bankrate.com and going green.

I love bankrate.com's web site. It's full of great financial information. The site focuses mostly on news, tips and advice to compare mortgage rates, home equity loans, CDs, car loans, credit cards and money market accounts.

Recently, They ran an article on living green. In fact, they list 153 ways to go green. You can link to the article here. I've been investigating how to go green around our house of late. Much to the chagrin of my wife, I'm replacing all of incandescent bulbs with Compact fluorescent bulbs.

Compact fluorescent bulbs use 75 percent less energy than incandescent bulbs and last up to 10 times longer. They're more expensive than traditional light bulbs, but it only takes about 3 months to make up for the higher sticker price in energy savings.

You will save $85 over the life of the bulb for each 60-watt light bulb you replace with a 15-watt CFL. You'll also save 543 kWh of electricity and reduce your CO2 emissions by 833 pounds.

This is a simple and cool way to go green and save some green $$.

Fasting

I'm sharing something very personal here today. I'm doing so because after just finishing a fast, I believe it's something all Christ followers should do.

For some time now, I have sensed God wanting to deal with me regarding certain areas of my life. (God's good like that.) I knew this would be painful and I wanted to be "all in" and to be focused like a laser on God during this process.

In cooperating with God on this, I did a three day fast. The fast, along with many quiet times in prayer and reflection was life changing. I really focused on God and He did a work in my heart. I'm in awe at how I'm feeling right now. I wish I could stay here.

If you want to experience a breakthrough and let God do a work in your heart, consider fasting. It will rock your world.

IRS & Lesson Learned

Last week, here at work, I received a letter from the IRS. If you are anything like me, just seeing the envelope with "IRS Notice" gets your heart pumping a little faster.

Deep down, I had a feeling I knew what this notice was about. See during our reorganization time, I was late in filing our payroll deposit. I knew the IRS would come a knocking on this and rightfully so.

I opened the letter to see that NPCC was being assessed $381.30 in a penalty. Ouch. In reading through the letter and getting past the "warning" of additional penalties and interest if not paid by 9/17/2007, there's this section at the bottom of the letter stating "Removal of Penalties."

The IRS say's if you have reasonable cause the IRS would consider reducing or removing the penalties. That was my open door.

I wrote the IRS a letter laying out the reasons for my late filing and that I've never filed late in the past and I've taken steps to insure this doesn't happen again in the future.

I'm very pleased to say in the mail today was a letter from the IRS waving the $381.30 penalty.
If you've stayed with this post this long, thanks. The point of all this is to be proactive in all that you do. When you are wrong admit it. Don't try and hide it or make excuses. Take responsibility for your actions and learn.

Thanks IRS for the waived penalty and lessons learned.

RetailNeNot

I'm always looking for great ways to save money. Recently, I came across a web site called Retail MeNot. On this web site you enter a product you are looking at purchasing and if there's coupons or discounts on this product, RetailMeNot will provide you with printable coupons for it.

RetailMeNot provides a database of over 35,000 coupon codes, each of which is tagged according to its category, and rated by users according to its utility. The site offers discussion forums where members can swap shopping tips. You can also download a Firefox extension, a Mac Dashboard widget, or a quick-access bookmarklet to make finding coupon codes even simpler.

This weekend, I'll be using this site for a Papa John's pizza for a buy one get one for $0.99.

It keeps getting better

Last night was another great Financial Peace class. We began the night by cutting up 10 credit cards. That's 18 total for this class. Way cool!

After the credit card party, we started the DVD and learned all about investments. Here are a few key points when considering investing.

1. Savings would be defined as a period of 0 - 5 years.
2. Investing is anything over 5 years.
3. Playing individual stocks will on average get you a return of only 7%
4. Diversification (to spread around) is the most important part of your investment plan.
5. Pay off your consumer debt before you start investing.
6. The Roth IRA is a great investment choice.
   

Great Weather & Cool Pictures

This weekend was the best weather weekend of the year in my book. Low 80's no humidity and lots to sunshine. As such, I got to ride my bicycle both Saturday and Sunday. I rode a total of 68 miles. (By the way, I'm now over 1,800 miles ridden for the year. 2,000 miles is within reach.)

During my ride on Saturday, I came to find out that the Ohio Plein (Outdoor painting) Society was all over Tuscarawas county painting landscapes. So, After my ride, My wife and I borrowed my mother-in-law's convertible and headed out to take in the beauty of Tuscarawas county in the fall.

Here are a few pictures that I took. Enjoy.

One of the Ohio Plein Artists allowed me to take this picture.





One of the roads I ride down


I love Barns & there are lots of them in Tusc County

Minimum Payments. What is it costing you?

Let's face it. The interest you pay on your credit card debt is like throwing money away. This is a blanket statement but what is credit card debt really costing you?

If you are making the minimum payment on your credit card each month their's a free tool that shows you just how much this is costing you. Check-out this credit card calculator over at bankrate.com.

Here's an example: If you carry a balance on your credit card of $5,000 @ 12% interest and make the minimum payment each month of 2.5% $125. It will take you 219 months (just over 18 years) and cost you $3,180 in interest to pay off the $5,000. Ouch!

If you could bump up your payments to $200 per month, you would pay this same $5,000 off in 29 months (2 1/2 years) and pay only $782 in interest.

Two points in all of this. One, Stop using credit cards. Two do whatever you can to be able to pay more than the minimum monthly payment each month.

Nana Nana Na, Nana Nana Na, 8 Credit Cards Goodbye

I so excited. Last night during our Financial Peace dumping debt lesson, we cut up 8 credit cards. Way Cool!

I believe that the families who were bold enough to come up in front of our class and say no more to their credit cards are feeling a tremendous sense of freedom today.

Truth be told, I have no idea if these families have credit card debt but the fact they are saying goodbye Credit Cards is a step toward financial freedom.

I'm so very proud and blessed to be part of life change here at NewPointe.

Thank You!

Yesterday after services were over, the "paid" facilities staff transformed Studio 56, our 5th and 6th grade space, into a banquette hall. We thanked our "unpaid" facilities team with a lunch.

There were more than 75 people in attendance and many more who were unable to attend. The lunch was a thank you for the work that they do around NewPointe.

Truth be known, the weekend services wouldn't go off the way they do without the dedication of those on the facilities team. This group of dedicated individuals give countless hours each week and they are the ones that make this building shine.

Thanks guys for all you are doing and may God bless you richly for serving in this way!

How do you measure up?

The list of 12 items from my last on a Healthy Financial Plan included retirement funding. (That was item #5)

In doing some reading today, I came across this very interesting chart. Based on your age and retirement Savings Value, what percentage do you fall into?

To be truthful, it doesn't really matter. The important thing is that you are saving for retirement and that you are doing it consistently.

Retirement Savings

Reported total savings and investments not including value of defined-benefit plans or primary residence, active workers by age group, 2007

	Age group
	25-34	35-44	45-54	55+
Less than $10,000	50%	36%	24%	26%
$10,000-$24,999	18	16	10	5
$25,000-$49,999	9	10	11	9
$50,000-$99,999	10	14	15	11
$100,000-$149,999	7	7	9	11
$150,000-$249,999	1	9	10	9
$250,000-$499,999	1	4	12	11
$500,000 or more	4	4	9	17
Note: Survey of 1,001 active workers.
Source: Employee Benefit Research Institute

Healthy Financial Plan

How do you know if you have a healthy financial plan? There is more to it than saving for retirement and your kids college.

Here a list of items you should have in place or be working on as part of your overall financial plan.

1. A per pay cash flow plan. (Tell each dollar where it's going before you get paid.)
2. A Will (This is a must have!)
3. A debt reduction plan.
4. An Emergency Fund
5. Retirement Funding
6. Life Insurance
7. Health Insurance
8. Disability Insurance (Most people ignore this one. Don't you ignore it.)
9. Adequate Auto & Home owners insurance. (When did you last review these?)
10. Charitable Giving
11. Teaching your children how to handle money.
12. College funding for your kids.

If you are addressing these 12 items you have a health financial plan. If you are missing some of these 12 things then set an action date right now and get it done.

18 wonderful years

Yesterday was my 18th wedding anniversary. I am very blessed to be married to a wonderful woman. Among many important milestones in our marriage, Cindy played a big role in me having a personal relationship with Jesus Christ. For that, I am eternally grateful.

I must say our 18th anniversary day will be a memorable one. We spent 7 hours together in our own private room. . . . at Union Hospital. A blood test, chest x-ray, and 3 bags of I.V. solution we headed for home. Cindy started getting sick Friday night and continued to get worse. So Sunday it was off to the emergency room.

I just got off the phone with her and she's feeling a little better today. Say a get well prayer for her.

Thanks

1400 chairs in two minutes flat

Each week, teams of dedicated NPCCers come in on Saturday nights to transform our auditorium from sports space to worship space.

Thanks guys for your dedication and attention to detail. Take three minutes and enjoy their efforts.

Top 5 signs you may be in financail trouble

Getting into financial trouble can happen to anyone. There are some signs that are obvious but there are many more than are not. Spotting the signs that allude to underlying troubles can often be difficult. While we all know that we should get out of debt and spend less than we make there are plenty of more subtle clues out there that could signal pending financial problems in the future.

Here are 5 warning signs to look out for.

1. You have little or no savings. At a minimum, you should have $1,000 set aside for emergencies. (Ideally, you should have 3 - 6 months of living expenses in a savings account.)
2. No Budget. You have to have a game plan and tell your money where to go each pay.
3. Financing a vehicle for more than 5 years. (It is possible to pay cash for a vehicle.)
4. Money fights with your spouse. This is the number one reason for divorce.
   
5. Using Credit Cards to pay for necessities because you don't have the cash.

There's lots of help out there in getting your finances under control. One of the best resources I know of is Dave Ramsey and his Financial Peace University. I've got his best selling book, The Total Money makeover available here on my blog. (See below.) This book will change your life, if you apply it.

Mega Millions, Just another Tax

One of the articles on the front page of our local paper today was "Mega jackpot: Area residents lining up for chance to win". The jackpot is up to $330 million. That's a lot of money and people line up to buy tickets for a chance to be a millionaire.

Did you know that your odds of having the winning ticket is One in 175,711,536. Did you know a person who plays the lottery on a regular basis spends on average $30 per week. Let's see, $30 per week x 52 weeks a year = $1,560 with little if any winnings. (Looks a lot like a tax to me. . . )

How about this instead of purchasing tickets. $30 per week invested in a Roth IRA earning 10% from age 20 to age 65 (45 years) equals $1,233,641 TAX FREE every time.

This sure beats odds of 1 in 175million. So this weekend, skip the Mega Millions ticket line and open up a Roth IRA.

Do you have a Cash Flow Plan?

Well? What's your plan? One of the most valuable things I've learned in leading Financial Peace University is this: If you don't tell your money where to go, it will leave all by itself. Hang with me and I'll explain.

Before I had a paycheck by paycheck cash flow plan when I had money in my checkbook a day or two before I got paid, that money left. I found something to spend it on. I said, "Hey, I get paid tomorrow so what can I buy? This money's not doing any good just sitting in my checkbook." Have you been there?

Now with my cash flow plan, every dollar is "spent" on paper before I actually get paid. I even have a "blow" category in my cash flow plan. We all blow money and that's ok. Just plan for it.

So why do a cash flow plan before each paycheck?

1. You avoid managing finances by crisis.
2. Managed money goes farther. ( I don't know why but it does.)
3. It reduces money fights in your relationships.

Three great reasons to me. Try it. If it doesn't work, you can always go back to the way your doing it now.

History and a Bike Ride on a Sunday Afternoon

Today was a great day. Worship was wonderful as always. NewPointe is a great place to worship God. Cindy and I hade some old friends check out services today. It was nice to see Greg and Sandy. Worship is always a little extra special when you personally know people are here for the first time.

Sunday afternoons this time of year for me include bike rides. That bicycle rides. I'm now pushing close to 1,600 miles for the year. Today our route started from Gnadenhutten. Gnadenhutten was the settled in the late 1700's Ninty-six christian Indians were massicured there in 1782.

We left from Gnadenthutten and headed out on hill after hill until we reached Peoli. Peoli is where baseballs greatest player of all time is burried. Cy Young. It was cool to ride by his grave. I'm sure most people didn't know that he is burried right here in Tuscarawas County. Now you do.

To Rollover or To Role Into?

My mom has come to me for some financial advice. She currently works at a local bank and do to an acquisition, her bank is now a different bank.

With the ownership change of the bank, comes stacks and stacks of paperwork and choices for her and her fellow employees. One critical choice is what to do with her 401k from the now non-existing bank. Of course the acquiring bank wants all the employees to roll their 401k dollars into the new banks plan. I told my mom that's a bad idea. Here's my opinion why.

Anytime you have the opportunity to roll retirement dollars out of an old employers retirement plan into your own self directed "rollover" IRA you need to do it. The biggest reason why is fund choices. Instead of being stuck selecting from a limited number of mutual funds the new employer is offering, with your own "rollover" IRA you have access to every fund, stock, and then some in the market.

In my mom's case, I'll be helping her open a "rollover" IRA this weekend with Vanguard. I'll place 100% of her money into their Target Retirement 2015 fund. There are a couple of reasons I picked this fund family and this fund for her.

1. Vanguard has very low fees
2. Vanguard has been around a long time
3. Their target retirement funds are simple and somewhat conservative. (That's real good for my parents.)
4. This fund is diversified and it changes it's allocation of holding (Stocks /Bonds/Cash) over time.
   

I'll talk more about Target Retirement Funds if anyone has a desire for me to do so. Just post a comment.

Where to put your 401K money?

I get asked all the time, "What funds should I pick for my 401K?". Before I give my answer, I ask a few questions.

1. Are you at least putting into/having withheld from your paycheck an amount that gets you 100% of the company match? If not you should be.
   
2. Do you have consumer debt? If you do, don't contribute more than what your company will match. You must get out of debt.
   
3. When was the last time you reviewed your retirement plan beneficiaries?
   

With answers to these 3 questions, I don't give "financial advise" I can only tell you what I do and my what your hearing from me is free. So here it is.

Diversification - To spread around. As the saying goes, money is like manure, spread it around and it helps things grow. Leave it in one pile and it stinks.

Most people will do well to pick / spread their retirement fund choices between 4 - 5 classes of mutual funds. I currently have 5 classes.

• Large Cap
• Small Cap
• Foreign
• S&P 500 index
• Growth & Income
  

I came across a free asset allocator calculator from cnn money that may help you pick your categories. The answers I gave returned this asset allocation. Not that far off my my current mix.



The most important thing is to get started and stick with it over a long period of time.

Who's in control

In my conversations and readings here of late, the topic of email has been coming up over and over again. The more I engage in conversations about email, I keep recalling my high school science class when we talked about Pavlov's dogs. (Pavlov was the Russian scientist who conditioned dogs to salivate when a bell rang.)

I get the feeling that's what most people do when they are working on their computer and that "dig" sounds letting them know a new email has just arrived. Most people then can't resist. They stop what they are doing and read the email. (Email is in control.)

I no longer "Pavlov" to the ding. I've turned it off. I'm going one step farther and am about to set-up an auto email response letting people know that I'll only be checking my email twice a day. 10 a.m. - 2 p.m. (I'm back in control)

Here's what my auto response is going to say:

Thanks for emailing me today. I have scheduled the hours of 10 a.m. and 2 p.m. to review and respond to my email. If you need to reach me before those times, please call me at 330-365-xxxx.

Thanks.

What do you think? Good idea or bad?