Steve Repak's Blog - Posts Tagged "steve-repak"
Fox & Friends
I have the honor and privledge to be back on again Fox & Friends this Sunday morning on November 18th at 6:45am ET (rescheduled) where I will talk about the 10 Things The Military Taught Me About Money
How I Overcame My Obstacles and Paid Off My Credit Card Debt
I knew a person who came from extremely humble beginnings. Growing up, he didn’t have that much. Kids made fun of the clothes he wore, and when he got into high school he worked evenings and weekends just to have a little spending money. Neither of his parents had a college degree, so education wasn’t much of a priority. He graduated from high school and decided to join the Army.
This was the first time he saw real money. He took home about $700 every two weeks. His clothes, housing, and food were paid for by the military, but he had trouble saving money and would always find himself with nothing in the bank. After about a year in the Army, he got his first credit card. Before his signature on the back of the credit card was dry, he’d maxed it out.
Even though he lived paycheck to paycheck with a maxed out credit card and no money in savings, he was promoted to private first class. A higher rank meant a higher salary, which gave him the opportunity to get another credit card—and he soon maxed that out.
You might be thinking that he would eventually catch on, but the cycle continued to repeat. He would get promoted, make more money, get more credit, and max out his credit cards. As long as he could make the minimum payments, he thought had a handle on his debt. He would always tell himself that the next time he got promoted, he would have more money to pay off credit card debt.
I’m sorry to say that after 12 years in the Army, he left with $32,000 in credit card debt. I’m even sorrier to tell you that this person was me.
I know what it feels like to live paycheck to paycheck and have nothing in savings, a poor credit score, and a mountain of debt. I want to let you know that there is hope if you can follow these four steps:
1. Admit there is a problem. I thought that because my friends had debt, it was OK for me to have debt, too. I had to admit that I had a spending problem—I spent more than I earned. Nobody likes to admit that he or she has a problem, but you have to take responsibility in order for things to get better.
2. Start spending less. What helped me curb my spending was keeping a spending journal. In it, I wrote down exactly where, what, and how much I was spending each day. After doing that for a few weeks, I started keeping more money in my pocket.
3. Build your savings. It might not make a lot of sense, but the only way I was able to get out of debt was to build up my savings. When I first started saving, I would have to use my credit card when an emergency came up. After I built my savings and those emergencies reared their ugly head, I was able to take care of them without resorting to credit cards.
4. Make a plan and be flexible. That’s not a mistake. Don’t make a plan and then stick to it no matter what. There were times I felt I would never be able to pay off all of my debt because things would happen and throw me off track. I had to be flexible and adjust my plan.
What worked for me was making minimum payments on my debts with the lowest interest rates, and paying more towards the cards with the higher interest rates. You could also start by paying off the card with the lowest balance and working up from there. The only wrong way to approach paying off your debt is to not have a plan at all.
http://blog.equifax.com/credit/how-i-...
This was the first time he saw real money. He took home about $700 every two weeks. His clothes, housing, and food were paid for by the military, but he had trouble saving money and would always find himself with nothing in the bank. After about a year in the Army, he got his first credit card. Before his signature on the back of the credit card was dry, he’d maxed it out.
Even though he lived paycheck to paycheck with a maxed out credit card and no money in savings, he was promoted to private first class. A higher rank meant a higher salary, which gave him the opportunity to get another credit card—and he soon maxed that out.
You might be thinking that he would eventually catch on, but the cycle continued to repeat. He would get promoted, make more money, get more credit, and max out his credit cards. As long as he could make the minimum payments, he thought had a handle on his debt. He would always tell himself that the next time he got promoted, he would have more money to pay off credit card debt.
I’m sorry to say that after 12 years in the Army, he left with $32,000 in credit card debt. I’m even sorrier to tell you that this person was me.
I know what it feels like to live paycheck to paycheck and have nothing in savings, a poor credit score, and a mountain of debt. I want to let you know that there is hope if you can follow these four steps:
1. Admit there is a problem. I thought that because my friends had debt, it was OK for me to have debt, too. I had to admit that I had a spending problem—I spent more than I earned. Nobody likes to admit that he or she has a problem, but you have to take responsibility in order for things to get better.
2. Start spending less. What helped me curb my spending was keeping a spending journal. In it, I wrote down exactly where, what, and how much I was spending each day. After doing that for a few weeks, I started keeping more money in my pocket.
3. Build your savings. It might not make a lot of sense, but the only way I was able to get out of debt was to build up my savings. When I first started saving, I would have to use my credit card when an emergency came up. After I built my savings and those emergencies reared their ugly head, I was able to take care of them without resorting to credit cards.
4. Make a plan and be flexible. That’s not a mistake. Don’t make a plan and then stick to it no matter what. There were times I felt I would never be able to pay off all of my debt because things would happen and throw me off track. I had to be flexible and adjust my plan.
What worked for me was making minimum payments on my debts with the lowest interest rates, and paying more towards the cards with the higher interest rates. You could also start by paying off the card with the lowest balance and working up from there. The only wrong way to approach paying off your debt is to not have a plan at all.
http://blog.equifax.com/credit/how-i-...
Finance Tips for Every Stage of Life
No matter what stage of life you’re in, money matters. Whether you’re working to earn an allowance, supporting a family, or gearing up for retirement, your finances are often at the forefront of your mind.
Here are a few tips to keep in mind (and pass along) for all stages of your life:
Teens
Giving is important. One of the earliest lessons most kids receive is about sharing. It’s important not to forget this as you move into your teen years. I have found that the people who are most content with their lives are the ones who share their good fortunes with others. When you get your first job, consider supporting a charity of your choice. Even $10 every few months can help.
Wants and needs are different. In your teen years, it can be hard to distinguish between needs and wants, especially when you’re looking at what your peers have. The reality is, food, shelter, transportation, and clothing are needs—going out to eat every night is not. Wearing clothes is a need—designer clothes are not. Peer pressure is real, but learning to stand up to it is important. If you learn in your teens how to control your emotions and distinguish needs from wants when making financial decisions, you can avoid financial trouble when you get older.
20s and 30s
You’re not invincible. When you’re in your 20s, it’s easy to think you are invincible and will live forever. But that mindset can hurt you financially, especially when it comes to planning for retirement. The best lesson you can learn in your 20s is the importance of compounding money. The earlier you can start saving money, the more you will have later. Don’t wait until you’re on the brink of retirement to start saving. You’ll have to save a lot more, a lot faster, than you would have if you’d started in your 20s.
You should earn interest, not pay it. Many people in their 30s are still paying off their student loans or credit card debt from bad purchasing decisions they made in their 20s. You don’t have to be a finance professional to understand that the best way to increase your wealth is by earning interest on your own money instead of paying interest to someone else. Pay down those debts as soon as possible. If you must have debt, know the difference between good debt and bad debt.
40s and 50s
Prioritizing is important. You are getting close to your peak earning years, but why does it seem like you can never get ahead? Mortgage payments, car loans, and kids are most likely consuming all of your cash. This is definitely the time to learn about financial priorities. The key thing to remember is that retirement should be your number one priority (unless of course, your plan is to move in with your kids and expect them to take care of you during your golden years).
You can’t change the past. There are many people who don’t even start to think about planning for retirement until they are in their 50s. If this sounds like you, know that although it would have been less painful financially had you started saving earlier, it is never too late to start. Don’t whine about something you can’t change—you probably don’t have a time machine to go back to your 20s—and instead buckle down and try to put every cent you make away for retirement.
60s and beyond
A happy spouse means a happy house. Did you really think that you were going to retire and sit around the house doing nothing? This is a great time to consider a second career or maybe give back by donating your time to your favorite charity or cause. Not only will you feel good about giving back, you might also stop driving your spouse crazy by being home all day.
Your priorities will change. You might not be ready to slow down, but the lesson here is that you won’t live forever. As you age, review all of the wills and legal documents you might have drafted in your younger years, and make the changes you deem necessary.
Pass on what you know. Some of the greatest gifts you can pass on to your loved ones (and maybe even perfect strangers) are the lessons you’ve learned over the course of your life. Spend time with the people you love, teach them what you know, and take some time to smell the roses.
No matter what age bracket you’re in, it’s important to set financial goals and learn from your—and others’—mistakes. What are some money management tips you have to share?
via http://blog.equifax.com/credit/financ...
Here are a few tips to keep in mind (and pass along) for all stages of your life:
Teens
Giving is important. One of the earliest lessons most kids receive is about sharing. It’s important not to forget this as you move into your teen years. I have found that the people who are most content with their lives are the ones who share their good fortunes with others. When you get your first job, consider supporting a charity of your choice. Even $10 every few months can help.
Wants and needs are different. In your teen years, it can be hard to distinguish between needs and wants, especially when you’re looking at what your peers have. The reality is, food, shelter, transportation, and clothing are needs—going out to eat every night is not. Wearing clothes is a need—designer clothes are not. Peer pressure is real, but learning to stand up to it is important. If you learn in your teens how to control your emotions and distinguish needs from wants when making financial decisions, you can avoid financial trouble when you get older.
20s and 30s
You’re not invincible. When you’re in your 20s, it’s easy to think you are invincible and will live forever. But that mindset can hurt you financially, especially when it comes to planning for retirement. The best lesson you can learn in your 20s is the importance of compounding money. The earlier you can start saving money, the more you will have later. Don’t wait until you’re on the brink of retirement to start saving. You’ll have to save a lot more, a lot faster, than you would have if you’d started in your 20s.
You should earn interest, not pay it. Many people in their 30s are still paying off their student loans or credit card debt from bad purchasing decisions they made in their 20s. You don’t have to be a finance professional to understand that the best way to increase your wealth is by earning interest on your own money instead of paying interest to someone else. Pay down those debts as soon as possible. If you must have debt, know the difference between good debt and bad debt.
40s and 50s
Prioritizing is important. You are getting close to your peak earning years, but why does it seem like you can never get ahead? Mortgage payments, car loans, and kids are most likely consuming all of your cash. This is definitely the time to learn about financial priorities. The key thing to remember is that retirement should be your number one priority (unless of course, your plan is to move in with your kids and expect them to take care of you during your golden years).
You can’t change the past. There are many people who don’t even start to think about planning for retirement until they are in their 50s. If this sounds like you, know that although it would have been less painful financially had you started saving earlier, it is never too late to start. Don’t whine about something you can’t change—you probably don’t have a time machine to go back to your 20s—and instead buckle down and try to put every cent you make away for retirement.
60s and beyond
A happy spouse means a happy house. Did you really think that you were going to retire and sit around the house doing nothing? This is a great time to consider a second career or maybe give back by donating your time to your favorite charity or cause. Not only will you feel good about giving back, you might also stop driving your spouse crazy by being home all day.
Your priorities will change. You might not be ready to slow down, but the lesson here is that you won’t live forever. As you age, review all of the wills and legal documents you might have drafted in your younger years, and make the changes you deem necessary.
Pass on what you know. Some of the greatest gifts you can pass on to your loved ones (and maybe even perfect strangers) are the lessons you’ve learned over the course of your life. Spend time with the people you love, teach them what you know, and take some time to smell the roses.
No matter what age bracket you’re in, it’s important to set financial goals and learn from your—and others’—mistakes. What are some money management tips you have to share?
via http://blog.equifax.com/credit/financ...
Money Can't Buy Hapiness but a Vacation Might!
If you didn’t know…. Money can’t buy happiness… well maybe not long term happiness anyways. But it can certainly buy you a vacation, and with it being summer time I thought it would be appropriate to talk about how to vacation without going bankrupt.
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
Summer Fun That Won't Break The Bank
With summer upon us I thought it would be timely to write about ways we can have some summer fun that won’t break the bank. When budgets are stretched to the max, the key is to be flexible and creative. The best memories aren’t always the final destination but many times it’s the journey that got us there.
GROUPON®
To tell you the truth, you don’t have to be on a tight budget for this to make sense. I think anyone who is looking for some great deals definitely should give it a try. From paintball to movies, to fine restaurants and frozen yogurt, Groupon is a great website that features discounted gift certificates for any number of goods and services, including vacations. My only caveat is to use these as a treat and not a reason for you to overspend.
Planes, Trains & Automobiles
Ok, maybe not all three. I remember when I was little my parents would throw my sister and me into the back of their pickup truck with a camper shell and we would drive a couple hundred miles to visit relatives. I strongly discourage this manner of travel because I think I am still scarred from those experiences. A better idea that may be just as adventurous but a lot more comfortable is to travel by train. With the price of gas skyrocketing, trains can be a much more affordable means of transportation compared to a car or airplane.
Sharecation
OK, I know that really isn’t a word but it is a great way to reduce the cost of a vacation by planning it with a group of people. When you can spread the cost out between a few families, a home, villa, or condo at your favorite beach or vacation getaway can be a win-win situation for everyone. Having a kitchen and a washer and dryer can not only save on food cost, but you won’t have to pack as much since you can wash clothes there. As an added benefit kids behave much better when there are other adults around!
Your Favorite Search Engine
If you need some ideas, go to your favorite search engine on the internet and type in “fun things to do in ____________.” You fill in the blank. For example, whenever there is a long weekend, I do a search for “fun things to do in Charlotte, North Carolina” or if I have more time I just type in the State I want to visit. You can find some great historical places, parks, museums, festivals, and many other fun places to visit.
Staycation
Unlike the sharecation where you vacation with other families, a staycation is one where you create adventures at home. You don’t have to pay big bucks watching professional baseball or soccer at an overpriced stadium but you can take your little ones or maybe not so little ones to the local baseball or soccer ball field and it most likely won’t cost you a dime but you can still get experience the excitement of a live game. Another idea is the adventure of camping, but you can do it in the safety of your backyard where if you get tired of roughing it outside, you are just a few steps from the comfort of your home.
As I said at the beginning, the key is to be flexible and creative. Priceless memories don’t always have to be expensive. What matters most is the time that is spent together and not what you spent.
via@ Jennifer Maggio http://thelifeofasinglemom.com/summer...
Life of A Single Mom Ministries
GROUPON®
To tell you the truth, you don’t have to be on a tight budget for this to make sense. I think anyone who is looking for some great deals definitely should give it a try. From paintball to movies, to fine restaurants and frozen yogurt, Groupon is a great website that features discounted gift certificates for any number of goods and services, including vacations. My only caveat is to use these as a treat and not a reason for you to overspend.
Planes, Trains & Automobiles
Ok, maybe not all three. I remember when I was little my parents would throw my sister and me into the back of their pickup truck with a camper shell and we would drive a couple hundred miles to visit relatives. I strongly discourage this manner of travel because I think I am still scarred from those experiences. A better idea that may be just as adventurous but a lot more comfortable is to travel by train. With the price of gas skyrocketing, trains can be a much more affordable means of transportation compared to a car or airplane.
Sharecation
OK, I know that really isn’t a word but it is a great way to reduce the cost of a vacation by planning it with a group of people. When you can spread the cost out between a few families, a home, villa, or condo at your favorite beach or vacation getaway can be a win-win situation for everyone. Having a kitchen and a washer and dryer can not only save on food cost, but you won’t have to pack as much since you can wash clothes there. As an added benefit kids behave much better when there are other adults around!
Your Favorite Search Engine
If you need some ideas, go to your favorite search engine on the internet and type in “fun things to do in ____________.” You fill in the blank. For example, whenever there is a long weekend, I do a search for “fun things to do in Charlotte, North Carolina” or if I have more time I just type in the State I want to visit. You can find some great historical places, parks, museums, festivals, and many other fun places to visit.
Staycation
Unlike the sharecation where you vacation with other families, a staycation is one where you create adventures at home. You don’t have to pay big bucks watching professional baseball or soccer at an overpriced stadium but you can take your little ones or maybe not so little ones to the local baseball or soccer ball field and it most likely won’t cost you a dime but you can still get experience the excitement of a live game. Another idea is the adventure of camping, but you can do it in the safety of your backyard where if you get tired of roughing it outside, you are just a few steps from the comfort of your home.
As I said at the beginning, the key is to be flexible and creative. Priceless memories don’t always have to be expensive. What matters most is the time that is spent together and not what you spent.
via@ Jennifer Maggio http://thelifeofasinglemom.com/summer...
Life of A Single Mom Ministries
Four Reasons Why Renting a House May Be Better Than Buying One
Growing up, I was constantly told that buying a home was the American Dream. When I was in the military, I was sometimes looked down upon because I was a renter, but it just made more sense for me at the time.
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
