Debt-Free Millionaire
With two books about to be published and a new video game for youth, and adults, this podcast should take off quickly. We will be bringing on CPAs and real estate investors to talk through the process of becoming a Debt-Free Millionaire, or to go the other way and be okay with debt and become a millionaire. We let you make the ultimate decision but we will give you what you need to get there. Talk to you soon. Thanks to Xogos Gaming for sponsoring this podcast and for creating our game. We are excited to share this with you.
Episodes
Episodes
6 days ago
6 days ago
Simplified Explanation: Every year, you are granted the ability to transfer money to a single person, without it being taxed. The federal government, in 2021, allows its citizens to transfer $15,000 to anyone, without the possibility of being taxed for it - on either side.
Real Life: Generosity produces many great benefits to our life, and when you have the ability to be generous, we hope that you will see the benefit in it. Therefore, we have designed the board to allow you generous donations towards paying off your debt. Then, later in the game, you are asked to be generous, too.
Now generosity is not only financial, but includes giving your time, helping, or showing concern for others, and doing things for others that you wouldn’t normally do. Generous people report being happier, healthier, and more satisfied with life. When we are generous, we forget about our own needs and wants, and take the time to put others first.
In this life, generosity is a wonderful attribute that you can have, up to the point of where you are enabling someone to do negative things. When you can help someone with a financial burden, there are always two things to think about: 1) will this person accept this gift and be better off because I gave it to them; or 2) will this be wasted, or will it hurt them in different ways. When you give to a person on the street that you don’t know, give generously, but a small amount to help them. If you are dealing with someone you know, though, you may want to think of ways to be generous without being destructive to them. If you worry about them handling money, you can also pay a bill or debt, buy them groceries, or even buy them a financial course. You can also put strings attached such as: I want to help you with this money, but in order to receive it, I want you to read this book or take this class. That way, you are still giving to them generously, but you are making sure they have the understanding to use it wisely.
Consider making regular donations to organizations and people that can use the funding. Some people tithe, where they donate 10% of their earnings to their local church. There are local organizations in every city and state that need funding, to help others and have the ability to use that money more effectively. Consider how much the President of the organization takes for themself, and how much is paid in other perks, before donating. If they take large amounts of this money for administrative costs and salaries, consider donating to a more worthy, or less wasteful, organization, where your money goes where it was intended.
Here are some other ways you, too, can become more generous to people - some that cost money and some that are free for you to give:
Consider the benefits of generosity. It feels good to help others but it can also find internal benefits that would help in your daily life. When you serve others, you begin to see their struggles in life. When you see their struggles you can reduce the stress, depression, and anxiety in yours. Depression is an internal struggle about your own issues but focusing on others takes you out of your head and allows you to see that you are not alone.
Hand out smiles freely to those around you. This simple act will train you to think of others.
Embrace gratitude, for all that you have been given by others;
Start small, giving of your time and concern, or even small donations to others;
When you are paid, make sure you give first, from the money you receive; start small;
Divert money you spend on something that is unnecessary, to something that is necessary;
Fund a cause that is based on your passions;
Find a person you believe in that could use your help;
Spend time with people that are in need;
Spend time with a generous person and allow their generosity to rub off on you; and
Live a more minimalist life, where you see how little others have, and how you don’t need all the things you think you do.
7 days ago
7 days ago
Simplified Explanation: Working remote means to work from home, or some other location, instead of at your office. Remote workers have always had a place to go, such as the library, Starbucks, and remote offices, but during the COVID pandemic, they all had to return home and work from there. Remote workers are also known for working as they travel the world. Imagine trying to find internet connections in third world countries so you can do your work, but people do it all the time. There is less need for an actual office anymore.
Real Life: Since the COVID pandemic, businesses have learned that they do not need to lease large buildings to house their work. Most companies had to move their employees home, for a time. Grocery stores, hospitals, and other essential businesses kept their employees working, to service those in need (most of the time), but those who were not essential, and didn’t require contact with their customers, were pushed to work from home. So, there are really three types of remote workers:
Pandemic or Emergency Relocation: During COVID, we worked from home. According to scientists, these types of outbreaks will happen again, and more frequently in the future. In order to stop the spread, the U.S. Government locked down the country, economy, and made everyone who could keep their job work from home. The promise was that if we stayed locked down for 4 months, while we let the hospitals slowly increase their emergency beds, we would then be released “back to normal.” People went home to work. Two years later, some states are just still mandating masks. Businesses are now realizing that, if they could work remotely for a year, why not continue it (since they had to make new procedures that worked remotely, and now their company is as effective as ever, and saving money)?
World Travelers: People have desired to travel the world for long periods of time; yet, they had to afford their ventures. For years now, workers have been able to travel to some very remote areas, and continue their work from their laptops, in their hotel rooms, or the local café. These were the remote workers before Pandemic Remote Working became a thing. They did need a few things to make this work. They had to make sure that their companies were okay with this, that they had all the equipment needed to accomplish this work, and be well versed in the laws of the countries they were traveling through. Some have strict laws, that if you are working from their country, you need to pay them taxes. Most traveling workers don’t listen to these rules, though, and most don’t even know about them. They reserve less expensive housing, plan out access to food and other essentials, and find internet connections wherever they travel, so they can always stay connected with their home office. This takes some work, but could be fun. I have never tried this, but you can learn more by searching “Remote World Traveling” on our website Topical Search.
Work convenience: My current business, as I work on this book, teaches history. As I grew my team, during the Pandemic, we decided we didn’t need an office. Instead, we all worked remotely, during the pandemic, and afterwards. We have a goal to become the first Fortune 500 to work completely remotely. It is convenient for all of my employees/contractors, and for myself. For one thing, my employees all work on their own schedule; they work from the convenience of their own home, without having to commute, or even dress in business attire. They even get to eat leftovers in their fridge each day, so less food goes to waste (if they so choose). This is the life of a 9 - 5PM worker.
Now that the world has seen that we can work from home, “the genie is out of the bottle.” In other words, people have experienced increased flexibility, and less stress.
New types of remote workers are developing, including stay-at-home parents, who are now becoming remote workers while watching their kids; medical needs patients are now able to be remote workers; and even disabled or those with special needs are having an easier time being hired from their homes or co-ops. The future of work has now changed forever, but there are some negatives.
How to overcome the negatives: There are plenty of negatives out there, but for both the employees and employers, this normally has more positives than negatives. The struggle is to overcome the negatives, with preventative measures. Here are some of the negatives, and how to overcome them:
Worker’s health may decrease – Because you don’t need to go into an office, some workers become lazier than before, and less motivated to get out and exercise. Decreased health decreases productivity, and now that they can work from home while they are sick, they are less likely to work to their full potential. When employees get less motivated to workout, they are less effective in the office. It has been proven, that those who are more motivated to workout and eat healthy are more efficient in the office. Statistics show that employees who eat healthy are 25% more likely to have higher job performance. The same survey also found that employees who exercise for at least 30 minutes, three times a week, are 15 percent more likely to have higher job performance.
So how do you combat this? Employers who create healthy living usually have more effective and efficient employees. There are programs that health insurance companies have created or 3rd parties they have teamed up with to incentivize the employees to exercise on their own to keep them healthy. Employers and insurance companies have found that they save more money the healthier their employees are.Music I Use: Bensound.com/free-music-for-videos License code: AN4MXGI6OALEGJ66
Monday May 27, 2024
Monday May 27, 2024
Simplified Explanation: Frugal shopping is where you go out and buy only things that are essential; frivolous shopping is where you go out and buy things that you really want, that are not important; and intentional shopping is where you make a list of items you want to buy and only buy those specific items.
Real Life: When trying to get out of debt, it is always a good idea not to put yourself back into debt. When you are in major debt, it is much easier to spend frivolously than when you are out of debt. The psychological reasoning is that you worked so hard to get out of debt, that there is a hesitancy to add any additional debt that may make you struggle to get out of it again. You worked hard and want to be more intentional in your spending.
Now, you cannot go through life not buying these items. You will pay for them in one way or another. Not to repeat this example, but take a new car, for instance. No one needs a new car. Even if you are trying to impress clients, every time a car drives off the showroom floor, it loses $5,000 to its value, because the value we give to a car that no one else has driven makes that car psychologically worth more. But you can buy a slightly used car, and drive that without much difference.
A boat, on the other hand, is never an essential item. You may want it, but almost nowhere will it ever be an essential item. There is an old saying: “boat” stands for Bring Out Another Thousand (BOAT), meaning that boats are notoriously expensive, even after you purchase one. You may spend tens of thousands every year to maintain and store your boat. I would shy away from this purchase - unless you were debt free, with plenty of income each year, and a strong retirement portfolio.
Computers are essential these days. When I was 14 years old, in 1996, I asked my dad to go to a computer fair in San Francisco, so I could purchase my first computer. My family had an obsolete computer and I had been working and saving my money. When we got there, my dad asked if the family could use it. I told him no, and that I was buying it for myself. He said, what if he paid for half? I said no, because a family computer would be bought by the parents. He said, “what if we pay half and you can have it in your own room?” I said yes. It was top of the line, in 1996, cost $2,000, and did a small fraction of what a phone can do today. My parents had that computer until about 2006, and I upgraded it multiple times for them. Today, computers cost very little, compared to what they used to cost. Even now, though, they are being replaced by tablets and smartphones, so the need for certain devices are not as essential as we may think they are.
There are other devices you may think you need, such as a gaming console or appliance. You may want to buy them, but are they essential (beyond your entertainment)? Appliances are essential, if you are moving into a rental unit without laundry. You can live the inconvenience of the local laundromat, and the added expense, or you could buy the washer and dryer and have it in your home. What about other needed appliances, such as a dishwasher, oven, or fridge? Each of these are expensive and may be needed for your kitchen. Most of the time, you will want to buy these new, because of the wear and tear of the strain we put them under. You never know what issues you are buying, until you run it in your own house. Consider new but dented or scratched appliances. You can buy these for a fraction of perfectly new appliances.
Not a gadget, per se, but furniture is a side purchase you will need to make, at some point. These you can buy slightly used, on the web, or at a store. Making sure these are good quality will allow them to last longer, so you won’t need to purchase a new piece of furniture to replace it soon afterwards. Much like clothes and most non-essential purchases, you can purchase good quality and use them for a long time, or buy inexpensive, and replace them on a constant basis. You get to choose what suits you best. Please know, big brand names do not indicate high quality. You can buy a pair of jeans at Wal-Mart for $14.99, and replace them every two years; or you could buy a pair of Levis for $29.99, and replace them every five years; or you could buy a pair of stylish jeans for $99.99, and either have to replace them a year later, or, if they go out of style, need to replace them each year, when the style changes. Clothing and furniture are the same - you can find quality without spending a lot of money (finding quality may just take some effort). Look up online reviews on your items before buying them. This includes brands that you have and haven’t seen, depending on how much money they put into it.
Now comes the notorious device that people feel they have to spend $1,000+, because of how they look. Phones may be essential, like a car, but like a car, you don’t have to spend your life savings on them. Most likely, your friends and colleagues won’t even know you spent a ton of money on it. Now you could go to your cellular provider and spend an extra $50 on your phone contract to lease the new phone, but in the end, you will spend more than the originally priced $1,000 on that phone. Instead, you could pay cash for it, so they can’t take it back when you upgrade or change your carrier, or you could go to a discount website that markets slightly used phones, provided by other users. There is a website, called Swappa.com, where you can buy slightly used or new phones for nearly half the price. A cell phone currently selling for $1,200 can be for sale at one of these used sites for $800 (and you would own it outright), spending less money over the life of the phone. Or, you can always wait on the newest phone to be replaced, and buy an older phone at only a fraction of the price. After a cell phone cover, you wouldn’t even know which phone it was. With each new phone that comes out, there are only slight improvements, that would be considered non-essential, and you wouldn’t miss them if you didn’t have them. So, in other words, you may as well buy a slightly used phone for $300, and save nearly $1,000, rather than purchase a new phone.
For less expensive used gadgets: https://swappa.com/ Also read: https://www.picodi.com/us/bargain-hunting/spendings-on-food-2023 https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/food-prices-and-spending/ https://explodingtopics.com/blog/iphone-android-users https://www.cbsnews.com/news/how-to-save-money-in-2024/
Friday May 24, 2024
Friday May 24, 2024
Simplified Explanation: Identity theft is where someone takes on your identity, by stealing your personal information and social security number, and starts making financial or security related actions, as if they were you. They take on your identity.
Real Life: Think of this, you are opening your mail and it’s a stack of bills. The first one you open is for $40,000 in credit card bills, the next one is $30,000 for a new car, and the third one is $10,000 for a personal loan. The next day you receive more. You begin to call the lenders to explain there must be a mistake, but they tell you everything is legitimate. Then, a knock comes to your door and you are arrested for check fraud. Someone has taken your identity and racked up so much debt against your name. You have no way of controlling it, and what has been done to your name. Even when you try to call the lenders and explain, they don’t believe you. Then, a big one happens, and people show up to take your house, because it was sold out from under you. Now, if something like that happened, how would you feel?
According to a 2019 Identity Fraud Study, by Javelin Strategy & Research, the number of victims of identity fraud fell to 14.4 million in 2018, down from a high of 16.7 million in 2017. But, the financial burden for those in 2018 increased. 3.3 million people were made responsible for paying back part of the debt of the fraud committed against them - three times as many as in 2016, and the victims’ out-of-pocket fraud costs doubled from 2016 to 2018, to $1.7 billion. Criminals are also finding ways to overcome the authentication processes.
Wednesday May 22, 2024
Wednesday May 22, 2024
Simplified Explanation: Recessions are a large downturn in the market, for two consecutive quarters. The year is broken up into 4 quarters (3 month increments - January to March, April to June, July to September, and October to December). If this downturn occurs, you can expect it to have a negative impact on your finances, whether it is losing your job, an increase in expenses, or losing some of your income. This could also affect you getting a loan for a home or car.
A depression is similar, but it’s deeper and longer than a recession. If this were to occur, you would most likely see a decrease in pay, increase in expenses, or loss of a job.
Real Life: In 2008, the United States experienced the largest housing bubble in over 50 years. One of the reasons for this is because President Bush held it off for so many years with certain economic policies. The price of houses increased the most during his administration in the last 50 years, excluding 2022. There were too many houses on the market, at such a high price, that the economy couldn’t sustain the high prices and loans that were too easy to apply for. In 2021, it is different; there are less houses for sale, and the prices keep going up. If the home builders came out and began building houses non-stop, it would still take them 2-3 years, at least, to build enough houses to put too many houses on the market.
For the past 100 years, we have had a new recession every 8 years. In 2008, we hadn’t experienced a recession in 10 years. Now, in 2021, we have been waiting for the next recession for 13 years and it as of July 29, 2022, it has been reported that we are now back in a recession. When COVID occurred, the media called it a recession, but though there were two quarters of downturn, no prices went down. The market had a small fluctuation, while everyone was under lock down orders, but it quickly came back (because of action the Trump and local administrations took to correct and open the economy). It is also possible that, even if he did nothing, since this wasn’t a true recession, the market would have still returned the same way when the lock down orders were released. Now you can see statistically what the lock down orders did, by looking at the economies of the states that locked down the longest. The economies of California and New York fell, and stayed down while the people were under lock down orders, as no one could do much in the way of commerce and business. Those states that lifted their lock down orders, such as South Dakota, Florida, Georgia, and Missouri, had economies that jumped, even though there were mask mandates in place. These people were able to get out and work, though, and according to the numbers, the rate of deaths from COVID were no different from California (though New York was significantly more than everywhere else, because people lived so close together). Even in lock down, the people couldn’t work as they normally did, and the economy in those areas suffered.
Now there are multiple types of recession, spanning from a housing bubble, to the stock market falling. Here are the different types:
Boom and Bust Economy: This may occur after a previous year of an economic boom, or a year the economy went up substantially and inflated itself too high. The recession would be to balance it and cut the price increases. When this happens, banks tighten their lending/spending policy and lend less; the price of most things decrease a little, or stay where they are, which allows the market to catch up; and people’s confidence goes from high, in a boom, to low confidence, during a bust.
Balance Sheet recession: This occurs when banks see a decline in their balance sheet, due to falling assets or bad loans, and so they restrict lending policy. During this time, we will see a fall in asset pricing, such as the housing bubble, when the price of houses decreased.
A Depression: This is caused by a long and deep recession, where the output falls by over 10%, and includes a very high rate of unemployment.
Supply-side shock recession: This is caused by a very rapid rise in a commodity price, that causes a recession, due to a decline in living standards. For example, in 1973, the world’s oil prices tripled, which sent the world into a recession, and a fall in disposable income. There was also a lack of output of oil, because of supply. Another example is after Hurricane Katrina, when the oil rigs were down for months, the price of oil and gas skyrocketed, doubling or tripling for months. The price did eventually drop, but people stopped spending to go on trips or buy more “luxory” goods, because it stayed high for a while, while the prices dropped.
Demand shock recession: This is when there is an unexpected event that occurs and shocks the world, which drops confidence in the system, and a short-lived recession occurs. These events include the downturn caused by the 9/11 terrorist attacks, or COVID lockdowns. These normally do not last long, and quickly begin to incline, but the shape or direction of the market is different.
Economists around the world are all considering what will cause the next recession, and how it will look. Many economists believe it will be a mixture of things, such as low confidence in the economy, poor production growth, fall in the stock market, weak investment spending, political turmoil, and/or a war. Note: I wrote this book in 2020 and now in 2022, we are seeing that this has come true. Everything
Different shaped recessions: The artificial recession due to COVID and the lock downs were forecasted to be many different shapes, but in the end, turned into a V-shape recovery.
As you can see from the chart above, the survey shows CEOs and economists were wrong on the shape of the COVID economy. In the end, it was the least forecasted - the V-shape recovery - and returned quickly (showing it was an artificial recession or Demand Shock Recession).
When a recession does occur, and everyone is reacting or overreacting, stay steady and don’t let the world make you react. Instead, calmly make a decision that you will not react; this is normal, and you will overcome these issues. That is also why you will prepare for a possible recession, by creating an emergency fund and beginning a food storage, so you can live an intentional life.
Tuesday May 21, 2024
Tuesday May 21, 2024
Simplified Explanation: Marriage is a culturally recognized union between two people, called spouses, that establishes rights and obligations between them, their children, and even extended family. This brings on the financial, emotional, and physical support of the other person. Some people do this differently but most times, finances stop becoming hers and mine, ownership becomes ours, and families are to work together to succeed in all areas of the family.
Divorce, on the other hand is the legal recognition of the union being dissolved. This is where the financial, emotional, and physical support of the couple is split. This also means that the added stress and finances of the couple is to affect both of them.
Real Life: Marriage should be the happiest moment in a person’s life, that should - potentially - last until death, but sometimes feelings sour between the two parties. If things can be resolved they should but it takes two to find resolution. Sometimes strength is leaving (with abuse). Sometimes you don't have an option (being left for another person). One person's resolve isn't enough. Like with marriage, keeping a marriage together takes two.
Marriage: When you find the person you want to spend the rest of your life with, it normally results in spending as much time as possible getting to know each other, over an extended period of time. This is a time to get to know each other and date, experiencing another person through many different seasons of life. You and your loved one go on dates, attend each other’s activities, and become familiar with the person’s good, and not-so good, traits. This is a time of learning and growing together, before getting married. If you get married too quickly, you may not understand all the attributes of your spouse. If you wait too long, your potential spouse may fall out of love. It is the commitment that makes you strive to work through hard times, be each other’s shoulder to cry on, and the desire for each of you to become a better person in the relationship. When you are getting married, these are the things to consider:
Children – Most married couples who get married for the first time come into their marriage without children, but you should discuss whether or not you want children, how many and how soon you want them. Some couples have their children as soon as possible, so they can get them out of the house sooner; some wait a few years, while they get to know each other; and others wait until they are financially secure before having children, which normally ends up with older parents with younger kids. FYI, raising children is very tiring, how much more tiring would it be for older parents. Whenever you decide to have them, remember that they bring a great deal of expenses. Reports show that parents spend an average of $13,186 per year raising their child, though the median cost was only $6,000.
Finances – Make sure that you are both on the same page with finances, before you get married. Don’t marry someone that you can agree with financially. TD Ameritrade, a financial firm, found that 41% of divorced Gen Xers and 29% of Boomers say they ended their marriage due to disagreements about money. Make sure you are on the same page before marriage, so you don’t risk disagreeing later on. Ask these questions of your future spouse:
What are your goals and aspirations in life? How will you reach them?
Will we use a budget each month, to not just be intentional, but to be in agreement?
When you get your paycheck, do you save, as one of your first priorities or after paying your bills and yourself?
Will we use debt to buy things, or will we try to pay cash and stay out of debt?
(Observe this one, don’t ask it) Are you a frivolous spender and go on shopping sprees?
Do you conserve utilities around the house, or do you do things like leave the lights on?
Will we have children right away or when we are financially secure? Will you treat your children better than your parents treated you, spending more?
How many kids would you like? When do you plan to have them?
Do you plan to pay for their entire college career, partial, or make them work for it?
Should the kids go to public or private school, or homeschool?
How much debt do you have? How much savings do you have?
Do your parents pay for any of your current bills? Would you accept money from them?
How much will we spend on our parents or relatives if they get sick?
Would you help your siblings or a relative if they needed to borrow money?
Have you ever declared bankruptcy? Would you ever declare bankruptcy, or work to pay off your debt?
What is your income right now, and what will it be in the future?
Will we merge our finances together after we get married? What are our financial goals?
How much can I spend before I need to consult you?
How much will we spend on fertility or adoption, if we can’t have kids? Remember, these prices increase too.
Do you prefer brand name goods or are you okay with generic?
How often will we go on vacation? How much will we spend, on average?
How do you spend your money? Do you have “fun money” or an allowance? Would we?
Should we save for future vacations, reunions, and other events and only go when we have cash to pay for it?
Do you have an emergency fund? Are you saving for one?
Will you want to go back to school? How long are you thinking?
What are your career (or entrepreneurial) goals? How long will each step take?
Who will be in charge of investing for the future? Who will pick the stocks?
Does your company offer a 401(k) plan, and will they match your investment?
Do you max out your retirement savings each year?
Will we invest in a house or spend that money on experiences?
Is charitable giving important to you, and how much would we spend?
If you had $1,000,000 and had to give it away, how would you spend it?
Would you seek financial counseling, if needed? Would we seek a marriage counseling, if needed?
And the most important one - who will be in charge of the budget and paying the bills?
Location – Where are you getting married? Where are you going to live? Where are you going to raise a family? Make sure you are on the same page. This is more than financials, but this will allow you to understand your partner even more and what they see in your future together. Make sure you are on the same page with most of your decisions. You don’t have to be on the same page with all of them, but make sure that you can agree - and that it is the same future you foresee, as well.
Divorce: Rarely does anyone “win” in this scenario. Instead, it causes more strife. And, though everything is split, the obligations may grow, especially if there are kids between the two parties. For example, when a couple dissolves their union, the person that makes more money may be obligated to pay for the livelihood of their ex-spouse. If there are kids, one of the parents will most likely need to pay money to the other spouse in support of the rearing of their children. Retirement, savings accounts, and all financials are split between the two people and a wealthy family becomes poorer, due to supporting two households. In addition, the emotional strife that it causes on both ex-spouses weighs on everyone, because, even though you are separated, if you share children, each parent is potentially to have 50% of the visitation rights, and coordination between the two parties may cause frustration and heartache. I know, because I was an unwilling participant in divorce (though, unlike most relationships that develop between two ex-spouses, we have a good relationship and often agree for both families to gather when it comes to the activities with the children). So, a good resolve can be the product of a divorce, but it is quite rare that cool heads result from a divorce. Normally, ex-spouses feel taken advantage of, angry and bitter, or feel the other is still controlling or trying to manipulate them. This is not my experience, but millions of others experience it.
Here are a few things to consider:
Children – There are so many obligations to consider when you are considering getting divorced. If you thought your life was controlled by your ex-spouse, think of the courts now being behind them, to make sure you (or your ex-spouse) does what is best for the kids. Everything is now going to be in writing between you and your ex-spouse.Time spent with kids - When you are divorced, if everything is mutual, the best case scenario is that you see them close to 50 % of the time. The other 50% of the time you will be away from them. What days will you have your kids? What is your schedule? The worst case scenario is that you may “lose” your children, and only see them with visitation rights, and maybe even with someone you pay to watch your interaction with them.
Finances - You will be paying for them more because, as a single parent who has to work, you may need daycare. You may need other financial help taking care of them, or you may need to pay your ex-spouse child support to support the kids. Kids get more expensive when you are divorced.
Transportation – How will you get the children to and from your ex-spouse? Will you pick them up at school or from their home? Will they drop them off? Logistics gets crazy.
Holidays – You will likely get the kids for half of the holidays. The other half will be with their other parents. You will have Christmas without your children half the time.
College – Who will pay for their college? Will you pay 1/3, 1/2, or the entire thing?
Health Care – Who will put the kids on their insurance? How will you pay for emergencies, and they have a large medical bill? If you don’t agree on this, the court will.
Location – Normally your ex-spouse has no say in what you do with your life after divorce, unless you have kids. If you decide to get married to someone one state away, the kids are most likely not coming with you. You may have to find a local or someone who will move to you in order to stay near the kids. If you go on vacation, you will have to ask the other parent and make sure they know everywhere your child is. There is more control in your life afterwards, by your ex-spouse, than when you were married.
Residential Custodian – You may be their parent, but you may not be their custodian. There needs to be one address that the schools will use to register the kids. All of their mail should go to one address, as well, so they stay organized. Who is on the record as their custodian when it comes to all their activities? This is their residential custodian. This does vary between states.
Other agreements – There are many other issues that come up, but when kids are involved, it is important to get these in writing because you will need to stick with them, and make sure your ex-spouse is okay with them, as well.
Finances – If you have kids, you may have to pay child support. Whether you give or get child support, the cost of raising kids increases, when they go between two households. It does not matter if you are the husband or wife, in this day and age. If your spouse was the stay-at-home spouse, can’t work, or is in a less lucrative career than you, you may have to pay alimony for their livelihood, so it is more equal, according to your established standard of living. This will be settled outside of court, by agreement of the Parties, or through mediation, or through the court, with the judge making the ultimate decision. Make sure you get a good attorney.
Location – If you don’t have kids, your ex-spouse has no say on where you live. If you do have kids, though, you may be stuck in one general location - if you want to see your kids on a regular basis (which you should want to do).
Relationships – If you believe you will find a better person than the one you already have, or even if you already had someone in mind, don’t be ignorant. Every new relationship has to start over at the beginning. You will need to spend a good amount of time getting to know this person, and them getting to know you, if you think you will overcome some of the issues you had in the previous marriage. The recommended amount of time is generally one year, so you can see that person in each season (think cold of winter, heat of summer, various holidays, etc.) Another good idea is to take a trip with that person, and see how well you travel together. Travel can reveal a lot about a person! If you already have someone in mind before divorce, know this, only 3-5% of these relationships end in marriage, and out of those marriages, 75% of second marriages end in divorce, as well.
If you meet someone who does not live in the same town as you (or close by), you may want to move to be with that person. Without approval from your ex-spouse and the court, you won’t be able to take your kids with you.
Often, divorce is not the answer, but instead, it is just a band-aid - a quick fix. If you don’t figure out the actual cause of the divorce, it will happen again and again. Out of every first marriage, 40-50% fail; out of every second marriage, 60% fail; out of third marriages, 75% fail; and the statistics get worse each time you remarry. Again, divorce is rarely the answer. Marriages are more likely to succeed when both sides spend more quality time together, listen to each other, and work to understand the other person’s perspective. Honesty is key, too!
Marrying again: Hopefully, you learned some great lessons from the previous marriage. Statistically, these marriages are more likely to fail, but there are some things to do to make sure yours doesn’t. Here are a few suggestions:
Start from the beginning as if you were getting married for the first time. Get to know the person more than you have ever known another person.
Merge your ways of living - Make sure your two separate ways of doing things can merge. If either of you have been divorced over a long period of time, it may be hard for one or both of you to be less independent, and allow the other person into your life.
Spend time together – Don’t just spend all day together, but spend quality time together. Realize that, like the dating period of the previous marriage, you shouldn’t just spend every waking moment together, but if you hold back from getting married for at least a year, you can see your future spouse in all seasons of their life, and the year. People change during the winter, in their habits and behaviors. Make sure you know how they will react in as many situations as possible, before you get married. This does not have to be years, but enough time to really get to know them - and not just what they say. Sometimes these two things are deceiving.
Reality Check #1– This is one of the hardest pieces to stomach, but like your last marriage, the honeymoon stage will end at some point. There will be arguments, frustrations, and you may not want the other person around as much as you used to. Also remember that if there are kids, they will take up most of your time when they are around. You will have less time getting to know the other person than when you first got married and didn’t have kids.
Reality Check #2 – You were probably the cause of, or at least contributed to, your last divorce. As hard as it is to hear, “it takes two to Tango,” which means, things that you did in your last marriage were partially to blame for your divorce, be it small or large actions. The greatest thing you can do to make the next marriage work, is find out what that was, and correct it before the next marriage, so you don’t end up repeating it and setting this marriage up for failure. If you deny you had anything to do with the last marriage ending, you will most likely do it all over again.
Marriage is a wonderful thing that brings the greatest joys to life, but it is always hard, and takes a great deal of work. Do not just jump into marriage because “you think it’s a good thing;” or think you can just figure things out as they come; and please don’t get married because you need to in order to have intimate relationships with someone! Marriage is a sacred trust between you and your spouse and you should treat it that way - treating your spouse very special. So take the time to get to know as much as possible - about yourself and them - beforehand.
Intimacy before marriage: If you bring intimacy in too early, your mind will be clouded from seeing the truth about your future spouse. Intimacy comes in many different ways, and the further you go, the more likely you are to get divorced. Intimacy includes all sexual relations between two partners. When you are getting to know a person, if you hold back from physical intimacy, you are more likely to see with a more leveled mind. If you are hoping to get married to this person, knowing how they are in private situations is not as important as getting to know who they are inside, if you hope your marriage is to last until death. Here are the facts according to the American Psychological Association:
Relationships that are not built on a majority of physical intimacy until they get to know the person first are more likely to succeed or fail before they get too deep, which is okay because you were able to see the person for who they are.
Those who wait for physical intimacy report significantly higher relationship satisfaction (20%), better communication patterns (12%), less consideration of divorce (22%), and better (physical intimacy) quality (15%)
Those that hold off on sex before marriage are the least likely to get divorced.
The more “partners” you have before marriage, the more likely you are to get divorced.
Those who have side partners, while married, are more likely to get divorced, lose that other person, and get divorced a second or third time.
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Monday May 20, 2024
Monday May 20, 2024
Simplified Explanation: Becoming debt free is when you do not owe anyone or any company money from a previous debt. You will still have monthly bills, but you do not owe anyone a recurring amount of money because of past choices or purchases.
Real Life: Getting out of debt is a huge weight off everyone’s shoulders. When you finally get away from debt, you never want to return. Typically, a person will do everything possible to keep themselves away from getting back into debt (aside from the most essential role of financing a home). But when you can get out of that debt, too, you will feel total relief.
Know this: this chapter is filled with suggestions that are based on experience.
Staying out of debt: After getting out of debt, you may feel the relief of not owing anyone financially, and the hope is, that you will feel the desire never to get back into debt. This may be the perfect time to consider ways to stay out of debt, such as cutting up your credit cards and moving to debit cards; buying cars with cash, instead of financing them; and saving for things you would like to buy (and be patient while you’re saving, too). You have worked so hard to either stay out of debt, or pay back your debt, that you have seen the wisdom of never getting back in.
Pandemic or Global Events – When COVID hit the world in 2020, two strategies were taken to stop the spread of the disease. One was to lock down every citizen and business for 3 months (or more), while they got it under control, so the hospital beds that were needed were not overrun. The second was to let everything go forward, and people lived their lives with masks and other protective means, while the virus spread to those who were not protected. In the end, both had the same results with the virus: people died. But the death rates were lower in South Korea and Sweden (who did not lock down) than those of the United States, United Kingdom, Italy, France, Poland, and many other European countries (per million citizens). Also, those who did not lock down continued to thrive in their economies. In the United States, individual states took two different directions with the lockdown. This almost went the way of the political line: blue states (Democrat-run states) continued to lock down. Their number of COVID cases and deaths rose and their economies crashed. The red states (Republican run states) opened up, even just slightly, and their numbers rose at the same amount, but their economies came back quickly. Then, the government, under Trump, first, and then Biden, came out and said, “we will save you by sending you $1,400, then $600, and then another $1,400 dollars.” The government locked the people down for a year in some states, not allowing them to work outside their home, and then gave them $3,400 total, and claimed they saved the people. The problem is, about one-third of people surveyed in the United States lost 10 to 25 percent of their income, not $3,400, while statistics show that a simple 4 months would have solved getting a handle on the pandemic numbers in the hospitals. In the United States, those states and people that thrived were those that locked down for 3-4 months, and then opened up again, such as Georgia, Florida, and Missouri (which is where I lived at the time). Many of the people who lived in the locked down states found themselves to be the answer, and moved out of states, such as New York and California.
Now, after the lockdowns have opened and the masks have gone away, for the most part, because of all the printed money that was injected into the economy, the United States and most of the globe is experiencing inflation. By July of 2022 the United States’ currency had inflated nearly 10%, meaning that you are paying 10% more for a loaf of bread or gallon of gas, on average.
Time to set up an emergency fund: After you have found your way out of debt, the next step is to build an emergency fund of 3-6 months. This is a safety net to prepare you for disasters that may come your way. Don’t be too quick to jump into investing, until you make sure your house is financially secure. This means building a food storage, and creating an emergency fund of 3-6 months to help you through any hard times that may come. For example, if a COVID lock down started up again and you lost your job for any reason, would you be prepared? Most people can’t survive past 3 months without outside assistance. You, on the other hand are prepared for things to come if you’ve followed these steps and have your emergency fund. Or, what if you got into a terrible accident and could not work for 6 months, while you recover? Your health insurance will take care of your medical expenses, for a while, and you will take care of the living expenses. Your car, on the other hand, may need to wait, or you may be able to stretch your emergency fund to take care of the replacement. If an accident is someone elses fault, their insurance should pay the bill. This emergency fund is 3-6 months’ worth of your expenses, in a normal month. Most people, when placed in a hard situation, will do extraordinary things to survive, including cutting their expenses in half sometimes. Knowing this, 3-6 months’ worth of expenses will get you through most of your standard emergencies.
How to you create food storage responsibly and quickly:You are constantly going to the store. Normally, you buy the same things each time you go. For those things that are made to store - such as cans, boxed and bottled items - and those that are made to freeze, buy two, each time you go to the grocery store. It may increase your food budget, but it will allow you to slowly increase your food storage until you have 3-6 months’ worth of food storage. If you set your food budget to a comfortable amount, and don’t use it all in a month, you can always use those funds to buy extra food for storage.
When you feel like you have a good amount of food storage, make sure you keep track of it, so nothing goes bad. Most cans can last 2 years after their expiration date. Suggestion: If you have certain shelves to hold the cans for 2022 and then another shelf to hold cans for 2023, it is easier to track how old your cans are and by when you should eat them. This is an easy way to track your food and cycle it though. Each year, at the end, you will go through all that previous year’s shelves and clear them out, eating those foods first. Make sure that you have recipes for all storage items you gather, and make sure you like those meals. This will allow you to buy foods you like and will eat in times of emergencies.
Now it is time to invest: After you are out of debt, have an emergency fund, and have started your food storage, it is now time to put your excess income into investing in your future. Make sure you educate yourself in every investment.
Here are some articles to read: https://econofact.org/food-inflation-in-the-u-s-and-abroadhttps://riteeat.com/2024/01/24/the-case-for-food-storage/
Wednesday May 15, 2024
Wednesday May 15, 2024
Shadowing - If there are only a few interviewees and the manager doesn’t have a lot of time to interview you, or has already interviewed you and wants to see you in action, they will ask if you would like to shadow them, to see how they work. Always accept the invitation. This is not as much for your benefit, but to see how you interact with other employees, to see if you are a good worker, and to see if the interviewer will like you after a hard day of work. Remember, the manager will be working harder than you during the day, with much more responsibility and they want to show that to you, so they will most likely pack the day with things to accomplish. This can also show that they are interested in you. You will need to bring your A-Game.
Before the Shadowing Appointment:
Work around their Schedule – Do everything possible to meet when it is convenient for them.
Know the Details - Before you show up, make sure you are clear on the details.
Appropriate attire - Make sure to ask beforehand what clothes you should wear. Do not wear a suit if you are going to dig in the dirt. You can ask for an itinerary, so you know how to prepare.
While Shadowing:
Show up early - This is an interview in action, and they want to make sure you will not just show up, but be early - since it’s a better indicator of how you will work if employed.
No phones - Put your phone on silent and keep it out of your hands. If you pick up the phone while you are shadowing, you most likely will not get the job. Show them that the job and this opportunity is very important to you.
Your best self - Present your best self with your body, non-verbal language, and speech.
Be positive and interact nicely with everyone you encounter - while you are with the manager, and while he is away. Others are watching, and the manager will most likely ask for others’ insight on you.
Be prepared to stay later than they ask. Managers have a job to accomplish, and this may be longer than the normal workday. Offer to stay to help with things afterwards, until they leave for the day, if they are accepting of this. You don’t have to do this after you are hired, but you are showing them that you work hard.
Get out of your comfort zone and ask to help wherever you see a need. They want to make sure you are a good fit, and who could be a better fit than someone who takes initiative.
Take plenty of Notes - Bring a notepad. Remember, the interviewer may have the position you ultimately want. Take notes on what they are doing, so you can work towards that position.
Ask plenty of questions to show your interest, and that you are trying to understand everything.
Earn the Position - Remember that you are not entitled to this job. This is how you earn it.
Reflect on your Career Path – Prepare to answer more personal career questions, spontaneously, in this interview. Prepare an answer to why you chose this position or job posting. This is a less formal setting, so don’t act like you have all the answers. Be humble and willing to, instead of making up an answer, ask a question to clarify, or gain advice from the interviewer.
Be curious, yet discreet – Show your interest in the interviewer and the position. Watch them for reactions, and empathize where possible. Practice active listening. Also, don’t cut them off.
After Shadowing:
Send them a thank you note – Like after any interview, send a personalized note, to stay at the top of their mind, and the list of potential employees.
Remember to follow up with an answer you promised, or a task they gave you.
Follow up a week later, about the job, by asking a question in a quick, easy-to-respond-to email.
After you have the job offer, if you still feel loyal to the company you work for and think that a promotion would satisfy your disengagement, then go to your current employer and explain the situation. Do not go empty handed (without another job offer) because if this meeting doesn’t go well, you want something ready and solid to fall back on. When speaking to your employer, tell them why you began looking, but tell them that you are loyal to the company, you like your co-workers and that you just need a change. Then, let them know you would like to stay, if they can make it viable to keep you. This then puts the ball in their court, giving them the chance to act; if they don’t want to, or can’t, you must then act on what is best for you. You gave them a chance, though. Remember, most employers do not want to lose someone that shows initiative, by bettering themselves with more education, or going out and experiencing job hunting for a better job.
Union Members - If you are working with a union, tell the union representative what you are doing. Your employer may not be allowed to promote you because of union rules, so asking for a promotion may not be a viable option. Unions are set so everyone is treated equally. Those who work harder cannot have an advantage, unless a different job becomes available - and you will still have to apply for that position. If there is not a job available, the employer is not allowed to offer you more money. This may be the best time to get out of this job and find one with an easier success ladder, where you can work harder to get ahead of the rest.
If you take the time to become better educated or find a better position, let your current employer know and tell them you will stay if they offer you a better position. They know they would lose a lot by letting you go. They would then have to go through the interview process and potentially pay the new employee more, due to newer and higher salaries for that position. They know that they are in a hard position, because you will save them time and money and you are already educated for the current position. They want you to stay, if that will keep you engaged at work.
Read additional articles, including: https://careers.unl.edu/resources/job-shadowing-a-pathway-to-professional-insight-and-growth/ https://career-advising.ndsu.edu/resources/job-shadowing-preparation-and-tips/ https://hbculifestyle.com/job-shadowing-questions-for-hbcu-success/
WELCOME TO THE DEBT FREE MILLIONAIRE BRAND
Beyond our podcast, we also have an upcoming video game and books.
Upcoming Video Game
Our game is being produced by Xogos Gaming, with the help of the ASA.
Debt-Free Millionaire" is an innovative financial simulation game that blends the thrill of video gaming with the practical, life-changing knowledge of personal finance and investment. Designed to mirror real-life financial situations and decisions, the game is powered by sophisticated machine learning to create dynamic, realistic scenarios that players must navigate. From managing day-to-day finances to making strategic investment decisions in stocks, commodities, real estate, and businesses, players will encounter the full spectrum of financial planning and wealth building.
Upcoming Books
One of these books is a general Debt Free Millionaire personal finance course. That is right, we will be teaching you classes about personal finance right from the book.
The second book is about house flipping, and do I have some great stories for you. I once bought a house that was built in 1913 that I had to nearly rebuild, I made so many changes. It was in Fort Leavenworth, in Kansas, and man was that an adventure.
Another house I flipped and in the middle of it I had open heart surgery, which I woke up on Christmas day and the a few months later, while still remodeling, the whole country shut down due to COVID lockdowns. That too is a story for another time.