$15,000 + in just 13 Weeks

Last month 55 people graduated from FPU.  My wife and I have taught FPU (Dave Ramsey’s Financial Peace University) for over 3 years now.  These 55 people (33 households) set records with their success. When they started however, they were like most people who take the course.  They were scared, unsure if this would work, skeptical, cynical, and irritated that they had to pay $99 to get out of debt.

Not only did they make it through, they far exceeded their expectations.  Together they paid off $357,860.83 in debt.  If you think that is impressive then you also need to know that they managed to save $166,165.06 while doing so.  That averages to $10,844.27 of debt paid and $5,035.30 saved per household in just 13 weeks!  When you add those together, each household on average improved their financial position by $15,879.57. 

How did they do it?  They changed their way of doing things.  They started using this rare form of thinking called common sense.  Here are some quotes from some of my graduates:

“FPU has changed our entire outlook on life.  We no longer have to live paycheck to paycheck like everyone else.” – Linda.  

Richard and Kim wrote, “We believed that we were already doing everything possible to save and budget our money, boy were we wrong!  We paid off $10,633 and saved $2,000 since Jan 24^th.”

Donovan and Katherine said, “it was really worthwhile time and money wise.  I was skeptical that we could truly get past our paycheck to paycheck lifestyle.  Now I am excited to see us saving and working down our debt.  I can actually see a different future.”  

Jon and Renee said, “Thank you for bringing us together with our money.  We understand what it means to have financial peace.”  

Jennifer said, “I was not afraid to take this course.  However, when I realized how long it would take me to pay off my debt, I was very disappointed in what I had done.  Thanks for showing us how to turn this around.”  

John and Julie said, “When we registered we were worried that this information would not be practical enough to be put to use immediately because we really needed help fast.  We started making changes after the first class!”

I have been writing about this course for years.  I can scream from the mountain top but the truth is that I cannot make you understand how FPU can truly change your life.  The only way to for you to understand would be to come and see for yourself.  I am starting a class in early June in Eastvale, (Corona).  I know, its not Chino Hills but it’s only a 10-15 minute commute.  It costs you nothing to check out the first class and make an informed decision about your future.  If you have questions you can check out my website at www.ChinoHillsMortgageMan.com  See you in class!

A Word to the Wise

Have you ever stopped to think about who taught you about finances?  I think like most people I learned quite a bit of horrible habits from my parents.  I also learned quite a bit from the school of hard knocks.  It wasn’t until only a few years ago that I got my masters degree in finance.  Sure that sounds fancy, but I don’t even have an undergrad college degree.  How did I get a masters degree you ask?  Well, I read my bible, specifically the book of Proverbs.    

One of my favorite verses is “The rich rule over the poor, and the borrower is servant to the lender.” Proverbs 22:7  Who do you owe money to?  Do you feel like a slave to them?  Are you a slave to Chase, Sallie Mae, Visa, Ford Motor Company or Kohl’s?  How much of your check is spent before you even get it home?  After spending more than 3 years coaching people on their finances, I have come to realize that most people just assume that debt;  student loans, credit cards and auto loans are unavoidable and just a way of life.  The biggest wealth building tool you have is your income.  When your income is spent before it comes in, then your retirement, savings and kid’s college suffers.

Another great verse is Proverbs 13:7 “One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.”  This is the central message in the book The Millionaire Next Door where 100’s of millionaires were interviewed.  Millionaires don’t drive new cars, they buy used ones and pay cash.  They purchase high quality clothes and wear them forever.  Their houses are unassuming but they are paid for.  So many people buy stuff to impress others with no regard to their personal savings and retirement.  I know many people with a $500 car payment so that they can impress someone at a stoplight that they will never meet.

The book of Proverbs certainly isn’t sexy.  Its fairly simple.  There are 31 chapters in Proverbs which makes it a good one-a-day read for a month.  If you are not one to read your bible or you consider this offensive, then let me simply tell you that Proverbs is simply a book of wisdom.  If you are offended by wisdom and common sense then don’t read it.

Proverbs 10:4 “Lazy hands make a man poor, but diligent hands bring wealth.”  When it comes to your money and making good financial decisions, your approach should always be simple.  Be the tortoise, not the hare.  Slow and steady will always win the race. 

Being Blessed With Debt

Have you ever experienced the feeling of being completely helpless and lost?  I felt that way in November of 2007 when I was scary close to losing my house, my marriage and possibly everything I had.  Fortunately we found Dave Ramsey and began to read his books and implement his principles.  Now here we sit years later having passed through the horrible experience of actually losing a home to foreclosure.  We have even lost several rental properties, sold cars and RV's, eliminated unnecessary items, cut cable TV and our home phone because we hated our debt more than we loved that STUFF.

Today we look back and laugh.  Hard to believe that any of this would be funny but it is.  God has an amazing sense of humor.  I believe that God speaks to us often.  Sometimes we are too consumed with ourselves and therefore we fail to pay attention.  Let's just say that he found a way to get my attention.  Too bad for me that I was not listening the first time.  

But now, that nightmare that I lived for 16 months has turned into a massive blessing.  My wife and I started teaching FPU in January of 2008 and have not stopped.  We teach anywhere from 3-5 sessions a year.  We have helped to bring Dave's wisdom to hundreds of families and in the process they have paid off well over a million dollars in debt.  

So now I can honestly say that I have been Blessed with Debt.  What a blessing it has been!

You Can't Buy Love

Isn’t it amazing how retailers love to shove holidays down our throats.  Before Thanksgiving the Christmas decorations are up, and then, just as fast, they disappear to a sea of pink and heart shaped balloons.  Valentine’s Day is a retailer’s dream.  We all feel the pressure to do something great for the one we love on this one particular day.  I guess that’s normal.

That is the problem with being ‘normal’.  It’s normal to have huge credit card bills after Christmas.  It’s normal to be checking the mailbox every day for your tax documents to come in so that you can run to your tax preparer and get your refund.  It’s normal to be freaking out about the economy.  It’s normal to be excited that February is only 28 days because there are two less days that your money needs to last.

The problem with all of this is that ‘normal’ is broke.  I don’t want to be normal.  I would rather be weird.  It is weird to spend cash instead of borrowing money at 18% on a credit card.  It is weird to not need your tax return to pay off your Christmas debts.  It is weird when you have a budget that you and your spouse prepare before the month begins that actually works.

I guess the weirdest thing that you could do is to take your spouse to attend Financial Peace University for their Valentine’s Day gift.  Rather than spend money that you don’t have on something that will not last, try making an investment in your marriage that will last your lifetime.  

Men:  if you are reading this and you have debt, your wife is terrified right now.  She may not tell you but she is.  She desperately needs the security of knowing what the plan is.  She needs an additional 3-6 non-sexual hugs a day.  Some of you may need to look up the term non-sexual.

Women:  if you reading this and you have debt, your man is feeling like less of one.  The pressure of being unable to provide for his household is crushing him. Take him by the hand and tell him that the perfect gift would be to attend this course together.

The best thing that you can do is to get on the same page and start fighting this together.  Financial Peace University is a 13 week course designed to do exactly that.  By the time this article comes out, FPU will have already started.  However, it’s not too late.  When a husband and wife are on the same page, slaying the same dragon, and fighting together for their family and their marriage, powerful things happen.

You can read more about FPU by going to my website.  You can see video testimonies of people who have recently graduated from the class.  You can also call me and I will be happy to answer your questions.  Don’t be normal, be weird.  www.ChinoHillsMortgageMan.com  (909) 539-3484  

A Great Testimonial for Having Patience and Following a Plan

I received this testimonial from a couple that graduated from my FPU class in March of 2010.  What a great story.

Here's our story...      We started FPU back in March with about $4,000.00 in debt and living on one income with a family of five. Most of what we heard and saw, kind of seemed like a far off dream. To be debt free, 3 to 6 months of savings just didn't sound so doable. Feeling mostly discouraged having used our emergency fund about 3 times and having to start over again and again and again just became frustrating! We were living with family which at times is no fun at all. We saw that we needed our own space and fast! We had already lived in an apartment and felt that it would not fit us at all, so we started looking at $150,000. to $200,000. homes that were not affordable but as frustrated as we were we didn't care. Out of the blue my husband told me that we should call Alex just to see what he had to say. I said no are you crazy he's just going to tell us don't do it. Knowing my husband was right I called and guess what Alex said, NO. He encouraged us to wait, til we had our EF, 3 to 6 months of savings and a down payment. Grrrrh! It just seemed hopeless, we were going nowhere. So with that we moved into another apartment with 2 bedrooms and one bathroom. My husband and I shared a bedroom with a screaming baby and our two older children Jordan and Ryan shared a room and at their age they need some privacy, especially being a girl and a boy.      Meanwhile, God had other plans for us! My husband applied for Habitat for Humanity which is a non-profit Christian organization that helps lower income families be able to purchase a home that is interest free. Instead of interest you work on your house for a total of 500 hours. They consider themselves a "hand up" not a "hand out". They make your monthly payments no more than 30% of your income. So, we as a family began to pray daily that the Lord would do what was best for our family. I decided that instead of worrying about whether or not we got this house that I would have "joy in hope". In the bible it says "Be joyful in hope. patient in affliction, faithful in prayer. Share with God's people who are in need. Practice hospitality." Romans 12:12,13. Faithful in prayer, joyful in hope, those are words I truly needed. God definitely gave me this verse when I needed it. The process went on for months with no word. Finally we started getting calls and learned of different stages we had to go through. After 6 months we were told we got the house!!!!!!!! We new it was all the Lord! And the Lord has his ways and His ways are Best! One of the things we knew for sure was that if we hadn't have gone through FPU we might not have had a chance. We're positive that having no debt, no car payment, no credit cards etc. played such a big part. Habitat for Humanity needed to know that this house would not be a burden to us. Thanks to Alex also because like Stacey says He tells people no more than he tells them yes. I cant imagine how big the hole would be if we would have tried to buy that house on our own. You know God's hand is in it when your daughters father lives in the houses new area and our lease is up right when our new move in date is, just before Thanksgiving, and we are thankful!!!

Is Your House Haunted?

With Halloween around the corner I think that it’s appropriate to provide a little checklist.  The last thing you want is to find out is that your house is haunted.  So let’s take a little tour and check.

The Garage:  open the garage door and look around.  You probably have a car or two or three in the garage.  Do you make payments on them?  Car payments can be scary.  The average car payment is $474.  Many people lease their cars which can be even more frightening.  Make sure you check thoroughly.

The Living Room:  we love our entertainment.  Nothing is more impressive than a nice big HDTV with surround sound, a Blue Ray disc player and a plush leather sofa.  So when you enter your living room, look around.  Where did you purchase the items in your living room?  Did you pay cash or did you charge them?  Are you still making payments?  Did you get 90 days same as cash?

The Kitchen:  the most social room in the house is the kitchen.  We gather there at parties.  We hang out and talk as a family there.  Over the past few years many of us have spent lots of money upgrading to granite counter tops, top of the line stainless steel appliances and expensive water filtration systems.  You may have even spent thousands of dollars on new cabinets.  Did you save up to pay for these upgrades or did you use an equity line?

The Yard:  we love to entertain.  Noting makes us feel better than having friends and family come over and hang out in the yard.  We spend lots of money making sure that our guests have a good time.  We have intricate landscapes with built in barbeques and fire pits.  It gets really hot in the summer time here in Chino Hills.  Nothing helps to beat the heat like a nice big pool with a waterfall.  How much did you spend on your back yard?  Did you pay cash or did you finance that too?

Especially in today’s economy nothing is scarier than having debt.  Our generation has mastered the concept of over borrowing and living well outside of our means.  Our country has a negative savings rate which basically means that as a nation we spend more than we make.  We don’t really have many good examples out there since our government is doing the same thing and has been for years.

There is one man that has been screaming from the mountain tops for over a decade.  Dave Ramsey is a personal finance expert who appears daily on Fox Business Network and also on 980 AM in the morning.  He helps people who live in these “Haunted Houses” to get out of debt and get their lives back.  I suggest that if you think you might live in a Haunted House, or if you know someone who does, that you check out Dave Ramsey.  He is kind of a modern day Ghost Buster. 

www.ChinoHillsMortgageMan.com

FPU Graduation

Last night 15 more families graduated from FPU.  You have heard me talk about Dave Ramsey and his course many times in the past.  Financial Peace University is a class that helps people get out of debt, stay out of debt, and build wealth by using common sense with their money.  As we all know it is the Tortoise that wins the race every time and not the hare.

These 15 households combined to pay off $106,480.80 in debt while also managing to save $59,803 during the 13 week course.  I am attaching a video slide show that was shown at the graduation.   enjoy...