https://www.theultimatejeep.com/blog.php?2-LWM en Wed, 05 Aug 2026 01:32:34 GMT vBulletin 60 https://www.theultimatejeep.com/images/misc/rss.jpg https://www.theultimatejeep.com/blog.php?2-LWM https://www.theultimatejeep.com/entry.php?55-Extending-the-hand-of-frienship-to-the-WK-owners Mon, 09 May 2011 18:13:49 GMT So I have been reading a few posts on this forum and others and it seems to me that the WK is considered by some to not be a real Jeep, something... So I have been reading a few posts on this forum and others and it seems to me that the WK is considered by some to not be a real Jeep, something that was once said about the Commander but proven wrong time and time again by many owners on this and other forums as well.

There was some discussion recently about opening our forum up to the WK owners (2005 -2010 Grand Cherokee) and I am thinking this could be a win win for both groups of owners. Since the Commander and Cherokee are both based off the same platform we share many things in common.

I would think it would open our access to more discussions on modifications and maintainance issues if we opened our forum to the WK world.

We could rework our title page to read XK / WK "The Ultimate Jeep Forum" and expand our sub-threads to allow for this additional area of membership.

I am pretty sure I can purchase wk-forum.com and link it to this site, the only additional expense would be the annual expense for the doman which is around $10 to $15.

As the owner of this site I know I can do as I desire, but this is really "our" forum so I ask you as members, what are your thoughts? ]]> LWM https://www.theultimatejeep.com/entry.php?55-Extending-the-hand-of-frienship-to-the-WK-owners https://www.theultimatejeep.com/entry.php?54-Financial-Peace-of-Mind-Part-19 Wed, 09 Feb 2011 16:27:51 GMT *Uncle Sam’s piece of the pie* Taxes are one of those things we all have to pay wither we like it or not, even in death we cannot avoid taxes. ... Uncle Sam’s piece of the pie

Taxes are one of those things we all have to pay wither we like it or not, even in death we cannot avoid taxes.

Do you itemize your deductions? Do you keep proper paperwork? Are you like me and have a shoe box in the closet for the past 7 years? Taxes are something that you have to think about when you are doing your budget and financial planning.

This year I was helping my daughter file her taxes, her employer only took out $20 for federal withholding so guess what? Yep, she owes money. Make sure your employer is taking the correct amount or you will end up spending money you did not budget to pay your taxes, and if you are self-employed make sure you make the quarterly estimated tax payments so that the penalty doesn’t catch you off guard.

If you use the budget sheet that I prepared you should be able to file taxes quickly and know that you are in good shape going into the next fiscal tax year.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?54-Financial-Peace-of-Mind-Part-19 https://www.theultimatejeep.com/entry.php?53-Ever-thought-of-starting-an-internet-business Tue, 08 Feb 2011 20:10:40 GMT Over the years I have had the pleasure to belong to a dozen or so forums many of them automobile forums but I also belong to a few gun forums, sports... Over the years I have had the pleasure to belong to a dozen or so forums many of them automobile forums but I also belong to a few gun forums, sports forums, recreation forums and a few techno forums as well.

I own a forum, am a Super Moderator on a forum and participate in a couple others as time allows.

Owning www.XK-Forum.com has been a fun and challenging experience and I have poured a good bit of personal funds into the site to insure it will be around for the long haul, and it will. Sponsorship has been fantastic for a new start-up venture and each lifetime membership pays for 4 months of site operations so I say thanks to those who have the means to become a sponsor and member of The Ultimate Jeep Commander Forum.

This Blog is however NOT about XK-Forum.com as much as it is about asking the question; what is missing out there? I have thought that there must be a forum or web site that is more general in nature and could draw and even larger crowd and thought I would ask you as members and supporters what your thoughts were.

Is there an idea bouncing around in your head that you wanted to run with but didn’t have the support or time or money but that with a small group of likeminded people you just might want to see take off?

There are no limits to this brainstorm, if you can think it there is most likely a way it could be done. I found myself bored and wanted to start something new and thought maybe you just might want in on it or you might have a great idea but just needed someone to help you get it going.

I have done the research for web site hosting and domain names, I have a webmaster on retainer to work through the technical issues and I have the time to help put something together so now is the chance to see your thoughts come alive on the web and maybe with the right idea and a little effort we can make a little money while we are at it. ]]> LWM https://www.theultimatejeep.com/entry.php?53-Ever-thought-of-starting-an-internet-business https://www.theultimatejeep.com/entry.php?52-Web-site-promotion-is-it-possible Tue, 08 Feb 2011 19:55:13 GMT Since the launch of XK-Forum.com; THE ULTIMATE JEEP COMMANDER FORUM, I have struggled to find ways to promote the site and keep it in the top of the... Since the launch of XK-Forum.com; THE ULTIMATE JEEP COMMANDER FORUM, I have struggled to find ways to promote the site and keep it in the top of the search engine listings. It is a hard task to accomplish since the owners of the Jeep Commander are a small percentage of Jeep owners and even smaller percentage of automobile owners.

I know I love my Jeep Commander and plan to keep it forever as do many others who have shared their ownership experience with me over the years. The loyal owners know what I am talking about. XK-Forum.com was created so that we as Commander Owners would have a place where we can share our stories, encourage others in our outdoor adventures and seek out new and exciting modifications for the Commander.

To that end we have invited sponsors like Discount Tire, 4xGuard, Superchips and many others and it is my intent to continue to seek out businesses that will promote the Jeep experience and specifically the Commander.

New products have been developed such as the Secure Console and many specialty products from some of our vendors as well.

XK-Forum.com is proud to sponsor West Coast Camp Commander as it goes into it's third year with the camping event in Colorado this summer (July 2011) and attendance has continually grown with owners traveling hundreds of miles to camp, off-road & fellowship with follow Commander owners in a unique way.

So as I move into 2011 I will continue to promote this site and encourage all members to invite your friends, post links in your web site signatures where allowed and include key words in your thread posts, articles and blogs to help those little search engine find their way to us.

Thank you for your continued support and may you all have a blessed 2011 ]]> LWM https://www.theultimatejeep.com/entry.php?52-Web-site-promotion-is-it-possible https://www.theultimatejeep.com/entry.php?51-Financial-Peace-of-Mind-Part-18 Tue, 08 Feb 2011 15:49:50 GMT *Shopping online with your Debit card:* I have said many times that you need to get rid of your credit cards; however shopping online with plastic... Shopping online with your Debit card:
I have said many times that you need to get rid of your credit cards; however shopping online with plastic is something that you need to be careful doing. Credit cards give you the added theft protection that may not be available with your debit card, check with your financial institution and clarify what protections you have when using your debit card online.

You must be careful that the person you are doing business with does not have the ability to withdrawal large sums of money from your bank account because he/she has access to your debit card information and you have no protection against lose of funds.

And as if were not enough… just think what could happen if someone emptied your account and then the scheduled payments that you made started to come out. Now you are looking and overdraft fees & potential late payment fees on items not covered.

The above situation just supports another reason why you must establish your $1,000 emergency fund and keep those funds separate from all other monies.

I use my debit card on a regular basis but I also log on to my financial institutions web site and check my account just as often. My back even offers a free service where you can text a certain number and they will text back your current balance and your last five transactions.

Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?51-Financial-Peace-of-Mind-Part-18 https://www.theultimatejeep.com/entry.php?50-Financial-Peace-of-Mind-Part-17 Mon, 07 Feb 2011 16:13:23 GMT *Where did all the money go?* Are you still using a credit card? Remember we talked about this, we need to pay those things off and cut them up,... Where did all the money go?

Are you still using a credit card? Remember we talked about this, we need to pay those things off and cut them up, cancel them and do not get new ones.

For many of us a balance of a thousand dollars on a credit card may not seem like much and will not cause much stress when doing your budget, but…

As we discussed that is money that can be used for other “Budgeted” items, so you need to pay off those credit cards as fast as you can. I am proud to say I entered 2011 with NO credit card debt and plan to NEVER have credit card debt again.

There are online calculators that can help you determine how long it will take to pay off your credit card if you just make the minimum payment, one of those can be found at the following link: http://www.bankrate.com/calculators/...alculator.aspx The shock of what you find might be just the motivation to pay the debt off as quickly as you can.

The interest rates of 14 to 28 percent it themselves should be enough to motivate most people to pay off and eliminate credit card debt.

With the economy the way it is right now you may or may not be receiving credit card apps in the mail, if you are then look at them and see if there is any advantage to a debt transfer in order to combine or reduce interest rates, this will help a little but you MUST cancel the other cards and then close these new accounts as soon as they are paid off.

Check out www.creditcards.com and see if the change to a new credit card can be a TEMPORARY solution to your finance situation.

Just remember that NEW debt IS NOT something you what to consider, if change cannot reduce what you owe by reducing the balance or reducing the interest rate then stay away from additional credit cards.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?50-Financial-Peace-of-Mind-Part-17 https://www.theultimatejeep.com/entry.php?49-Financial-Peace-of-Mind-Part-16 Thu, 03 Feb 2011 19:53:40 GMT *Where did all the money go?* Well most of us survived the holiday season with our bank accounts in the black and a little to head into the New... Where did all the money go?

Well most of us survived the holiday season with our bank accounts in the black and a little to head into the New Year. The questions I hear from many is “where did all the money go?” Well there are several things that take our money without us even noticing and I am going to share a few of them with you now.

It is easy to spend money and some things we know are just going to cost us money no matter what we do. This past holiday season I took a road trip to California & Oregon to visit family (The main expense was gas as we stayed with family), I planned to purchase several of my Christmas gifts in Oregon since they do not have a sales tax and that was a hugh savings for us. But sales tax is not the only hidden cost that reaches into our wallets and purses and takes the little bit we have left.

How many of you use your ATM card for purchases? Most of us do I think and for the most part that is not a problem (as long as the item is budgeted as discussed in a previous session), The problem is when you use your ATM card (debt card) to withdrawal money from a bank that IS NOT your bank.

Do you pay ATM fees? If you are taking money out of an ATM that does not belong to your financial institution then the chances are high that you are paying a small fee for that service and although it is only two or three dollars to do it (I have seen fees as high as eight dollars) that adds up over time and the more transactions you do the more dollars you find slipping away.

If you go to the ATM once a week for 52 weeks to take out $20 for lunch money and pay a $2 fee each time you make a withdrawal you are paying the bank $104 for that convenient service, what else could you do with $104?

ATM fees are going up every year and more and more financial institutions are adding those charges to each and every transaction.

AM/PM gas stations (Arco) charges 45 cents to use your ATM at the pump and if you fill up once a week you are paying $23.40 a year just to avoid going in and handing the cashier cash inside (remember your gas envelope?).

So the point here is…

Use your envelopes, budget your money and DO NOT use your ATM / Debit card anywhere where you are charged a fees for that service.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?49-Financial-Peace-of-Mind-Part-16 https://www.theultimatejeep.com/entry.php?47-Financial-Peace-of-Mind-Part-15 Mon, 22 Nov 2010 17:09:12 GMT *Buyer Beware* Black Friday is just a few days away and some people are already planning their attack on the mall and other retailers to get those... Buyer Beware

Black Friday is just a few days away and some people are already planning their attack on the mall and other retailers to get those once in a lifetime deals. My advice to you… Sleep in, don’t rush out and buy something that you do not need with money that you do not have.

This time of the year retailers will try anything to separate you from your hard earned cash, marketing is at its highest point during the holiday season and people will spend money that they do not have to buy things that they do not need for people who will not appreciate it.

That 60 inch big screen television (on my wish list too) will be on sale someplace and they will more than likely offer to sell it to you for little or no cash down and a same as cash credit plan that makes it sound like an offer that you cannot walk away from. Keep in mind that if you miss one of those payments that contract allows the retailer to usually charge you around 24% interest, now that great deal just ended up costing you a whole lot more than you planned.

There are some general guidelines you should keep in mind when making a major purchase and these rules apply to the holiday season as well as the rest of the year, major purchases are those items that cost you over $300.

Before you purchase one of these major items do the following:

1) Wait overnight, take time to really think about it and see if you feel the same way in the morning.
2) Consider your motives for the purchase; no amount of stuff equals contentment or fulfillment.
3) Never buy anything that you do not understand.
4) Consider the “opportunity costs” of your money.
5) Seek the counsel of your spouse or financial partner.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?47-Financial-Peace-of-Mind-Part-15 https://www.theultimatejeep.com/entry.php?46-Financial-Peace-of-Mind-Part-14 Tue, 16 Nov 2010 16:55:06 GMT Credit Bureaus & FICO scores

Many people get too over concerned with credit bureaus and credit reports. Do you know what your FICO score is? Do you care? I used to be real concerned about it but learned that the FICO score is really a “I love debt score” because if you were independently wealthy and paid for everything with cash you would have a very low FICO score as you would have no record of debt and payment history.

It is funny that you could have a better credit score than Donald Trump or Bill Gates but the truth of the matter is you just might have, and that is even if you have bad credit because those guys don’t need a FICO score to make a purchase on credit, they avoid credit & debt.

But the good news is if you get rid of your credit cards and regularly make your house payment, everything else is dropped from your credit report in seven years except a bankruptcy which stays on for 10 years.

Now I am not saying you should ignore your credit report, you should get a copy and review it at least once a year and you can do that for free. In a recent survey of 200 people it was discovered that 79% of those people had an error in their credit report and 25% of those were serious enough to have been denied credit. If you do not own the home you plan on living in for the rest of your life you will someday need the FICO score to get that dream house so keep an eye on your credit report.

If you do discover an error in your credit history you can write the credit bureau and they are required to remove the disputed item within 30 days of the notice if they cannot verify the original claim with the source.

There are three major credit bureaus and each one must provide you with a free copy once a year. You can request all three at one time or I suggest you spread it out and get one from a different one every four months all year long so that you do not go 12 months before you see a major problem in your reports.

EXPERIAN

Phone: (888) 379-3742
www.experian.com

EQUIFAX CREDIT BUREAU

Phone: (800) 685-1111
www.equifax.com

TRANSUNION CREDIT BUREAU

Phone: (877) 322-8228
www.transunion.com

You can also file complaints about any of these three with the Federal Trade Commission at:

Phone: (202) 326-2222
Address: 600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Website: www.ftc.gov

A couple of other great sites I would also suggest you contact are as follows, the Pre-Screening Opt Out will help get you off all those lists that send you the free credit card applications and the National Do Not Call List will help reduce junk phone calls.

PRE-SCREENING OPT OUT

Phone: (888) 567-6888
www.optoutprescreen.com

NATIONAL DO NOT CALL REGISTRY

Phone: (888) 382-1222
www.donotcall.gov


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?46-Financial-Peace-of-Mind-Part-14 https://www.theultimatejeep.com/entry.php?45-Financial-Peace-of-Mind-Part-13 Mon, 15 Nov 2010 15:05:20 GMT Kids & Money

I grew up in a single parent family with 6 brothers and sisters so there was little talk about saving money, there was no money to save.

I didn’t teach my kids lessons on saving as nobody taught me, now I know and it is too late to do SOME of the things I have learned but not too late to do all of the things I have learned as far as it relates to my children. Remember my kids are 19 and 21 years old now!

Teaching our kids how to handle their finances and money is not the responsibility of the education system (where they barely lean anything anymore). It is our responsibility!

I remember getting an allowance off and on but it was never much and I certainly do not remember having to do anything to get it. Remember the old saying; “money does not grow on trees”? I sometimes wonder if our kids still think money just shows up when you really need it.

Instead of an allowance, we need to use words like commission and payment. If you do not work, you do not get paid! The real world is tough on those who do not have money to pay their bills and children need to know that if they want something they have to earn the money to pay for it, parents can help out as they feel appropriate but kids must not expect to get anything they want at anytime without some personal commitment and sacrifice.

Start saving when the kids are young, get a big clear container and have them save their money right where they can see it grow (money in the bank at a young age is hard to comprehend).

Let you older kids in on the envelope system secret right away, give them 3 envelopes (Spending, Giving & savings) and when they are old enough (13-15) open a checking account for them and go over the monthly statements with them.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?45-Financial-Peace-of-Mind-Part-13 https://www.theultimatejeep.com/entry.php?44-Financial-Peace-of-Mind-Part-12 Tue, 09 Nov 2010 17:27:04 GMT *Savings* There are a lot of reasons to save money, we have talked about the emergency fund and that is the first place we want to start but we... Savings

There are a lot of reasons to save money, we have talked about the emergency fund and that is the first place we want to start but we cannot stop there. After we get through with paying off our debt we will begin savings for several different things.

Don’t not get the cart before the horse here, I do not want you to start savings on these other things until you have your $1,000 emergency fund AND you have paid off all of your debts (except the house).

Sometime in the future you will retire, that is unless you die first and that is not an option I am willing to consider at this point in my life. Retirement will cost money and with the price of inflation it will cost more in the future than it does today so we need to plan for it.

Do you have kids at home? Do you plan on sending them to college? That too will cost money and we have to plan for those expenses. My kids are 19 and 21 so it is a little late for me to start saving for their college but there are things we can do and we will look at those in the weeks to come.

We can start by encouraging our children NOT to repeat the things we did and to stay out of debt by not getting into debt to begin with. I have told my children that they do not need a credit card and should not apply for one regardless of the “special promotion” the bank are offering. You know who pays for those promotions, right? You pay for them with your high interest rates so you would be ahead of the game if you just bought your own tee shirt or what ever they are giving away.

Now think about this, if you wanted a new cloths washer and dryer with the pedestals and all the fancy stuff you might have to spend $4,000 to get them. You could finance them through the store or your credit card at 24% and with payments of $211 a month for 24 months, at the end of the 24 months you would have paid a total of $5,064 for your appliances or you could put the $211 in your envelope fund for 18 months and pay cash for the appliances which would save you $1,064.

Did you know that if you started saving $100 per month (at 12% interest) from the time your turned 25 until you retired at age 65 you would have $1,176.000 in savings for your retirement? So the question is why are we not saving?

Here is another thing to look at, what do you spend money on that you really do not need and what could you have saved if you had avoided those items? For example if you are a smoker and spend $3 a day on your cigarettes you are spending $90 per month. If you invested that same money at 12% from age 16 to 76 you would have saved $11,622,000.

But not to pick on smokers alone… If you purchase a Starbucks coffee everyday at 45 you are spending $150 per month that same money invested at 12% over the same 60 years would have saved you $19,371,943.

Now I do not smoke or drink coffee so I guess I am okay, right? Not so fast…

If I eat out for lunch 5 days a week at an average cost of $8 per meal I would be spending $160 per month on lunch. That same money invested at 12% for 60 years would have netted me a retirement fund of $20,663,319.

And for those who are still having trouble wrapping your arms around potential savings let me share one more example with you:

If you were able to put $2,000 into a savings account per year at a rate of 12% from the ages of 19 to 26 and then stopped investing due to any reason that account would have $2,288,996 at age 65. If you started saving $2,000 per year at age 27 at the same 12% you could put $2,000 away EVERY YEAR until age 65 and still only have $1,532,166.

The point here is to start saving money and to start your kids saving early in life as well and then don’t stop! We will talk more about kids & money next time.


Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?44-Financial-Peace-of-Mind-Part-12 https://www.theultimatejeep.com/entry.php?43-Financial-Peace-of-Mind-Part-11 Mon, 08 Nov 2010 16:27:57 GMT *Emergencies* Last week we were slammed with an emergency. Just when you think things are going well is about the time something happens that you... Emergencies

Last week we were slammed with an emergency. Just when you think things are going well is about the time something happens that you had not planned for and for us that was my daughter’s car breaking down. The mechanic told me it would be $1,200 to fix all the issues (motor, brakes, exhaust, tires, door handle) and my daughter has no money as she is a 21 year old living at home, working full time and going to college.

I pondered the value of the car and fixing it compared to selling as-is and having her look for a new car but she has no money in savings (this is why EVERYONE needs a small emergency fund) and cannot afford a car payment so I guess dad gets to come to the rescue again and help her out.

So now my emergency fund is almost down to zero and I have to start putting money aside every month to get it back up to $1,000 before the next emergency catches us unprepared. Unfortunately that is just the facts of life, things happen and we have to learn to adjust and make the best of the situation.

The goal to be debt free (except house, car & student loans) will still happen but instead of snowballing the extra cash into the car loan I will put it in the emergency fund for a couple of months and then pick up where I left off.

So why am I telling you all of this? Because I want you to know that things are going to happen to your plans but YOU are in control of how those things are handled. I could have charged the auto repair and had another debt to pay or helped finance a used car but both of those options are NOT part of the getting out of debt plan.

Your emergency fund is for situations just like this so relax and find peace in knowing the emergency fund is there so that you can continue to work your plan and get out from under the pressures of debt.

Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?43-Financial-Peace-of-Mind-Part-11 https://www.theultimatejeep.com/entry.php?42-Financial-Peace-of-Mind-Part-10 Wed, 03 Nov 2010 16:53:01 GMT Why spend cash when credit & debit is easier?

Over the past few blogs I have shared budgets and envelopes as well as getting rid of those blasted credit cards and now I am going to try to convince you to only use cash for your purchases.

The downside to credit cards is you run up debt, the down side to debit cards is your drain your bank account faster then you can replenish the funds. Cash works differently, When you spend cash you know you have to stop when your hand is empty, in other words if you run out of cash you have to stop spending.

Let’s say you want a new portable GPS system for your Jeep that you can also use to GeoCache, you have shopped on line and found several for around $200 that you like. You have budgeted the money in your auto envelope or your recreation envelope (depending on how your mind works) and you finally have the $200. Now you go to your favorite electronics store and they have just the GPS you have been looking at for $195 but right next to it is the new generation on sale for $295 and the added features are not needed but nice to have, what do you do?

You buy the one in your budget! After all you only entered the store with $200 and you have already cut up or locked up your credit cards. It is so easy for us today to convince ourselves that we can afford the extra $95 and just add it to the credit card debt or spend the money from our checking account when we really need that $95 to save for our emergency fund or pay off existing debt (as a side note you really shouldn’t buy this kind of toy anyway until you have your fully funded emergency funded).

Cash is also a powerful tool in negotiations, when you walk up to a salesman and you ask how much something is they will tell you the price and then you whip out the plastic and take the item home, your new thought pattern should be that when they give you a price you pull a wad of cash out of your pocket and tell them how much you are willing to give them for the item. This will not work at Target but you might be surprised at how many places the salesperson can adjust the price to make a sale and cash has a lot more bargaining power than plastic because the store has to pay a percent of the sales to the credit card company just to accept your card.

I am sure many of you have seen the gas stations that list “cash price” on their signs and charge more when you use your credit card, my local AM/PM has a 45 cent fee to use the debit card but you can save the 45 cents by paying cash from your gas envelope and if you take your total yearly fill-ups x 45 cents each you can see how much money you save in just one type of purchase.

I can not even begin to tell you how many times I would pull out my credit card to make the wife or kids happy when we were out and about, now that I do not carry the card I am not tempted to purchase things at the spur of the moment and the envelopes full of cash are safely tucked away so there is no chance they are getting used. I carry $20 in my wallet for odd things that might pop up and I have my debit card if needed (and you should not need it) but I do not buy a thing that are not in my budget and that is why cash is king when trying to get control of your spending.

Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?42-Financial-Peace-of-Mind-Part-10 https://www.theultimatejeep.com/entry.php?41-Financial-Peace-of-Mind-Part-9 Tue, 02 Nov 2010 15:13:16 GMT Lose the Credit Cards:

Yes that is what I said, but I don’t mean to actually lose them. This is hard to do but trust me it will work, you need to take your credit cards TODAY and cut them up. You do not NEED credit cards to survive in life, in fact your current financial situation could very well have been avoided if you had never signed up for those cards to begin with. We seem to purchase things we do not need or cannot afford when we can put the purchase on credit instead of paying for things with cash.

With the envelope system you do not buy anything you do not have the money set aside to buy, that means if you want a new rear bumper for your Jeep you have to save up the money first and then you can buy it. This is the hardest thing to get used to doing but you will see your credit card balance drop when you stop adding new things to the account.

I have my debit card and I will sometimes use it for things that are in my budget and then make adjustments to my envelopes later (to be discussed in the very near future) but I no longer carry ANY credit cards.

You should cut the credit cards up and call the credit card company today to close your account, in fact you could stop reading this and go do it right now (the credit card phone number is on the back of your credit card) but I am sure if you are like me you need a little more convincing. Let’s do it this way… Take the credit cards out of your wallet now and put them in a safe place (maybe with your envelopes), tell yourself that you are no longer going to use them and let’s just see if I can convince you in the meantime that you really do not need them and we will cut them up later.

You do not need a zero balance to close the account, you can call and close the account at any time and as long as you do not make any new purchases your account will close when you hit a zero balance, I did this on two of my three credit card accounts. When you do finally call to close the account cut up the card so that you cannot use it again.

The third credit card account is a special situation that I will talk about now. It was recommended that I cut up all of my credit cards but as a professional businessman (with a company credit card) I know there are times when you may need one and I pride myself on being prepared (a Boy Scout thing).

I have a credit card that I had the maximum limit LOWERED to $2,500 and this is my “Traveling Emergency Fund”, in other words this credit card stays at home in the safe unless I am traveling away from home (extended out of town trips) where I may not be able to access my emergency fund. For example if I take a road trip to Camp Commander I will take the credit card as I will have no access to my credit union or my envelopes, if the Jeep breaks down and I have to make an emergency repair I can use the credit card and then pay off the TOTAL balance when I get home and get to the credit union for my cash.

Another time I needed my credit card was when I went to SEMA last year and needed a credit card in order to check in to the hotel, you can use your debit card but when you do that the hotel locks the room charges and those funds are not available to you if you need them for other things. By using your credit card you tie up none of your money and when you do not put the charges on the card (you should pay the actual room charges in cash while you are there) you still have a zero balance. You could leave the room charges on the credit card and pay in full when the bill comes but that leads to bad habits and I suggest you just pay cash for everything from now on.

More on cash in the next blog.

Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?41-Financial-Peace-of-Mind-Part-9 https://www.theultimatejeep.com/entry.php?40-Financial-Peace-of-Mind-Part-8 Mon, 01 Nov 2010 14:38:19 GMT Eliminating Credit Card & Other Debts:

In my last blog I told you that my second goal (first goal was $1,000 emergency fund) was to be debt free except my mortgage, car payment & student loan. I experienced a blow to my plan when I had to replace my Air Conditioning at a cost of approximately $7,000 but was still able to meet my goal. I am sure you want to know how and I am now going to tell you…

Debt reduction is critical to having financial peace of mind, when one has debt it is hard to see clearly what the future can hold as we are always under a cloud. Here is how I eliminated approximately $25,000 in debt in a little over 16 months:

I robbed a bank! Well not really but the way bankers complain you would think I robbed a bank.

The first thing you need to do is make a list of ALL your debt except you mortgage, this list should include credit cards, line of credits, car payments, student loans, payday loans, and money you owe anyone.

Now list then out on a piece of paper with the smallest loan on the first line, make sure you record who you owe the money too, what the outstanding balance is and what the minimum payment due amount is. Then list the next smallest and so on until all your debt is listed with the largest debt on the last line.

For budget purposes you will need to have each of these items listed on your budget form and the monthly amount due should be what ever your minimum payment due amount is according to your statement. As previously suggested I would encourage you to list all of these items in the same area of your budget so you can work the next suggestion easily and see the debt melt away.

Until you have your small emergency fund fully funded at $1,000 you should pay no more on these debts then the minimum amount due, this is important as you will soon see. Once the small emergency fund is fully funded I want you to take the amount you were paying into that fund and add it to the minimum payment due on the smallest debt you have.

FOR EXAMPLE:

Emergency fund $50 per month

Debt 1 – minimum payment $75
Debt 2 – minimum payment $125
Debt 3 – minimum payment $190
Debt 4 – minimum payment $289
Debt 5 – minimum payment $ 365

AFTER EMERGENCY FUND IS FULLY FUNDED:

Debt 1 – minimum payment $75 + $50 (what you were putting into emergency fund) = $125
Debt 2 – minimum payment $125
Debt 3 – minimum payment $190
Debt 4 – minimum payment $289
Debt 5 – minimum payment $ 365

You will continue to pay $125 per month on that debt until it is paid off while continuing to make the minimum payment on all your other debt.

When the smallest debt is paid off I want you to take the $125 you were paying on that loan and add it to the debt 2 minimum payment ($125) making a payment of $250 per month and when that debt is paid off you will add that $250 to debt 3 minimum ($190) payment making a payment of $440 per month and so on until the last debt is paid off.

I think you can see from this example that it will not take as long as you thought to pay off your debt. I did it in 16 months so what are you waiting for?

Feel free to send me a PM if you have questions or you can add them to the comments section if you feel others can benefit from the discussion. ]]> LWM https://www.theultimatejeep.com/entry.php?40-Financial-Peace-of-Mind-Part-8