Starbucks RED campaign

Here is one way to give this Christmas season at Starbucks

Starting November 27, every time you buy a (STARBUCKS)RED EXCLUSIVE beverage at participating US and Canada locations, we'll give 5 cents to the Global Fund to help saves lives in Africa.

In support of Worlds AIDS Day on December 1, we'll donate 5 cents of every hand-crafted beverage we sell that day at participating US and Canada locations.

Together, our nickels can really add up.

Make your commitment at the (STARBUCKS) RED Community today!





Buy Starbucks Holiday/Seasonal Coffees

Money as debt

Interesting video on YouTube about how money is really created in society. It is long but worth watching.

Introducing reserve ratios and more terms that explain the legalized method of creating money out of thin air

Scratch Beginnings: Adam W. Shepard

Dave had the author Adam Shepard on his show Tuesday night. Inspired by the Barbara Ehrenreich book, Nickel and Dimed: On (Not) Getting By in America Adam had a plan, take only the clothes on his back, a sleeping bag and $25.00 in cash to a random city in America and try to prove that you can make it.

The goal was to have $2,500 saved, a working automobile and a furnished apartment in one years time. During the summer of 2006 he arrived in a Charleston, South Carolina homeless shelter and began his journey.

See people, the American Dream is not dead, we do not need to bail out AIG, Citigroup or any other bank out there to make it in this country. We need to simply get back to basics. live well within our means and increase our 'means' if we want to do more in life. This story is an inspiration.

I have added this to my must read list, take a look at the book Scratch Beginnings: Me, $25, and the Search for the American Dream today!

You can also visit Adam's web site: www.scratchbeginnings.com

Christmas 2008

Christmas will be light this year, the adults in the family have all agreed not to exchange gifts. We will still buy a few things for the kids (2 years and 14 months) and the grand parents will buy them a few things as well, nothing overboard.

Seems like it takes forever to pay the bills being I am paid twice a month. It is a strange feeling being anxious for payday to arrive to make a payment to the debt snowball with such enthusiasm, am I abnormal? I think I am and that seems to be the goal here isn't it?

eBay sales are doing well, seems the Camaro Christmas ornaments are the best seller, then there are the keychains. I've been able to move $300 to the bills this past month. Still have two Hannah Montana holiday dolls I bought anticipating a Christmas rush, maybe they will sell as Christmas gets closer. If not, they will just go back to Target.

What are some of you doing different this Christmas than you have in years past now that you are geared up to pay down the debt in your life? Leave a comment and let me know.

American Express customer service

Today I contacted American Express and asked them to reduce my interest rate on my Blue card. The rate is currently at 12.99%. Their reply was 'we do not have a lower rate available'. What that means to me is they do not want to lower it.

I asked if there were any other options and I was told no. I told the representative I had no choice but to transfer the balance to another card and cancel this account. They said that was correct. You would think they would put up a fight to keep my account open, but that does not appear to be the case.

I canceled the account and will pay off the balance in my debt snowball and never look back.

Educating children about money

Dave Ramsey and the Lambo Group have put together a series of childrens books to help educate them about responsible money management.

Financial Peace Jr.: Teaching Kids About Money!
The Super Red Racer
Careless At The Carnival
The Big Birthday Surprise
My Fantastic Fieldtrip
A Special Thank You
Battle of the Chores


These books give parents the guidance and tools to teach children about saving, spending and giving money and are very easy to follow. Children enjoy the stories while learning valuable life lessons at the same time.

Click the links above for more details about each book and order them directly from Amazon and have them by the weekend!

3 reasons to pay off your house

There is an interesting article on AskMen.com about why you should pay off you house.

1. Emotional Well Being
2. Risk Abatement
3. Financial Sensibility

I've often thought the risk of losing the house if you encounter financial hardship like losing your job, a family death or other form of un-preventable event was cause enough to have your house paid for. Others around me have disagreed.

The article gives an example of the common mis-conception you should have a house payment so you have something to claim on your income taxes, hardly a wise financial decision. The numbers do not lie.

The best way to pay down your mortgage early is to pay at least 10% more toward the principal amount with each payment.

Read the entire article HERE

Life without plastic

I came across a good article at Money Magazine from June 2008, Life without plastic.

This article goes through some benefits to success when you stop using credit cards as part of your financial plan. For many people, the credit card has become the emergency plan while we continue to spend on items we really don't need and have a tendency to spend more each time we are out just because using a credit card creates a disconnect between how much the item costs and what we feel like we are really spending.

"...After McDonald's began accepting credit and debit in 2004, diners who paid with plastic spent $7 a visit on average vs. $4.50 when they paid in cash. A 2003 survey of supermarket receipts found that credit-card shoppers rang up 30% bigger bills than and carted out twice as much in non essentials as cash buyers did"

They also discuss the differences in consumer protection using a debit card versus a credit card. Since 2000, both Visa and MasterCard have extended their zero-liability protection policy to debit card purchasers as well, this has helped close that gap considerably.

Impact to your FICO score? While canceling credit cards accounts can have a negative impact on your FICO score, you can store a card or two in a safe place, using it for a small purchase annually to keep it active. This will help preserve your score if you choose to do so for personal reasons.

I recommend reading the entire article when you have some time.

Dave Ramsey Live in Michigan

I received a great birthday present this week, my girlfriend bought two VIP passes to see Dave Ramsey live in Grand Rapids, Michigan February 19, 2009! I can't wait!

We are looking forward to this, it will come at a time when we are about four months into our plan to be debt free!

Have any of you ever attended one of hte TMMO events live? What did you think? Any tips or suggestions for us? Feel free to post a comment.

What is a FICO score?

FICO, we hear it all the time. We have been trained to believe this the most important number of our existence.
Insurance companies use it to factor our rates, banks and lending institutions use it to factor the interest rate we pay on loans, landlords check it as an indicator of past debt repayment patterns, employers are even using it to screen job applicants!

The FICO score was created by the Fair Isaac Corporation and the exact formula is a well kept secret.
It has become the greatest factor in determining these things for the wrong reasons. Consider what actually makes up the FICO score, it is based upon your debt, past and present and your history of making payments on that debt;

35% of the score is your payment history
30% of the score is based on the ratio of the amount you currently owe to the amount of credit (potential debt) you have available to you. The lower your ratio, the better your score.
15% of the score is based on the length of your debt history. Also based upon the average length of time your current accounts have been open and available.
10% of the score is based on new credit (potential debt) applied for
10% of the score is based on the type of debts, a mix of credit cards, store credit, installment debt, etc. More variety will increase your score.

Consider why we feel we need a great FICO score, it is to apply for more debt. The biggest reason seems to secure an affordable rate on a note to buy a house.
It is suggested to locate and work with a mortgage rep who uses a company to do actual underwriting, not underwriting based solely or mostly on your FICO score. That is the best way to secure an affordable rate based upon your excellent history of credit responsibility and keeping yourself out of debt.

Movie: Maxed Out

I just watched the DVD Maxed Out tonight based on a recommendation from a friend. I had no idea Dave Ramsey made a few appearances in this movie, quite the coincidence.

This was an eye opening documentary on the practices of the Credit Card industry and some common business models for debt collection companies that either work to collect on debts owed or buy bad debts with the plan to collect on the debt and turn a profit for their business, at ANY cost as displayed in this movie. While it does concentrate on the predatory practices of both parties mentioned above, it does not get into the other side of it, the people like you and me that use the cards and those people who use them in very irresponsible ways.

Some of the people interviewed suffered tremendous loss as the result of these practices by the lenders or collectors, while directly or indirectly, it shows how desperate people can become over money and debt.

There is also some very interesting information about Suze Orman disclosed, we have all seen her shows, her TV appearances or read her books. She has some sound advice, but preaches the importance of a FICO score over and over again. That score is based on nothing more than how much debt you are currently in or have access to and your repayment history, nothing more. You would think someone like Suze that preaches to get yourself out of debt and take control over your life and money would not preach so heavily on the FICO score when it is based on debt.
Come to find out she has business partnership with MyFICO.com, see this 2007 press release from Fair Isaac, which IS FICO. Interesting to say the least...

I recommend you rent this or buy a copy and watch it and share it with your family and friends. See the link to the right for more information or to buy a copy directly from Amazon yourself.