Money Plan SOS

#161: What if you could invest your loose change at the end of the day? Now you can with Acorns. Acorns is an app taking advantage of new technologies and less expensive investment fees to allow anyone to start investing in ETFs from Blackrock, Vanguard and PIMCO.  ________ Take the #100challenge in September 2014. See how fast you can save or earn $100 more. Then apply the money to your next goal: Emergency Fund Pay down debt Car replacement fund Save for Christmas Etc... Share your progress and WINS by using the hashtag #100challenge   For more information, visit the show notes at

#160: You can't turn on the TV or have a conversation with someone about money without the subject of credit scores coming up. With all that awareness you would think that everyone would have a basic understanding of how credit works. Unfortunately, there is a lot of miss-information being spread around. There are many myths surrounding the credit score; believing these myths can not only wreck your finances, but keep you from reaching your financial goals. For more information, visit the show notes at The five biggest myths about credit scores Myth #1 - You have to carry a balance to have a good credit score This is a dangerous myth that gives people an excuse to keep their debts. The five credit score factors (payment history, amount owed, length of credit history, new credit, and types of debt) are all about how well you “manage” debt. If you pull your credit report there is nothing about how you manage your normal bills (electric, cell phone, rent), unless you are late on those payments. Myth #2 - The credit scoring system is a government run program The government has nothing to do with credit scores! Can you imagine the chaos?! Credit scores are monitored and reported by publicly and privately held companies that turn a profit. Myth #3 - You need a credit score to rent an apartment Rent payments do not show up on your credit score, why should you need a credit score to rent? Some apartment complexes will only look at your credit history when considering you as a tenant. Others will pull a background check and pull your credit report to look for negative information. There is no rule or law that you must have a credit score in order to rent. Myth #4 - A good credit score will help you build wealth A credit score is based on debt, debt products and the ability to pay back the debt. It won’t help you build wealth, but it can help you get a better interest rate on even more debt. Myth #5 - The more you borrow, the better your score To a point, this is true. But the credit score is based on ratios of available credit vs. balance owed plus payment history. By borrowing too much you can tip that scale and cause the credit score to drop. This is why many people say that you should use a credit card but just pay it off at the end of the month. If we simply avoid debt in the first place, we can use that money to save and invest. These goals are much easier to accomplish when you don’t have the extra weight of debt hanging around. Call to Action Base your financial decisions on long term goals. Don’t get distracted by the lure of a good credit score. Remember that a credit score is based on debt and debt products. To be financially fit we need to consume less, save more, and pay attention - not interest. Also on the show My friend and past podcast guest, , accepted the ALS Ice Bucket Challenge.

#159: The first 6 steps to buying a cash car are laid out by James Kinson, the Cash Car Convert. He helps everyday Americans kick auto debt to the curb and make smart buying decisions when it comes to automobiles. For more information, visit the show notes at

#158: It is inevitable: Your debit card will be compromised some day. What happens when my debit card is stolen? Money will be taken out of your account Your bank may call you or you must call your bank when you find out The Zero Liability Policy will kick in The money will be returned to your account in short order Any insufficient fund charges will be removed by your bank You will be inconvenienced In this episode five individuals share the experiences of when their card(s) were compromised. How to prepare for a stolen debit card: Here's what to do

#157: How was John Lee Dumas able to start Entrepreneur On Fire without ANY income for 9 months? John tells us how in this exclusive interview about how successful people spend money. Also, Suze Orman's Preferred Debit Card is no more and PerkStreet customers get money in the mail! For more information, visit the show notes at

#156: Would you like to know how we paid for our vacation at a horse ranch without credit cards? It’s easy: We prepaid for our travel expenses with a debit card, prepaid for the week at a horse ranch by check, and paid cash for the rest. Oh, and we saved more than $160 by staying away from credit cards. In this episode I break down the different ways to pay for things like rental cars, souvenirs, and hotels - no credit cards necessary. The reason I stay away from credit cards will become evident when you hear our story of paying for the horse ranch. It is proof that plastic is more expensive than cash or check, we just don’t realize it is. Here is 7 minutes of beautiful horses crossing a river of melted mountain snow   Read more at

#155: How much attention do you really need to give to managing personal finances? Here are 10 ways we pay attention to our money - and most of it doesn't involve a lot of time:   Always: Check remaining budget balances before spending. Daily: Enter transactions into your checkbook/software/ Monthly: Balance checkbook/ Monthly: Set up budget (again, we use ) Quarterly: Review investments and retirement plans Annually: Rebalance portfolios and contribution amounts Annually: Reassess emergency fund balances   Tax Season: Review "giving" categories Occasionally: Think of money-saving ideas as they come up (cell phone, irregular purchases, etc) Life Events: Health, Car, and Life Insurance annually or when there is a life event (job change, new vehicle, pay raise, etc…)   Have I left anything out? Leave me a note at

#154: It had been a hectic morning. I recorded two interviews before leaving for the airport but I made it to the terminal with plenty of time. About 100 passengers ahead of me were being rushed as their flights were affected by weather but I had plenty of time. No reason to panic - I've done this dozens of times: Print boarding pass Check a suitcase Head towards security Have ID and boarding pass ready Take out any liquids, aerosols or gels Take everything out of my pockets Place my shoes on the conveyor belt Unzip my laptop bag and pull out my..................... WAIT! WHERE IS MY LAPTOP?! The spot where my MacBook is stored was empty. Did someone steal it when I wasn't looking? All my recordings and videos that I was going to work on, did I have a sufficient backup for all my recordings? What about all my pictures? I texted my wife: "URGENT: Go to my office. Is my laptop there?" She replied and my heart instantly sighed - I had left it on my desk. DOH! Being distracted sucks I was so scatterbrained that I left one of my most important pieces of gear at home - my MacBook Pro. I was going to work on my How To Use ScreenFlow course and record this week's podcast during the down times. #ChangeOfPlans Psyblog's article delivered to my inbox I had to rely on my iPhone to stay sane by being productive while waiting for the plane. I checked my favorite apps: Twitter, Facebook, ...and then my email where I found this clever and timely post by PsyBlog: "" I wish I had read this last night. PsyBlog tells us the 10 ways to improve our focus and attention. Many of them work for personal finance as well. Click the play button to hear more about this post [powerpress] 1. Take a break: We can only concentrate efficiently for a certain period of time 2. Chunk it: Break your tasks into smaller, manageable chunks. 3. Ditch the multitasking: It doesn't really work 4. Environment: Some people like busy cafes, others like libraries. 5. Try nature: Studies show that greater focus could be outside 6. Deal with interruptions (and track them) 7. Meditate:  8. Take a breath: Clear your mind and focus on the one thing you never have to think about 9. Sleep (my favorite): Sleep rejuvenates attention 10. Find flow: Some would call this "getting in the zone" How attention affects your cash flow When you focus all your attention on one thing you are more likely to succeed. Give up and you won't become the last man standing. Pour yourself into a project and you will likely notice more of the nuances and details while getting to know the subject matter better than anyone else - giving you an edge over the competition and making you the expert. When it comes to personal finances: It's the same thing. If you want to get out of debt then develop a plan, track the interruptions, place yourself in the right environment (like staying out of the malls and cooking at home instead), break your goal of getting out of debt into smaller pieces like Dave Ramsey's Baby Steps, and then meditate, breath, and sleep. After a while you will find flow (cashflow). You'll remain motivated, stretch your skills to the limits but not too far, and by using a budget you will get immediate feedback on how you are doing! For more information, visit the show notes at

#153: 3 Debt Elimination Strategies that WORK! Any one of these debt elimination plans will work if you work the plan: Debt Snowball: Pay extra on the debt with the smallest balance. Debt Avalanche: Pay extra on the debt with the highest interest rate. Risk Reduction: Pay extra on the debt with the most risk. This could be back taxes or a loan from your mother (you don’t want to risk the relationship, do you?) Pros and cons: Debt Snowball: You pay more interest than the Debt Avalanche. However, getting a shot of QuickWin has been scientifically proven to keep people motivated to keep working the plan to the end. Debt Avalanche: You pay less interest overall. However, working on a 21% interest rate credit card for over a year tends to wear on a person’s psyche. We begin to believe the process doesn’t work and we quit. Risk Reduction: Taking care of IRS debt first eliminates the possibility of them garnishing your wages (no court process needed). Or you may decide to pay off your parents because the stress of the situation is eating away at you. These cases are not as common (most parents are a bit more forgiving than that) so the benefits aren’t as great as the Debt Snowball or Avalanche. Arm yourself with reminders When we were in debt I would get a punch in the gut every time a statement showed up in the mailbox. Constant reminders wear on us and we become more likely to quit. It is important to stay focused and motivated in our moneyplan. We need to continue stretching every dollar and keep grasping at any opportunity to make more money to throw at our debt. Credit card companies benefit whenever we take our foot off the gas, so we must stick to the plan! Arm yourself with tools to help keep you encouraged throughout the process. Smartphone apps like ReadyForZero send you reminders and encouraging messages. Progress thermometers on the refrigerator or bathroom mirror let you check in on your current status. Finding ways to pay attention will go a long way in your debt elimination process. For example: I look at our mortgage balance a few times a month. Anytime I log onto our bank account to balance our checkbook, I see it. I look at our debt payoff spreadsheet once in a while, just to get my blood pumping. And, of course, I see the new balance at the first of every month after our payment is made. I’ve got my eye on the goal and focused on winning. Above all else: DON’T QUIT Evaluate your situation. Choose the method that works best for you. Above all things - DON’T QUIT! If you want to try one and then switch - go ahead. If the Debt Avalanche isn’t working for you then start attacking your smallest balance first. Everyone’s financial situation is different, so is their debt elimination strategy. The bank has a plan for your money. It’s time to short-circuit that plan and start paying attention, not interest!   Also on this episode: Holla From The Impala - It's awesome to get paid   For more information, visit the show notes at

#152: Rachel Cruze is a speaker, debt-free evangelist, part-time co-host of the Dave Ramsey show, known for being the inspiration behind the book “Careless at the Carnival”, and is soon to be a NYTimes best selling author for a book to be released on April 22, 2014 - Smart Money Smart Kids.  MoneyPlan SOS listeners wanted to know what she thought about these questions: Chris Pilon from Dadrenaline podcast: Aside from not paying commission, what did your parents do when you or Denise or Daniel did not do their chores? Karen Austin posted on Facebook: We have 8 year old twins and they earn money for household chores. We've been heavily focused on savings plus tithing, but feel we need to let them spend a little. Did Dave let you have spending money? Was it a percentage of what she earned?  Garnet Eldred (who shares the same birthday as me) asked: What does she use her 'blow' money on? Stephanie Reed wants to know: When did she start her own budget? And did her parents make her buy her own clothes and toiletries, etc. to help her learn how to budget before she left the nest? If so, what did she think of it and what would she change? Josh Levitt: We all struggle keeping up with the budget, not over spending or some aspect of being financially Smart. What is the toughest part of "sticking to the plan" for you personally? Kim Nice had a bunch of questions, but I only had time for one: What kind of vacations do you go on? Jen McDonough (aka: @TheIronJen): Do you see entitlement in the younger generation as being more or less than the parental generation? Scott Maderer: What is the Number 1 piece of advice you’d give for raising kids that will become great ADULTS?    Special thanks to @MrJoshuaBrown and ArunWisconsin for the 5-star iTunes reviews.   Your next money challenge: Find as many opportunities to show your kids how you SAVE money. The ratio for how many times my daughter sees us spend money to save money is about 1,000 to 1. There are many more opportunities for her to see us pay for something but she never gets to see the money going into our bank account, mutual funds, or 401(k). Some suggestions: Put coins in a piggy bank (I have a coin jar) Take physical dollars to the bank Have them click "send" for your mutual fund or online savings account For more information, visit the show notes at

#151: Kraig Mathias began his journey to debt freedom after blowing the engine on his car on a cross-country road trip.  We geek out over the math behind his car debt, then get inspired from his journey from debt freedom to creating independence. You can find more about Kraig at  Money tips: Save tons of interest by spending a little more on insurance Leave the plastic at home, even the debit card, for one Saturday. Just try it. For more information, visit the show notes at

HAPPY APRIL FOOLS DAY! I'm not here in this episode - I've commandeered three other shows that are not my own. Here's where I am today:  where I turn the tables on Jared Easley and interview him on his own show! On the  (usually by James Kinson) I talk about getting out of the car payment business. While Joe is in taking over my show I am also taking over the .  You can click on any of the links above for their (or should I say “my”) shows. If you would like to read the backstory of why I took over 3 shows in one day and why I'd NEVER do it again, .   Never has the show brought on more guests, more topics, and more laughs in the show. There were so many people on this show that there wasn't enough room for Steve. What you will get from this show Pirates take over the show. Arggggggghh Average Joe Money and OG talk about  The Roundtable talks about Groupon and Living Social: Are online deals a good deal? And finally, a classic Top 5 list. Top 5 ways to pay off your mortgage early OG's Top 5: 5) Don't take out a mortgage so big to begin with 4) Refinance to a lower interest rate 3) Round up your monthly payments 2) Make a 13th payment every year (extra payment) 1) Sliced fruit (just kidding). It's "Get a 15 year mortgage" Average Joe's Top 5: 5) Shorten the term of your mortgage 4) Use your tax refund to pay down your mortgage 3) Round up your monthly payments, don't round down 2) Switch to bi-weekly payments 1) Place your extra money in an S&P 500 mutual fund, then apply it when the mortgage reaches the amount invested Cast members for Episode 150: Special thanks to the following cast members who made this April Fools Day podcast hilarious (in order of appearance): Average Joe Money from  OG from  Paula Pant from  Len Penzo from  Miranda Marquit from  Disclaimer Steve Stewart does not agree with the Roundtable's advice of opening up a credit card for free airline tickets - regardless of paying them off every month or not. These "free" tickets or cash-back rewards are being paid for by the credit card company who in turn gets the money from those who do not pay off their balances, do not make their payments on time, or are over their limits. Be responsible for yourself AND your Brothers.   For more information, visit the show notes at

#149: People love their credit cards. Why? They aren’t valuable. They can’t be traded or sold. And they cost people a lot of money and often their freedom. I’ve been separated from my credit cards for over seven years and can tell you: I don’t miss them a bit. Now that I’m coaching people through their debt problems I get to hear all the same lies I used to say that justified my reason for keeping the plastic crutches. Here are some of the lies people tell themselves so they can keep their credit cards? “I only use my card for things I’m already going to buy anyway.”  “I only use this card for the points.”  “My credit card interest rate is blah blah blah.”  and more. For more information, visit the show notes at

#148: The Daily Success Habits of Wealthy Individuals. Tom Corley joins me for a discussion about the habits of the rich. We also learn the 4 things that can make you un-fireable.   A short list of Rich Habits: Tom Corley published a number of Rich Habits, which you can find here: The ones that took me buy surprise were: What Wealthy people do before work Habits of the Wealthy during the workday: Gossip is a Poor Habit    FOUR STRATEGIES TO BECOMING "UN-FIREABLE" To read more about the Rich Habits and strategies to becoming "Un-fireable", go to

#147: A new study released by FINRA reveals only 18% of millennials are able to correctly answer 4 out of 5 questions about finance.    Links mentioned in the show: FINRA releases results of study: http://www.finra.org/Newsroom/NewsReleases/2014/P456463 Take the quiz yourself by following this link: http://www.usfinancialcapability.org/quiz.php    The national average is 2.88 out of 5. How will did you do? Listen to the podcast for the answers. For more information, visit the show notes at

#146: Mitch Anthony joins me in a discussion about redefining retirement. His book, , helps us understand this relatively new word.  Resources can be found at

#145: Money can cause us to experience a large number of unnecessary anxieties. A number of things can help alleviate a majority of worries when it comes to money and finances. In this episode I give you five ways to reduce financial stress and make you feel more powerful, confident, and in control: Have $5,000 in the bank Automatically save money into a retirement plan  Have a Will Rent or live in a paid-for house Carry a $100 bill in your wallet For more information, visit the show notes at

#144: The sole benefit of Federal form Schedule A is to give us the opportunity to keep more of our hard-earned money. These are commonly referred to as “itemized deductions.” These are the tax deductions you want, and 3 you don’t.  For the list as well as links to Federal tax forms visit

#143: What happens to my credit score after paying off debt? In this episode I share survey results that show debt-free people aren't worried about their credit score. FICO says what's in your credit score FICO says your credit score is based on the length of credit, new debt, the variety of debts, how much debt you owe, and your payment history on debts. In short, you need to borrow money for a long time. More than likely you will end up paying interest. I'd rather be paid interest than paying it. What is not included in your credit score What is not included in a credit score is your age, sex, religion, and where you live. These things are left out due to consumer protection laws that were passed to keep lenders from being biased or discriminatory.  The problem with a traditional credit score is that it is selective on what to include in the calculation of your credit score and is not a fair representation of your full financial picture. Why wouldn't these things be included when calculating your ability to repay a loan? How long you have been with your current employer How much you make How much you having in savings How much you have in assets that you own Your payment history on non-debt items like rent, cell phone, or your cable bill FICO is not supposed to factor those things in but those who promote "building your credit score" make it sound as if the credit score is the most important thing you should concentrate on.  I disagree. It is a distraction. Results from my debt free survey I asked individuals to respond to a quick 8 question survey: Of the 83 Respondents 66 Married (80%) 1 Widowed 6 Divorced 10 never married 100% have been approved for a credit card. No surprise there. 11 of 83 respondents (13%) never taken out a car loan. 77% (64 respondents) say they do not have any outstanding consumer debt, 26 are completely debt free. Of the 26 completely debt free respondents, 9 stated their debt free date was over 5 years ago. All of them had a score greater than 700 except for 1 who said his score was ZERO. Only 2 of the 83 respondents who have paid off all their consumer debt indicated their score was 699 or less. Are they worried about their credit score? 8 of the 9 replied “No” to being concerned about their credit score and two of them actually responded with “Not At All” concerned. Only one was concerned about his Property and Casualty insurance rate being effected by a non-existent score. As I explain in the podcast recording, this really shouldn't be a reason to stay in debt or build your credit score. [Tweet "People who get out of debt do not care about their credit scores"] Why should they? They don't need a score to tell them they are winning with money. Other credit score promoted excuses: I need a score to rent an apartment: Devin Czech asked landlords if he could rent from them even though he doesn't have a credit score or credit history. The responses are very encouraging:  Employers look at credit scores: An employer can pull your credit history before offering you a position in their company. However, if they use your SCORE as a determining factor then I would question their hiring practices.  I would further go to say any employer who does not hire someone simply because they don't have a credit history is not a very good employer. Yes, bad credit is an indication of past financial problems but having no credit history is an indication that you've stayed out of debt and are financially responsible. Who wouldn't want to hire you? The bottom line? Losing your credit score is a good thing Your score will drop or disappear when you pay off debt. There are alternatives to qualifying for a home loan using services like  (use promo code  for a free membership). The everyday American is the lowest common denominator when it comes to knowledge about credit scores - and they are the target as well. For more information, visit the show notes at

#142: This 17 year old has got some sense! Eva Baker started a personal finance blog at http://TeensGotCents.com and is learning a lot about how money really works. This will benefit her greatly when she strikes out in this world and makes her mark.  Eva tells the story of how she started a personal finance blog at age 16, how she budgets her money with a basic envelope system, and then speaks from her own personal experiences about why having a simple plan and broad goals is key for any teenager to be prepared for adulthood. For more information, visit the show notes at