By JULIE HIRSCHFELD DAVIS, Associated Press Writer
WASHINGTON - Homeowners staggering under mounting mortgage debt and facing foreclosure could get cheaper, government-backed loans under Democrats' housing rescue plan.
But first, lenders would have to agree to wipe out part of their debt. And the borrowers would have to show they could afford the new mortgage. They also would have to agree to share any future profits on the home with the government.
The plan would be a massive expansion of the Federal Housing Administration, the Depression-era mortgage insurer. FHA would take on $300 billion in new loans for as many as 1 million distressed homeowners, most of whom otherwise wouldn't qualify for a government-backed loan.
Taxpayer dollars would be at risk should borrowers default on their new mortgages. The FHA, however, would have some non-taxpayer money to cover losses. The agency would collect a 3 percent fee on the refinanced loans, as well as annual 1.5-percent premiums, and share a portion of borrowers' future proceeds if the property is refinanced again in the future or sold.
The measure by Rep. Barney Frank, D-Mass., the House Financial Services Committee chairman, is scheduled for a committee vote this week and is expected to move through the House in early May. A similar bill is taking shape in the Senate. The Bush administration is backing the same concept, although on a much smaller scale.
By relaxing FHA standards, Frank's bill would allow a whole new swath of homeowners who are currently too financially strapped to qualify for a government-insured loan to do so. That includes people who are badly behind on their mortgage payments, have poor credit and hefty debt, and those who owe more than their homes are worth.
It's unclear how many would qualify, however, even under far looser FHA standards. Also an open question: whether mortgage servicers would agree to participate in the voluntary program.
Today, a homeowner who has fallen behind on the mortgage might get a chance to work with his loan officer to lower the payments to an affordable amount. A homeowner who couldn't keep up would likely face foreclosure.
Frank's two-year program is designed to offer another option that would let borrowers keep their homes and give mortgage holders a chance to get a heftier chunk of what they're owed than they would with foreclosure. Typically, mortgage holders lose up to 40 percent on foreclosures.
To take part, a loan officer could contact an FHA-approved lender, who would calculate the terms of an affordable mortgage the borrower could be expected to repay. If the existing mortgage holder agreed to take a substantial loss — he would get no more than 85 percent of the home's value and pay FHA fees and closing costs — the FHA lender would pay off the loan.
The new, fixed-rate loan would be for no more than 90 percent of the home's value.
The idea behind the plan is that mortgage holders could do better accepting a loss now in exchange for getting a delinquent borrower off their hands than they would if they went to foreclosure. In some cases, however, a homeowner will be so financially strapped that the lender would stand to lose too much from the deal and would opt to foreclose instead. Critics say mortgage holders would have little incentive to participate in any case, because they would have no chance of recovering a substantial chunk of what they're owed. To qualify, borrowers would have to be devoting at least 35 percent of their monthly pretax income to a mortgage payment on loans originated before Jan. 1, 2008.
With the new loan, FHA could allow a borrower's total monthly debt load — including student loan, credit card and car payments — to reach as high as 55 percent of monthly net income if he made at least six months of timely mortgage payments on the original mortgage. That's a substantially looser standard than the agency's current 43 percent limit. Homeowners also would have to share with the FHA any profit or gain in any future refinancing or from selling their homes. FHA would get at least 3 percent of the original loan amount when the borrower sold or refinanced. To discourage borrowers from using the program to quickly "flip" their house for a profit, FHA would reap all of the proceeds if the sale or refinance was within a year. That percentage declines 20 percent annually.
The plan is aimed at homeowners hit by the double whammy of the credit crunch and housing downturn. Many of them have subprime loans that are resetting at much higher rates, and can't sell or qualify for a new loan because — due to slumping housing prices — they owe more than their homes are worth. That is known as being "underwater."
"It won't help everybody, but would help some people who are stuck. They can't sell or refinance because they're under water. They've gone to their servicer and cannot get a modification of their loan. Now the only option is to lose the house to foreclosure," said Eric Stein of the Center for Responsible Lending, a nonpartisan research and consumer advocacy group.
The program would only be open to owner-occupied properties; not second homes or investment properties.
Architects of the plan believe mortgage holders would likely give their borrowers broad guidelines for who might qualify for the new program, rather than decide on a loan-by-loan basis.
Key elements of the program will be decided by a new oversight board comprised of officials from the Federal Reserve and the departments of Treasury and Housing and Urban Development. One major task of the board will be to figure out how to compensate those who hold secondary claims on a home, who would walk away with no more than 1 percent of the home's value
Tuesday, April 22, 2008
Struggling homeowners could get new government-backed loans
Wednesday, February 27, 2008
Will The Feds Get Policy Toward Mortgage Lending Right?
The simple answer is - who knows? It's a pretty complex and derrivative answer to come up it.
I've gotten A LOT of questions over the last 7-14 days asking me what is happening to cause mortgage interest rates to change so dramatically from where we were on 1/23/08. So, I put on my best John Maynard Keynes (famed 20th century British Economist) thinking cap and would like to share the following ideas with you...with a little bit of Rich Hayden flavor!
In short, things are pretty whacked. At the moment - based on where we've moved to, I don't see the likliehood of a return to the mid-5's for conforming 30 year fixed rate mortgage for a while (possibly late spring).
The following chart shows you what has transpired over the last 3 months back into late November. We've had 2 Fed rate cuts. The biggest key about those rate cuts is that the actually cause an INCREASE in long-term rates (30 year fixed) 60%-70% of the time. Why? Because that rate-cut has an INFLATIONARY impact on the broader economy by making it cheaper to borrow money. 
When people and companies can borrow more cheaply, the producers of the goods/services that those entities buy are inclined to raise the prices they charge. This is inflation. Gas, food, heat, electricity - all are in an inflationary mode right now (unless you're living under some enormous rock with your own economy). So, when inflation is an issue in the economy, long-term bonds (30 year mortgages) tend to get less "expensive" and have a higher yield (interest rate) for the purchasers of those bonds. Why? Because when the Fed Funds rate is so low, the "long-term money" has to compete for investors. To try to lure more investors to them, the bond issuers (Fannie Mae/Freddie Mac) must INCREASE the yield to make the investment profitable and attractive to the investor. We've already established that the yeild is the equivalent of the interest rate. So, you can see how this works. Fed cut = mortgage rate increase = Inflation. Inflation is a bond instruments WORST enemy. It will almost always drive the yield (interest rate) on that bond HIGHER - which, ultimately causes inflation to subside. WHAT? Yes, when things get too expensive (mortgages, cars, food, etc.) people buy less. Producers eventually have to lower their prices (see bonds above) to attract buyers - then the economy expands.
So, what you're seeing is that the Fed's activity of lowering the "Fed Funds Rate" - which is the shortest term rate on the market (the "term" on Fed Funds is 1 day, whereas your mortgage is 30 years), is having the negative impact of actually CAUSING greater inflationary pressures. Okay, that's actually pretty simple to figure out. But, we're in a bit of a Twilight Zone period economically that we haven't really seen since the mid-70's. You won't see this term in the broader media for a little bit, but, it will come about. Afterall, there is still wide-spread belief that we're not quite in a recession. Well, make no mistake about it, we're in a recession...and have been for nearly 2 months. Anyway, we have entered into a period of "Stagflation" in the economy.
This means the broader economy is suffering from inflation and stagnant economic growth (recession) at the same time. So, we combined the words in the early 70's to create "stagflation". Why this is imporant relative to our ideas about home mortgage finance and home selling is because we've got a real quandry on our hands in trying to forecast what's going to come about. What we have now vs. the 70's (oil embargo and manufacturing slow-down) is a declining housing market. We did not have that factor @ that time - at least not to the extent that we do today. So, we're into uncharted territory from an economic policy perspective and lawmakers are trying to "fix" housing - which means they are likely to hurt it as a result as most lawmakers are not economists. I don't mean that to submarine the efforts of our elected officials. Rather, it's pretty well accepted that markets are self-correcting and government intervention "typically" doesn't create economic sollitude. This is not to suggest that I am opposed to intervention.
That said, where do I think this is going? I EXPECT that long-term rates (30 year fixed) will see a bit of a rally in the spring once the most recent "fiscal stimulus package" signed by the President 2 weeks ago actually goes into effect. At that point, we should have better rates to work with. The question at that point will be what type of underwriting guideline changes will be in effect.
I hope this makes sense. It's a bit of a ramble. But, I think it's very important for EVERYONE to understand what the factors are behind this stuff so that you know it's not just some kind of "puff-here's your rate" type of idea-set. My clients are wondering if they should refinance or buy, when should they buy, how much should they buy and what they'll need to have to do it with. The answer to the question is evolving and will continue to be a fluid answer.
This information should rarely be looked upon as negative or glum. Rather, it's an analysis of data. Within that data is the power to positively impact outcomes. Historically, the greatest financial triumphs come out of the greatest failures. The key, then, is to understand the underpinnings of the system so that you can use its NEW growth to your advantage!
If you're trying to figure out what this all means to you and your financial profile - then give me a call. We will work through it together and you can get it going the way it should be so you can be an example, not a statistic.
Your Friend,
Rich Hayden
Financial Coach
rahaydenjr@yahoo.com
703.773.8409 - p
P.S.: Have a friend who could be helped by this info? Why not forward this on to them? That's what friends are fore!
P.P.S.: Starting to plan for college? Ask me how I can help.
P.P.P.S.: Ask me about the Debt Melt Down (TM) Plan and how you could become 100% debt free...including your mortgage...within 9-11 years!
P.P.P.P.S.: If this has reached you at an undesirable address, please respond with "Update My Email To: rahaydenjr@yahoo.com and I will update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent newsletter in PDF format? Respond with "NEWSLETTER" in the subject line and I will forward it to you today!
Tuesday, February 19, 2008
Time - Friend or Foe?
Financial Coach
Monday, February 11, 2008
$100,000,000.00
I've come to the conclusion that I am now worth MORE than $100,000,000.00 as of this morning. I was looking at my portfolio and had been very frustrated because I have been working on breaking through the $100,000,000.00 level for a long time and I just couldn't get over the hump. What triggered it?
I'll gladly tell you - my latest UK Lottery notice in my email inbox! I finally got THE ONE notice that pushed me over the top. I've now either WON millions in world-wide lotteries, or been GRANTED millions from various fallen African government ministers so that I now have more than $100,000,000.00 in BOGUS wealth. Man, I gotta tell you, I was pumped!
What's wrong with this story?!
WISHES are great. They really are. We all need to wish for things. We need to dream. We need to think big. We have to look at the world through the unfiltered eyes of a child to be able to visualize the future we want to create. Stick with me here, because this is the most important thing. See, we have to go beyond the WISH to start to define things by first turning them into GOALS. Then, we need to turn that GOAL into reality through PLANNING.
In the 20th Century, Winston Churchill & Dwight D. Eisenhower both famously told us that Plans, in and of themselves, are not important. But, the ACT of PLANNING is everything. It is essential.
You see, this is where it all comes together. I don't care if you make $3.65 per hour working @ Wendy's, or if you make $365,000.00 in base salary as the CEO of your own company. If you don't begin PLANNING what will happen with that money - both income earners will end up at the EXACT same place...looking back on opportunity and fortunes missed. It really doesn't matter if a person is currently flush with cash, living paycheck to paycheck or bankrupt. If they don't have specific goals and a planning process to help them achieve those goals - they'll never reach any kind of success financially.
One part of your plan is understanding your DEBT. Knowing how to lever it, how to use it...and most importantly - HOW TO GET RID OF IT!!! I have THREE distinct ways that I help people just like you eliminate their DEBT in time frames that they find hard to believe. I use methods that the big banks use. I use their own tools against them to make them FINANCIALLY FREE.
Here's the great thing. FINANCIAL FREEDOM is well within EVERYONE's reach during their lifetime. But, they have to look back on the steps I've laid out in this blog to get beyond the WISH phase. Get in into the GOALS phase...then get their butt PLANNING now.
There are now less than three week until I turn 40. You can bet that I've got some GOALS set up for the coming years. You can also bet that I am PLANNING every day to turn my WISHES into REALITY via the achievement of my GOALS. What about you? Are you ready to get going? Are you finally fed up with being handed YOUR reality rather than creating if for yourself?
If you are, then give me a call @ 703.773.8409 to get started building your FINANCIAL FREEDOM today. Or, for a copy of my FREE REPORT: "How To Literally Melt Down Your Debt, And Discover What the Banks and Big Credit Card Companies DON'T Want You To Know" - call 1-888-267-0280 x 8600 and I'll get it out to you in the mail.
Your Friend,
Rich Hayden
Financial Coach
rahaydenjr@yahoo.com
703.773.8409 - p
P.S.: Have a friend who could be helped by this info? Why not forward this on to them? That's what friends are fore!
P.P.S.: Starting to plan for college? Ask me how I can help.
P.P.P.S.: Ask me about the Debt Melt Down (TM) Plan and how you could become 100% debt free...including your mortgage...within 8-10 years!
P.P.P.P.S.: If this has reached you at an undesirable address, please respond with "Update My Email To: rahaydenjr@yahoo.com and I will update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent newsletter in PDF format? Respond with "NEWSLETTER" in the subject line and I will forward it to you today!
Thursday, February 07, 2008
The Year of The Rat
The Chinese Year of the Rat should be a good one for those who are committed to getting out of debt.
Tuesday, February 05, 2008
Michael Strahan Was Right!
From The Desk of Rich Hayden - Financial Coach
207 South Alfred Street, Alexandria, VA 22314
703.773.8409 - o 703.832.6467 - f
rahaydenjr@yahoo.com www.richgetsitdone.com
Become 100% Debt Free (including your HOME) in as little as 8 years!
MICHAEL STRAHAN WAS RIGHT!
Friday, February 01, 2008
Friday Night Lights
207 S. Alfred Street, Alexandria, VA 22314
703.773.8409 - o 703.832.6467 - f
rahaydenjr@yahoo.com www.richgetsitdone.com
Become 100% Debt Free (including your HOUSE!) in as little as 8 Years!
I gotta tell ya, I like this show. Now, I'm not a huge fan of network TV. Just ask my wife. But, I've got to say that anyone who grew up in the Midwest, south, or anywhere that football was "it" has got to love this show. I think I can say that with a bit of authority because I grew up in Nebraska (The Good Life!). Unless you've lived under a rock from a sports perspective, you're probably aware that we Nebraskans have a fondness for a little bit of smash-mouth football!
So, what is it about this show that makes it a hit? There's drama, there's action, there's tragedy - and there's STRUGGLE. Really, that's the thing that people rally around. At one time or another, this show makes every character an underdog. Americans LOVE the underdog! They love for the little guy, or the guy who gets unfairly put down, or the guy who can't catch a break, or the guy who loses it all - we LOVE for that person to STRUGGLE - and then overcome through some type of "movietone" justice system that lets the protagonist have their day. That's what small town football is all about....or any sport, for that matter.
Just ask Larry Bird. I mean, really, who even knew where French Lick, Indiana was before bird was 1979 other than college recruiters. Other than the Iran Hostage crisis of that same year, 1979 was the year that the small college Indiana State University Sycamores went to the Finals of the NCAA tourney and lost to Michigan State University (with one Earvin "Magic" Johnson). Many people don't remember that Bird first went to "the big school" @ the other Indiana University....the one in Bloomington w/ a certain Coach Knight...for one year before he got homesick and headed home. At that moment, Larry Bird - of all people - became "the little guy." He took odd jobs, worked for his hometown street department, before finally finding his way back to ISU and his ultimate success. We LOVE THAT STUFF because it's real, it tells us that WE CAN "BE SOMETHING" bigger than what we are if we just stick with that dream.
Silly, I know, for a guy who writes a blog about finances to be talking about this. But, isn't that really what it comes down to, too? Don't those dreams that everyone latches on to of their favorite sports figure, their favorite actor/actress, their favorite musician - doesn't a big component of our adoration amount to money? Let's take that a step further and say - doesn't that really translate to the belief that the money (a.k.a. FINANCIAL FREEDOM) we visualize can provide us with OPTIONS and OPPORTUNITY that we might not otherwise have?
Stick with me here. Money in-and-of-itself is worthless. What it is, though, is POTENTIAL power waiting to be unleashed. Just like the misconception of "knowledge is power" - there's a misconception that money is power, too. Not true, both money and knowledge are only POTENTIAL power waiting to be marshaled properly and intentionally.
Before you tell me I'm off my rocker - let's have a look-see @ how your money's workin' for ya. For most people, it's not that good. I mean, after-all, we're the country with a negative savings rate. We're the country with $920Billion in credit card debt...and climbing. We're the country...well, you get the point. See, the thing is...and this is the kicker...YOU'VE GOT MONEY...you really do...but, it's not working PROPERLY for you.
To change that, first, you've got to BELIEVE that you can be the LITTLE GUY who rises up from seemingly nothing and has choices. Then, you've got to have a DESIRE to take a little time to understand (be coachable) HOW it works to have the FREEDOM that it can bring. Without the belief and desire - you'll stay the little guy. Ask Larry Bird. Ask Magic Johnson. Ask Bill Gates. Heck, ask my old boss, Doug Lebda about starting LendingTree.com. They'll all tell you, "I believed that I could do it, and I had a desire to win." Guess what, they all did.
You are NO DIFFERENT that these people. You're really not. Are you ready to start winning? Are you ready to have a look @ your personal picture and change it? Are you ready to BELIEVE that it can be different? Do you have the desire to make it different? I know these things are all in my cross-hairs. What about you?
If the answer is yes, call me or email me today so we can get started. In January alone, I provided 5 different clients with an average savings of $427/mo, a reduction of their "in debt" timeline to 3.4 years for non-mortgage debt, and an average mortgage payoff in just under 10 years. Think about that for a minute . . . would that change your world a little bit? If so, then give me a call.
My very best to you!
Your friend,
Rich Hayden
Financial Coach
rahaydenjr@yahoo.com
703.773.8409 - p
P.S.: Have a friend who could be helped bythis info? Why not forward this e-mail tothem? That's what friends are for!
P.P.S: Starting to plan for college? Ask me howI can help.
P.P.P.S.: Ask me about the Debt Melt-Down(TM)Plan and how you could become 100% debt free..INCLUDING YOUR MORTGAGE..within 9-11 years!
P.P.P.P.S.: If this email has reached you at anundesirable email address, please respond with"Update my email to: joesmith@xyz.com" and Iwill update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent newsletter in PDF format, respond with "NEWSLETTER"in the subject line and I will forward it to you.
Monday, January 28, 2008
State of YOUR Financial Union
Tonight, President George W. Bush will give his 8th (and final) State of the Union address to the nation @ 9:00pm eastern. It's sure to be rife with political commentary that both sides of the political spectrum will latch on to and try to make there own. One thing I know is that now, more than any time in history (save for the Great Depression of the 1930's), the leaders of our nation are actually aware of the trouble that many Americans are in @ home.
It doesn't take a Princeton Ph.D. economist to figure out that things aren't too rosey for the middle-class of the U.S.A. So, there are a lot of big ideas floating around the halls of the US Capitol, The Treasury Department, The Federal Reserve Bank and The White House these days. Some of them are great, some of them are silly. We'll have to see what ultimately shakes out. But, you can be sure, there will be soundbites flying.
Let's have a quick look at some of the proposals on the table right now that WILL help the average American:
Proposal 1: Tax Rebate Check
How it will help: History has shown that these rebate checks don't actually spur economic activity. However, they do provide a bridge for many people that can pay some bills, bolster savings, or simply give them some cash. So, while not a viable "economics" tool, Rebate Checks do provide an emotional lift to the tax paying electorate.
Proposal 2: Reduced Taxes for Business to Invest in Equipment
How it will help: History has shown that these types of stimuli DO work. When business can purchase equipment/"tools" for their growth and efficiency and do so more economically, they can a) buy more; b) employ more people to use the "stuff" they buy; c) the people who make the "stuff" that's bought have greater job security because other companies buy their "stuff." Pretty simple, right.
Proposal 3: Lifting the loan limits on what FannieMae, FreddieMac and the Federal Housing Administration (FHA) can do.
How this will help: This is, perhaps, where the rubber will meet the road more effectively than anywhere else in the plan as it relates to MOST American families. I do not mean to imply that enhanced unemployment/food stamp benefits will not be meaningful. Rather, this measure, if enacted, will do more to help stabilize home values throughout the nation - and stabilize the value of the single largest asset that 98% of the population will ever own. By increasing the amount of money that Fannie/Freddie/FHA can lend, an "easing" of the credit markets occurs. All financial markets MUST have a credit component which allows for the free flow of capital (money) between parties to occur. The banking/credit/free-market model is less about "the man" getting a piece of the pie as it is about the ability to utilize funds to buy something when you don't have sufficient funds to do so yourself. No where through history has a population been independently wealthy so that it's citizenry can/could pull out a bag of cash to buy a house, car, wagon, donkey, cart, hut or any other major purchase of the day. Perhaps ancient Babylon fit the bill. But, not in modern times. So for all of my railing against banks, credit institutions, credit cards, car loan companies, etc., we need them to keep things moving. Of course, it is my mission to help you win the financial game by uncovering the rules that they play by so you can use them to your advantage.
So, how is the State of YOUR Financial Union? That is to say - how are you doing with your money? Do you have control over it? Does it work for you? Do you know how interest works in your favor, against you? Do you know how to effectively "cancel" most of the interest you're paying? What's your answer?
Yes - great! You're in the top 0.5% of the population - rich or poor - who know!
No - it's not your fault! Here's the deal - no one told you the rules. But, I'm here to uncover the rules of the credit/banking/interest game for you so that YOU CAN TAKE CONTROL of your financial future.
Why am I so stuck on this? I'll be 40 in 5 weeks. I've got kids. Social Security's not going to be there for me, for them, maybe even for my parents - at least not in a meaningful way. I know that I can help people put a game-plan in place so that they can eliminate the fear of the future that other generations have left in their wake. The tools of wealth are not as complicated as you think.
Give me a call @ 703.773.8409 to get started building your financial independence. Or, for a copy of my FREE REPORT: "How To Literally Melt Down Your Debt, And Discover What the Banks and Big Credit Card Companies DON'T Want You To Know" - call 1-888-267-0280 x 8600 and I'll get it out to you in the mail.
Your Friend,
Rich Hayden
Financial Coach
703.773.8409 - p
P.S.: Have a friend who could be helped by this info? Why not forward this on to them? That's what friends are fore!
P.P.S.: Starting to plan for college? Ask me how I can help.
P.P.P.S.: Ask me about the Debt Melt Down (TM) Plan and how you could become 100% debt free...including your mortgage...within 8-10 years!
P.P.P.P.S.: If this has reached you at an undesirable address, please respond with "Update My Email To: rahaydenjr@yahoo.com and I will update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent newsletter in PDF format? Respond with "NEWSLETTER" in the subject line and I will forward it to you today!
Tuesday, January 22, 2008
Analysis Paralysis
Rich Hayden
Financial Coach
Alexandria, Virginia
703.773.8409 (p) rahaydenjr@yahoo.com
Yahoo Video: http://tiny.cc/yv *Updated Jan. 17, 2008
Website: www.richgetsitdone.com
*I can help you become 100% DEBT FREE in as little as 8-10 years...
...INCLUDING YOUR MORTGAGE! Call 1.888.267.0280 ext. 8600 for your FREE REPORT
Let me give you a concrete example. I have a client with whom I have been working for nearly 6 months in reviewing his family's financial anatomy. I've come up with SPECIFIC PLANS that address all of his expressed concerns about the direction of his financial life. I've addressed ways that we can improve his monthly cashflow by more than $1,000/month. I've addressed ways that we can assure his children have fully funded college educations within the next 24 months. I've addressed ways that he and his wife can have a fully funded retirement within 12 years. Finally, I've addressed how his home can be completely paid off within 13 years. Basically, I've laid out for him exactly HOW SIMPLE it will be for him to become financially independent with no change to his lifestyle. Sounds good, huh?
He's a super-smart guy. Brilliant in his chosen field. Able to recognize right from wrong and able to identify opportunity when it presents itself. So why has it taken us 6 months to get to this point and still not having taken action on this plan? That's a great question. He's an "analysis guy" who likes to review numbers. But, he's also gotten himself into what I call a "thought rut". That's a place you come to when all you can do is "think" about something because the issue at hand is a big hairy monster. What's a big hairy monster for him @ this point is that he's caught CONTINUALLY analyzing WHY he's in the spot he's in rather than HOW to improve the situation.
ANALYSIS PARALYSIS: 13 years ago, when I was a consultant for American Management Systems, Inc. (AMS) - we called this "Analysis Paralysis". It's a term I'm sure you're all familiar with. People become paralyzed and find themselves unable to make common sense decisions because the EMOTIONAL OWNERSHIP OF THEIR COMFORT ZONE tied to a that which should be a NON-EMOTIONAL decision gets in the way. So, rather than take clearly defined choices toward a better path, 90% of people continue down the path they've been on crippled by fear of something different that may cause a slight change in outlook.
Taking this back, again, to people's individual finances: Have a look @ my video blog entitled "Keep Doing What You're Doing and You Will Keep Getting What You Are Getting" from October of 2007 (http://video.yahoo.com/video/play?vid=1345601. In it I talk about how we were all taught about finances....for the most part by our parents. If that is the only foundation we have to work from for knowledge, then we will get the same results that our parents earned. Now, don't get me wrong - I'm not devaluing that which we learned from our parents. What I am suggesting is pretty simple. To learn success in any endeavor, you must model the systems, people and things that have shown the type of success that you want to achieve...and let go of your preconceived notions about HOW to do it. After all, if you already KNOW how to do it -WHY haven't you? This is akin to Einstein's definition of insanity: Doing the same thing over and over and over again and expecting different results. If you've got the money game figured out so well by doing what you're doing again and again...then why are you still reading this blog? I don't mean to be rude, but, I think we both know the answer. You're seeking answers.
EMBARRASSED INTO INACTION: In the last 6 days, I've had 13 client appointments where we've talked about debt. All 13 sought my counsel for varying reasons and through varying mediums. 10 out of 13, after we started uncovering their goals and how we were going to "get there" shared with me that they had not sought help sooner because they were so embarrassed that they were in the situation that they were in that they just couldn't talk to anyone they knew about it because they felt like they had failed. And, rather than make changes to "right the ship", they continued down the path they were on, going deeper and deeper because of the perception they had about what "other people" might think if they sought help. They felt as though they were the only one's to have made financial mis-steps. They look around and see what other people HAVE and what they're DOING. My response is consistent WHENEVER I hear this - GIVE YOURSELF A BREAK...NO ONE TOLD YOU HOW THIS STUFF REALLY WORKS...GET BACK UP OFF THE GROUND, DUST YOURSELF OFF AND LET'S DIG IN A BIT. In my experience, trying to measure yourself against others will only in the rarest of cases leave you in a good spot. Most of the time, it puts you deeper in the whole. The other thing is that you have NO IDEA what other people's finances are. Chances are pretty good they're about the same as yours. The only way to REALLY eliminate debt is to:
1. UNCOVER IT COMPLETELY TO UNDERSTAND HOW MUCH DEBT THERE IS.
2. HAVE AN APPETITE (A BURNING DESIRE) TO ELIMINATE IT
3. ASK FOR HELP WHEN YOU NEED IT.
4. TAKE ACTION
5. NOTICE WHAT'S WORKING AND WHAT'S NOT.
6. DO MORE OF THE THINGS THAT WORK AND LESS OF THE THINGS THAT DON'T.
Simple, isn't it? Sorry to sound so simplistic. But, all of life's challenges really come down to this. Don't you already know that? My guess is that you do. You're smart enough to still be reading to this point - which tells me that you're motivated to learn, motivated to change, motivated to be in charge of your financial fate rather than a victim of it. When my client's told me that they were embarrassed - I asked them if they went "looking" for the financial situation they were in? ALL OF THEM RESPONDED WITH AN EMPHATIC "NO!" You've heard it 1,000,000 times - people don't plan to fail, they fail to plan.
Which brings us to YOU. What are you doing? Are you planning for financial success? Do you have a coach? No great athlete became great without a coach. No great business person became great without a mentor. If you're ready to win, I'm ready to be your coach on your road to financial freedom.
Give me a call @ 703.773.8409 to get started building your financial independence. Or, for a copy of my FREE REPORT: "How To Literally Melt Down Your Debt, And Discover What the Banks and Big Credit Card Companies DON'T Want You To Know" - call 1-888-267-0280 x 8600 and I'll get it out to you in the mail.
Your Friend,
Rich Hayden
Financial Coach
rahaydenjr@yahoo.com
703.773.8409 - p
P.S.: Have a friend who could be helped by this info? Why not forward this on to them? That's what friends are fore!
P.P.S.: Starting to plan for college? Ask me how I can help.
P.P.P.S.: Ask me about the Debt Melt Down (TM) Plan and how you could become 100% debt free...including your mortgage...within 9-11 years!
P.P.P.P.S.: If this has reached you at an undesirable address, please respond with "Update My Email To: rahaydenjr@yahoo.com and I will update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent newsletter in PDF format? Respond with "NEWSLETTER" in the subject line and I will forward it to you today!
Thursday, January 03, 2008
Milk: $4.19/gal.; Gas: $3.05/gal.; Social Security: $1692/mo., Peace of Mind: PRICELESS
Before I get rolling, I'd like to wish everyone a Happy New Year. This is the time that so many of us resolve to do better in so many areas of our lives. Sometimes it works and we actually make some changes that stick. A friend shared the following link with me this morning that I thought was appropriate to pass along in that spirit of change. Keep things simple. The 4 minutes it will take you to watch is 4 minutes well spent.
http://www.tonyrobbins.com/12TENETS/index.html?=136092
Now - on to the BLOG!
Yep, the I'm abusing the MasterCard "Priceless" pitch.
Well, kind of. The idea here is pretty simple. Life is costing more and more these days. If you have a financial plan in place that handles the fluctuations in cost - no sweat. If you don't have a plan - I'd be concerned, really concerned if I were you...CALL ME @ 703.773.8409 NOW!
Americans have some pretty heavy "fiscal lifting" to do over the next 2-4 years as we address our current financial position...personally, corporately and as a citizenry. At the "personal" level, Americans are carrying $920 BILLION in non-mortgage debt. Astonishing, isn't it? As it turns out, food and energy cost a lot of money! Problem is, the government doesn't include food and energy in their inflation numbers. So, when employers are looking at wages, they see inflation as flat....while everything costs more there's more month at the end of the money for most people. Heck, you don't even need and MBA to figure that out.
Now, don't get me wrong - I'm not a doom and gloom kind of guy. I never have been. I'm an optimist to a fault. I believe that 2008 is going to be a great year for a lot of different reasons.
But, the plain truth is this. Most people don't have a good plan in place to deal with the financial reality of the day. Income levels have stayed (basically) the same for almost all client's I've worked with in the past 5 years. That's right, the same.
But, everything's gotten more expensive. So, most folks have resorted to credit cards to "bridge the gap" between what they spend and what they make. Pretty much, the lifting relates to the 2 lead items I note in the title:
1. Milk: $4.19/gallon - jeez Louise! I went to the grocery store last week to pick up some milk and it was $4.19/gallon...at BLOOM! That's like saying a T-Shirt is $30 @ WalMart in my book. Okay, the same gallon of milk @ Costco (if you have a membership) is $3.06/gal. But, for those of you not familiar with Bloom, it's a "dressed up" Food Lion grocery store here in Virginia and down the Eastern Seaboard into the South. That same gallon of milk was $1.99/gal. in 2006. So, if you don't have a Costco membership, you're looking at a 110% increase over 2 years. Did you get a 110% raise over the last 2 years?
2. Gas: $3.05/gal (as of this week). That's up $0.71/gal from 12 months ago. That's a 30.3% increase over 12 months. Did you get a 30% raise this year?
3. Social Security: $1692/month - I'm going to work until I'm dead! I got my annual Social Security Administration (SSA) update in the mail yesterday...January 2nd. Keep in mind, the update was prepared on November 29, 2007! So, it took the SSA more than a MONTH to get that out - that's another topic. My point here is that, if I retired @ 62 (long ago believed to be the retirement age), I would have $1692/mo. in benefits coming my way. That would be great if I lived in - say - a tent, ran my car on leaves that I foraged and had my own cow I could milk because I couldn't afford the Costco membership to buy milk @ $3.06/gal. If I elect to work until I'm 70, I'll be able to pull in a whopping $2982/month. Now, I know these numbers will change as I put more and more into the system. But, c'mon - whether it's $20K/yr or $35K/yr, that's not enough to live on - let alone retire.
The point . . . . . get a plan, have some peace of mind in your financial life. Don't think you've got it all figured out if you're not even "started". The bottom line is this - it's a new year - get your house in order. Interest rates are lower than they've been in 2 years right now. It's true that "fools rush in" and even more true that "he who hesitates is lost."
Give me a call @ 703.773.8409 to get started. Or, for a copy of my FREE REPORT: "How To Literally Melt Down Your Debt, And Discover What the Banks and Big Credit Card Companies DON'T Want You To Know" - call 1-888-267-0280 x 8601 and I'll get it out to you in the mail.
Your Friend,
Rich Hayden
Financial Coach
rahaydenjr@yahoo.com
703.773.8409 - p
P.S.: Have a friend who could be helped by this info? Why not forward this on to them? That's what friends are fore!
P.P.S.: Starting to plan for college? Ask me how I can help.
P.P.P.S.: Ask me about the Debt Melt Down (TM) Plan and how you could become 100% debt free...including your mortgage...within 9-11 years!
P.P.P.P.S.: If this has reached you at an undesirable address, please respond with "Update My Email To: rahaydenjr@yahoo.com and I will update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent newsletter in PDF format? Respond with "NEWSLETTER" in the subject line and I will forward it to you today!
Thursday, December 27, 2007
Start 2008 On The Right Footting!
Wishing You and Your's a Happy New Year!
Rich Hayden
703.773.8409 - p
rahaydenjr@yahoo.com
www.richgetsitdone.com
Wednesday, December 26, 2007
Get Out Of The Way!
Today (12.26.2007) marks the launch of my blog. This blog, in conjunction with my video blogs (which will also be posted here), my quarterly paper newsletter (email me @ rahaydenjr@yahoo.com to get on my list) and other communications are resources for you to use freely as you put your financial house in order and create the freedom you dream of.
YES, IT'S POSSIBLE TO BE FINANCIALLY FREE. BUT, YOU'VE GOT TO GET OUT OF YOUR OWN WAY TO DO IT!
So, here it is, the day after Christmas! Hopefully, you had a good one . . . if you celebrate Christmas, that is. If you don't, I hope that the Holiday you do celebrate @ your house has been (or will be) great. At my house it's Christmas and yesterday was great.
After risking life-and-limb to get the lights on the roof (picture the Griswold's) a couple of weeks ago, putting the Reindeer food out on the lawn on the 24th, the cookies & milk out @ night, looking up @ the night sky for Rudolph's nose and listening intently through the night for any hint of footsteps on the roof getting ready to come down the ACTUAL chimney (yes, some houses still have an actual chimney) . . . our 2 kids woke up bustin' out of their heads to get downstairs and see what Santa brought them. We got it all on video. It was hilarious to see my daughter roll around on the ground all giddy after she opened one of her presents. Santa was good to the kids. But, he was also "measured" in his giving (there's a lesson there whether you're a parent or not).
The greatest thing about Christmas - to me - is the TRUE belief in possibility that kids project. Think about it, ANYTHING is possible in a kids mind as it relates to what they might get, what they can ask for, what Santa might do, what their parents might do - ANYTHING IS POSSIBLE.
Bottom line is, kids don't get in their own way the way we do. Heck, they don't even have all of the negative filters in place that tell them "no" to the questions in their heads the way we "smart" grown ups do. They just ask. If you don't have a 4-6 year old, ask someone who does. Kids are the greatest salespeople in the world because they don't take "NO" for an answer - they just keep asking, maybe in a different way, until they get the answer they're looking for - or they REALLY get turned down.
Can you remember how great it was to be a kid? Kids teach us that the way you achieve something is that you ask an expert to help you. If it's toys - they ask Santa to help (he's the expert). For almost everything else - they ask their parents (they're the perceived experts). That works for most of the "stuff" in their life - for a while ... more on this in minute.
Back to Christmas....after a full day of Christmas fun and extended family and "new stuff" today (12.26.2007) is when the first a couple of "hangover's" at the end-of-the-year takes hold. Actual hangovers, spending hangovers, "my job stinks" hangovers, relationship hangovers (for some), my bonus stinks hangovers, etc., etc., etc. Truth is (like with most hangovers) it comes to pass that "today" is a day of new hope, new commitment, fresh inspiration and the idea of a "fresh start" is in focus. For adults, the idea of the fresh start tends to fall into three categories ... all of which we'll "really start working on" after 1/1/08. They are:
1. Lose Weight/Get Fit
2. Do a Better Job with My Money
3. Live a More "Full" Life (including better relationships with significant other(s), spouse, partner, family, kids, etc.)
Fast-forward 10-days to January 11th . . . . . . . . . . we're right back into the morass of drudgery. DOH! What's up with that, Homer & Marge?!?! Don't get me wrong, I do it too. We're all guilty of it.
BACK TO THE KIDS . . .
See, kids "get it" because they don't have to break a bad habit to make a new one. They just do it. Us "smart" grown-ups will fail on the 3 things above 88% of the time because we focus more on understanding our "issues" than on ditching 'em to find someone/something to model and move on. Kids got it down.
Let me be clear - it's important to know W H Y you're in a situation you're in. But, not so important that knowing gets in the way of you fixing it.
Now get this, I talk to a lot of people every week about what's going on with them financially. I love my job and digging in deep to do that. Finances are where the conversation starts. The truth is, their finances impact EVERY PART OF THEIR LIVES. Some folks "get it" when I offer a solution. We do our work together, implement some pretty simple and painless changes and they move on to a happier phase of their life after that.
Surprisingly enough, other folks just can't stay out of their own way. They're not willing to get out of their own way and have the "possibility" of that better financial picture take hold and positively impact every other area of their life. Remember how I said most people looked to their parents for ALL of their success clues? The sad thing is, this applies to finances, too. Last time I checked, most people's parents weren't "great" with money. What do you think most of us learned as a result? We learned to be average.
Think about what this means - average today in America means (you're geographic area may be different...so, don't wig out on me if you live in the DC Metro area
*You've got more than $10,000 in credit card debt (Source: U.S. Federal Reserve)
*If you have a car payment, it's more than $475/mo (Source: U.S. Federal Reserve)
*IF you save, you save/invest, you save LESS THAN 1% of your income (Source: U.S. Federal Reserve)
*If you have investments, they total of less than $18,000 - including retirement (Source: U.S. Federal Reserve)
*Your mortgage payment is $1687 (excluding taxes/insurance) (Source: U.S. Federal Reserve)
*Your mortgage loan is $230,000.00 (Source: U.S. Federal Reserve)
*Your total household income is less than $75,000 (Source: U.S. Dept. of Labor)
Think I'm exaggerating - look around, ask around, talk to the people you know. Not everyone who reads this will meet these averages. Certainly, they can and should be adjusted for where you live. But, this data is out there.
Trust me when I tell you, I see this every day. If this is you and you want this to change, start with you. Get out of your own way. It's likely not your fault if you're "in the hole" a little bit. For most of us, we didn't get a rule-book on how to work with money in a way that HELPS us.
The only real question to ask yourself is this - "Do I mean what I say when I say I'm going to get control of my finances?"
If the answer is yes, call me or email me today so we can get started. In December alone, I have provided 7 different clients with an average savings of $573/mo, a reduction of their "in debt" timeline to 3.6 years for non-mortgage debt, and an average mortgage payoff in just under 10 years. Think about that for a minute . . . then give me a call.
My very best to you and yours this Holiday Season!
Your friend,
Rich Hayden
Financial Coach
rahaydenjr@yahoo.com
703.773.8409 - p
P.S.: Have a friend who could be helped by
this info? Why not forward this e-mail to
them? That's what friends are for!
P.P.S: Starting to plan for college? Ask me how
I can help.
P.P.P.S.: Ask me about the Debt Melt-Down(TM)
Plan and how you could become 100% debt free..
INCLUDING YOUR MORTGAGE..within 9-11 years!
P.P.P.P.S.: If this email has reached you at an
undesirable email address, please respond with
"Update my email to: joesmith@xyz.com" and I
will update your email accordingly.
P.P.P.P.P.S.: Want to receive a copy of my most recent
newsletter in PDF format, respond with "NEWSLETTER"
in the subject line and I will forward it to you.
