Maximize Your Wardrobe, Save Money

Elena Difiore, Program Director We all have those days where we tear through our closet in frustration, desperately trying to find something to put on.  Then we complain about having nothing to wear but can’t afford to go out and … Continue reading →

Tax Day: The refund aftermath

Tax day was thirty days ago and if you waited until the last minute to file, you are  probably receiving your check sometime soon if you expected a refund. Two-thirds (66.2%) of tax payers are expecting a refund this year, up from 65.5 percent last year, but down from the percentage expecting a refund in 2009 (68.4%). *  It is always interesting to me to see how folks handle their payments and refunds to Uncle, State and City Sam. Take our short poll to tell us what you did with your refund and see how you measure up to the rest of America and their choices. Next week I will share my thoughts on refunds and share some tax tips from a previous show guest and tax expert. If you can’t wait that long

Seven Paths To Poverty on Unlock Your Wealth Radio

Seven Paths To Poverty co,author Dr. Gary Byrne joined us today to discuss his book about how Americans, each and every one of us should be millionaires and why many of us are not. I really enjoyed this interview as we see things through a similar looking-glass. If you were waiting for some third-party verification that what I have talked about on self-sabotage and your money is true

Teach Your Children Without Breaking the Bank in 4 steps

Staff Writer Ben Williams

Improving a child’s scholastic success is one of the top endeavors of every parent. Providing your child with the tools they need to succeed in school opens up so many opportunities for them later in life. While we would all like to be able to give our kids everything when it comes to their education, unfortunately we are often prohibited by our pocketbooks. But just because you can’t buy your child the latest and greatest computer learning game doesn’t mean you have to sacrifice providing them with the knowledge and understanding they need to achieve learning success . By focusing on some of the fundamentals of learning such as reading comprehension, memory and vocabulary, you can make sure that your child will have what he or she needs to do well in school. Here are some ways to improve your child’s scholastic success without having to spend heaps of money.

T. Harv Eker Really said that on Today’s Unlock Your Wealth Radio???

Secrets of the Millionaire Mind author T. Harv Eker dropped in on Heather Wagenhals’ Unlock Your Wealth Radio this morning and it was explosive! Harv can really get an audience stirring as was evident in the chat room comments about what he was saying how he can predict your financial future in five minutes. Actually, he corrected himself on air saying that it was really five seconds but no one would believe him if he said that. Tune in to see how he proved it on air though!

It was so great for all of our listeners to hear it from someone else that your programming is what brought you to where you are now. I am constantly saying on the show we are a product of our programming and unless we take an active role to change that programming, we will continue to get what we have always gotten. Harv’s direct approach adds the shock value most of us need to start examining our habits a little more closely and identify what resides in our current “money blueprint” so on next week’s episode we can work to replace those files and clean up our money folder in our mental filing cabinet. Tune in and download the episode to learn more.
Using our featured strategy last week from http://www.unlockyourwealth.com on credit report review, comedienne Cocoa Brown found some inaccuracies on her credit report and began the dispute process. Today’s Key in our Keys To RichesTM Financial Wellness Series, Remember Real Estate focused on the four layers of risk an underwriter uses to determine mortgage creditworthiness and affordability. This week’s featured strategy is a “Know Your Ratios” strategy that you can download free at http://www.unlockyourwealth.com to give you step by step instructions to determine what your ratios need to be and how close you are to affording that first home! Next week’s key is Forget The Perfection Principle and we will learn how to get back in the saddle after financial catastrophe hits.
After downloading these episodes remember to add your reminders for Tuesday’s Millionaire Nuts and Bolts from Unlock Your Wealth Radio at 6:30am to grab this week’s Millionaire Focus and “start your day, the Millionaire way! TM”

New Vs. Used, To Buy or Not to Buy…

As vehemently as those of us here at Unlock Your Wealth have preached about the importance of purchasing used items when the opportunity presents itself, there are certain products which one simply has to buy new, straight from the store. Often times, when it comes down to it, safety and performance cannot be sacrificed in the name of scoring a great deal on Craigslist, especially when it comes to the following:

Children’s safety
Used children’s furniture, especially cribs, can be safety hazards. A crib is not to be purchased at a garage sale or even on e-bay, as the history of that crib–and any damage it might have fallen victim to over its lifetime–is rarely documented when purchased through such methods. In the same vein, bicycle helmets and car seats should be purchased new, as not only does the technology utilized in making these items improve every year, but the damage inflicted upon helmets and car seats is usually rather subtle and hard to detect with an untrained eye–not to mention, helmets are only designed for one accident. Bottom line: If your child’s safety could be sacrificed by buying a used product, just buy it new.
Computers, cameras, etc.
Laptops, due to their portability, are prone to violent, unintentional abuse. When you buy one used you have little idea of what it’s been through (often times, neither does the owner), or what important parts will soon die on you. Also, when you buy a used laptop you don’t get the warranties and tech support that come with buying one new.
Like laptops, used digital cameras have likely been tarnished over their careers, and the damage is usually rather obscure. While not apparent upon purchase, the expense of repair will far outweigh what you would have spent on simply buying a new camera in the first place. The same goes for used speakers, microphones, camera lenses, photo light bulbs and DVD players: Don’t buy these used.
Suits, hats, shoes and make-up
Wetsuits, bathing suits, underwear, hats, shoes and makeup are all worn or applied intimately close to the body. If you buy any of these items used, they will have been intimately close with the body of their previous owner and will be carrying that owner’s mold, bacteria, bodily fluids and dirt when you touch them to your skin. One should be weary of buying these things used, not due to possible financial repercussions, but out of a concern for cleanliness and health. Shoes mold to one’s feet, so if you buy them used they will fit poorly, and poor fitting shoes not only cause discomfort but countless health issues, as well. A stranger’s used makeup is a breeding ground for bacteria and contagious diseases such as pink-eye. And wetsuits lose the ability to keep a person warm over time, so buying a used wetsuit is a poor decision.

It is true that many things are better purchased used rather than new such as DVDs, CDs, video games, toys and cars but concerning the items described above, it is always best to buy them off of a shelf.
Staff Writer
Daniel Moore

Stop The Spending Impulse Please!!!

One of our members in the http://www.unlockyourwealth.com forum posted a question about beginning the Carry Cash Challenge from our Mid Week Update. I liked the question so much and felt that others might also feel this way that I wanted to add it to our blog. My point with the answer I wrote was, we cannot control the stimulus, but we can control the response, we just need to build up our mental and intestinal fortitude to say, “for this impulse, not right now, maybe later”:

Q: How do I start the “Carry Cash Challenge”? I am an impulsive buyer, and I don’t want to be!!

A: This is a great question. The purpose of the “Carry Cash Challenge” is to teach ourselves restraint and when the cash is gone, so are our discretionary spending decisions, until the cash is replenished at the next pay cycle. It will only take a time or two of the impulse spending and lack of additional funds for items we truly need, to learn to live within our means. Here is how to start the challenge:

1. Make a commitment with yourself that you will only spend the cash you have on hand for discretionary items and once it is gone, it’s gone.

2. Start filling the discretionary spending cash stash after you have: Saved the 10% of your paycheck off the top, taken the next 10% and allocated it for debt reduction (This is in addition to your monthly minimum payments on your credit obligations) and utilized the last 80% to live off. Whatever is left over from the 80% is yours to spend any way you wish. Is it a negative amount (meaning you do not have any cash leftover)? Then you wait until the next pay period to see if there is any leftover cash to add to the discretionary spending cash stash.

Remember, on the Unlock Your Wealth Radio show we always talk about how powerful the mind is and what we think about, we bring about. We always get what we ‘SAY’ we want. If you want to be a disciplined spender, you will be, if you enjoy the reckless abandon of impulse spending, you will continue to do just that, spend with reckless abandon.

Let’s examine your statement for a moment, “I am an impulsive buyer, and I don’t want to be!!” The first part of your statement is, “I am an impulsive buyer”. That is an affirmative statement. “I am”, so when you tell yourself that and voila, that is what your brain creates. The second part of that statement is “I don’t want to be!!” Again goes to work the greatest super computer of the entire Universe, the brain works so fast and doesn’t hear the word no, so “I want to be…[an impulsive buyer]” is what it is listening to and achieving. The brain ALWAYS WINS.

What we can do is state what it is we “DO” want. Because the speed and accuracy with the brain hitting our ‘stated’ goals, we need to carefully choose our words and say what we DO want, not what we don’t want. We can change our brain’s targets simply by rephrasing what it is we “do” want. For example: “I am a disciplined spender” or “I am a careful spender” will give us the strength, once the brain has a chance to process and change our belief about spending, in words that will evoke the kind of spender we desire to be.

The last thing we need to consider when beginning this “Carry Cash Challenge” is that we always do things with a positive intent and purpose. In some way, this impulsive spending is doing something for you on some level (right, wrong, or indifferent) that reinforces the behavior and keeps you doing it, even though it is totally destructive to you, financially. After you restructure your affirmation about the type of spender you are, and, if you are still having a challenge with the impulses, I encourage you to download the episode with Unlock Your Wealth Protégé Cocoa Brown on July 10th where we addressed her impulsive shopping behaviors and did a six step reframe to create different alternatives for her to choose to give her that same feeling the impulsive shopping did, without the financial consequences.

Between stimulus and response there is a space. That space gives us the creative control we need to effectively respond to any stimulus. We may need to come up with some creative alternatives BEFORE we receive the next stimulus so we can replace the old patterned response, with one we truly desire.

After listening to the episode and creating options for your spending stimulus, start the “Carry Cash Challenge” and pop by to let us know how it is working for you.

Good Luck!

Heather Wagenhals

Spaving and Other Spending Dysfunctions

Spaving and Other Spending Dysfunctions
Spaving: To purchase a product, item or commodity on sale–usually under misconstrued expectations of the product’s potential for garnering a purpose and saving money in the future–that has no apparent, quantifiable utility in the present. Some people, usually fiscally responsible people, can successfully utilize the art of Spaving in their lives. For instance, many people purchase Christmas gifts for their children while that gift is on sale during the summer. However, Spaving is also notorious for being an abused practice, a concept which convinces the relatively naive into making investments that will never prove advantageous, convenient or practical at any point in their lives. Spaving persuades people to spend, and, many times, waste money that could have been collecting interest in a savings account on, once all is said and done, an obsolete television set collecting dust in the attic, or a pair of designer jeans that were two sizes too small (but 50% off) at the time of purchase, and which now hang lifeless in the closet like a condemned pirate dangling from the gallows.
Spaving, especially in the alligator-infested swamps of strip malls, outlet stores and Internet sites, is a dangerous practice, similar, in a way, to playing online poker; if one is conscientious and responsible about Spaving, it at times can be a profitable enterprise. However, people often Spave without abandon, rummaging through clearance racks like rabid raccoons through trash with vague intentions–in some weird, distorted sense of the term–of saving money. Spaving is dangerous because it triggers a shopper’s most wistful inhibitions from behind a thin promise of saving said shopper money in the future; it tricks people into buying things they don’t need. Advice: If you tend to be rather promiscuous with the plastic in your pocket, don’t Spave!
Of other common spending dysfunctions, perhaps none plagues society more than Retail Therapy. A perpetual nemesis of the female shopper, Retail Therapy is exactly what it sounds like: Shopping for comfort. The urge to indulge in this practice is often triggered by a tumultuous break-up, a long, stressful day or even the untimely birth of an obnoxious blemish. Obviously, the thought of treating yourself to a new outfit or accessory after such strenuous events is quite comforting to many people, and far from condemnable. However, like gambling, or flirting with a level-1 narcotic, few can dabble in Retail Therapy without drowning. In fact, most gorge themselves until their closets are bulging with high-heeled pumps and their bank accounts are emaciated. Similar advice as that provided for tempering your inclinations to Spave is suggested for Retail Therapy: Unless you know yourself to be of that rare breed of human who can occasionally smoke a cigarette without becoming addicted, don’t allow yourself to even consider heading to the mall after being assigned jury duty, being denied that promotion, or even after the death of your dog–the slope is too steep.

Money can be saved and condolence can be found at places without mannequins in the windows. Remember that.

Staff Writer Daniel Moore

Carry Cash Challenge

Staff Writer
Elena Difiore

Can’t afford that new 70” flat screen? Charge it now and pay for it later! After all, everyone else is doing it.

With their overwhelming simplicity and accessibility, credit cards have become the financial crutch of far too many Americans. Breaking free from your prison of purchases starts by recognizing the underlying emotions that fuel your desire to spend. Don’t think you have enough will power to simply say no? For all the impulsive shoppers out there, here are a few tips on how to protect your wallet from yourself.

One option is to go the old-fashioned route and simply cut up your cards. If they’re in pieces, there’s obviously no way you can use them. However, there’s no doubt that credit cards can be a necessary evil. Whether you’re booking a week’s stay at a hotel, or enrolled in some form of automatic bill pay, credit cards can serve a beneficial purpose, so cutting them up isn’t always the best option.

A classic remedy for credit card abusers is the ice block approach. Take your credit card and place it in a large tupperware container or old ice cream carton. Next, fill the container with water and place it in the freezer. This way, you still have your credit card as an option in case of an emergency, but you’re much less likely to splurge on a new pair of shoes if you have to pick away at an icicle for hours on end.

A similar approach is burying your credit card in a shoebox in your backyard. Just like freezing your card, burying it in your yard acts as a deterrent to emotional or impulsive spending. If you want to use your card, you have to take the time to dig it up, which gives you time to ponder the legitimacy, or lack thereof, of your purchase.

For a creative, unique way to hide your card, try placing it in a plastic sealable bag and filling the rest of the bag with some form of thick substance, such as peanut butter. Everyone knows how hard it is to clean peanut butter off of anything, so hopefully having to clean it off your card will make you think twice before rushing off to the mall.

Another option is hiding your credit card in your attic. However, keep in mind, this method is pointless if you have an easily accessible attic. But for those who seldom, if ever, go into their attic, this could be the perfect solution.

Looking for a more formal approach? Place your credit card in a safety deposit box at your bank. Not only will you have to drive to your bank if you want to use your card, but the hoops and red tape usually involved with accessing safety deposit boxes will force you to seriously evaluate your decision.

When all is said and done, you are the only one who can help yourself escape the destructive cycle of credit card debt. Breaking free from the clutches of excessive consumption starts by taking responsibility for your actions and putting a freeze on your spending, figuratively or literally.

The Chronicles of the Unlock Your Wealth Protege: Journey to Financial Freedom

Tales of a Recession Grad: A birthday without indulgence

by: Niki Payne

It’s a Friday night, just two days before my 24th birthday, and I couldn’t be more depressed. I just received a reminder from one of my four student loan lenders reminding me that my loan would be entering repayment status on Dec. 22. My heart sank. I’m running out of time and my paycheck isn’t getting any bigger. I am determined to find a way to monetize my skills and thereby increase my earning potential. There doesn’t seem to be any other way out of this pickle other than to work harder and make more money.

Taking action

I recently applied to the Chicago School of Professional Psychology as a last-ditch attempt to buy myself more time and to enhance, not just my earning potential but my credibility as a writer and entrepreneur through the pursuit of a certificate degree in consumer psychology. It’s looking very likely that I’ll get accepted into the six month online program based on my college GPA and my current work experience. All I have left to do at this stage is send in my $25 application fee and write a 500 word statement of purpose (which should be a breeze). Once I get accepted, I’ll have to file the FAFSA and apply for yet another student loan…. I’ll cross that bridge when I get to it. I want to focus on getting accepted first.

In my last blog entry, I mentioned that it was time to enlist the aid of a professional. So I shared my story, and my fears, with Unlock Your Wealth Radio who gladly took me on as sort of a case study, or protegé if you will. Over the next 13 weeks, Heather Wagenhals, the show’s host, will be offering me weekly financial coaching as long as I’m willing to openly discuss this treacherous journey I’m about to embark on for her radio show. I have three months to combine my debt and somehow manage to increase my earning potential all for the sake of being able to afford rent because my brother and I will be homeless. For the time being, my brother is staying with his girlfriend (at least he has that to look forward to; I’ve got no one), and I am house sitting for a friend’s dad who went out town until the school year is over. By the year’s end, we’re pretty much on our own.

At this point in my life, I figured what have I got to lose? I only have everything to gain from something like this. Without hesitating a moment , I gladly agreed to share with others my journey towards financial independence, something I’ve been striving for since I first left home for college five years ago.

Financial coaching

During my first coaching session last week, I was asked to start collecting all my receipts. “Do not judge, just spend as you normally do,” she says to me. So I’ve been keeping my receipts and other documentation of my daily expenses in an envelope I carry in my purse for more than a week now. Everyday, it keeps getting thicker and thicker, and quite frankly, it stresses me out.

Just a couple of days ago, I had to get emergency repair work done on my car because I hydroplaned on the freeway while it was raining! Thank heavens I was driving slow since I was completely aware that I was driving with bald tires that should have been replaced a year ago. I spent $780 on new tires, a much-needed wheel alignment, an oil change, a transmission flush and other related maintenance that was standard for my car at the 45,000 mile mark. (”You need a guy to go with you next time,” my friend tells me).

During my coaching session this week, I sent Heather all my financial statements so she could make an adequate assessment of my current finances. “We have a lot of work to do with you,” she said to me when I told her I cashed out my 401(k) and no longer had a retirement plan in place.

She also made a rather radical suggestion that I would have never thought to do. She advised me to max out my allowances on my paycheck so that I can get the most money out of my paycheck. Though I like the idea of getting more out of my paycheck, I thought this suggestion was absolutely absurd considering I now owe the United States Treasury about $3000 in back taxes (don’t ask).

“It’s better to break even or owe at the end of the year than it is to get a refund check,” she said to me. If only she could have seen the perplexed look on my face. You’ve got to be kidding me, I said to myself. I’m sure this might be true assuming you can save enough money at the end of the year to pay taxes.

Last year, when I was working as an independent contractor for a start-up company, I was acutely aware that I would be paying taxes as the end of the year so I set aside about 20 percent of every paycheck and put it into my savings account so that I’d have enough to pay my taxes. (I actually used to be very financially savvy with my three years of banking experience, ironically). I actually managed to successfully save about $3000 to pay my taxes. But then the economy tanked and my contracted employer didn’t really have much for me to do. With less to do, I worked fewer hours, and by the end of 2008, I had no choice but to tap into my  tax money.

By the start of 2009, I was basically an unemployed freelance writer writing for literally pennies as a singles columnist. With so much time to focus on my dream career as a columnist, I was temporarily at my peak. In February, I was actually listed as the No. 1 Relationship Examiner for the month. But then they recruited more writers and I went down to No. 4 the following month until eventually, I was drowned out by a sea of other freelance writers. When I got a “real” job, my writing career pretty much slowed down with my constant struggles to survive and keep myself afloat amid a sea of rough, choppy waters.

Hanging by a thread

Submerged in a sea of debt, I still manage to hang on to the one thing that keeps this little-engine-that-could running – hope. Without hope, I would have died inside a long time ago. I hope for a better life and will do whatever it takes to have the life I want. I know in my heart that the power of wealth is within me. All I need is a little push in the right direction, and I can pretty much take it from there.

This year, my birthday will be without indulgence. I pledged to Heather that I would not incur any further debt this weekend. It’s quite the challenge considering I’m the only person who will treat myself to a decent birthday. My family life is severely warped, my best friend lives in San Francisco, and I don’t even have a significant other to consider as my family. So, of course, I like to do what every woman likes to do when she’s sad – engage in retail therapy. I want to get a hair cut, get my nails done, buy new shoes, a new outfit, new earrings. I want to look and feel like money. But wait…

I AM money, and the power of wealth is within me. With wealth will come independence. And with independence, I have full faith that everything else in my life will somehow fall into place.

All I want for my birthday is freedom – financial freedom.