2006 February | No Credit Needed

My Story

Archive for February, 2006

Is It Just Me?

February 22nd, 2006

NCN

Is it just me? Or is this the MOST depressing time of the year. It seems that everyone I know is either sick, getting sick, or getting over being sick. I think that it must have something to do with the hours of sunlight. Maybe I have Seasonal affective disorder . Let me go find my light box.

My negative, self-loathing alter ego will now speak for a while: I want enough chicken McNuggets to fill up a wheelbarrow, and enough Mountain Dew to fill up a bathtub. I want to eat the McNuggets while vegging out in front of a brand new 65 inch HDTV, while downloading songs to my brand new video Ipod. I want to then take my new Ipod, grab a handful of chocolate chip cookies (home-made, of course) and hop in my brand new G6. I want, I want, I want, I want, I want! Why? I have no real idea, but it might have something to do with the fact that I am depressed, tired, and drained. I don’t really care. I just want to spend some money on something I don’t need, I want to eat something not good for me, and I want to forget about my responsibilities. Sorry, but this is how I feel. In fact, I’m not sorry. This is my blog. I can say what I want to say.

I want this blog to be a place where I can be honest and real. These feelings hit me hard today, and I spent a long time in thought and prayer, processing what my emotions were (and are) telling me. Like I always say, I’m just a dude trying to change his life. And life is hard.

Posted in Off Topic

No Comments »

I Think Credit Cards ARE Great!

February 22nd, 2006

NCN

Yes, you read that title correctly. I think that Credit Cards are great. I will list the awesome qualities of Credit Cards here:
They facilitate the rapid exchange of money for goods and services.
They are extremely portable and durable.
They make buying and selling, even among peoples of different nations and states, easy and simple.
They are secure.
They have fraud protection, built in.
They come in an array of colors and brands. Gold, Silver, Platinum, Green.
They are easy to use because of their amazing magnetic swipe.
They allow for a reliable, reproducible history of transactions to be printed, copied, and shared.
They come with different rates, different rewards, and different denominations, for different peoples, corporations, and businesses.
In short, the credit card is the single greatest financial invention of the last 100 years.

Oh yeah…

Credit cards just happen to be destroying the financial foundations of hundreds and thousands of people throughout the world. Because they are so “great”, they are also so very, very dangerous. While talking about debt and debt reduction, I meet countless people who are suffering, financially and emotionally from the burden of their credit card debt. They need to be free.

Now, I know that some who read this are kicking and flailing about, screaming, “Not me! I am responsible when I use my credit card. I know what I am doing. Only irresponsible people get into too much credit card debt.” For one second, just pause, and think about what I am about to type. Just give me ONE minute of your time…That’s it. If you disagree with what I am about to type, that’s cool, but give it one minute to sink in. Ready? Here goes:

Have you driven by a bank lately? A physical, brick on brick bank? How big was it? Where was is located? Was it well lit? Did it have ample parking? Was it in a good neighborhood? Was there another branch of that same bank in the same state? The same town? The same block? Now, how do you think that bank could afford to be so big, beautiful, and well-lit? I’ll tell you how. That bank knows how to make MONEY. And do you know how they make money? Fees and interest. They make money by charging fees and collecting interest from home loans, car loans, personal loans and credit card loans. Now, MULTIPLY, by thousands and thousands, the amount of money that is exchanged at your local branch, and you will only then begin understand the millions and millions and millions of dollars that flow through the hands of the major credit card companies. Bottom Line: Credit card companies make money, hand over fist, on BOTH ends of each transaction, and, when you pay interest, in the middle of the transaction. Credit card companies employ smart, intelligent people, who are all focused on MAKING MONEY!!! And, they know what they are doing. Imagine that you are great at solving cross-word puzzles, and you are enter into competition with a single opponent, who is equally as competent as you are. Now, if given the same exact puzzle, the match-up would be fair, right? However, what if, instead of facing ONE opponent, you had to face the combined intelligence of ONE HUNDRED opponents. 1 vs. 100. Not fair, right? You would cry, “FOUL!”. But, you still think that you, alone, can outwit the combined financial intelligence and business acumen of the largest financial companies in the world. Not a chance. As long as you chose to use their services, to use their cards, and to use their “benefits”, you are subject to their whims. These are not benevolent, altruistic organizations. These are for-profit, financially savvy, end-results-oriented mega corporations. The list that I gave at the beginning of this post should not serve as a reason TO have a credit card. It should serve as a warning for why you should NOT have a credit card. Why?

They are TOO simple to get. They are TOO easy to use. They are TOO convenient. They are TOO great!

Making a financial decision should take some thought, some preparation, and even a little effort. That’s why I encourage the use of budgets, envelopes, and cash. NOT because these things are “simple” or “easy”, but because they make you stop and THINK about what you are doing with your money. Let’s use a food analogy. Which is easier? Fast food or a home-cooked meal? Which is better for you? (Please, no jokes about your wife’s/husband’s bad cooking! Dork!)
Do you see the point? Ease of use, convenience…These things can be HIGHLY over-rated. Unless you are EXTREMELY disciplined, you will order junk from the fast food restaurant. The same is true with credit card use. Unless you have displayed an amazing amount of restraint and personal discipline when it comes to personal finance issues, you should refrain from using credit cards. It is precisely because they are so “great” that they are so dangerous. I want you to be FREE, not beholden to some corporate giant. Get out of debt, stay out of debt, save your money, invest wisely, give to others, enjoy your life. LIVE!

Posted in Credit

No Comments »

Dot Com VS Dot Org…IT’s ON, Baby!

February 21st, 2006

NCN

If you have spent any time swimming through the personal finance blogosphere, then you are MORE than aware that there are two new sites, both named PFBLOGS, which aggregate the feeds of several personal finance blogs.
I have linked to both sites in my blog roll, and I have received traffic from both sites. There are several noticeable difference between the two. First, the names.

pfblogs.COM and pfblogs.ORG

Second, the .COM version displays Google Ads, the .ORG version is Ad-Free.
Third, the .COM version covers about 90 blogs, and the .ORG version covers just over 200.
Fourth, the .COM version displays 15 posts at a time, while the .ORG version displays 25.

Now, for what they have in common. They both do a great job of aggregation, and they both pretty much eliminate the need for a long blog-roll of pf sites. (I’ll be hanging onto mine though! I love my humble blog-roll…) As for the controversy, I see what others have written, about the fact that .COM is making money off of content that he does not produce, and I really have no problem with this. He’s providing a service, and if he can make some cash off of the service, that is fine by me. I also see the other side of the argument at well, and I am glad that someone is willing to do the work of aggregation for free. I am a capitalist, and I think that the market will work this thing out. One will live and the other will die, or they will both live on, branching out and changing as necessary. Who knows. That is what is cool about the internet, the web, and this new fast-changing economy. Life and death, over and over and over.
As for my personal favorite, I don’t really have one. They both do basically the same thing, and they both do it well. Some of the sites on the .ORG site are old and no one has posted to them is some time, but the .ORG site makes that clear by making their link color very, very faint. (This was a GREAT idea, by the way.) I really like the shear number of sites he lists, because I like to click through tons and tons of sites every day. The .COM site seems to be a bit more focused on just personal finance sites. The problem there is that some sites have requested that he remove them from his site, because he is displaying ads. Hmmm… My prediction is that either the .COM site will take hold because of the .com ending (and the clearer focus) or the .ORG site will prevail because content providers will allow him to continue linking to their sites (and the broader coverage). We shall see… It is a classic case of ordering the “special” for the “buffet”. How much is enough. How much is too much. Where will the balance be found?

(This is, I think, my very first post about the “personal finance blogging community”. I don’t really usually focus on these types of things, but I think that this is a big deal. For full disclosure, the operator of the .COM site contacted me just after starting his site, and I gave him my blessing for including my site. I have no problem with the fact that he is running ads, and I wish him all the best. I am not into “controversy” for “controversy sake”. I am, however, interested in watching the micro and macro economics of these particular sites. It fascinates me that there are two sites doing basically the same thing, with similar and different motives behind each. It will be neat to revisit this in a years time, and see where both sites stand.)

Posted in Resources

No Comments »

On and On and On…

February 21st, 2006

NCN

Alright, I think that I FINALLY have everything set-up, just like I want it. I have the blog, here at ncnblog, and the podcast, and the brand new ncn network, up a running. So, now I have MULTIPLE formats for getting out the message of debt freedom. I hope this is not “too much” for readers, listeners, and participants to keep up with. I think I have set things up so you can enjoy some or all of what I have to offer, and you can pick or chose whether to listen, comment, read, participate, etc.

So…this will be a rather long post, so hold on, baby! Dork!

You are broke. You are tired. You work hard everyday. You have nothing left in your bank account after paying your bills. What are you going to do? YOU are going to change. YOU are going to change your circumstance. YOU must make a decision to take a step (or steps) in the right direction. Really, it lies with YOU.
Now, when it comes to debt reduction, there are 2 MAJOR ways to increase the amount of money that you can put towards getting out of debt. One, you can spend less money each month on other items, and use that “saved” money to pay-off your debts. Two, you can make more money each month, and used that “earned” money to pay-off your debts. Now, I used a COMBINATION of the two when getting out of debt. I found various ways to DECREASE my monthly spending (less eating out, no dry-cleaning, cutting off satellite radio, decreasing satellite television bill,etc.) and I found various ways to INCREASE my monthly earnings (revise tax withholdings, use eBay, barter for items or services, etc.). Now, spend a few minutes and BRAINSTORM. List 5 things you can do RIGHT now to decrease your monthly spending, thereby increasing the amount you can pay towards your debts. I’ll give you 10 ideas to get you started. You come up with the rest on your own:
1. Lose some (or all) of your satellite or cable TV channels.
2. Raise your auto insurance deductibles. (BE SURE you have the deductible amount in your emergency fund BEFORE you raise the deductibles. YOU DO NOT want to have to borrow money for your deductibles.)
3. Have a continuing drug prescription? Check with your pharmacist or insurance carrier about discounts for generic and/or bulk supplies. I can buy 3 months worth of Lunesta for the 2 month charge.
4. Stop renting movies. (There are some really good TV shows on now, like Lost and 24. Plus, you COULD read a book… Or listen to my podcast!) Shameless PLUG!
5. Lose the “features” that you pay for on your home phone or cell phone. Do you use Call Forwarding? How about the supplied Calling Card? (I found a 1.00 charge for a calling card on my local bill, and I have never even SEEN the card, much less used it.)
6. Turn off unused lights and turn down the thermostat on your hot water heater. This can save money, and in the case of the thermostat, prevent nasty hot-water burns.
7. Need a ride. Share a cab, call a friend, or carpool.
8. Pack your lunch! PBandJ sandwiches are good enough for 3rd graders, and they are good enough for you, MR. Broke!
9. Brush your teeth. This will save on your dental bills, and people will like you more. Go, do it now, stank breath! (Dork!)
10. Coupons, coupons, coupons. Make a list, find coupons for the items YOU WILL USE, and use the coupons.
Now, we have made our lists of the things we can do, or begin to do, TODAY!!! If you think about it, you have just taken your first “step” towards debt freedom. I don’t care how much you owe, or how much you weigh, or how much you need to save, every journey we take truly does begin with one simple step! And, you just took it. You made a plan to save money, and you took some action to carry out that plan. Good job! 5 Stars! (God, I am cheesy).

So, you have some ways to “save” money. Now, let’s find some ways to EARN more money. Again, my list of 10. You will have your own.
1. EBay, duh.
2. Yard sale. Your junk? It could be someone else’s junk, by say, 10 days from now.
3. Get a second job (or third)… I never did this, because I am not that ambicious. I wish I were, but I am not.
4. Start a web site or blog, track your progress, put ads on it. (There are MANY MANY bloggers out there WAY more successful at marketing themselves than I am. Alas, I shall continue to slave away for 1 ad click per day.)
5. Ask for a raise. Sounds simple, right? When was the last time you did this? Hmmm..That’s what I thought. (Me neither…Man, I am preaching to myself now!)
6. Get a higher interest rate on your savings. Check out BankDeals for more info. Remember, interest is INCOME!
7. Have a hobby? Turn it into a paycheck! Simple, easy, fun! (This one is just a joke… Sounds like a 3 AM infomercial…) Seriously though, if you have a hobby, and would like to turn it into a job, it will take hard work, effort, and energy. If you are up to it, go for it!
8. Learn to barter. While not technically an increase in income, it does “create” a means of wealth outside of using money. Babysit? Mow Grass? Trade your services for other services, your time for other time. My wife will babysit, for free, for her friends, and they will do the same for us.
9. Clean out your closet, and donate your old clothes to charity. You can claim this on your taxes, AND you will fill better about yourself.
10. This is a unique one. Grow your own food. This may or may not be a frugal, money saving, or money earning idea, but I had to fill up the list. I THINK that you could grow your own food, say veggies, and come out with a “profit.” If you grow enough veggies that others like, you might be able to sell them, give them as gifts, or trade them. This is probably a regional tip. I might actually try to have a garden this year.

There you go, 20 tips, free of charge, for having MORE money available for paying off your debt. Now, the last tip. Ready? DON’T FORGET to actually use the extra money to pay off your debts. DO NOT waste this “extra” money. Remember, the borrower is slave to the lender, and you are “buying” your freedom, day by day, hour by hour, dollar by dollar.

GO, GO, GO, GO, GO!!!

(Oh yeah, go to your online bank, RIGHT NOW, and send 5 dollars to your lowest balance debt. Do it. You will be 5 dollars closer to your goal. Remember, forward is forward, whether it is one foot, one mile, or one inch at a time. The idea is to always be moving forward)

Posted in Tips

No Comments »

Do You KNOW Who I AM? Well, Do Ya, PUNK?1?

February 20th, 2006

NCN

Quick update. They have found out what is wrong with my mother-in-laws heart, and they are going to be able to treat it with medicines. I am very thankful, and I thank each of you who chose to pray for her and for us.

Lots and lots going on around here in No Credit Needed Land. I have decided on my first MAJOR goal since becoming debt free, and that is to save 12000 dollars in a personal emergence fund. Right NOW I use ING, because of the simplicity, but the higher rates availiabe at HSBC, Emigrant, and others may entice me to move my money around some. I have created a chart to record my progress.

Also, the brand new No Credit Needed Network is up and running. Will you be the first to create a goal? Will you be the first to send it to me? Will you be the first to achieve it? Check out No Credit Needed Network to find out more details.

I should have another podcast out by Thursday of this week. Pretty big surprise to go along with this week’s show. I’ll have more to blog about Wednesday, if all goes well.

I have also decided on the following goals for this coming year. I will post details for my strategies, as they come up.
1. 8000 dollars to Roth Ira’s for my wife and for me.
2. 4000 dollars to ESA’s for son and daughter.
So, adding my two “savings” goals together, I am hoping to save close to 24000 dollars this year, in various locations. 12K in INGDirect, 8000 in Fidelity Roth IRA’s, and 4000 in TDWaterhouse ESA’s. This is in addition to my 403b retirement account contributions (150 dollars a month) and my wife’s mandatory 5 percent contribution to teachers’ retirement. So, a very sizable amount of our income will go “straight” into savings. I will have a MUCH better budget draw up when we receive our March pay-checks. Much of January and February went to debt re-payment.

Lastly, I want to spend more time on this blog highlight other pf bloggers, and supporting the “group”. In this vein, I’d like to take this time to highlight one of my personal favorites:
Bank Deals. This site is very, very organized, simple to use, and updated regularly. Thanks Bank Deals! You make finding a great banking deal easy!

Posted in Site Information

No Comments »