Incredible things happen when you learn to manage your money
Around here, we teach people that if you will live like no one else, then later you get to live like no one else. But what does that really mean? Does it mean that we want you to earn lots and lots of money so you get really wealthy and buy whatever you want for the rest of your life? Of course not.
There’s nothing wrong with having money. And there’s nothing wrong with using it to buy some fun stuff. There are a lot of people who have gotten the crazy idea that rich people are somehow evil or something. But it’s simply not true!
Have you ever met a rich person who was a greedy, rotten jerk? Sure! Have you met a poor person who was a greedy, rotten jerk? Of course! But there are wealthy people out there who are some of the kindest, most generous people you’ll ever meet. And there are poor people who are some of the kindest, most generous people in the world, too.
You may have heard the warning in the Bible, but pay close attention to the words of the verse. Does it say that money is the root of all evil? No! 1 Timothy 6:10 says that “the love of money is the root of all kinds of evil.”
You see, money is amoral. It doesn’t have any guiding principles of its own. Having money or not having it doesn’t change who you already are. When you earn more money, it just makes you more of who you are. If you are a generous person and you get wealthy, you become a generous, wealthy person. It’s all about whose hands the money is in.
Think about a brick for a second. In the hands of the right person, a brick can be used to skillfully build a home for a family. But it the wrong hands, a brick can be used to break your car window and steal your wallet. It’s all about whose hands it’s in. The brick doesn’t care!
So there’s nothing wrong with making money or with spending it on some cool stuff for yourself! But as Dave says, “If you eat enough lobster, it starts to taste like soap.” Having stuff will never satisfy you. That’s why our ultimate goal of teaching you to take control of your money isn’t building wealth for wealth’s sake.
There are a lot of incredible things that happen when you learn to manage your money instead of letting the lack of it manage you. Here are some ways millions of families have experienced financial peace:
Financial peace strengthens relationships.
You may not realize how much your relationship with money affects your relationships with other people! When teaching about money, Dave explains how to get on the same page and eliminate money fights for good. Marriage can be hard enough, so getting rid of one source of conflict altogether is life-changing!
Financial peace brings a sense of hope and freedom.
When you find out where your money is going instead of wondering where it went, it’s amazing how much less stress you experience in life. Not only are you not worrying about bills, but you have a plan for the future. You’re giving every dollar a name on paper, on purpose, before the month begins. This brings about a sense of confidence, hope for the future, and freedom!
Financial peace changes your family tree.
What kind of financial legacy do you want to leave to your family? You may not leave millions behind someday, but it’s important to decide what kind of legacy you want to create. How would it feel to know that instead of leaving behind debt and unpaid bills, you knew your family would be taken care of—that generations to come would benefit from the wisdom you chose to live by? Now that’s changing your family tree!
Financial peace allows you the freedom to give generously.
If you’ve ever experienced what it’s like to freely give to someone else, then you’ve tasted the joy of giving. There’s nothing more fun and fulfilling to do with money than this! But when you’ve got debt payments out the wazoo, it’s hard to feel like you can give. That robs you of the opportunity to give from your God-given desire to help other people and to meet the needs you feel most passionate about. When you get in control of your money, you’re able to meet needs with joy instead of guilt. This alone is reason enough to bring financial peace into your life!
So wherever you are in your journey to financial peace, we’re here to help. We want you to experience life to the fullest and discover a sense of peace and freedom that reaches far beyond your wallet.
What’s the Goal of Financial Peace? – Other – daveramsey.com.
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Movie on the Green -Mosters vs. Aliens
* Saturday, September 11, 2010
* All Ages * 8:00 pm
* Issaquah Community Center
* FREE
Grab your blanket, lawn chair, family and friends, and head on down to the Issaquah Community Center Green for a night under the stars. Issaquah Parks & Recreation and Lunar Flicks present this outdoor movie featuring the family hit ‘Monster vs. Aliens’. The movie starts at 8:00pm but feel free to come down early and set up your spot. Concessions will be available for purchase.
Via City of Issaquah
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Making the wrong decisions upon inheriting a house can lead to financial and emotional problems down the line. Here are four ways to be prepared.
Image: Pascal Broze/Getty Images
Make sure to discuss all the options with family members so there’s no confusion.
Your parent has died, leaving you the family home. Suddenly, you’re faced with questions you may not be prepared for. Should you sell the house, rent it, or live in it yourself?
Making the wrong decision could cause serious financial hardships later on, or even lead to family feuds. If you’ve inherited a house—or think you may in the future—here are four things you should do before making any decisions.
1. Remember, the tax man cometh
In recent years, the estate tax has had a high exemption: $3.5 million in 2009, for example. Although the estate tax was temporarily suspended in 2010, most experts believe it will come back in 2011, once again with a high exemption. And 2011 rules may be made retroactive to 2010.
Also largely suspended in 2010: the “step-up” provision. That means the house you’re inheriting may not get a full step up to its current market value for tax purposes. Say your parents bought the house 40 years ago for $15,000, and today you can sell it for $500,000. With a step up, you’ll only have to pay capital gains tax on the difference between the home’s value at the time you inherited it and the sale price. Without any step up, you’ll pay tax on the full amount of the gain—in this case, $485,000.
What to do: Consult a tax professional on the current step-up situation before posting a For Sale sign on the lawn. It might be best to wait before putting the house on the market.
2. Investigate the mortgage
There’s a good chance you’re inheriting a house that’s paid for. But maybe not, if it’s a retirement cottage. And even if the original mortgage was paid off, your parents may have taken out a reverse mortgage to cover expenses in their final years.
You can only assume your parents’ mortgage if you’re going to live in the house yourself, says A. Raymond Benton, a certified financial planner in Denver. If you want to rent out the house, the bank may require you to refinance in your own name. Reverse mortgages can’t be assumed by heirs.
What to do: If the home has a mortgage and you have the cash, pay it off yourself. If not, the house will have to be sold to pay back the bank.
3. Discuss your plans with other relatives
All this assumes you’re the only one inheriting the house, or at least that you’re in agreement with your siblings. But what if you want to sell it and your brother wants to rent it out, or live in it himself?
Steven M. Berger, a lawyer in Severna Park, Md., says in most states heirs who jointly inherit a home are “tenants in common,” and in such situations, one sibling can force the sale of a property. But this is an expensive, emotionally damaging process and should be a last resort.
What to do: Get all the options out on the table with family members. There may be a creative solution. Clients of Jonathan Gassman, a New York CPA and CFP, set up an agreement to use their late parents’ home as a vacation retreat, essentially treating it like a time share and dividing taxes and expenses.
4. Give the house a physical
Even after the financials are settled, you may run into problems if you’re inheriting a house that hasn’t been upgraded for a while. Certain systems may be so antiquated that the place is essentially unsaleable, unrentable, or even unlivable as is.
What to do: If you’re inheriting a house that hasn’t been upgraded in decades, get an inspection before making any decisions. The amount of money you may have to sink into the place just to make it insurable could determine whether you choose to sell it, rent it, or occupy it.
Richard J. Koreto is HouseLogic’s managing editor of finance, taxes, and insurance. He’s been editor of several professional financial magazines and is the author of Run It Like a Business, a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, New York.
Read more: http://www.houselogic.com/articles/i-just-inherited-house-now-what/#ixzz0ym8NFX29
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Myth: Paying rent is a waste of money. I should buy a home as soon as I can afford the monthly payments.
Truth: Renting for a season while you pay off your debt and save up a pile of cash will set you up to win big in real estate over time.
How often do you hear that homeownership is the American Dream? In 2009, as unemployment rose to 10%, the dream became a nightmare for nearly 3 million homeowners who got behind on their mortgages.
That’s because people who buy real estate while they’re in debt and without adequate savings are at a much higher risk of losing the property when they face financial difficulties such as illness or job loss.
Rent To Win
Most people miss the positives of renting. They feel like they’re throwing money away. The truth is, people who truly cannot afford a home should not buy real estate—even if rent is the same amount as a monthly mortgage payment. Renters avoid hidden costs for repairs and maintenance that add to a monthly mortgage payment. Another plus—renters can simply move if their circumstances change. Owners can be stuck with a property with no equity that takes too long to sell.
Real Estate The Right Way
Dave Ramsey, who’s shown more than one million families how to live debt-free and build wealth, recommends the “100% Down Plan” for buying real estate—pay cash for the whole house! If that seems too far out of reach for you, then at least hold off on your real estate purchase until you meet these three conditions:
- You are debt-free and have an emergency fund of 3–6 months of expenses.
- You have saved at least a 10% down payment. A 20% down payment is preferable to avoid Private Mortgage Insurance (PMI) payments.
- If you’re married, you’ve been married at least one year. Don’t add the stress of a home purchase to a brand-new marriage, and never buy real estate with anyone you are not married to!
If you aren’t paying cash, get a fixed-rate mortgage for 15 years or less. Keep your payments low—no more than 25% of your take-home pay. Lenders will tell you that you qualify for more, but stay conservative.
No one wants renting to be a way of life for you. Buy real estate when you are financially ready. That way, your home will be a blessing rather than a curse.
It’s best to work with a real estate professional when you’re ready to buy or sell a home.
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Posted via Seattle Real Estate-Seattle Homes For Sale
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Posted via Seattle Real Estate-Seattle Homes For Sale
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