The Debt Dance

Get out of debt

Budgeting For Success: Getting Out of Debt, Building Your Dream

Feb 7

Posted by Morgan in How To Get Out Of Debt, How to Discover Your Dreams, How to Start a Business | No Comments

Budgeting is an evil word for most of us.

337/365: The Big Money
Image by DavidDMuir via Flickr

It renders images of deprivation, of telling ourselves we “can’t have that,” “we can’t do this,” “we can’t afford that.”

Listen to the inner messages those statements are making: “we’re poor, we’re a loser, we’re broke, we failed, life is filled with doom and gloom, do not pass go, do not collect $200…”

How long will it be before we’re back at the mall or going out to eat to rub healing salve on these

harmful statements?

I recently read a favorite blog of mine and the readers were talking about setting a strict budget and sticking to it. I was afraid I was going to get my knuckles rapped.

We all know that for most of us that just won’t work.

So, what do we do?

First pay for those items that must get paid: mortgage, insurance, charity, utilities, medical, minimum loan payments, etc.

Set your priority (e.g.paying an extra $300 on a credit card this month AND joining a professional group or buying some equipment related to your dream, e.g. a writer’s association, a business association, a travel group, or buy a tablesaw, etc.)

Pay for that.

And then have a FLEXIBLE budget.

“I have $400 for everything else. Hmmm. I really want (fill in the blank.) If I just have a couple of pots of soup for the week and pack my lunches, I can afford it!”

That sounds like a whole lot more fun to me than we “can’t have that,” “we can’t do this,” “we can’t afford that.” And it sounds like something I could live with! Besides, I like soup.

NOW HERE’S ONE OF MY FAVORITE QUOTES:

“It is more fun to talk with someone who doesn’t use long, difficult words but rather short, easy words like “What about lunch?””

Disney's adaption of Stephen Slesinger, Inc.'s...
Image via Wikipedia

Winnie the Pooh

Related articles by Zemanta

PLEASE CLICK ON TITLE OF THIS POST TO PLACE YOUR MUCH APPRECIATED COMMENTS! THANK YOU.

Reblog this post [with Zemanta]

Tags: , , , , ,

How One Guy Made It Big Doing What He Loves

Feb 2

Posted by Morgan in How To Get Out Of Debt, How to Discover Your Dreams, How to Earn Extra Money, How to Start a Business, How to Start an Online Business, More Money, The Psychology of Money: Sigmund's Couch, Where to Start: The Debt Dance Method | No Comments

This is the beginning of another series. It is all about real people who have, for one reason or another, changed their lives by doing what they love. And come out doing okay. Some doing very, very okay.

Meet Glen Halliday of Kids Crooked House (You may have seen some of his great work on Jon & Kate Plus Eight)

———-


How long have you been doing this?

If the question refers to being an entrepreneur, I’d say my entire life. Raking leaves, shoveling a walkway for $1.00 were all jobs I started when I was 9 years old. I was always my dream to be my own boss. Later in life, after getting a degree in visual communications (a fancy name for a graphic designer), I would freelance for various companies under the name “Glen Halliday Design” designing logos, collateral, websites, and so on. My current company, Kids Crooked House,  is a great mix of everything I love. I get to be very creative, work with my hands and build, but also surround myself with people I enjoy working with.

How did you get the idea to do it?

Like most success stories, Kids Crooked House happened by accident. I spent my entire childhood outdoors being active and using my imagination to entertain myself. I wanted my kids to have the same experience. After seeing my kids spend half the summer on the couch I knew I had to do something. So I started searching the internet for a creative playhouse but I found nothing creative that I could afford. I knew that the standard “shed with a little door” was not engaging enough to get my kids outdoors. So, after watching a morning of cartoons I realized that nothing in a kids world is perfect,  nothing has straight lines. So I went out to my barn and started making angled, crazy cuts until the first Kids Crooked House was born. When friends and family saw the house and requested that I build them one too, I knew I might be on to something. Now, after 5 years and requests for over 30 countries, Kids Crooked House is the most talked about playhouses company in the world.

Do you enjoy it?

I have my good days and bad but nothing is worth doing unless you enjoy it.

Can you really make money at this?

Yes… if your margins are right. You should plan for at least a year of blood and sweat before turning a profit.

Did you have to have any special training/certificates?

Having a degree in design doesn’t help in my current position but it did help me start my career. Many of my past positions taught me the skills that I now apply when running a creative business.

What did you need to get started?

A skill. The best advise that I could give anyone starting out is be sure of 2 things; 1) be sure you know the business you are getting into. If you’ve worked in restaurants for years – don’t start a auto shop. 2) enjoy what you are doing. There will be many times that you will feel like giving up and all you have is your passion to drive you… so make sure the passion is there.

How do you market or advertise? What has worked best?

For Kids Crooked House, and solid, informative, easy to navigate website was first on the list. Next, drive people to the site. Pay-Per-Click (PPC) web advertising is really what got us started. Next, Search Engine Optimization (SEO). Getting a high ranking organically will save you in the long run and creates relevance in the eyes of the consumer. Next, exposure. We have a very visual product so we knew that “If they see it, they will buy it”.

Hardest part of your job, best part:

Hardest part of my job – Firing people.

Best part – watching the reaction of a child when they see our products for the first time.

If you had known then what you know now…

Payouts and equity would be based on performance vs. a promise.
Advice to people who want to try this:

Love what you do and do what you love. If you can protect your idea (Patents) and people crave it, you have a winner. If you cant afford to build it on your own bringing in capitol or partners the way to go. Just make sure that the exit strategy is clearly defined and everything is in a contract. Remember, this is your idea and they need you more than you need them. Friends or not, a handshake is only worth a handshake. Know when to quit, numbers don’t lie, you need to think big to be big.

–

Glen Halliday  •  CEO / Founder  •  Kids Crooked House

www.kidscrookedhouse.com

Thanks Glen for sharing. It means a lot.

Here’s one of his famous play houses. They are fantastic!princess2
Related articles by Zemanta

HERE’S ONE OF MY FAVORITE QUOTES:

We keep moving forward, opening new doors, and doing new things, because we’re curious and curiosity keeps leading us down new paths. - Walt Disney

We love your comments. Simply click on the post title to comment. Thank you.

Reblog this post [with Zemanta]

Tags: , , , , , , , , , , ,

Don’t Let Money Problems Destroy Your Relationship

Jan 29

Posted by Morgan in How To Get Out Of Debt, How to Discover Your Dreams | No Comments

A couple in the dark
Image by Carlo Nicora via Flickr

The number one cause of divorce in the US is financial stress. If you’re fighting constantly about money and debt try some of these activities to calm the waters.

1. Identify the problems. State what you need. Constantly screaming at each other the same thing over and over will not help. Use “I” statements to tell your partner the BARE MINIMUM that you need from them just for the next week.

  • I need us to stay in this week, not eat out, not go partying, and not go to the mall.
  • I need us to sit down together and balance the checkbook and pay bills.
  • I need us to cut up all credit cards but one, leave one to freeze in a metal can (can’t be microwaved).
  • I need both of us to take our lunches, not just me.

Agree that you will compromise JUST FOR THIS WEEK. (If you can’t agree at first then pare down the list and try again. If you still can”t agree it may be time for a counselor to step in.)

2.  At the end of the week sit down in a relaxed setting (not in the middle of the game or the kids running through screaming) and go over how the week went. Praise each other on the common ground you have found.  Set your requests for another week. Try to not discuss the money issues until the end of the week.

3. At the end of the third week decide on life dreams you both have. These are take your breath away dreams (write your novel, quit your job, sail around the world…) DECIDE that these dreams are achievable, even if money looks dreadful right now.  Make one month, very small goals towards your dreams. Goals must include both partners in order for this to work.

4. Continue to hold weekly meetings when you discuss your financial issues, with your dreams driving your process, e.g.:

  • If we cut back on movies or pizza by 50% we can put $100 toward our vacation fund.
  • If we fix up the kitchen maybe we could sell the house, buy a smaller one, and pay off our student loans–and start our business.

5. If things still aren’t going well, look for hidden reasons for your fights (like sex problems, big life issues such as having another child, disrespect, substance abuse, etc.). It can also indicate control issue problems in marriages and relationships that may need professional intervention.

If you have a good relationship don’t let money destroy it. Get help.

NOW HERE’S ONE OF MY FAVORITE QUOTES:

A dream you dream alone is only a dream. A dream you dream together becomes reality. – John Lennon

Related articles by Zemanta

We love your comments. Please click on  the title of the post to bring up the comment section. Thank you.

Reblog this post [with Zemanta]

Tags: ,

What Can This Couple Do? They’re in Quicksand and Sinking Fast

Jan 27

Posted by Morgan in How To Get Out Of Debt, How to Discover Your Dreams, How to Earn Extra Money | No Comments

I was reading GetOutofDebt.org when I came across this couple’s sad situation:

I hope you can help me decide. My husband and I both work for a consturction company that has no work. They have not laid us off yet, but have cut our hours to 32 per week.

I have not been able to get a nights sleep for worring how we are going to keep up with the credit card payments.

Steve went through their options with them, the most logical being bankruptcy. Steve is a smart guy and I would tend to agree with him. These people need a break.

(As a side note, if you are thinking about debt consolidation or settlement this is a good section to read.)

Now I want to talk about another aspect that is going on with this family.

door to heavenOne door is closing on them and you know what they say, one door closes and another opens.  This couple has a fantastic opportunity to re-engineer their lives and create a life they really, really want.

When we’re in the midst of a major stressor we rarely look at the upside, at the options suddenly made available.

I’m not saying that chasing one’s rainbow while dealing with unemployment and the realities of how to pay the bills will be easy. But it can be exciting.

The key is to do what it takes. I would suggest that you do what you love at the same time.

Earn extra money until your dream is achieved by doing something you really like and you’re really good at. Don’t believe it can be done?

Suppose you love dogs and have always wanted to work with dogs. But…what do you do? Can you make any real money at it? Tammy Roussin is a pet sitter featured in St. Louis Magazine. She’s a pet sitter. She has been doing this for 7 years. She has 400 clients. She makes $100,000.

I’d say that’s some decent money. And she loves it.

There is no denying that tough times take a toll on us. But if we can focus…and believe…on our dreams the stress and worry really can be replaced by joy and excitement.

PLEASE CLICK ON THE TITLE OF THIS POST TO PLACE YOUR COMMENTS!

NOW HERE’S TWO OF MY FAVORITE SAYINGS:

The Chinese Symbol (in rough translation) for CRISIS contains the signs for danger and OPPORTUNITY.

To reach a port, we must sail – sail, not tie at anchor – sail, not drift.
- Franklin D. Roosevelt

PLEASE CLICK ON THE TITLE OF THIS POST TO PLACE YOUR COMMENTS!

Reblog this post [with Zemanta]

Getting Out of Debt: Easy Concept, Hard Execution

Jan 26

Posted by Morgan in How To Get Out Of Debt, How to Discover Your Dreams, How to Earn Extra Money, How to Find a Job, How to Start a Business, How to Start an Online Business, More Money, The Psychology of Money: Sigmund's Couch, Uncatagorized, Where to Start: The Debt Dance Method | No Comments

THE DEBT DANCE METHOD OF GETTING OUT OF DEBT IS EASY–IN THEORY:bigstockphoto_Waterfall_in_the_forest_756089

DECIDE WHAT YOUR OVERRIDING DREAM OR GOAL IS.

EXAMINE HOW YOU CAN TRIM YOUR SPENDING.

USE THE 3 TIERED METHOD TO ALLOCATE YOUR MONEY:

  • First PAY THE GOTTA’S: MORTGAGE, INSURANCE, UTILITIES, MINIMUM DEBT PAYMENTS, CAR PAYMENTS, MEDICAL, CHARITY.
  • Second PAY YOUR DREAM: MAKE AN EXTRA PAYMENT ON A CREDIT CARD, START SAVING FOR A DOWN PAYMENT ON LAND YOU WANT TO BUY….
  • Third LIVE ON WHAT’S LEFT: GROCERIES, DINING OUT, CLOTHES, ENTERTAINMENT, ETC.

Sounds wonderful but it may not work for you. There simply may not be enough money to do this, especially if you’ve been living on credit cards. The First thing you must do is stop debting. You will never get out of debt and reach your dreams if you continue to debt. Never. Ever.
The following are some ideas  to help you creatively solve your issues (and they are solvable!)

◙Create an income property either in your current home or in a new home. Buy a multifamily building, live in it, with one or two renters. The rent of ONE renter (because you are bound to have vacancies) should cover 80-90% of your mortgage payment. (How great would it be to live without a mortgage payment? Think how fast you could achieve your dream.)

◙Similarly, get a roommate.

◙Dedicate yourself to making more money and funnel that money directly into debt and dream payment:

  • get a second job
  • get a new job that pays better
  • obtain an increase in pay with your current company
  • start a weekend business doing something you really enjoy (my favorite)
  • sell your house, use your equity for the second tier (debts and dreams) and live in a rental property for a short term.

◙ If you really see no way out consult a bankruptcy attorney. I do not recommend debt consolidation or settlements. These companies are dropping like flies, charge outrageous rates, and rarely deliver. I speak from personal experience. I also recommend you visit GetOutofDebt.org to read some of the true stories about these companies. Bankruptcy is a personal choice. It is something my husband and I chose. Initially we felt very shameful about it until we started adding up how much we had paid the credit card companies at 28% interest. Bankruptcy is known as a “second chance” and that is exactly what it is. (Please note you cannot erase your student loans through bankruptcy.) If your financial situation is destroying your marriage, family, health, etc. than bankruptcy may be exactly what you need.

◙ Do not borrow more money to pay debt, either loans from other people (it will destroy relationships), or through second mortgages or cash advances. And definitely stay away from payday loans–the loan sharks of the business–see article below. Payday loan interest rates can run in the hundreds or MORE! (Isn’t that illegal???)  The only exception to this is borrowing from your life insurance–this may be a great low interest loan that you may not have to pay back. Check it out.
You CAN get out of debt and achieve your dreams by keeping your dream fresh and foremost in your mind, and using your imagination, your creativity, to find solutions. Remember that the definition of insanity is to keep doing the same things and expect a different result! 75px-Einstein1921_by_F_Schmutzer_4

IMAGINATION IS MORE IMPORTANT THAN KNOWLEDGE

Albert Einstein

NOW HERE’S ONE OF MY FAVORITE FUNNIES.

tusktusk

Please click on title of this post to make your comments. If you have found a way to pay down debt and build your dream please share. Thanks.

Related articles by Zemanta
Reblog this post [with Zemanta]

Tags: , , , , , , , ,

Get Adobe Flash playerPlugin by wpburn.com wordpress themes