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Monday, March 31, 2008

Financial Peace University Update (Session 5)

On Sunday afternoon, we had our fifth session of Financial Peace University. Session 5 is on the topic of "Credit Sharks in Suits." This session is a combination of humorous stories from Dave when he has dealt with creditors in the past, but also some disturbing testimonials from other people that have gone through difficult times with bill collectors. In this DVD, you can definitely tell that Dave loathes the majority of bill collectors, and his business is doing all it can to push for tighter restrictions on this industry.


Here's what Dave Ramsey's organization has to say about this fifth session of FPU:

Week 5 - Credit Sharks in Suits

Dave teaches us how to check and clean up our credit report and deal with collection agencies. Knowing how to deal with creditors gives us the confidence to work our Debt Snowball.


Stop those annoying telemarketer calls! Use the government's National Do Not Call Registry to protect your number from unsolicited calls.


Stop all of the "pre-approved" credit offers that fill up your mailbox! You can have the credit bureaus turn away companies who check your credit report in order to send you unsolicited credit offers.


One in 12 Americans will fall victim to identity theft today. Anyone can be a victim, costing valuable time and money. Zander Insurance has designed the “Identity Safeguards” plan to protect you.

Key Points

  1. If you are unable to pay the minimum payments, use the Pro-Rata plan.
  2. Always budget for your necessities before paying off any debt.
  3. Check your credit report for errors every two years.

Thursday, March 27, 2008

Sunday morning Advance article - early preview

To all my FPU class members:

Bro. Paul has blessed me this week by allowing me to write "his" column in the Advance for this Sunday. How cool is that! The article's focus (of course) is on personal finances and promotion of the Dave Ramsey Live event on May 3.

I thought I would give you all a preview of the article before Sunday morning. Check it out.


Larry's Advance article for March 30, 2008:

Money is an excellent servant, but a horrible master.

In Romans 12:2 we read, "And do not be conformed to this world, but be transformed by the renewing of your mind…" I'm afraid that many Christians today, have been conformed to the world's image when it comes to money. Approximately 70% of American families live paycheck to paycheck, and the average typical household debt totals more than $38,000. We have too much month at the end of our money!

It may surprise you to learn just how much the Bible says about finances. There are more than 2,350 verses on how to handle money and possessions, and our Lord said more about money than almost any other subject. He knows how important it is to be in control of our money, instead of it controlling us.

Over the last three years, my family and I have undergone a total money makeover, living on less than we make and aggressively paying off all of our debt, while still continuing to give above the tithe to our church. God has done an amazing work in our lives, and we invite you to join us on the journey of Financial Peace.

Our financial counselor through this process has been best selling author and nationally syndicated radio talk show host, Dave Ramsey. Dave makes financial talk simple, giving you a step by step plan to get out of debt and then save, invest, and give like never before.

Dave will be in Kansas City for his Total Money Makeover Live Event on Saturday, May 3 at Kemper Arena. Our church has been given a special discount rate of $23 per ticket, and I invite you to sign-up through the church and attend this life changing event. Once the live event is over, we will be offering additional Financial Peace University classes.

For more information on this event, please see the article in this week's Advance, or stop by the table in the main lobby after the service.

Larry Jones
Associate Worship Pastor

Wednesday, March 26, 2008

Putting my situation in perspective

After my rant yesterday regarding my income tax situation for this year, I started to "cool off" a little and try to put my situation in perspective as compared to the rest of the world. I'm rich and wealthy enough that the government has to tax my brains out!

We are so blessed here in the United States, that it really is easy to lose perspective with the poverty and scarcity around the world.

To help me put things in perspective, I ran across this cool website where you can plug in your annual income, and it ranks your income against the rest of the world's population.

Check out the website: Global Rich List

Here's how I ranked:

Your Rich List Position = 45,439,321
You are the 45,439,321richest person in the world!
You're in the TOP 0.75%richest people in the world!


After seeing this comparison, I have nothing to complain about, anymore!

Larry

Tuesday, March 25, 2008

Uggh - it's tax season! Render unto Caeser what is Caeser's!

I'm admitting right up front here that I've been really angry over the last few days! I believe, though, that it's righteous indignation!

My family and I been doing everything in the right way - I've been trying to build a solid part-time business to gain additional income in order to pay off all of our debt, and start building up our 3-6 month emergency fund. I know (in the back of my brain) that there will be taxes associated with this additional income and I try to plan for that eventuality. I try to keep up with my quarterly tax filing the best I can (I have to file quarterly because I'm a minister and a business owner). I save all of my receipts and take all deductions that are due me, my family, and my business.

Over the last week, I've been spending a lot of time getting all of my personal and business paperwork together to do my taxes. During the evenings Monday through Thursday, I totaled up all my receipts and prepared all my numbers to enter into TurboTax on Friday.

So on Friday, I entered all of my numbers into TurboTax and definitely got sticker shock on my Federal taxes this year! I think my additional business income threw us into another tax bracket! What we owe in federal and state taxes this year on April 15 will totally wipe out all of our savings! We'll be back working on Baby Step 1!

I know what we have been working on and trying to accomplish over the last 3 years will be worth it in the end, but the government has really stolen my joy over the last week! I feel that I have totally been ripped off. My family and I are living a comfortable, debt-free, old used cars, no big flat screen TV kind of life, I'm trying to provide for my family to give us a stronger financial foundation, and then the government swoops in and takes away all of our savings!

I wish everyone had to pay quarterly taxes like we do, so that you can all experience the actual pain of paying the government. The majority of you out there that have your taxes deducted from your paychecks can't really comprehend how painful our tax burden has become. If everyone had to file quarterly taxes, there would be a revolution in this country!

Larry

Monday, March 24, 2008

Dave Ramsey Live is coming to Kansas City

About 3 weeks ago, my wife and I attended a luncheon here in the Kansas City Metro area put on by Dave Ramsey's organization. The purpose of the luncheon was to encourage metro area churches to promote the upcoming Total Money Makeover Live event on Saturday, May 3rd. The two representatives from the Lampo Group explained that the desired progression for getting Dave's message into churches was this:
  1. Drive as many church members to the Live Event as you possibly can in order to give them an overview of Dave's financial program.
  2. After church members have attended the Live Event, promote additional new classes of Financial Peace University.

After hearing Dave's representatives say this, the light bulb went off in my head regarding the future of Financial Peace University at First Baptist Raytown. Even though we had just begun one class of FPU at the end of February and have had an incredible response (approximately 86 students!), my own personal desire and goal has been to offer multiple classes during the week all year round. I started to get the vision of getting hundreds of our church members down to the Live Event and then enroll them in FPU immediately afterwards.

We have begun initial promotion of the Live Event, yesterday, with hall posters, a small article in the church bulletin, and a lobby sign-up table. This coming Sunday, we are going to hit it even harder with a video promotion at the end of both services, a plug from the pastor, and I have the privilege of writing the "pastor's bulletin article" this week. I would love to see 200-300 of our church members attend and catch the vision of getting their financial houses in order.

Churches receive a special $23.00 rate per ticket for general admission, so this really is a good deal!

Larry

Thursday, March 20, 2008

A Rainy Day Fund is always a great idea!

On the way in to work each morning, I usually listen to one of our local talk radio stations. Over the last couple of days, I keep hearing a news story about how the mayor of Kansas City, Missouri, the Honorable Mark Funkhouser (affectionately known as "The Funk"), is in the process of building up the city's "Rainy Day Fund."

I don't agree with all of the Funk's policies, but on this one, I have to give the mayor a big "thumbs up!" Way to go, Mr. Mayor!

Hmmm, I wonder if the Funk is a Dave Ramsey listener?

Larry

Wednesday, March 19, 2008

Tax Rebate - I misunderstood the news!

OK, I've dug a little deeper into this stimulus package rebate, and here's what the IRS is saying:

How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.



So, for a family of 4, the rebate could be up to $1,800 with the addition of $300.00 per child if you qualify. I stand corrected. The Kiplinger's Tax Rebate Calculator was right when I plugged in our numbers a few weeks ago.

Larry

Tuesday, March 18, 2008

Financial Peace University Update (Session 4)

On Sunday afternoon, we had our fourth session of Financial Peace University. Session 4 is probably the longest DVD in the FPU program, 100 minutes, on the topic of "Dumping Debt." This makes sense, though, since dumping debt is really Dave Ramsey's signature topic and what has made him a multi-millionaire.

Here's what Dave Ramsey's organization has to say about this fourth session of FPU:

Dumping debt is one of the most straight forward lessons, but it is usually one of the most difficult. Debt has only become accepted as normal in America over the last 20 years. The key to eliminating debt is remembering that it is only 20% head knowledge and 80% behavior. Remember that you always spend more with plastic- cash hurts more! Make a commitment to never use credit cards again. This is the first and most important step to dumping debt.

Because we have accepted the debt myths that society has taught us, many of our families, churches, and even government institutions have been handcuffed by debt! It's time to lead a money revolution and push back against what "normal" is now. As Dave talks about, I want to be weird! I'd rather "look" poor right now, and be a millionaire by my 50s and 60s so that I can live and give like no one else!


Larry

Wednesday, March 12, 2008

Food prices are definitely on the rise!

For those of you "nerds" out there that attempt to budget for food (groceries and a little for dining out), I'm sure you're probably like me and become frustrated when your spouse comes home from the grocery store having spent more money than you budgeted for. You may have seen this happening over the last several months.


Or, you go to a restaurant and notice your final bill is $5.00+ more than it used to be, and you start over spending your dining out budget line item. I really noticed this starting to happen a few weeks ago when we ate at Chipotle. Our family of 4 could normally eat here for around $18.00. When we ate there a couple of weeks ago, the final bill was around $24.00. We ordered what we normally eat there.

So, I think that gas prices have finally caught up with the prices of our normal goods and services! Hopefully, with gas prices continuing to rise, we won't get hit with too many more food price increases in the near future. They can be real budget busters.

Larry

Monday, March 10, 2008

Financial Peace University Update (Session 3)

On Sunday afternoon, we had our third session of Financial Peace University. We had another great day with beautiful weather and fairly decent attendance. I'm wondering, though, if the time change slightly affected us, or was it this week's lesson "Cash Flow Planning" (the dreaded "B" word - budget).


Here's what Dave Ramsey's organization has to say about this third session of FPU:

Dave teaches us step by step how to put together a zero-based monthly budget and how to complete all of the financial management forms. Taking control of your money takes time, effort and patience. Check your progress at LEAST once a week and give your budget 90 days to really start working. Plus, get a refresher on how to balance your check account!


Key Points:

  1. Spend all money on paper before the month begins.
  2. Use the Envelope System for successful cash management.
  3. Give your budget 90 days to really start working.

Putting together a detailed budget is hard work, but it is so worth it in the end. Dave is right on track when he speaks about people out there selling books that basically tell you not to even mess with budgets because they don't work (i.e. David Bach). I love some of the principles that people such as David Bach teaches, but on the concept of budgeting, Ramsey is right, Bach is wrong (and this is speaking from 5+ years of experience doing it both ways!)


“If you go to work on your goals, your goals will go to work on you. If you go to work on your plan, your plan will go to work on you. Whatever good things we build end up building us.” - Jim Rohn (American Speaker and Author. He is famous for motivational audio programs for Business and Life. )


Larry

Thursday, March 6, 2008

Update to the Blog

For your convenience, I just added a "Feed Blitz" widget to the upper left hand corner of the blog page. Instead of subscribing to the feed in a reader or coming back to this web page on a regular basis, you can just add your e-mail address to my Feed Blitz account and automatically receive an e-mail when I add an new post to my blog.

The Light Bulb Finally Came on

At least once or twice a week, I try to scan as many financial blogs as I can stay current with what's happening out in the personal finance world. In the "Stupid Tax" section of Dave Ramsey's site, I ran across this little gem about bank programs that are supposedly designed to help you, but in reality are another way for the banks to nickel and dime us so that they get rich.

If we just pay attention and become better managers of our finances, we won't encounter the type of problem that Sharon got herself into. Enjoy the article.

You can also view the original article here.


The Lightbulb Finally Came On

By Sharon in Houston

A few years ago my credit union created an overdraft fund of $500 to cover me. Seemed like a great deal.

In less than a year, I was hooked and used it every payday. I paid $29 each time and soon became "clever" enough to make sure I only incurred one $29 charge every payday. Rarely did I not use the $500 overdraft feature.

One day a lightbulb came on in my head: "Wait a minute. I'm paying the bank to play with the same $500 over and over and over." I added it up. The bank's generous initial investment was $500. I used this feature at least 24 times a year, so it cost me $696. Plus, if I had to guesstimate all the other times I incurred the fee (about 20), that part adds up to $580. So, to play with the same $500 month after month, year after year, cost me about $1,300!

For 2008, I broke free of this crazy program. I did it! I gave the bank their $500 back, and the service was removed from my account. No more going up to the $500 mark and taking the chance of going over, thereby incurring more than one $29 fee. No more running to the bank to get that last $500 and having to pay everything else with cash. No more paying the bank $1,300 a year for the "privilege."

My STUPID TAX for the past 3 years is at an end. Blessed be.

Tuesday, March 4, 2008

WE'RE DEBT FREEEEEEEE! - more of the Jones' Family Story

On Friday, June 15, 2007, my family and I finally became completely debt free! It's a powerful feeling of release to be out from under the thumb of the banks that you owe money to!


Getting to this point, though, has taken some sacrifice, especially in our culture of buy now, pay later. First we sold our house. We had to be on a strict budget and monitor our cash flow on a regular basis. Part of the debt we wracked up was due to starting and launching my business, so I had to put the business on hold and place it on a slower growth track, while I back tracked to clean up our mess!


Now moving forward from this point, we have more available cash flow to sink into the business to make it more profitable, plus we have more cash flow to work on Baby Step 3 - large emergency fund of 3-6 months of expenses.


You know, being debt free really is a spiritual issue. Here are the ways I believe becoming debt free is relevant to our spiritual walk:

  1. It shows the Lord we are good stewards of what He has given us.

  2. It helps us grow in our reliance and faith in Him to provide for our needs.

  3. It breaks the god of materialism in our lives.

  4. It frees up more available cash flow to give to your church, the poor, and to those in need.

  5. It makes us wise, according to the book of Proverbs.

  6. It teaches us patience and self control (fruits of the Spirit).

  7. It teaches us to be on the same page with our spouses on family finances.

  8. It places us in a better place mentally and physically because we are no longer stressed out about having enough money to pay the bills!

I'm sure I could list even more, but you get the idea. Being debt free is awesome. As Dave always says, just get gazelle intense about it and create a plan to win with your finances.
For more information on Dave Ramsey and becoming debt free, visit DaveRamsey.com.

Monday, March 3, 2008

Financial Peace University Update (Session 2)

On Sunday afternoon, we had our second session of Financial Peace University. We had another great day with beautiful weather and good attendance.


The second session/DVD viewing is titled "Relating With Money - Nerds and Free Spirits Unite."



Here's what Dave Ramsey's organization has to say about this second session of FPU:



The importance of working together in relationships and how we handle money is the key to this lesson. Men and women think very differently about money. The "nerd" and the "free spirit" must learn how to work together. Write your budget down, iron out the wrinkles, budget together (with your spouse or with someone who will hold you accountable), and set boundaries. The most common pitfall people face is trying to get out of debt without doing a budget. Always discuss changes with your spouse in a "budget committee meeting."


Another key component to this lesson was a discussion of how to educate your children in dealing with finances. Dave Ramsey's company has a number of resources to help educate your children about money, including his Financial Peace, Jr. kit for kids (which includes a chore/commission chart and Give, Save, and Spend envelopes) and his Junior book series. My wife and I purchased all of these items, and they have been helpful in imparting financial wisdom to our daughters.

Larry

Tax Rebate Calculator - correction

Over the weekend, I was reading an e-newsletter from U.S. Legal Forms, and in the newsletter they mention something about a $600 per person cap on the Tax Rebate. For a married couple filing jointly, they said your maximum rebate would be $1, 200.00.


So, I think there's possibly a problem with the Kiplinger on-line tax rebate calculator. Instead of my family receiving $1,800, it looks like we may only be getting back $1,200.


If I uncover any more significant information on the tax rebate, I'll keep you posted.


Larry