I Was Broke. Now I'm Not!

I know that many times, we feel like we need to wear the mask. The one that says everything is perfect, nothing ever goes wrong, and I have never struggled with anything.

It seems that when it comes to finances, most of us want to wear a mask. The mask that says "We are doing fine." One that says, "I am doing better than you are." Maybe one that says, "I have a lot of money. More than you. No, WAY more than you."

The mask that says, "I am doing well financially." even though one is financed up to their eyeballs.

Ultimately there is the truth. The truth is that over 70% of Americans are living paycheck-to-paycheck. If they miss ONE paycheck, they will fall behind on one or more bills. The truth is that somewhere around 20% of Americans are not only living paycheck-to-paycheck, but they are already behind on one or more bills.

The truth trumps the mask every single time, and I love it when people get real.

When they say, "I HAVE HAD ENOUGH!", and embark on the quest to take control of their finances. When they realize that they CAN win with their money, and they seek knowledge on how to do so. I love it when they get so real that they invite their friends, family, co-workers, and neighbors over to the house for dinner and then show them how to put together a budget that works.

I LOVE IT when that happens!

There was a day that I felt like I needed to show everyone that I was doing really well financially, but the reality was that I had an average bank balance of $4.13. I dropped the pose (PRIDE), said "I STINK at this!", and I went and got help.

Dave Ramsey absolutely rocked my world with his 7 Baby Steps. You can click HERE to print your own copy!

Are you being real about your financial situation?

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Funny, but not funny cartoon from CartoonStock.com - The TRUTH about pay raises at many corporations.

"That $20 paycheck deduction is for new benefits - like the $10 raise you just got."

ARGH. You can't put enough spin on that statement to make it look pretty!

Has anyone experienced a similar situation where you received a "raise" and then an increase in benefit costs that completely vaporized the raise and then some?

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I had a blast teaching the Financial Learning Experience in Orlando, Florida at C3 Church! I was blown away by the hospitality shown to me by their pastor Byron Bledsoe and executive pastor Barry Leathers. Totally blown away.

They were completely prepared for the FLE, and the crowd showed up ready to learn. It was awesome!

C3 Church - you guys rocked! I can't wait to hear the stories of debt freedom and dreams that are achieved all because you guys put together a plan to accomplish EXACTLY what you have been put on this earth to do.

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I went to my daughter's school to eat lunch with her on Wednesday. I was hoping for pizza, but instead it was chicken strips. I thought the chicken strips were good - especially when coated with honey mustard sauce. I was VERY disappointed when I saw that the side item was canned peas. Most people had received lima beans (which I am able to stomach - a little), but the kitchen ran out of lima beans. They ended up serving the rest of us the canned peas.

Of the twenty or so kids at my daughter's cafeteria table, only one ate their peas. I managed to eat one bite. It was AWFUL!

Many people believe that preparing a budget and living by it is the equivalent of eating canned peas. They might even try it a little bit, but they will hold their nose while doing so.

Budgeting does not have to be that way. It is nothing more than telling your money what to do BEFORE the money ever shows up! When you have a written plan for your money, it has a much better chance of going exactly where you wanted it to go.

Think of it this way. Would you hold a birthday party for your child without ensuring there was enough cake for each of their friends? No way! Would you invite guests over for dinner and wait until they were there to think about what you should prepare for them? Never!

So why would one wait until all of the bills show up before even thinking about how the money should be spent?

You can get started with your own budget TODAY by visiting the TOOLS page. They are FREE! You can prepare a weekly/bi-weekly/bi-monthly budget with the Weekly Budget Form (Excel). If you have enough saved up in the bank to pay all of your bills once a month or you are paid once each month, you can use the Monthly Budget Form (Excel) budget.

Have a blast as you make your money behave! Take it from a huge reformed spendaholic, a budget is THE WAY that Jenn and I won with our money. It is not the equivalent of canned peas.

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I am BLOWN AWAY at the fact that as of May 4, 2008, I Was Broke. Now I'm Not. cleared 1,000 books sold.

I am stunned, humbled, and honored. One of my life goals was to write a book and sell at least one copy. I thought that maybe I could talk my mom into buying a copy if that was what it took to sell one. Moms always want to see their kid's achieve their dreams.

But for some reason people have bought the book.

Here are some of the reviews written by some different folks who bought the book:

* Kem Meyer wrote a review HERE.
* Rob Singleton gave a copy away HERE to the person who shared the funniest/dumbest financial decision they ever made. Be sure to read all of the comments below that post. It was incredible!
* Lori Capace shared her thoughts HERE.
* Paul Neel wrote a post HERE.

To everyone who has purchased a book - THANK YOU! Thank you for investing in this crusade to see people accomplish far more than they ever thought possible with their personal finances.

Why am I so passionate about this? Because when people are financially free, they are much more likely to do EXACTLY what they have been put on this earth to do - regardless of the income potential!

I am honored, and I am more FIRED UP than I have ever been!

Thank you.
Joe

Let me introduce you to the Virginia College Savings Plan.



This 529 plan is managed by one of my favorite mutual fund companies - American Funds.

What I Like About The Virginia College Savings Plan
* CollegeAmerica. This is the partnership between the Virginia College Savings Plan and American Funds. You can read about it in detail HERE. I really like American Funds' mutual fund offerings.
* Choices. American Funds offers 22 different mutual funds as part of the CollegeAmerica plan. You can also choose to put together a selection of the 22 different mutual funds and take an age-based approach toward your investment.
* Low Initial Investment Requirement. You only need $250 to get started with the CollegeAmerica plan. That makes this available to everyone!
* State Tax Deduction for Virginia Taxpayers. If you are a Virginia resident and contribute to this fund, you are most likely eligible to deduct those contributions from your state taxes! Virginia residents are allowed to deduct up to $2,000 PER ACCOUNT per year with unlimited carryforwards. NICE!

What I Would Like To See Improved
* This is a general improvement that I would like to see with all 529 plans, not just the Virginia College Savings Plan. I would really like to see contributions to ANY state's plan be DEDUCTIBLE from one's own state taxes. I know. I know. I am dreaming again, BUT it would really provide a huge incentive for states to have a great and competitive 529 plan.

Read reviews of other state 529 college savings plans HERE.

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During each part of this weekly series, I will be looking at a specific mutual fund company.

Today's company is Fidelity Investments.



Fidelity Investments is a very large full-service investment company. They manage over three hundred mutual funds and offer a variety of services. Some of the services they provide include retirement plan management and discount brokerage services.

What I Like About Fidelity Investments
* Options. Lots of them. With over three hundred mutual fund options, I can be certain that I can always find a fund that suits my investment goals.
* Target Retirement Funds. Along with Vanguard, Fidelity is a leading provider of target retirement funds. They call their target retirement funds "Freedom Funds". Target retirement funds are mutual funds that have a set retirement year attached to them. As the targeted retirement year approaches, the fund portfolio will be automatically shifted toward a more conservative mix. This is a really nice feature for those people who do not want to actively manage their retirement savings.
* Full-service Investment Company. I like companies that are well-rounded and can meet all of my personal investment needs.
* On-Line Capability. I have a 401(k) from a previous employer that I have left with Fidelity. I have left it with Fidelity for a variety of reasons, but one reason is that I really like their on-line capabilities. With a single click, I can see the total value of my investments, the individual return of each mutual fund, and the year-to-date performance of my overall portfolio. I like that (but only when it tells me double-digit POSITIVE growth!).

What I Would Like To See Improved At Fidelity Investments
* Lower "initial investment required". Most of Fidelity's funds require an initial investment of $2,500. This really blocks out beginning investors. This requirement is usually removed when investing in mutual funds via a company 401(k), 403(b), or other retirement plan. However, there are a lot of people who do not have access to such a company retirement plan, and it would be very helpful if Fidelity lowered the initial investment required to $250 (like American Funds).

Fidelity Investment Mutual Funds That I Own
* ZERO.

Fidelity Investment Mutual Funds That I Am Considering Purchasing
* Fidelity Magellan Fund [Ticker: FMAGX] It has been around since 1963, has generated a 18.09% average annual return, and has a lower expense ratio (0.54%).

What Fidelity Mutual Funds do you own?

Read about the other mutual fund companies reviewed as part of the Mutual Fund Series HERE.

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Well, this weekend the family ventured out into the wild world of tent camping at a state park in the foothills of the mountains.

It was a very cheap weekend, AND we had a blast!

Cost Breakdown
* Camp Site (2 nights): $45.10
* Food (no extra cost - we brought our regular groceries): $0.00
* Stupid Tax (left our pan at home): $14.95

Total Cost: $60.05

We had an AWESOME time. Here are the highlights.

* We put up the tent. Our tent attracts rain. It POURED both nights. BUT both days were nice and sunny.
* We saw a copperhead snake up close. That always makes me feel comfortable.
* I ate three smores in one sitting and then proceeded to cook another dozen marshmallows. INCREDIBLE!
* We saw a pileated woodpecker up close. Beautiful.
* I got to spend time with my wife and daughter without the computer, internet access, or my cell phone.
* We all got our first sunburns of the season.
* There is nothing like breakfast cooked over a campfire. Bacon sizzling. Eggs frying. 100% purple grape juice. Yum.
* Melea started the fire herself with matches. I taught her how to responsibly use matches. I hope she remembers all of the rules.
* I had to make an emergency run to a Dollar General store for a frying pan, clothesline, and clothes pins. I need to go to Dollar General more often! They really have good prices, and the store was really neat, organized nicely, and clean.
* I caught ZERO fish. First time I have been skunked all year. I don't like that.

I need to put camping on the calendar more often!

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I love seeing how others are using the Pay-Off and Savings Spectaculars to track their own financial progress!

Derek has a cool twist on how he is using his Home Pay-Off Spectacular.

He has some savings that he is willing to commit toward the mortgage balance (PINK). When the amount owed on the house equals that savings amount, he is going to send the savings to the mortgage to kill it off.



Way to go, Derek! Click HERE to read about Derek's Home Pay-Off Spectacular.

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to announce that the Sangl Family "Economic Stimulus Payment" from the IRS has arrived in our bank account. I am thrilled, excited, and, yes, PUMPED to see it show up the bank. You see, I just could not wait to receive this money! I needed this money. I was desperate for this money. I needed it to do my part to stimulate the economy.

NOT!

Because Jenn and I save for (1) emergency expenses, (2) KNOWN, upcoming expenses, and (3) our dreams, when we receive "found money" like this it is truly a blessing - not just meeting some immediate, pressing need. What are we going to do with our ESP? We are putting it into savings to fund a dream.

Boring I know.

But perhaps I should tell you how things like this used to go down. We would know that we were going to get a tax refund, so we would buy things and say, "We will pay for it with our tax refund." By the time the tax refund showed up, we had already spent it seven times over. This left us frustrated, angry, and with a pile of debt. Just writing about it makes me mad all over again. I used to be such a horrible manager of my money.

Never again.

If you are wondering what to do with your ESP, check out the "Best Utilize Your Tax Refund" series.

Introduction
This couple has been married for many years and have one child. They have HAD IT with their debt and have been marching toward debt freedom since November 2007. They are THROUGH with credit cards.

What went well this month …
We changed car and homeowner's insurance companies saving us $672 a year! UNBELIEVABLE!

What were the challenges/struggles this month …
Well, we are so frustrated! We have called our credit card companies, and they are still not wanting to reduce interest rates. We have applied for transfers and can't get them right now b/c our balances are too high. So we are really focusing on paying these off even faster so we can tell these crooks to TAKE A HIKE! We are still calling and harassing them trying to get reduced rates - 1% here and there but it is lower than the previous month.

Updated Debt Freedom Date …


Our car balance is higher than it has been because we have the actual balance now and not a guess. Also, the Citi card stayed the same as it was a balance transfer and the Discover went up a little for the balance transfer fee.

Month By Month Progress …


Sangl Says …
When you have a pile of debt, it can take a little time to get the Debt Freedom March fully on track with a full head of steam! This is exactly what Couple #3 is experiencing. They are getting their debt balances organized and working hard to improve the interest rates on the debt. In just a couple of months, all of the restructuring will be complete, and I can not WAIT to see what happens to this debt then!

Readers …
As we all know, this is tough stuff! It is even harder when you put all of your financial information out there for the world to see. Will you encourage Couple #3 by leaving them a note in the "comments" section?

My book, I Was Broke. Now I'm Not, is available via AMAZON.COM, BORDERS.COM, and PAYPAL. You can read the Introduction HERE.

Introduction
This couple is THROUGH with debt! It has now been eight months since they announced that they were breaking up with debt. They have agreed to share their Debt Freedom March with everyone in the hopes to inspire others to do the same!

Here is this month's update.

What went well this month …
The whole process went well. We were able to pay more toward Vehicle 1, which is going to help us pay it off faster. We hope to keep doubling our payments, and pay it off eight months early. We kept to the cash envelopes and did not accumulate any new debt. Overall, it was a terrific month!!

Challenges and struggles this month …
We are doing so well now and we really don't face any challenges any more. We know what we need to do and we just stick with the plan.

Here is their updated Debt Freedom Date calculation …


Month By Month Progress …


Sangl Says …
Couple #2 has been after their debt for just eight months, but look at how much they have gained! They have cut their "Months Until Debt Freedom" by nearly fourteen months! They have paid off $18,000 in debt! They could have used that money to go on some serious vacations, buy a new vehicle, or other fun item, but they have chosen to live this way for just a little while so that they can break the cycle of debt.

Think about what life will be looking like for Couple #2 in just a short time when they achieve debt freedom! They will free up $1,775 in monthly payments. That is TAKE-HOME pay! How much money does one have to earn to take home $1,775? About $2,500! So, Couple #2 is going to be able to give themselves the equivalent of a $30,000/year raise. WOW!

Readers …
If you dumped all of your debt (and its associated debt payments), how much of a raise could you give yourself?

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Introduction
Couple #1 is THROUGH with debt! They have been married for many years and have two children. They are now EIGHT months into their march. How time flies!

What went well this month …
We are on plan!

What were the challenges/struggles this month …
I had to pay a large bill, but no sweat I had my emergency fund.

Updated Debt Freedom Date


Month By Month Progress


Sangl Says …
Couple #1 has paid off nearly $15,000 in debt in the past eight months. That is nearly $2,000 PER MONTH! Unbelievable. In eight months, their Debt Freedom Date has dropped by TWELVE months. AWESOME!

Readers …
It is amazing to see what happens when a written plan is put together AND followed. You CAN do this too! Visit the free TOOLS page by clicking "TOOLS" , and get started on your own Debt Freedom March!

You can read about my own Debt Freedom March and learn exactly how I did it in my recently released book, I Was Broke. Now I'm Not.. It is available via PayPal, Amazon.com, or Borders.com. You can read the Introduction HERE.

Every month there will be an update of Joe & Jenn's Home Pay-Off Spectacular!

Here's this month's update!

Total Squares: 2,426

Paid-For Squares: WAS: 735 IS: 739

Squares Remaining: WAS: 1691 IS: 1687

% of House Owned By The Sangl's: WAS: 30.3% IS: 30.5%

% of House Owned By Wells Fargo: WAS: 69.7% IS: 69.5%

Here is the updated "Sangl Home Pay-Off Spectacular" (Click on the picture to view the larger version)



We now own the entire south wall! For one more month, we remained on a slower path of paying off the mortgage as we prepare for known, upcoming expenses.

Frankly, it just plain stinks to slow down for a few months on this thing, but in just a little while we will be back attacking this mortgage in a way we never have before! Even though it is not fun to slow down on the mortgage payoff, it would be WAY WORSE to be slaughtering the mortgage and have a future expense derail our efforts! So Jenn and I have slowed down just for a few months to position ourselves in a way that will enable us to CRUSH this mortgage in a HUGE way.

How are you doing on YOUR house payoff spectacular? Don't have one? Get yours here => Pay Off Spectacular - House.

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If you are moving or have recently moved, you can get a "10% Off" coupon for a purchase up to $5,000! There are a few limitations on what you can include in the purchase, but this coupon can really help!



Jenn and I used this coupon when we were in heavy "update the house" mode last year.

Get your Lowe's "10% Off" coupon HERE.



NOTE: I figured that if Lowe's had a 10% Off deal, then Home Depot would too. A very short search showed that YES, Home Depot also has a very similar deal. One can get a "10% Off" coupon from Home Depot for a purchase up to $2,000 by registering at the Home Depot moving site. Get your Home Depot "10% Off" coupon HERE.

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Today, I will review Pennsylvania's 529 plan - the PA "529 Investment Plan".



This 529 program is managed by Upromise Investments and the investments are managed by Vanguard [I have reviewed Vanguard HERE].

What I Like About The PA 529 Investment Plan
* Investment Management By Vanguard. I really like Vanguard's performance and low expense ratios.
* Upromise Linked. You can link your Upromise qualifying purchases to this 529 which can help boost your savings.
* Tax Deduction For PA Taxpayers. From the PA 529 Investment Plan website: "For each beneficiary, PA residents may deduct up to $12,000 in contributions annually from their Pennsylvania state taxable income ($24,000 if married filing jointly, provided that each spouse has taxable income of $12,000)." If you have two children and have established two separate 529 accounts, then you can take an even larger deduction!
* Investment Options. There are three age-based options and ten individual investment portfolio options available. I like choices!

What I Would Like To See Improved
* This is a general improvement that I would like to see with all 529 plans, not just the PA 529 Investment Plan. I would like to see an option that allows one to withdraw money from the 529 plan penalty-free if one has paid for a child's college and there is no need for the college savings plan any longer. Right now, there is a 10% federal penalty tax if one pulls the money out of any 529 plan for anything other than qualified educational expenses. I would like to at least have the option to roll any extra money over to a Roth IRA - free of penalties.

Read reviews of other state 529 college savings plans HERE.

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Money is incredibly important. It has the ability to impact many areas of my life. Yet, I clearly understand that money will not solve all of life's problems. Friends will still get sick. Loved ones will still pass on. Friendships can get complicated. Misunderstandings will happen.

Sound money management will not solve all of life's problems, BUT it can really reduce them.

I have found that the lack of money has caused simple problems to become HUGE interruptions to my life. When I was broke, a car repair had the ability to completely derail the family finances. When I was mismanaging all of our money, a sickness would crush the family economy and introduce a pile of stress into my life.

On the other hand, I have found that having money has enabled me to help others in times of need. I have found that having money has reduced a transmission failure into a mere nuisance. I have found that it has removed a lot of fierce discussions between Jenn and me. We now just fiercely debate really cool topics like house projects!

Sound money management has not solved all of my life's problems, but it has really made me aware of just how blessed I am! I am NEVER going back to my old way of mismanaging money and running with an average bank balance of $4.13!

NEVER.

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My book, I Was Broke. Now I'm Not, which tells my story and teaches the tools I used to win financially was released in January. It is available via AMAZON.COM, BORDERS.COM, and PAYPAL. You can read the Introduction HERE.

In this series, I will be reviewing 529 college saving plans offered by different states.

It might be helpful to first review what a 529 plan is. A 529 plan is a tax-advantaged college savings plan that is named for the section of tax code that outlines how they may operate - Section 529.

Today's 529 Plan is South Carolina's plan - Future Scholar.



The South Carolina Future Scholar 529 College Savings Plan is managed by Columbia Management (a division of Bank of America).

What I Like About The Future Scholar Plan
* Columbia Management. I like some of the funds that are offered by Columbia Management.
* Tax Deduction. Although there are some restrictions, most South Carolina residents can deduct their Future Scholar contributions from their SC state tax return!
* Self-Directed Option. Through the "Direct Program" SC residents can manage their own investments, and if one chooses to do so the "load" (sales charge) is $0! If one chooses to invest in the Future Scholar plan with the help of an advisor, there will be a sales charge of around 5%. The sales charge should not deter someone from investing for college however! If you are really intimidated by investing and mutual funds, it would be worth the sales charge to ensure you are getting good advice!
* Learning Center. The Future Scholar plan offers a great site to help one understand and plan for education costs. It is located HERE.
* Investment Options. The Future Scholar plan offers three investment options.
1. Automatic Allocation Choice - This option allows one to "set it and forget it" in regard to adjusting the portfolio. It is really aggressive when the beneficiary is very young and moves steadily to become more stable as the child approaches college time.
2. Asset Allocation Choice - This option allows one to make a more specific decision on how one's investments are allocated. This requires a more hands-on approach if one wants to adjust the portfolio.
3. Single Fund Portfolio - This option allows one to invest in specific mutual funds offered via Columbia Funds.

What I Would Like To See Improved
* Expense Ratios. I would love to see the expense ratio of the funds reduced. The average expense ratio is around 1.40% to 1.50%. This is an every year fee and erodes the growth of the investment.

My daughter's college savings is in the SC 529 Future Scholar plan. The tax benefit was the final straw for me to move the investment from another state's plan to the SC plan.

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The is the latest installment in the weekly series - The Mutual Fund Series.

During each part of this weekly series, I will be looking at a specific mutual fund company.

Today's company is American Funds.



American Funds has been around since 1931 and is one of the largest mutual fund companies in the world with over $900 Billion in investments and over 40,000,000 shareholder accounts. American Funds is owned by a larger company - The Capital Group Companies.

What I Like About American Funds
* Great performance long-term. The track record of American Funds has been terrific!
* Long-Term Approach. They use a team-approach to manage their mutual funds. They manage money extremely well in down markets. They have absorbed hits like the 1987 crash and the bear market of the early 70s and have performed well.
* Experience. Their advisors have an average of 22 years of experience with American Funds. That is unheard of in today's world!
* Low Initial Investment Requirement. Most American Fund mutual fund investments can be started with just $250 and a commitment to invest at least $25/month. That is great! It allows anyone to start investing!
* Low Expense Ratios. They have low expense ratios when compared to most mutual funds. They are higher than Vanguard, but are about half of comparable mutual funds.
* Tools. They have a nice retirement planning website HERE. I really like their "quick analysis" retirement planning calculator HERE. It told me good news - that they believe I can retire someday! What does it tell you? You can also check out my "retirement nest-egg required" calculator (located HERE).

What I Would Like To See Improved At American Funds
* Sales Charges. To purchase American Funds directly, one has to be savvy with on-line trading websites or else one will have to work through an advisor. This means that there will be a "load" when one purchases American Fund mutual funds through a broker. If one is just starting out, it could mean that one will have to pay up to 5.75% for all new money invested. This load drops as more money is held in one's account, but the lower charges start after one achieves six figures in their account.

American Fund Mutual Funds I Own
I currently own six American Fund mutual funds.

* AMCAP Fund A [Ticker: AMCPX]
* Capital World Growth and Income Fund [Ticker: CWGIX]
* Fundamental Investors A [Ticker: ANCFX]
* New World Fund [Ticker: NEWFX]
* The Growth Fund of America [Ticker: AGTHX]
* The Investment Company of America [Ticker: AIVSX]

American Fund Mutual Funds That I Am Considering Purchasing
* The New Economy Fund [Ticker: ANEFX] I like the growth potential of the markets this fund will be investing in.
* EuroPacific Growth Fund [Ticker: AEPGX] Same as The New Economy Fund - I really like the potential of the markets this fund will be investing in.

What American Fund mutual funds do you own? Do you have any American Fund mutual funds that you really like? Any you really dislike?

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Someone sent this picture to me, and I thought it was very appropriate!



I am ready for gas prices to go DOWN for once!

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You may have caught in yesterday's post that I absorbed a major expense like the transmission going on my GMC truck. Well, that happened this month.

So here is the story.

I bought this truck from my brother nearly seven years ago. He had purchased it new. Early on, I noticed that the automatic transmission would shift hard whenever I drove the truck over long distances. Once it had cooled, it would go back to shiftly nice and smooth.

So way back in 2002, I took it in to my trusted car repair guy, and he said that I should just drive it until it broke.

So I did. It took nearly seven years for it to fail. I won that gamble!

I took it in to my new trusted car repair guy, and he diagnosed it as "Dead On Arrival". Upon opening the transmission, he could not believe that I was able to even put the car in reverse.

The cost? $1,953.35. That included replacing a broken door handle, an oil change, and some other small stuff.

Man, am I glad I have a savings account for just this sort of stuff! In the old days, I would have been pulling out the credit card.

Maybe I should ask you the question. Do you have money saved up for a car repair?

I am not a prophet, but I can guarantee you that your car WILL break down. It may be today. It may be ten years from now. But something is going to break. When it does, will it crush your finances or will it just be an annoyance that you have saved for?

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My book about how Jenn and I broke free of being broke with $4.13 in the bank was released January 20. It is titled, I Was Broke. Now I'm Not, and it is available via AMAZON.COM, BORDERS.COM, and PAYPAL. You can read the Introduction HERE.

There was a day that I was completely broke and had an average bank balance of $4.13. It was awful living with no margin. Anytime an issue cropped up, we had a problem AND a money problem.

One of the best things that Jenn and I did was save money into an emergency fund. What can the money be spent on? I am not sure … I have NEVER spent the money! Seriously, in over five years of having an emergency fund, we have never spent the money.

Did I have an emergency? Well, others might have called them emergencies, but the Sangl household did not. Let me list just a few of the events that have occurred.

* Jenn had major surgery that blew up the $2,300 insurance deductible.
* Ten months later, Jenn had to have the surgery AGAIN. AND it was in another deductible year.
* Power steering went out on the car.
* Transmission went out on the truck.
* The dryer died.
* Huge leaky roof problem.
* I had hernia surgery that blew up the $3,000 insurance deductible.

The Sangl household did not use the emergency fund for ANY of the above expenses. Why? Because they are not really emergencies!!!

Think about it this way.

* Is it a surprise that humans get sick and need surgery? NOPE.
* Is it a surprise that cars break down? NOPE.
* Is it a surprise that an appliance breaks? NOPE.
* Is it a surprise that roofs will leak? NOPE.

When I really think about it, I am not sure we will ever use the emergency fund but it is incredible knowing that it is there!

I wonder if HAVING an emergency fund in place scares off emergencies?

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Observed today on a sticker - “I know the difference between right and wrong, but I choose to ignore it.”

When it comes to finances, I have learned a lot about what is right and wrong. I hope I do not EVER choose to ignore it!

I have learned that:

* Saving money is right and that spending all of my money is wrong
* Having an emergency fund for emergencies is right and using a credit card for emergencies is wrong
* Giving to worthy causes and individuals is right and not giving at all is dead wrong
* Paying cash for purchases is right and paying on payments is wrong
* Including your spouse in the budgeting process is right and not including them is wrong
* Calling our money “ours” is right and our money “mine” and “yours” is wrong
* Working together as husband and wife toward common financial goals is right and working separately is wrong
* Having medical and life insurance is right and not having this insurance is wrong
* Dealing with one's financial situation is right and just throwing up one's hands and declaring bankruptcy is wrong
* Developing a plan and following it is right and handing one's financial mess over to rip-off credit counseling without changing one's spending behavior is wrong
* Facing one's finances is right and choosing to ignore it is plain wrong

I would love to hear some other truths you have learned as you have dealt with your finances!

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I had a blast teaching the Financial Learning Experience at Oak Leaf Church last night in Cartersville, GA!



Mike L… (You try to spell it!), pastor of Oak Leaf, was there. Lots of people were there.

I went without a microphone which allowed me to completely yell as loud as I wanted to. It was awesome!

I get so FIRED UP about teaching these classes because the stuff I teach is EXACTLY what Jenn and I used to win financially! Every single tool that is available via the "TOOLS" page are tools that we use TO THIS DAY to manage our money. Guess what? It works!!!! And the great thing about teaching it to others is that it is so simple, that ANYONE can do this! If I could figure it out, I KNOW you can do this!

So, Cartersville crew, THANK YOU for attending the FLE last night. I can't wait to hear the stories of saved money, debt freedom, and having a written plan that works. But more than anything, I can't wait to hear your stories of being able to fire yourself from your J.O.B. and being able to go do EXACTLY what you have been put on this earth to do - regardless of the income potential!

If you have any questions, remember you can click on the "Email Joe HERE" link on the sidebar. Thanks!

COMING UP THIS WEEKEND - I will be at Fusion Church in Suwanee, GA THIS SUNDAY, April 20th, speaking during the morning service and then teaching the Financial Learning Experience at 3:00PM. Childcare is provided. I would love to see you there!


PODCAST: Have you checked out the weekly podcast lately? To subscribe to the podcast via iTunes, click HERE. If you do not have iTunes, you can download a mp3 by clicking HERE.

During each part of this weekly series, I will be looking at a specific mutual fund company.

Today's company is The Vanguard Group.

Vanguard is one of the largest mutual fund companies in the world. Based in Valley Forge, Pennsylvania, they currently manage $1.3 TRILLION dollars for their clients and offer 150 domestic funds and additional funds in international markets.

What I Like About Vanguard

* Target Retirement Funds. Vanguard was one of the first companies to offer target retirement funds. It is a fantastic idea to address the complete confusion that some people feel when making retirement mutual fund choices. All one has to do is select their target retirement date and Vanguard will automatically shift the mutual fund to become less risky/volatile as one approaches retirement. It really helps address the need to rebalance one's portfolio.
* Very low annual expense ratios. Vanguard is client-owned. This means that the company is owned by those who invest with the company. This results in Vanguard having the lowest management costs in the mutual fund industry. The average expense ratio for their mutual funds is 0.20% (the industry averages around 1.50%). This means that I get to keep more of the annual growth of my money.
* Lots of mutual fund options. With over 150 domestic funds and additional funds in the international markets, I have a lot of choice. I like choices.
* Full-service investment company. Vanguard offers mutual funds, IRAs, Roth IRAs, 401(k) rollovers, 529s, ESAs, and brokerage services.

What I Would Like To See Improved At Vanguard
* Lower "initial investment requirement". Most of Vanguard's funds require an initial investment of at least $3,000. This rules out a lot of beginning investors. Of course, this is not a problem when someone is investing within the bounds of their company 401(k), 403(b), or other retirement plan where minimum investment requirements are usually removed.

Vanguard Mutual Funds I Own
* I currently own one Vanguard mutual fund - Vanguard Institutional Index Fund [Ticker: VINIX]. I own this mutual fund as part of a 401(k). You can see other mutual funds that I currently own by clicking HERE.
* This mutual fund has a minimum investment requirement of $5,000,000. The reason that I am able to own shares of this mutual fund is because it is offered as part of the company 401(k) plan.
* It is a large-cap blend fund.

Vanguard Mutual Funds That I Am Considering Purchasing
* Vanguard Target Retirement 2040 Fund [Ticker: VFORX] This fund will automatically rebalance for me as I approach retirement. I chose the 2040 fund because that is a target retirement year for me. Vanguard has Target Retirement funds for every five year period from year 2005 to 2050.
* Vanguard 500 Index Fund Investor Shares [Ticker: VFINX] This fund tracks the performance of the S&P 500. It has very low expense ratios. It does need $3,000 to begin an individual investment.

What Vanguard funds do you own? Do you have any Vanguard funds that you really like? Dislike?

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It is so important to continue learning about personal finances. I thought I would share who I am learning about finances from right now.

* Clark Howard - his daily radio show
* Dave Ramsey - his daily radio show (I've read all of his books)
* CNN Money - I love the web site
* Those I counsel - I learn so much from the people I meet with!
* Mary Hunt - Her website (she has good books too!)
* Those who write in questions/comments through the website - I love helping others work through their financial decisions!

That is how I am learning right now.

Who should I be adding to the list?

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Student loans. They are so nice to have around. NOT!

I remember inviting this gal named Sallie Mae over to my house and she did not leave for 8.5 years!

After 8.5 years, I decided that it was time to break up with Sallie Mae. She was not really pleased about it.

Anyway, about four years into the pay-off, I received a letter in the mail that said …

"Congratulations. Because you have made 48 consecutive on-time payments, your interest rate has been reduced by 2%!"

That was awesome!

If you have student loans, did you know that YOU could receive the same interest rate deduction?

In fact, I checked out several of the larger Student Loan companies to find out their current policies. Here is what I found.

* Sallie Mae - If you make your first 33 monthly payments on time, you will receive a check for 3.3% of the amount borrowed! If you opt to have the 3.3% credit applied to your loan amount (I would), it will save about 5.35% of the amount borrowed due to interest savings! Click HERE for Sallie Mae's Cash Back details.
* SC Student Loan - Through their Quarterback Program, borrowers can automatically receive a 0.25% interest rate reduction for allowing monthly drafts for your payments. Through their Best Interest Program, after making 36 consecutive on time payments, borrowers will receive a 2% interest rate reduction. If you make all of your payments on time, then the last portion of your loan will be forgiven - up to $750! Read all about SC SLC's benefits HERE.
* Wachovia Student Loan - They will provide a 1% rebate when loan repayment begins. Another 1% rebate after 12 months of consecutive on time payments. Another 1.5% rebate after making 24 on time payments! You can read about that HERE.

The common thread through all of this is ON TIME PAYMENTS!!!

Have fun saving money! By the way, I love the automatic draft feature. I use automated drafts for all of my investments. It really helps me stay on the wagon (it is one of my wagon staplers!).

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At NewSpring Church, we are able to provide FREE one-on-one financial counseling for hundreds of people each year. I have a crew of awesome volunteer financial counselors who help people develop a plan that works! I love it!

One thing we have all seen is the fact that over HALF of the people that we meet with no longer have a home phone. They have dumped the home phone and are using their cell phones instead.

For those who still have a home phone, I am seeing a cost ranging from $35 to $50/month.

Let's think about this in a larger way.

$50/month = $600/year

How much money do you need to earn to bring home $600? Think about it. If you want to bring home $600 extra in your paycheck, you will need to earn something like $900.

So … By getting rid of the home phone, you are giving yourself a $900/year raise!

I LOVE giving myself pay raises!

Have you dumped your home phone? Select your answer in the survey below!

Have you dumped your home phone?

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I was traveling to teach the Financial Freedom Experience this weekend, and I heard a radio commercial about make-up.

The voice-over person said, "Discover how our make-up can change your life."

Really? It can change my life?

Wow. I am going to go order a bucket of it now.

Readers: What other outrageous claims have you heard as part of product/service marketing?

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Introduction
This couple has been married for many years and have one child. They have HAD IT with their debt and have been marching toward debt freedom since November 2007. They are THROUGH with credit cards.

What went well this month …
We transferred part of our Bank of America balance to the "Discover - 2" card at a much lower interest rate. We are trying to eliminate the Bank of America card due to the fact that they are increasing interest rates, even though they have not "attacked" us yet. We also transferred the 29.9% VISA to a 0% Citi Card. We are also able to TITHE (give to the church)! That is so exciting to us!

What were the challenges/struggles this month …
The bonus we were expecting was not nearly what we had hoped for. We decided to plop it in the ING Direct Savings Account and save it for property taxes.

Updated Debt Freedom Date …


Month By Month Progress …


Sangl Says …
Couple #3 transferred a 29.9% balance to a 0% interest card. That is AWESOME! The balance on that card was $5,629. With this one change, they are able to save over $1,600 a year in INTEREST! That means that nearly $140 of the $205 monthly payment was going toward interest. It is now going to principal reduction. WAY TO GO!

Continue working the interest rates to 0% or close to it. It will really speed up your Debt Freedom March!

Couple #3 has been able to start tithing to their home church as well. That is AWESOME! I know that if Jenn and I were not able to give, I would be very unhappy. I love giving! There is something so powerful in being able to support someone or something that you really believe in.

I can not wait to see next month's update!

Readers …
As you can see from Couple #3's Debt Freedom March, it takes work to get some traction. Couple #3 is doing the work necessary to take their finances to the next level. Are you doing the work necessary to manage your money to the ABSOLUTE BEST of your ability?