The MoneyMinding Makeover at a Glance FREE for a limited time

In case you missed it, this program is FREE for a limited time. All you do is call in from a land telephone at the pre-arranged time. Classes are scheduled for the 1st, 3rd and 4th Monday of each month from 4-5pm PST (Please note that there are no sessions on holidays).

If you receive the MoneyMinding FAT Bulletin, the dial-in phone number and replay line are published there.

If not, then make sure you register to receive the FAT Bulletin and the FREE Simple Steps report, then call 712-580-6300 and when prompted enter the code 185047#

If this time isn't convenient for you, the replay is available for approximately 1 week following the class. You simply call 641-985-5000 and enter the code 185047# to listen to the recording!!

Enjoy!! Tracy

Paying Bills and Other Money Matters

I meet more people who will procrastinate and avoid handling personal money matters, particularly items such as paying bills, balancing bank accounts, reviewing investment statements, organizing tax papers - any of that paperwork sort of stuff.

There is also the group of people who will avoid at all costs having to actually look at their current financial situation in black and white. The thought of having to really look at the numbers and total them up and know first hand what the actual situation is, is right up there with one of their worst fears in the world.

But, here's the thing....... I also can think of nothing more powerful than to do those very tasks. It is completely freeing, empowering and delivers an amazing sense of control and calm - even if the real picture turns out to be worse than what was anticipated.

The reason: now you know. When you can put it on paper - stare at the numbers and really really get a good look at where you stand, really get all that 'boring' money stuff handled - you can breath easier, you get it out of your mind, you get it into a place that you can make plans, move forward, address the situation, or just relax knowing you won't try to use your credit card and have it rejected because you went over your limit.

Whatever the reason for procrastinating, the best thing you can do if you feel any sort of money stress is to get out your pen and paper, your calculator, and pull out your bills, pull up your account balances, sit with your bookkeeper or accountant or investment advisor - and get the real picture - black and white - - - then start to ask some good empowering questions and get some answers, implement some positive strategies, and move forward in reaching your money goals.

Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.

Dialogue on Debt Consolidation and Using Credit to Pay Credit

I was recently asked to help answer some questions about debt consolidation. The first task before deciding a strategy to reduce the debt was to gather the information using the templates in the MoneyMinding Makeover eCourse. This plan will ensure that all the details are known before deciding which solutions will work best and what resources are available to work with.

Below is some of the dialogue that went back and forth between myself and the client. My comments are in bold. The client questions and comments are in italics. Questions like these are discussed on the weekly MoneyMinding Mentorship Q and A program. If you would like to know more, or have your own questions, then please email or call to find out about this benefit as part of the new and upcoming MoneyMinding Membership.

The first page I happened to glance at and the first sentence that I read was without a structured process to eliminating debt, the thoughts and behaviours that created the debt will return and continue indefinitely. This is why a debt consolidation is perhaps the worst solution.

BINGO ah yea!!!! It seems so logical but when you have no 'money skills" you don't know what a structured process is and it seems that everywhere you turn they said consolidation is the answer. Thankyou for that statement alone - I am already feeling better cause I was beating myself up over you think I would have learned when I did the consolidation but yes it is the same thoughts and behaviours.
The consolidation was the "easy way out" I know that when I can rid myself of the stress of no money, my business will run better, because then I will "attract people" instead of coming across desperate.Which no one intends on doing but I think it comes across anyway.

Sorry for so many emails, but I'm excited to take back my power. It is going to be a long road but a worthwhile one.


Great aha!! I do alot of discussion on on debt consolidation when I speak on credit issues. Many times it's the only option available to banks, and the other strategies aren't taught in the financial curriculum. In order to really adequately determine what your best options are you need to have as much info as you can on each of the credit facilities open to you - balance, interest, minimum payment, total available, etc. And the quicker you can get a plan in place, the quicker you can get more focused on your business. You might want to try thinking of the non-financial assets and resources while you're gathering the info on your credit. It will help you see how much you're really worth and what potential opportunities are available to you.

One question I do have though that a gal in the states did. When you have the application forms that come in the mail to transfer your credit card balances to a lower interest card for 3% or whatever for a short term, if you do that does it effect your credit rating if you are switching around to different cards. Apparently she did it for a year and paid off all her credit card without having to pay any interest or at least a very low interest?

This is actually a bit of a loaded question because it can work - but it depends on the whole picture. That's why you need to have all the details before deciding on a strategy. The short answer about affecting credit score - is yes - getting new cards to pay off old ones will negatively impact your score. Everytime you apply for credit a bureau is pulled and that drops your score by a few points. Also, having alot of open credit available is not looked on favourably, and frequent applications for credit is also not a good idea and is not looked at favourably.

But, in some situations it could be helpful because, yes, the low or no interest for a period of time will make a big difference. So, that said - gather the info and I'll help you look at a strategy or strategies to make everything work in a way that's right for you. Talk to you soon - you're actually further along than you might think simply because you are open minded about seeing possibilities and asking questions. That's where it starts - cos remember - a 1% change carried out consistently is what will produce the big results long term!! Congratulations!!

Tracy


Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.

Expect the Best - Get the Best

This might seem like a basic concept but when applied to money it's quite impactful. If you are making an investment do you expect to not lose money or do you expect to make money, or are you only worried you won't lose monay?

If you enter into financial transactions with an expectation of positive results you will do things in a different way than if you are timid and unsure.

If you expect to make financial transactions that are positive, you will do different research and ask different questions - you will feel differently about your decisions - and because of that you will be much more likely to actually receive the benefits you were expecting.

Always have an optimistic expectation, then back that up with the extra care and caution that a confident decision maker would do and watch you expectations become reality.

Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.

Doing Some Money Math

It is so much easier to think that the thing we want to spend only a few dollars on today will give us the pleasure we want now and not really make a difference long term.

Well, what if you actually added up some numbers and turned the combined number into something tangible? For example, a $3 indulgence every day is easy to find spare change for. However, $3 x 6 days a week is $18. Still not alot of money, but certainly it could buy a lunch out, or gift for a friend, or perhaps a book, or something fun to wear on sale. If you start looking overseas, $18 can do a lot for orphaned children, or impoverished families.

If you indulge in the spare change treat everyday for a month that's $72. Now, we're talking about a dinner out with a friend, some new shoes or clothes, and a whole lot of good for many worthwhile causes.

Over a year, that spare change indulgence is $864. Now what could you do with that money???

When you start to identify concrete things or expenditures with the larger amount of money it becomes much easier to evaluate and relate to the bigger picture. Then you are more easily making decisions that will support you where you are today as well as in the future.

What if you currently had a $4500 debt on a credit card? At 15% per year that's $675 of interest? What could you do with that money if you had it to spend, or invest or do something worthwhile with?

If your $4500 credit card debt has a minimum payment of $135 per month what would you do with that money if you weren't paying your credit card? Remeber the answer has to be concrete. It's much easier to make decisions if you're not just focused on 'getting out of debt' - boring - not relatable - too generic - you need to be specific!!!

If you pull the spare change $3 indulgence together with the $4500 credit card debt and the $135 minimum payment, you could see the financial math working for you in a great way: If you paid the minimum $135 payment you would have paid a total of $1357 on your $4500 debt. If you added your $72 to that amount, you would pay a total of $817 interest for a difference of $540. Now ask the same question? What would you do with $540??? Remember - specifically - what would you do with that money?

So how do you make this happen - remember it's all a choice - your choice. It's ok to have the $3 indulgence. Just be aware of what you're giving up and accept it as your choice. If you think you might rather have the bigger things from the money, then simply ask yourself, how can you either replace the indulgence, or how can you have the same experience without the money, or how much of the indulgence do you really want, or many other positive enlightening questions to keep you moving towards your ideal financial future.

Just please promise yourself, you won't take this information and start telling yourself that you're an idiot, that you must be undisciplined, or irresponsible. And, please don't ask why you feel you really want the indulgence. Just make the decision and enjoy it!! And if you want to read more on financial math, you can read the one called 'what really happens when rates go up?' at http://www.moneyminding.com/articles_moneyminding.htm

Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.

What are you Focused on?

There is so much to say about this topic - in fact so much that I will be devoting a new seminar to give you some tools and thoughts on how it influences are choices which ultimately dictate our success or failure for any given event. In this case as it relates to money.

I got caught this week with having a focus that put up a wall that was preventing me from seeing the real benefit to an opportunity in front of me. The situation was the requirement for me to put out some upfront money (to make an investment) to produce a program that would generate profit well in excess of the initial investment.

Hmmm... I was focused on the cost and not the benefit. I hadn't translated the cost into investment terms and realized that the return on investment was well worth the 'cost'.

This is exactly the same situation that occurs when looking at perhaps starting a business or buying real estate. If you focus on not having the money, or not wanting to commit money you do have towards a worthwhile cause, then you are focusing on the cost and not the benefit.

Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.

Making Money and that four letter word CAN’T

I have been using the same dry cleaner for over 10 years and have been driving out of my way to do so after moving from the neighborhood a few years ago. Today when I went to drop a few things off I was pleasantly surprised to find a special boldly displayed on the door. I was greeted by a rather scowl faced person, but un-deterred I cheerfully told her how happy I was to see the special and asked if I could bring the rest of my items in when I came to pick up the 2 items I had with me.

Her response is what startled me and is the reason for this note: ‘We can’t do that’. Not, ‘oh, I’m sorry, we’ve had issues in the past, and unfortunately have had to set a policy that requires the items to be brought in together’ or some other nice explanation.

My pleasant, relaxed attitude immediately changed and the hair on the back of my neck went prickly. I didn’t’ really know what to say, but managed to head towards the door and calmly tell this person that I would not be leaving my clothes for cleaning at this time - or ever again for that matter. Then, it occurred to me to ask a question: ‘Is this your business?’ To which I was told that she was the manager, not the owner. Hmmmm… I wonder if her compensation is based at all on performance? I wonder if the owner had said can’t in the same manner when they opened the business and committed their financial future on its success? I wonder if the owner would have abruptly told a long term customer 'can't' in the same manner as the employee manager?

Here’s the final point to all this: the word can’t needs to be eliminated from everyone’s vocabulary. Its ability to limit your decision making in finance, health, relationships, business, etc. is the overwhelming big key factor for success, or lack of it. From here on in make yourself a commitment to ask ‘how can I?’ instead.

And for more information on the new MoneyMinding I CAN community make sure you receive the MoneyMinding® F.A.T. Bulletin when you register at www.moneyminding.com .

Prosperously yours,
Tracy

Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.