Ok so here is Part 2!

If you didn’t see part 1 yesterday, here is the link:

https://jillporter.wordpress.com/2015/04/29/changing-up-the-back-story/

Having got myself back on track following Mum’s death I then had to take another break whilst I had surgery on my hip. I was on crutches for 6 weeks and sore and tired, so not much work got done!

Now I am not going to bore you with all the details but during the next 4 years  I had another 4 lots of surgery! Most of them quite big surgeries and requiring significant recovery time. Between each one, my business would grow again and be on the brink of becoming successful and bang, another surgery, and back down it would go.

Bugger! But great excuses for absolving me of any kind of blame or responsibility, right?

Wrong!

Now I needed all of those surgeries but on some level I needed the hiccough they brought to my business success too.

I’ve done quite a lot of exploration of this over the years but as many of you reading this will know, I’m not much into woo-woo stuff, so I also rejected any idea that I may have had a part to play in any of this.

Recently, I’ve come to accept that I surely did. Law of attraction! On some level I am still a bit skeptical about the role of the Law of Attraction when it comes to needing surgery or for that matter getting other physical illnesses. The traditional medicine which I have known and practiced as a nurse for so long, still has me pretty firmly in it’s grip!

However, what I have come to accept in the past few months, was how my surgeries allowed me to play the victim, not be responsible for my business success, or lack thereof, and to just coast along with it, blaming my “bad luck” for the lack of momentum.

What I had unwittingly done, was go from overspender to underearner..the flip side of the same coin!

The end result is the same. I end up in debt and never have any money…initially from spending it all and more, and more recently, from not earning it!

What have been the effects of all this?

My relationship ended. I may have stopped overspending but now I didn’t have any money at all and that still put the relationship in precarious territory and F left. We remain great friends still.

I moved into an apartment but for the first time in my life couldn’t pay the rent, moved out and went housesitting. I actually love doing this. I stay in some fabulous homes and look after some amazing animals and have wonderful experiences. I hate moving though and living out of a suitcase can get pretty tedious!

When I moved into an inner city apartment I sold my car and walked everywhere. I haven’t been able to replace it.

I have had to borrow money from friends and family. This has strained some treasured relationships.

For some months I was on a WINZ accommodation supplement.

My pride has taken some massive hits.

But, I now know and believe that I truly have something to offer so many people.The lessons I have learned about our relationships with money are too valuable not to be shared. The work I do is important and who could be more qualified to do it! I am taking responsibility for that. There are people out there who need me.

Now that I have spilled all that ( whew!!) I intend that this blog will be a way to chronicle my journey and adventures along the way, whilst also giving some personal finance tips and information. You will also meet some of the funny and sweet animals I look after, and see some of the wonderful views I enjoy.

I hope that it will sometimes be funny, it may be irreverent, could well be opinionated on other subjects other than the one at hand but I hope it will be enjoyable. Please interact with me. I love hearing from you and love suggestions and comments….positive or negative. Until later….

Often, when talking to people about the work I do, I tell them that I help people clear their credit card debt once and for all and never have to use a credit card again. For many that sounds like the definition of impossible! They have cleared their debt before, often many times, and know that it just goes back up again.
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Then, when I tell them about the process I use and explain that, if possible, I will get them to commit to not using their credit card at all until I see them next time, I see the horrified looks and panic setting in!

The reason for this is that, like so many people, their credit card is their security blanket! It’s what stands between them and financial disaster if the car breaks down, the child needs orthodontic work, the dog needs surgery, Christmas arrives, someone has a birthday, friends ask them out for dinner, they need a holiday etc etc! It is where they go for “money” when all else fails. I know this, I have done this, more times than I care to remember, but I also knows that it doesn’t work and only makes the situation worse.

I am not going to go into all the other reasons people use credit cards, like air points etc and the reasons why it is better and cheaper to use debit cards or better still cash! Today I am just talking about using them as your back up plan! I have been a bit facetious above with the “emergencies” people use their credit cards for, but I have either given them myself or heard them, and more, many times when people have told me that they only use them for emergencies.

Now, if you are reading this and thinking “but I do only use them for emergencies and then immediately pay them off in full” then fine. Whilst I do think that there is a better way, this message is not primarily for you, but read on because you might be interested in how you could do it differently.

I then go on to explain how I help them save their way out of debt, once and for all!  Doesn’t that sound good? Too good to be true? Not at all. If you follow the method which I teach you, which was developed by Karen McCall of the Financial Recovery Institute, that is exactly what you can do. I never ask people to cut up their credit cards, nor put them in a container of water in the freezer, I just ask them to trust the process, which has worked for thousands and thousands of people, and not use their credit cards until they see me again. As Karen says, “ if you want to get out of a hole, first you must stop digging”!

The other key steps are to pay the minimum on your credit card each month whilst building up a savings account, which we call a Periodic Savings account. Now I can hear all of you with financial backgrounds or those who pay off your credit cards in full every month, exclaiming that this will cost extra because of the interest. Yes, you are right but if you are someone who constantly uses your credit card and can never manage to always pay if off in full every month, then, trust me, this is a much cheaper way in the long run. Remember I teach you how to pay if off, in full, once and for all and to never have credit card debt ever again.

That’s because the Periodic Savings account becomes your security blanket; it’s where you go to get the money to pay the dentist, the vet, the restaurant, the holiday and Christmas! Using a formula I teach you, you can plan for all these and more, and know that you will always have the money available to cover all these events, without having to bring out the credit card. Once this is functioning well we also start another account which we call a “Safety Net” account and here you provide for coverage of all your expenses if you were to have an interruption in income.

So, if you would like to learn how to save your way out of debt, once and for all, use one of the methods below to contact me and we can have a coffee and discuss it further, to see if I can help you.

I’d love your comments about all of this and feel free to share it with your friends either by email or socially below.

Have a great week everyone and give it a try… Can you manage to not use your credit card for the next week?

For many solopreneurs or self employed people, the holidays are a time of less, interrupted or no income at all.

In this very brief video I explain how to set up a savings account, where money can be put aside throughout the year and is then available to access when your income fluctuates.

http://youtu.be/M0zw6QJ9BO8

How do you get through interruptions of income or other lean income times?

It’s happened – I forgot to write my Monday Money Motivator!!

I was getting out of the shower (it was late too!) and something made me think of it!

I normally go though my calendar every evening and schedule out the following day! I didn’t do it last night, as I smugly thought I was only going to be doing one project pretty much all day! Wrong!
So now in haste!

Aunty Acid       Christmas!
A very apt reminder of what is important, when we are all tearing around frantically shopping and getting stressed!
Make sure you look after you this week and take time to just be and breathe!!

2215145_blogTwo weeks today ( here in NZ anyway!) we will probably have eaten or be eating our Christmas dinner and the shopping and hurly burly will be a distant memory….hopefully anyway!

Everything you read at the moment is reflecting on the life and death of Nelson Mandela. He was a wonderful man and one of my personal heroes. I remember having an interview at Bayer for a promotion sometime in the mid 80’s and being asked about someone I admired. I said Nelson Mandela. I was challenged on this because he was in prison and was often called a terrorist. (He was only taken off the US’s list of terrorists in 2008!) I’m not sure what my words were but I can remember my passion in delivering my defense of my choice!

I am a passionate rugby fan but my first ever protest march was in Christchurch in 1981, against the Springbok tour. I didn’t watch rugby at all for several years after that!

I am sad at his passing but very glad and grateful for his life and example. I cannot believe that I would have shown the same spirit of forgiveness and reconciliation if I had been imprisoned for 28 years!

Now  to the 12 shopping days left before Christmas! In my MMM of November 11, I gave you some tips about shopping for Christmas. If you haven’t finished your shopping, and I hope you have, relook at them.

This is a very stressful time and it is important to make plans for what you are going to buy and for whom and, of course, where and when! If you can, try and shop in the morning whilst you are freshest and the day is cooler. It tends to be less busy too. Also the earlier you shop on the 12 days the better. The closer to Christmas, the busier it is, the more tired and stressed you are and therefore more likely to spend more money just to be able to cross that person and gift off the list!

As always, I advise that you shop with cash. Debit or EFTpos cards are good alternative options. The reason for this is that you can only spend the money you have and have to stop when you run out! Not only do credit cards allow you to spend money that you don’t have, but research has shown, as I’ve mentioned before, that you spend 20% more when using a credit card as opposed to debit cards! If your spending plan allows for eg $400 for gifts and you spend 20% more, that is an extra $80. I’m sure, like me, there is a lot you would rather do with that $80.

Also try and keep yourself in the moment ie concentrate on what you are doing rather than thinking about all the other things that are on your list to do. It is safer. Yesterday, I wasn’t doing that and was crossing the road when cars started tooting their horns at me. It wasn’t the buzzer for me to cross but rather the other side one! Could have been messy!

Also by being in the now, you tend to be much more effective and things get completed more quickly!

Have a great week everybody and be kind to yourself! It is stressful and the more you can do to reduce that, the better for everyone. Stressed people can be rather cranky!

 

 

 

18665868_sIt’s confessions time. Whilst I don’t always know what I’m going to write on Monday morning I usually have at least some idea and sit down at 0630 do a bit of research and away I go!

Today, I was up at just before 6 as usual, but couldn’t move past watching the All Blacks eventually win against Ireland. What a nerve wracking experience that was!! Consequently it is now 8:30 and my mind is pretty blank! Tried to work in something about team efforts, team discipline, doing what needs to be done and team goals but let’s face it I don’t really send this to teams! But then I decided: what about if I changed it to all of those things for individuals!

So here goes!  Some key factors necessary to achieve any financial goals!

Goals! Yes first you need to set a goal or maybe several goals. What do you want to achieve, by when, how are you going to do it and what will have to happen for you to know that you have been successful? The clearer you can be on all of these points the easier it is to achieve them. They need to be so real that you can almost taste them. The All Blacks went into today’s game with the goal of beating Ireland so that they could achieve the record of going through the season, having won every game they played. It was going to be done today, achieved by playing better than Ireland and they knew they had achieved when, at the end of the game and the final whistle blew they had more points than Ireland! Yours need to be as clear as that.

Discipline. You need to be so focused on your goals that this is easy. You want what is at the end so badly that it is easy to keep yourself on track and not spend money on stuff that is outside the plan. If you do, then as soon as possible you straighten up and get back on track. A word of warning here:- Don’t make the plan so strict that you finally call quits and have a big splurge! Just as when you are on a food plan or the dreaded word, diet, it is important to not make it so strict that it is impossible to maintain for the time needed to lose the weight, so it is with a spending plan, or another dreaded word, budget.
Team work. Now this one is not always part of financial goals but it may be; sometimes more than you think! If you are in a relationship then it is important that you have goals that are inspirational for you both so that you are both motivated to stick to the plan. This goes for families too, especially if your children are old enough to understand what you are aiming for. They can then understand that not getting the latest X box is not such a hardship if it helps towards the bigger family goal of eg going to Disneyland! They are much less likely to be motivated by paying off the mortgage unless they can see the advantage to them!! The All Blacks are always very big on this…everyone is working towards what is best for the team.

Celebrate. When you have reached your goal be sure that you celebrate your success and make all the hard work worthwhile. Usually the achievement of the goal has a great deal of satisfaction inherent in it, but a celebration helps reinforce the positive side of striving for success. It reinforces the positive side of goal achievement and makes working toward the next one easier. Now I don’t mean blowing a hole in the credit card you have just paid off by going out and splurging on a dinner at the best restaurant in town accompanies by the best champagne and wines! Sort of defeats the purpose doesn’t it? It would be nice but something slightly more modest will still fit the bill! One would imagine that the All Blacks probably celebrated with a beer or two!

What goals are you focusing on at the moment? Are you well on your way to achieving them or are you having some struggles? I’d love to hear about your experiences and I’ll help where I can.

5158257_mLast week I entitled my MMM (Monday Money Motivator) – It’s not too late!

In it I gave you some tips on Christmas and holiday spending. I had some very favourable comments so it did seem to strike a chord with you.

 

In some ways “it’s not too late” could be the title for this week’s MMM too!

 

Two recent pieces of news attracted my attention.

  1. That credit card spending was going up … “Actual retail sales on electronic cards were up 7 percent to $6 billion in October from the same month a year earlier.” http://bit.ly/1iXID9F
  2.  There is a prediction that interest rates will rise http://bit.ly/1cgzkzg. Many commentators predict that this could be as high as 2%.

I must state again that I am not a financial advisor, but am talking about this because these two factors together could make huge a huge impact on people’s spending plans.

 

In the second article …“Mortgage broker Geoff Bawden calculates for every $100,000 borrowed, a 1% rise will add $64 to a weekly mortgage payment. “ It also said that the average mortgage in Auckland was $400,00, so for that “average” mortgage that would mean an additional $256 a WEEK that you would have to find. Monthly that would be $1109! That is for an increase of 1% … double that for 2%!! $2218. That is a lot of money to find in most of the spending plans ( budgets) I see.

 

I don’t bring these to your attention to scare you, but rather to persuade you to act now, especially if you are affected by both pieces ie you are using credit cards more than you did last year (especially if you are not able to pay them off every month) and your mortgage repayments may significantly increase next year.

 

Take these steps:-

  1. Stop using your credit cards now!! Revert to cash or debit/eftpos cards. Research shows that your spending on credit cards is likely to be about 20% more than it would on debit cards and that number is even higher when compared to cash! Then work very hard to get them paid off ASAP. If mortgage rates rise you can guarantee that so will the interest rates on credit cards!
  2. Relook at your spending plan for Christmas and the holidays and reduce the spending where possible.
  3. Get help now. Don’t leave it until you are in trouble; do what you can to prevent it happening. Remember that I offer a free chat over coffee. If time and or location make that impossible we can always have a virtual chat by phone of Skype!

Whatever you do, take action now and get yourself better prepared for what could come in the New Year! If the interest rates don’t rise think how much you could pay off your principal instead!!

 

I hope I haven’t put too much of a dampener on your Monday, but just know I am doing it with your best interests in mind! Please don’t bury your head in the sand; it will be that much easier if you act now!! You will feel much better if you are proactive.

If you have  a mortgage are you making any plans on how you might manage the increased interests rates? Is your mortgage on a fixed interest rate? Please share your thoughts below.