Power to Choose

Simple yet meaningful...hopefully you will like it too

The power of choice

Choose to pay cash, rather than credit
Choose to love, rather than hate
Choose to laugh, rather than cry
Choose to create, rather than destroy
Choose to persevere, rather than quit
Choose to praise, rather than gossip
Choose to heal, rather than wound
Choose to give, rather than steal
Choose to grow, rather than rot
Choose to pray, rather than curse
Choose to live, rather than die
Choose to say something nice, rather than hurtful words
Choose to do something nice, rather than hurtful actions
Choose to do it now, rather than later
Choose to give, rather than take
Choose to initiate, rather than follow

We have a choice, choose wisely

#adapted from the book "Say Something Nice"

Key to Zero Credit Balance

Here is a person relates his experiences on how to have no credit balance in his credit card.

He said, in the past 10 years he has zeroed his our credit card balances three different times: first was through a debt consolidation plan in 2000, second was through a homerefinancing loan in 2003, and third was through a personal loan from a bank in 2007.

Each time he paid the cards off, he ran the balances back up within a year. He finally learned that paying them off doesn't guarantee they'll stay paid off. The secret is to pay them off and stop using them!

Finally he said, at this point, he has only one card, has stopped using it, and are in the process of paying it off. Every time he make that monthly payment, he reminds himself what he could be doing instead of paying off this credit card.

Loaning Money to Friends and Relatives

So the old joke goes: if you lend your brother-in-law $100 and he never talks to you again, was it worth the investment?

The joke may be funny, but experiencing this in real life is anything but funny. Loaning money to a friend or family member is a bad decision.

Someone who lends money to a loved one has their heart—not their head—in the right place. It is okay to give money, but loaning money to someone with whom you have a relationship will lead to broken hearts and broken wallets.

Check out the statistics from a recent money-etiquette survey:

• 57% of people said they have seen a friendship or relationship ruined because one person didn't pay back the other.
• Almost 50% have loaned $100 or more to help out someone, but 55% don't get repaid.
• 71% lend money to immediate family members, 57% to relatives, and 54% to friends.
  

One fact not quoted in the survey is that dinner tastes 100% better when friends or relatives don't owe one another money! Eating with your master is different than eating with your family.

Loaning money makes relationships awkward. Parents who lend their newly married daughter and her husband a down payment for a house think they are helping out the new family. Soon, however, they are giving the young couple disapproving looks when an upcoming vacation becomes more important than repaying the loan. This leads to nothing but resentment and pain on both sides.

Don't do this to people and relationships that mean something to you. If someone is in genuine need, it's great to help. If you help with money, make it a gift instead of a loan. By not having an I.O.U. having over your head, you will keep your relationships strong.

Lessons from the Wealthy

It's a fact that people who are wealthy live in ways that make them that way. They don't believe in car loans, wasteful spending or "easy" payments. Even though most people will never have the wealth of Bill Gates or Donald Trump, that doesn't mean you can't be wealthy if you work at it.

So what are their secrets? The answers shouldn't surprise you.

1. Believe in giving. People who have money give a lot of money away. Dave stresses this! If you help people who are less fortunate, it will teach you to be satisfied with what you have. When that happens, you won't think the key to happiness is a new convertible with a $1,000 payment attached to it. Charitable giving and "paying it forward" are things that many rich people practice. Households with $100,000 or more in income give away about 5% of their earnings, which is about 3 times the average of all families.
2. Goodbye, credit! The richest 10% of Americans are half as likely to have credit card debt. They are also 20% less likely to have installment loans.
3. Hot wheels? Many wealthy people don't spend a lot of money on cars as a percentage of their wealth. The richest 10% of Americans spend about 2.4% of their net worth on cars. Translated: You won't likely go to a rich person's house and see 10 SUVs parked in the driveway!
4. Invest it! 62% of wealthy people own or contribute to mutual funds, pension plans and other investments.

It takes time to become wealthy. Most people look at a rich person and don't see the sacrifices he or she has made or the frugal lifestyle they have lived. Once you adopt that economical lifestyle, start investing and don't carelessly spend money, it will become less of a sacrifice for you because it will be habit.

7 Bad Attitudes that Lead to DEBT

Going into debt is the symptom of a larger problem. You don't spend excessive money on "stuff" unless you have a void somewhere in your life that you are trying to fill. If you don't have discipline and strong will, you will want (and buy) things that other people have even though you can't afford them.

So here are the 7 behavior, and how can they lead to being out of control with money?

• Envy — Seeing your neighbor drive up in a brand-new car can cause you to be envious of what they have (though they are probably broke and bought something they couldn't afford). If you are so desperate to feel equal or even better than those around you, you'll buy way too many things and destroy your chances of building wealth.
  
  
• Pride — This can happen when you try to do the "90 days same-as-cash" routine. You buy a TV or major appliance and promise to pay it off on the 87th day. Then something happens. You go on vacation and forget the deadline. You accidentally forgeot to make payment and can't afford the payoff. Don't try to use the system to beat the system. It will always come back and bite you.
  
  
• Sloppy— Not paying attention to your bank account, or the terms of a loan, or not being proactive with your money, will eventually cause you to not have any. Your spending will get away from you. Stay on top of your money.
  
  
• Greed — This one almost goes without saying. Many times we want what we can't have. Trying to get something before it's the right time will get you in big-time money trouble. You'll get a loan for a new car and make $600 payments for 5 years. If you don't make those payments, the car will get repossessed and you will have no peace of mind.
  
  
• Anger— This can happen when you talk to debt collectors. Their job is to make you mad, embarrassed or scared. If they scream and insult you, and you pay them before the light bill, you are not prioritizing well. Work hard, work overtime and be smart with money. Keep a cool head when the heat is on, and you'll survive.
  
  
• Stingy — you feel loss if you give. Money can buy fun, but not happiness. If you try to keep all of the money you make for yourself and only spend it (never giving it away or helping others), then money will only bring fun and not happiness. Fun things aren't as fun after a while. If you eat enough lobster, it tastes like soap. Helping others brings happiness, but if you never give then you'll never learn that lesson.

• Lust — There has never been a rich addict. If you have a problem with any sort of vice (drinking, gambling, pornography, etc.) or anything else, your addiction will cause you to spend, spend, spend. That will lead to more than just a ruined bank account; it will lead to ruined relationships, careers and lives.

Why Debt is Bad?

Here are some points to ponder before you decide to borrow money or use credit card.

Physically...

• You are a slave to your creditor. You have to pay them first before you can buy anything you want. You are not in control of your income, other people determine where your money should go.
  
• You may go into hiding if your monthly payment for debt is more than your income. You will lose ties with your family and friends. All creditors are looking for you. Even worse you may even lose your job!
  
• You will lose your family members and friends if you borrow money from them and you did not pay them back.
• You will lose your dignity and respect from your friends and family.
• You are afraid to answer the phone. Creditors are calling you again and again.
• Your life is at mercy of others. What kind of life is this?

This is what happen if you have debt.

Financially...

• You are broke. You don't have money in hand. That is why you borrow money or use credit card. Don't find excuses such as I want to invest my money, I want to get credit card cash back, this is only temporary, and on and on, just admit that you don't have enough money to pay.
• You can not contribute to charity or to community. You will keep thinking "I don't have money enough to pay my debt, why should I give it to you."
• You don't have saving for emergency or for your future.
• You may dig into deeper hole by engaging activities such as gaming and gambling hoping for quick fixes.
• You will become greedy, calculative, and selfish. What kind of person is this?

Emotionally...

• You have no self confidence. You are afraid to talk about yourself or your achievement.
• You may think that it is impossible to turn thing around.
• You may think that you have screwed all your life.
• At the end, you may even think to end your life.
  

My humble advice before you borrow money or use credit card consider this check list:

• Is the purchase is a necessity or a want (such as hobbies, toys)? You will never satisfy your wants even if you get the whole department store. Your wants are endless, you need to control them.
  
• Is it really necessary to borrow? May be I can just delay the purchase until I have enough cash.
• Do I have enough mean to pay back within a month?
• Try to live on less than you make. If you spend everything you make, then you are financially a fool.
  
• Learn to give. You will get a lot more through giving. Ever wonder why philanthropists are keep giving and they never become poorer?
  
• Just remember one debt will lead to another debt. It's not the bank or the creditor that will help you to settle your debt. It is YOU.