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Posts Tagged ‘fpu’

Remember last week?  (maybe you don’t) I was talking about working on a few new developments? Well a few things are starting to take place and I am super siked! Today I spoke with the assistant to the pastor of United Missionary Baptist Church and she wants me to coordinate a class for her church!! I was so nervous talking to her but I was able to get my point across and she was sold on the idea. I am just overwhelmed with excitement because things are starting to fall into place and it feels great. So I meet with her on Monday to pitch more of the idea. She says she is going to put me on a woman’s panel at a conference in September to promote the program even more. Talk about being put out there!! I guess I need to go find my professional hat lol. So pray for me as I embark on this new endeavor it could mean a lot of doors opening for me in the future as this is something I have always wanted to do.

Stay tuned!

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Its Friday July 25, 2008, and I just paid off a bill!!!!! A check went out to the tune of $960.62, to Henry Ford Community College. The bill was 2,071 to start and had been lingering in my life from a school I never went back to since 2001!!!!. I have been to court over this bill, had my paychecks garnished over this bill and my income tax refund taken a few times OVER THIS BILL!!! I am so glad to finally say its out of my life for good.

Now who wants to be next!!!!


Laying debt to rest for good

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Since I been on the Dave Ramsey Plan I have taken on a new found approach to finances which has caused me to do a 360 on the way I view certain debt. Now I will make a quick disclaimer I USED TO HAVE the same ideologies as every one else when it came to this list i am about to create. But I have tried to EDUMACKATE myself and slash all the myths about good debt and bad debt and proceed to take heed. Feel free to correct me if the math just doesn’t add up.

1. Student loans – Well I listed this first because its easy. When you go to finance your home and you have $50,000 in student loan debt the bank says “its ok”. They over look student loans, because it is considered an investment towards your future earnings. However, they do include the potential payment amount (once you are no longer in school) when factoring how much to give you on a home loan. 1 or 2% interest on your student loan is great, but don’t let it hang around for life just pay it and be done unless of course you like Sallie Mae hanging out in your spare guest room.

2. Credit cards – Studies have shown that people spend more when they use credit. I used my debt card and I know how fast $4 dollars turns in to $10 at McDonalds simply because I can “CHARGE IT”. Paying cash creates a bit of an “ouch factor” which in turn allows to pay attention to what you spend. Credit cards are a never ending money pit. Even the 0% interest ones, sure you pay it off at the end of the month but God forbid you make a late payment, or go over your limit. You will be hit with fee’s up the WAHZOO. Also Credit card companies now have what the call a universal default provision plan. What this means is on any day they feel, they can pull your credit report and decided your at risk, suddenly your rate goes from 0% to 18% in a split second. Now how you gonna pay it off?

3. Tax deduction on the house – This was the biggest because i am not the best person to be doing calculations. I borrowed the example from a source with the intent to understand and explain this if need be.
If you have a $200,000 at 5% interest rate, you would pay about $10,000 in interest. If you made $70,000 and wrote off $10,000, you’d pay taxes on $60,000. If you made $70,000, you’d be in a 25% (and when you make $60,000) tax bracket. If you didn’t have the write-off, you’d pay $2,500 extra in taxes on that. That means you sent the bank $10,000 to keep from sending the government $2,500.

You can save on taxes by giving to a charitable organization or paying your tithes (if you have Christian religion) and still feel good, I dunno about you but I would rather give the money to my church vs the bank. I also did the same calculations on my current home just to see if I was saving money like the example suggest, turns out I send the bank 4,200 a year to keep from sending the government $1,000. I am thinking if paid off my house and never made a penny more, I would have something around 3,000 saved a year. Sounds like a good reason to pay off my house to me!!! If you are unsure about your tax bracket visit the IRS.GOV website.

I realize that people like to play with numbers n such but at this day and age can you really afford to? So change your thinking do some math and let’s learn to build wealth and become a stronger community.


Fighting debt on a daily basis!

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Dave Ramsey Plan

I been slackin on My FPU (Financial Peace University) post. So here is a nice little update as much as I can fill in before I hit the sack (tired).

Last week was my final FPU class. It was a lotta fun, we had a big pow wow bbq. Our instructor was able to update us on how well we had done in the 14 week period. When we started, the class had a combined total of $530,000 in debt. In 14 weeks the class had paid off $87,000 in total (ie credit cards, cars, other stuff) We also managed to save $25,000 in emergency funds!! Go class!! Mind you we all started with about 0 dollars in the bank (including me) I was able even after all the set backs to save about $1,500 which feels good to have money in the bank even though its not much. I am so proud of my class, my instructor said he didn’t even expect for everyone to do so good but yea we showed him. Anyways another class will be offered this summer and I will be helping out with some of the sessions which I am going to love love love!!

The class really has put me on a path to success, today I told someone I was going to retire at 35 there response was “good luck” Honestly I won’t retire I just won’t be working where I currently work, I plan to be fully committed to the realestate industry which I can make my own hours and it will be what I love doing.

Since I have been successful I have been telling more people (Without beating them over the head with it) how well the program has worked for me. I brought a book for my tenant and I am passing around the TMMO book my mom gave me for christmas. I swear you have to fight with people to get stuff back sometimes, thats why if somebody ask me for a book I would hope to in the future be able to give it as a gift and if they read it or not thats on them. Most people have had good responses and some not so sure, but I guess I can’t win every battle I just have to show n tell.

Over all I just want to let people know this program is not just about getting out of debt its about planning your future. Up until now all I saw for myself was me working a 9-5 trying to keep current on bills and pray I live to retire. Now I don’t even worry about what my next 5-10 years will be like because I am excited. I see myself being a finance teacher and realtor. My house will be paid off and I should be making somewhere around $50,000 and doing some extensive traveling with my boo (non existent right nah). Now thats not a lot but if I have not one bill (not even a house payment) then 50k starts looking good. I may even save up for my dream wedding lol. Point is I think I will be much happier without bills looming over my head.

Dave’s plan works even if you have no debt, You might have no debt but have no savings of any kind. Or maybe you need to plan start planning for retirement or to make your first home purchase. Maybe you have money to invest and don’t know how to. What ever it is there is something in the program everyone can benift from even something as small as knowing about Insurance.

I am going to try to make sure I update people on how well or not so well I am doing. There will be and have been set backs but now I am fully prepared to deal with them as they come, at least financially which makes it a bit less stressful.

Mikki

P.S

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