know that the high of the next purchase cannot compare with that of giving, and you aren't trying to impress your friends and neighbors because that won't compare with the intimacy of God. When you aren't spending everything you make, you are able to invest it and build wealth. 

I see giving as the best investment out there because it has so many benefits both tangible and intangible.  I know there are many more ways that giving is a great investment and I would love to hear them.  Put a reason why you think giving is a great investment in the comments section below.

Finding Your Motivation

I have never considered myself disciplined.  Ask my mother how disciplined I was as a child and she could recount story after story of procrastination on homework assignments, brushing my teeth, or cleaning my room.  She literally would have to turn on the lights in my room and steal my blankets to get me out of bed in the morning.  So you can imagine my surprise when someone recently lamented that they wish they could be as disciplined as me.  Knowing that I was not a disciplined person in the classic sense, I replied "I'm not disciplined, I'm just motivated."

I have figured out that finding motivation for an activity or habit is key to getting my lazy behind to do something that I know is good for me, but don't really want to do.  There are certain things that I need no motivation for like eating and watching T.V., but my life would be uneventful and rather useless if I stuck to the things that I needed no motivation for.  Here are a few things I have learned in my road to "discipline".

• Your willpower is greatest in the morning.  If you think of willpower as a battery, your battery gets charged overnight and you are likely to make the best choices in the morning.  Toward the end of the day you run out of willpower and can end up making terrible decisions.  I do it all the time, that is why I pray, exercise, and decide what I will eat for the day before I head off to work.  Check out the book "What The Most Successful People Do Before Breakfast" for more insights on this.
• When you get motivated to do something, do it.  I am writing this blog post a week before my deadline because I am motivated now and likely won't be a week from now.  Warning - It will take less willpower to get your project started, but it may take some willpower to finish.  Make sure you finish or at least come to a natural stopping point in the process.  You can't always rely on your natural motivation to get you moving so when you have it, use it.
• Get inspired.  Surround yourself with things that will inspire you.  I listen to many audio books and podcasts to inspire me and, in turn, motivate me to action in some area of my life. I even watch certain inspirational television programs to motivate me in some way.  The Biggest Loser gets me inspired to eat right and exercise and a show like the X Factor inspires me to get out my guitar and practice or write a song.  The next time you feel inspired to do something, take note of what inspired you and surround yourself with similar inspiration.
• Set goals for yourself.  Get inspired and then set some goals.  Write them down and put them in a place where you have to look at them.  I use my mirror next to my bed because it is the first thing I see in the morning and the last I see at night.  Make sure they are SMART goals. Specific, Measurable, Attainable, Result-Based, and Time Bound.  I want to also mention that they should be your own because you will almost never accomplish the goals of someone else.  I set goals annually in 7 areas of my life: Career, Financial, Spiritual, Physical, Intellectual, Family, and Social.  If you are just getting started with setting goals, set a smaller goal to get a quick win and that accomplishment will move you to an even bigger goal.

Now you just need to take some time to figure out what you want your life to look like and what things you would like to achieve.  Once you have that figured out, find your motivation and  get to work.

UPDATE:  I recently taught a seminar on this very subject called "Where's My Motivation?".  It goes into more depth and there are even real life examples.  Just click the links below:
    Where's My Motivation - Audio
    Where's My Motivation - Handout

I also recently wrote a post about goal setting called "Setting Goals That Matter"

The Emotional Factor

In every decision we make, large or small, there is an emotional factor that can compel us to make a decision that does not lead to the desired outcome.  On the flip side, emotion can be the spark to move us into action on a decision that we have avoided for some time.

I enjoy the Star Trek franchise (I don't get crazy about it) and recently turned to my wife and asked "Is it strange that I relate more to the vulcans than the humans?"  To which her reply was "Yes."  Vulcans, for the uninitiated, are a species on the Star Trek series that have suppressed emotions and work solely with logic.    By contrast, the humans on Star Trek seem to be led by their heart almost to a fault, though it always works out by the end of the episode.

Though I may lean toward putting on some pointy ears and saying "live long and prosper", complete emotional suppression is not the key in decision making.  The key is to be aware of the emotional factor in a decision and weigh that into your decision making process.  I want to look at 3 examples of decisions we make and what role emotions tend to play in that decision.

1. Purchases - Emotions have a tendency to take the lead in this type of decision.  It can lead you to buy that candy bar because you are having a bad day or lead you to do whatever it takes to buy a house at the height of the housing bubble (I've done both).  Stop and ask yourself "What is my motivation?"  If you just want it, maybe you should stop and wait a few days.  Pray about it and seek council if it is a large purchase.  If you cannot tap into your inner vulcan and find logical reasons, then slow down.  Wait and see if you feel the same way a week from now.
2. Relational Decisions - We make all sorts of bad decisions when it comes to relationships if we are not aware of the emotional factor.  "Family first" is thrown out there and it's the total abandonment of logic that leads to hurting the very ones we think we're helping.  Parents often use this misguided approach with their teenagers instead of instilling strong values and helping them understand the consequences of their decisions.  They end up saying to their 16 year old "I know your going to drink, so I want you do it under my roof" or "I know you are going to have sex, so here are some condoms" instead of helping them understand the actual outcome of their decision to do so and inspiring them to be a responsible young adult.  If you don't think it's an epidemic, just look at how many adult children still live with their parents (BTW - that doesn't help them). I have so many examples of relational decisions go awry that I could devote many more blog posts to it alone.
3. Compassionate/Willpower Decisions - Emotions can spark you to action on something that you know you should do, but do not have the willpower to make it happen.  For instance, hearing a story about how someone trusted God with every part of their life may inspire you to finally take the faith requiring step to start tithing.  A movie about the slums of India may move you to support a child in that region.  Don't forget to use logic in these decisions as well because the emotional response is the spark, not the only factor.  Don't decide to quit your job and move to Africa until you have done what I suggested with your purchases.  Slow down, pray, and seek council.  Emotional responses have sparked many great decisions in my life and will in yours as well.

Those are just a few areas that need an honest assessment of your emotions and are a good place to start using your new found vulcan logic.  Try looking back at a few recent decisions and determine if you may have come to a different conclusion had you appropriately considered the emotional factor.  Then start using this awareness in your future decisions and I can almost guarantee that you will "live long and prosper".

To Give or Not To Give?

That is the question posed by my friend, and fellow pastor, Kevin Finkbiner in his blog post titled "What Would You Do If She Asked You?".  It is also a question we have all asked and often times we are struggling with the answer at the very moment someone asks us for something.  In Kevin's blog, he walks the tension of 2 Th 3:10 - “The one who is unwilling to work shall not eat.”and Gal 6:10 - "Therefore, as we have opportunity, let us do good to all people...".  Let's explore the bible and some practical steps we can take to be both good stewards and good to all people.

I take stewardship of God's resources and the value of giving as great importance in my spiritual development.  I am also a big proponent of personal responsibility and not aiding people in the destructive cycles currently in their lives.  How do we know when to give and when not to give?  Here are  few things to consider that might help navigate those waters.

• Examine Your Heart - "For where your treasure is, there your heart will be also." - Mt 6:21. Where is your treasure?  Is it in debt payments or various niceties that make your life comfortable?  Are you storing up treasures in heaven through giving?  If on careful reflection, you find that are very selfish with the resources trusted to you, you need to make a plan to change that.  If you are unable to feed your family because you give everything away, you need to re-prioritize.
• Make a Budget - "Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver." - 2 Cor 9:7. Create a budget and put giving at the top.  You can figure out a percentage or an amount that you wish to give (above the tithe) each month for various charities or individuals and either spend it, or set in a separate savings account to be used as God directs you later.  Do not be put on the spot, unsure of if you can even give.  Ask God at the beginning of the month what you can do that month to give to someone in need.
• Listen to The Spirit - "After the earthquake came a fire, but the LORD was not in the fire. And after the fire came a gentle whisper." - 1 Kings 19:12. Sometimes God will nudge you and it usually comes in a way that you normally wouldn't think.  Last Christmas, I was doing my last minute Christmas shopping and as I was about to enter the store, a young lady squatting on the ground with her head down asked if I can spare some money.  I asked her what she needed it for and she told me to buy presents for her children.  I could feel the shame and desperation in her voice, so I gave her what I had in cash, which was $2, and entered the store.  Just then I heard my internal voice say "go take her shopping".  I was in a hurry and fought the feeling off as I tried to find what I was looking for.  Was it God or was I under compulsion?  I realized it was God, but rather than follow the original call to take her shopping, I decided to get $20 cash back on my way out and give her the money.  When I walked out of the store, she was gone.  I looked around the parking lot hoping to find her but, to my shame, I missed my opportunity.  It was my deepest regret the entire year.  If I had only listened, I could have touched several lives, including my own, and pleased God.
• Don't Contribute to Destructive Patterns - "Don't give a drunk a drink." - Unknown.  This one speaks to our principles.  What you do either helps move someone forward in life or it keeps them in their destructive pattern.  I won't help someone who begs with a cute cardboard sign about how they will use the money on booze or asking where their bailout is.  I'm not helping them by keeping them in the begging business.  There are others that you can tell just can't function in our society and only need a little food.  One thing you can try is going to a couple fast food establishments (Subway if you value nutrition) and get gift certificates at the beginning of the month with the money you had set aside to give in your budget.  Keep them in the car and help someone that you can tell needs it.  This will take some discernment, but again, listen to The Spirit on these cases.  It's not your job to fix their behavior but ask how can I help point them in the right direction?  Then do what will help them.

That's a good place to start because there is a lot more to this issue and a lot more scripture to know and use. These are a few steps you can take immediately to be on your way to becoming a generous giver and a responsible steward.

 

Budget Basics - Taking the pain out of budgeting

For most of us, the idea of doing a budget is about as fun as a root canal.  The reality is that God calls us to steward the resources that He has entrusted us with and having no plan or even an idea of where the money goes each month is hardly being faithful.  I have a few tips to help make this process a little less painful. If you aren't convinced that you need to budget, see Luke 14:28-30.

• One Month at a Time - Do a budget every month and at the beginning of the month.  Your expenses change each month and you will need to adjust some of your categories a few times to dial it in.
• Keep it Simple - List every major category, but there are only a couple that you need to closely monitor once the month has started.  I have basically 4 categories that I track throughout the month; Groceries, Shopping, Gas, and Fun money.  Trying to budget clothing, haircare, toiletries, and dog food  separately is time consuming and you will stop doing the budget in no time.
• Use Cash - Use only cash for the 4 categories that I mentioned above.  This will make it easy to track how much money you have left in each category and when you run out, don't buy anything else.  I take out half at the beginning of the month, and half on the 15th. (The other benefit of cash is it hurts more when you spend it)
• Account for Every Dollar - Don't leave a bunch of money at the bottom of your budget.  Tell it where to go. I put every extra dollar to the baby step that I am on.  If you aren't familiar with Dave Ramsey's baby steps, check it out Here. You can use it how you want but make sure every dollar has a purpose, even if it is just going to sit in a savings account for who knows what.

If you need help prioritizing or don't have enough money to last you through the month, here is a list of categories in order of importance.  The first five are the ones that are essential.

1. Giving
2. Food
3. Shelter (Mortgage/Rent)
4. Utilities (Electricity and Water, not Cable)
5. Transportation (Fuel, Insurance, Repairs)
6. Insurance (Medical, Life, etc.)
7. Saving
8. Other Utilities (Cell Phone, Cable, etc.)
9. Shopping
10.  Loans
11. Credit Cards
12. Fun money

Budgeting is not glamorous, but it is what people who have financial security do every month.  The next step is sticking to the budget, and if you do, your stress levels will decrease and you will begin to be faithful with what God has entrusted to you. That is a pretty good feeling.

If you have any debt (other than a mortgage), check out my blog post "Debt Crisis".

Lastly, if you are married, check out my blog post "We Are On The Same Team!" to help you keep from blowing up your budget and your marriage.

Update - 5/5/2014 - Below are three budgeting tools that will help you in your quest for tracking your money.

• Dave Ramsey's Cash Flow Plan - This is a classic paper version of a budget that you can print every month and go old school pen a paper.
• BudgetSimple - This is a more high tech version of a cash flow plan.  This is my recommendation, because you can get everything in there and plan one month at a time.  You can also print your budget once completed and copy your previous month to the next month to give you a starting point.  It will connect with your accounts to track expenses for a monthly fee, but you can use the budgeting feature for free.
• Mint.com - This is a free version of BudgetSimple, but has some limitations like an inability to print your budget or plan a month ahead.