Prosper Newsletter: February 2008 > Financial
You understand that the following information is educational in nature and is not intended to be legal, accounting, or tax advice. You are responsible for your own financial decisions and should consult your own legal, accounting, and tax advisors before making your financial decisions.
Overcoming the Intimidation of Buying a Home
Say you have a little savings, great credit, a good grasp of your cash flow, and you want to buy a home, but you just can't get started. As you've heard over and over again, the best thing you can do in your life is buy a home and work to pay off the mortgage quickly. Nothing will do more to build your wealth and security more. So why haven't you been able to get started?
It's a fact that no one will ever be as tough on you as you are on yourself. You are your own worst critic. The same goes for getting started. No one can get you started but you. You have to take the first step. You have to take the next one and the next one—and so on.
Some people never get started. Not because they were lazy, shortsighted, or irresponsible, but because life threw them a curve ball. Whether divorce, family death, illness, disability, bankruptcy, industry/career challenges, or simple analysis paralysis has kept you from creating your future, what's done is done.
The AARP surveyed thousands of baby boomers and found that their single biggest dream is to get their financial lives together. Why? Because millions of them have put off saving for the future. And now that they are getting older (and living longer), they're realizing that they face a huge problem: they don't believe that they will be able to achieve their financial goals. In twenty or thirty years, do you really want this to be you?
When you think about your life, think about what you want your future to be. The decisions you made yesterday have resulted in the life you experience today. What would your ideal outcome be today? What if that same ideal reality you wish for today were yours in five or six years? Or how about ten years?
The point is, only fairy tales have plots where the protagonist magically discovers true love without trying. Only in myths are top-paid Hollywood stars discovered at the soda fountain or supermodels discovered at the airport between connecting flights.
Here's the good news. As a society, America has achieved more financially over the last century than the entire world has in all previous centuries combined. Our standard of living is higher, our life expectancy is longer, and our educational and recreational opportunities are greater today than they've ever been. The United States has increased its wealth by a staggering amount: from $6 trillion 50 years ago to some $30 trillion today.
What can you do today to make sure that you reach your goals? Commit to the basics. Change one thing every day. For instance, if you are interested in real estate, do something new toward your goal of purchasing property. Look through listings. Interview agents. Visit a mortgage broker and find out what kind of financing might work for you. Stop doing the same things over and over. With time, you'll overcome your fear—you'll stop being a slave to it.
When all is said and done, the way to obtain freedom is to buy it You don't lease it. You don't wish for it. You buy it, and then you own it. You deserve to be free. You deserve to get started. Use the basic fundamentals you have learned over the years to get you there.
This Program Has Changed Our Attitude!
We are really excited about this program; it has changed our attitude concerning paying off debt and accumulating wealth. We have always seen ourselves debt free, but once we got started into this program the vision truly became real. This program has given us the vehicle to not just pay off debt at a specific time, but also a means to build wealth.
Our projected time to pay off our debt of over $500,000 is November 2015. So far we have paid off two bills and are in the process of paying off the third. Our accelerator margin is currently $1,400 and by adding any extra income, we believe this goal may be reached even sooner than the projected date. Working with our coach and the tools provided has opened our eyes and appetite to learning new financial techniques. We cannot wait to see our bills paid off and begin the wealth building process.
Lindsay & Jemma C.
Back to Basics
Discussed below are a few things you can do to get your life or your business back to the basics this year.
Goals & Planning
With the New Year, you'll want to set new goals: financial, personal, educational, etc. In order to be successful, the tasks and steps needed to reach your goals must be clearly defined and outlined. Set a goal (on paper) and work backwards to outline the best path to achieve the goal. Break it into measurable steps and further divide the steps into doable tasks. Check off each task and each step as you accomplish it. Take note of the small successes, which will keep you motivated and moving forward. Note: the more specific you are when setting your goals, the easier it will be to define the steps needed to achieve them.
Cash Flow & Spending
If you are out the habit of tracking your expenditures and monitoring your monthly cash flow, now is the time to get back in the habit by noting your daily and monthly spending. The holidays are a typical time to overspend and many people begin the new year in debt. By carefully monitoring your daily spending, you should quickly discover financial leaks and be able to plug them. If you created new debts over the holidays, then now is the time to create a written plan to quickly pay off those debts. Subsequently, when the debts are paid, you can allocate funds to a holiday account for 2008. End the binge cycle this year.
Organization & Tossing
The first quarter of any given year is the perfect time to recommit to those tasks or habits that have fallen by the wayside. Organization is key to being successful in any endeavor. Have a place for everything and make the effort to put everything in its proper place. Create files to organize receipts, bills, and other important financial documents. Spend time now to unclutter your stuff. Get rid of old clothes, toys, papers, etc. Stick to the mantra that anything around the house that hasn't been used for the last year is no longer needed. Recycle, donate, and/or toss everything that falls into this category (except pertinent tax and other info that may be required for several years). (If you want to make a little extra cash in the spring, create a space for those items that you can sell in a yard sale.)
Education & Learning
You're never too old to augment your intellectual capacities. Make it a point to read (or listen to) a new book at least quarterly. Choose a topic that will add value to your life. All the best financial gurus (such as David Bach, Suze Orman, Dave Ramsey, Mary Hunt, and Robert Kiyosaki) offer audio versions of their books. If you feel you can't commit the time to read, then audio books are a great way to listen and learn. Make a written list of those books you would like add to your mental library during 2008, and check them off as you go. In addition, motivational books such as Who Moved My Cheese?, The Jackrabbit Factor, Don't Sweat the Small Stuff, and daily devotionals are great ways to keep you positive and mentally focused. Author William James said, "The greatest discovery is that a human being can alter his life by altering his attitudes of mind."
No matter your plans for 2008, you can ensure a great year by following the same simple steps that have helped you achieve your greatest successes in life. Don't try to reinvent the wheel; stick to the basics. Plan and execute your daily tasks and long-term goals, monitor and manage your cash flow, maintain a clean and organized household, and continuously seek to stretch your mind. You will find that by doing the little things daily, you can and will achieve your greatest desires.
