Debt Load

Interesting take on debt from an article posted on gather.com.  It is easy to create rationalizations which convince us there are just some things that we can not pay cash for.  Unfortunately, most of us never heeded such advice as young adults with discretionary income.  Thankfully, Mvelopes is a great tool to get you back on track, and the Debt Center can help you pay off the debt you have already accumulated.

“Personal finance Topic #167 – Good debt vs. bad debt

“Good debt vs. bad debt”

I hear this phrase so often that I have to set this comparison straight in this post.

First: there is no such thing as a good debt. All debts are good for the lenders, but bad for the consumers. Debts generally have interest, penalties, and possibly fees, none of which helps you pay down your principle by one penny. If you don’t pay back ANY debt, it can lead to a ding on your credit score, bankruptcy, foreclosure, repossession, garnishment, or possibly lead to criminal offense.” 
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[photo courtesy of flickr / CC BY-SA 2.0]

“BUDGETING is a simple concept to grasp. We all understand that a budget is basically a plan so we don’t spend more money on expenses than we earn.

But the reality is, budgeting is much more difficult than we likely realize. If it were as simple as spending less and saving more, Statistics Canada wouldn’t be reporting year in and year out another increase in our personal indebtedness….”

>Read the entire story

Have you ever heard the phrase, “ignorance is bliss”? While this may be true for a short period of time, reality will catch up to you, sooner or later. Unfortunately when it does catch up with you, it will probably sting a bit.

“The first step to changing your financial course is to recognize that the direction you are currently pursuing may be a dead end. This realization is often much more difficult than it sounds. While most of us have a general feeling for our level of financial fitness, we are often in a complete state of denial regarding our financial weakness. With the overwhelming availability of consumer credit, home equity loans, and debt consolidation loans, we are able to successfully mask the impact of our overspending and poor financial decisions.”

It is fairly easy to see the state of our own physical health, after all we look in the mirror every day. It’s not always as easy to see our financial health. It takes more effort to candidly assess your financial health. It takes courage to really look at your financial state and even more to commit to changing it.

“Now is the time to recognize the need for change. To help add clarity to your general thoughts, candidly answer the following questions:

• Do you carry over balances on your credit cards from month to month?
• Have your credit card balances increased year after year?
• Have you participated in a home equity loan or debt consolidation loan in the past three years for the purpose of paying off consumer debt, only to have consumer debt return?
• Do you schedule the payment of monthly bills around the receipt of your paycheck?
• Do you pay your bills and take care of all monthly expenses before you determine an amount for savings?
• Have you used credit cards or charge accounts to fund major events or purchases during the year, including holiday spending and vacations?
• Do you make major purchases based on the amount of a monthly payment rather than a cash purchase price? Have you borrowed money to purchase an automobile and then purchased a different one before the previous vehicle has been paid for?
• Do you constantly monitor your bank account balance to make sure you are not bouncing checks?

If you answered yes to any of the above questions, you are very likely following the masses.”

Unfortunately this path is leading you nowhere… and coming to this realization is the first step to achieving true financial fitness.

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http://www.nytimes.com/2010/05/08/your-money/08money.html

In Applied Principle 1 of Money for Life, we learn that the financial path of many Americans is one leading directly to disaster.

“According to the Wall Street Journal, more than 70 percent of Americans live paycheck to paycheck. That means that nearly three-quarters of Americans may be as close as one paycheck away from financial disaster. These startling statistics represent the personal financial path most traveled, the path of least resistance, the path to financial anemia. When you take an honest look at your level of financial fitness, what do you see? If you are on the path most traveled, you will see a struggle to make payments on time; a significant credit card and consumer debt load; a lack of emergency savings; little or no measurable savings for handling long-term objectives, such as your children’s education; and no real plan for achieving a comfortable retirement. As we tread this well-worn path, we often lull ourselves into a false sense of security: Our society constantly tells us that the path we all are on is taking us in the right direction. Banks and credit card companies allow us to “handle” more debt with the “convenience” of small monthly payments. Advertisements barrage us with the message that our hard work entitles us to an ever-increasing collection of material goods. Society measures success by what we have rather than by what we are doing to secure a future. But focusing on what others prescribe for us can be a dead end.”

“For many, it is not until they experience a major financial setback that they look around and really understand that their journey down the financial path most traveled has led them right back to where they started.”

In order to find personal financial success, you must get off this path and onto the path least traveled.  Get out of the overspending cycle. Get out of the habit of relying on credit to get by. Take control of your money. Make a conscious decision to change your spending habits for the better.

“Often in life, the path we should seek is the path least traveled. When you get to the top of a mountain, there aren’t many others there-most people are coasting in the by-ways or resting in the valley. Becoming financially fit requires a break from the masses and a discovery of the path to the top.”

Follow along as we progress through each of the Applied Principles from Money for Life and learn the path to financial fitness.  Get on the path least travel and take back control of your financial future.

This video is for our members still grappling with how envelope budgeting is different from “traditional” budgeting. Nick Lashley, Money for Life Coach, talks about the core principles of Envelope Budgeting: creating a spending plan, funding envelopes, and performing envelope transfers to cover overspending in any single envelope.

Car Meets Tree

During a Money for Life Coaching Session the other day I noticed that my clients had a few envelopes that had gone into the red.  I asked them what had happened, and they explained that some unexpected expenses had arisen due to a family event, a forgotten bill, etc.  We talked through a few different ways they could balance out the envelopes (envelope to envelope transfers, using the sweep feature, etc.) and reviewed why it’s so important to keep the envelopes from going into the negative.

Overdrawn envelopes basically mean that you have overspent your allocated amount for that category.  It’s not the end of the world. Things happen that cause you periodically to overspend.  The critical thing however, is that you get the envelopes balanced out as quickly as possible so that you know how much money you truly have available to spend.  If one envelope is negative $10, and one is positive $10, than in reality you have $0.

While they were convinced that this was a one-time thing, and that they wouldn’t have unexpected expenses again; unfortunately, that just isn’t realistic.  Unexpected expenses happen, that is just the way life is.  The way you handle it however, determines if it will derail your spending plan or just be a small bump in the road.

When unexpected or surprise expenses occur balance out your envelopes as quickly as possible, and then review your spending plan to better plan for these types of expenses in the future.  That may mean adding a new envelope, or perhaps readjusting the way you are funding existing envelopes.  The key is to learn from this experience and work to avoid it in the future.   The same thing may not happen, but I assure you, somewhere, sometime, something unexpected will need to be purchased.

Purchasing an outfit for a last minute family event may not be exactly what happens next time, but perhaps you’ll be out for the evening and break the heel off your shoe?  You may have extra pair of shoes in the car, or maybe you’ll have time to run home and change… or perhaps you’ll have to stop and pick something up because it’s an important occasion that you just can’t miss.

Jennifer Streiff
Money for Life Coach

[photo courtesy of flickr / CC BY-SA 2.0]

Michael and Jana

A few weeks ago, Michael, from San Antonio, Texas, shared with us the following comments:

When my lovely wife (Jana) and I got married about 3 and 1/2 years ago, we had to mesh our personal finances together–just like any couple. We both consider ourselves financially savvy–me being an accountant and Jana with banking experience and formerly a bookkeeper, but we simply weren’t happy with the methods we had in place for tracking our expenses, or the popular personal finance software available at the time. Keeping up with receipts was tedious for the number of transactions we do and our process seemed more time-consuming than it needed to be. We desired a better tracking system and we wanted a solution quick before the frustration started affecting our marriage. We started doing research and Jana found Mvelopes online one day, so we decided to give it a trial run. We’ve been using it ever since and haven’t ever looked back. We now have the level of detail in tracking expenses we wanted (real time!), we save incredible time, and we have a peace of mind knowing our finances are running smooth and in order. Mvelopes is one of those things you see in a futuristic movie and hope comes to reality soon. My dream was realized. Thanks Mvelopes team!

I recently had the privilege of speaking with Michael about his and Jana’s Mvelopes experience and gained the following additional insights into their use of this wonderful product.

Q:  How long have you been using Mvelopes?

A:  For about two years.

Q:  How has Mvelopes assisted you in living within your income?

A:  Obviously, it forces us to stick to our budget.  We are huge Dave Ramsey fans and have learned a lot from him.  He has taught us how important it is to stick to our budget.  We never have to wonder if we have money.  We can check it right now–even on our cell phones.  It’s pretty cool.

Q:  How much consumer debt have you been able to eliminate during that time?

A: We became debt-free in 2007, prior to using Mvelopes.  But I’m sure Mvelopes would’ve helped had we known about it beforehand (laughs).

Q:  How much have you been able to save while using Mvelopes?

A: A lot, actually.  We’ve saved enough to purchase a used car ($9,000.00), enough to go on a cruise (Cayman Islands), and enough to give a large portion of our money away to people who need it.

Q:  How much has your average checking account balance increased while using Mvelopes?

A: Again, an enormous amount–about four or five times what it used to be.

Q:  What financial goals have you achieved while using Mvelopes?

A: We have obtained a large net worth (one that we were aiming for) and we have streamlined and simplified our budgeting process, thanks to Mvelopes.  It used to take us about two hours once a month to work on our budget.  Now it takes us about 30 minutes.  We’ve also been able to purchase large assets with cash.

Q:  What are your next financial goals?

A: We plan to invest more of our income-we’re already investing 7% and plan to bring it up to 15%.  We’re also planning to save for our first house and pay cash for it.  We’re about halfway there.

Q:  How many envelopes have you created?

A: We have 50-60 Mvelopes.  We are both kind of nerds about it.  My wife is a bookkeeper and has a financial background and I’m an accountant.  I don’t know if Mvelopes is intended to be used this way, but we kind of have a budget within a budget.  When we spend money for things we’ve been saving for, like new furniture, we’ll spend it from our checking account and then take the money from our savings account to credit the checking account.

Q:  How has Mvelopes helped to reduce financial stress?

A: Not having to wonder–Did I just spend that money that should’ve gone to pay for my utility bill?–or whatever.  You don’t have to worry about bouncing checks.  You know what’s there, in real time.

Q:  If married, how has Mvelopes helped you better collaborate with your spouse?

A: It helps me communicate with my Jana better.  We can both log into our account and can both see what our status is.  We can check it while we’re in the grocery store with our Smart Phone.  It’s really nice.  It makes things quick and simple.  We still sit down and talk together, but there are fewer of those interactions.  When my wife and I plan to spend anything over $100, we will sit down and have a budget committee meeting and discuss where we’re going to be pulling that money from.  We can now move money around right there and then without having to discuss every single transaction.  It’s nice and easy.

Q:  What advice would you give to new Mvelopes users?

A: Sit down and do it.  You’re not going to start seeing change in your financial life until you sit down and start making a plan with your money, and Mvelopes will help you do that!

At the conclusion of my interview with Michael, I asked him if there was anything else he’d like to add, and he said this:

After discovering Dave Ramsey, my wife and I paid off over $30,000 in debt in two years, and that was on a pretty modest income.  My wife and I are Financial Peace University coordinators teaching the Dave Ramsey plan and we use Mvelopes to help us implement his plan.

It’s obvious that Michael is passionate about budgeting and that he and Jana have found what works for them.  It was truly delightful speaking with him.  He even turned the interview around and started asking me questions about budgeting, about my knowledge of Dave Ramsey’s plan, etc.  Michael and Jana, we wish you much continued financial success and happiness!

Marcia on vacation

I recently had the opportunity to speak with Marcia (from Salt Lake City, Utah).  After using Mvelopes for a short time, Marcia decided to sign up for the “complete” coaching package.  I asked Marcia questions about her experience–with coaching and with Mvelopes, in general–and her answers follow:

Q:  How many coaching Sessions did you complete?

A:  Ten.

Q:  What coaching session(s) did you find most valuable?

A:  That’s hard to answer for me because every session would bring up different questions.  Lori, my coach, was extremely patient and helpful.  She was really awesome.  When you’re learning to use the program by yourself, there are so many questions that come up and it was so nice to touch base with someone who could help answer those questions.  So, all of the session were valuable.  However, the early ones were probably the most valuable, because I was being taught the basics.  Towards the end, I was able to personalize it a little bit better.  It was very helpful to have someone there to help me figure out how all of it was going to work in my life.

Q:  How has the coaching program helped you take control of your money?

A:  What it has done for me is that I’m no longer just thinking in terms of how much money I have in the bank.  I have a plan now.  Rather than just worry about my bank account balance, I’m considering how my funds are allocated and now I concerned with whether or not I’m on target.  That translates for me in a different way than it used to.  It’s no longer just a matter of knowing how much money I have, but I want to know if I’m spending it differently than I’ve allocated it and whether or not I’m following my plan.  I’ve done budgets before and they didn’t work for me.  With Mvelopes, however, you can’t hide or fool yourself.

Q:  How has the coaching program helped you reduce consumer debt?

A:  Consumer debt isn’t my issue.  I did have an emergency home repair fund (it was a long-term debt), but I generally pay off my credit cards each month.  I also now have a better plan for emergencies.

Q:  How has the coaching program helped you reduce your stress related to money?

A:  It has helped me stay focused.  Instead of spending frivolously, I now immediately ask myself where I’m going to take the funds from and, if I haven’t budgeted for a specific purchase, I have to figure that out.  I have to problem-solve.  It’s not just a vague stress anymore.  I now just have to address it.  I also think about savings differently.  I make better, wiser choices with my money.  All of that has really helped relieve money-related stress.

Q:  How much has your budgeting and money management knowledge increased since you started the coaching program?

A:  My knowledge has increased a lot.  I truly could have stayed in coaching a long time.  I really enjoyed it and I learned a great deal.  Actually, I’ve never had serious money problems, for which I’m grateful.  The coaching program helped me look at the basic things, along with the details, of budgeting.  I like the charts that show me what might happen if I add an additional $50 to a loan.  You can immediately become inspired to find extra funds!  You can find out, right there, what advantages there are to paying ahead.  It’s not just that you’re paying $50 more-it’s affecting the cycle differently than just adding $50.  It’s really quite remarkable.  It’s such a big incentive.  What happens now is that I think, okay, so if I have this unexpected cost, where can I cut back, and I’m much more specific with where I can look.  I have choices.  I have options.  You get really specific.  Instead of overspending and feeling you just have to cut back somewhere and worrying about it, you can have a plan.

Q:  How much has the knowledge of the envelope method helped you manage your money?

A:  The envelope method is the brilliant part of the program.  The coaching is awesome, but the program made it workable for me.  If it were just the advice without the system, it wouldn’t have the impact.

Q:  How have your attitudes about budgeting and money management changed since you started the coaching program?

A:  I always looked at budgeting in a negative way before and now I find it to be interesting.  Now instead of feeling like it’s a punishment, I get excited to find ways to save money or pay things off earlier.  I feel more motivated and confident that I can be successful and actually get on top of it.  Mvelopes is my money conscience.

Q:  How has coaching helped you gain a clear overall picture of your spending?

A:  When I open up the program, it’s just an eyeball glance and I can see exactly what’s going on.  The good reminder is those unassigned transactions.  When you have to sit down one by one and assign them, that’s the big thing.  I had already paid for items and I had to assign them.  At first, I didn’t understand that, but it expanded my idea.  I could check my bank account every day and see what my balance is, but that wouldn’t do much to help me manage my money.

Q:  How has your Mvelopes usage changed since starting the coaching program?

A:  I’m doing better with figuring out how to think about it.  It takes a little while to understand how the system works.  It took me awhile to see how Mvelopes links with what’s going on in my bank account.  I no longer worry that if I do something in Mvelopes that it will affect my bank account.  Now Mvelopes drives my bank account.  I haven’t set up bill pay yet and I’m excited to switch things to that system.  And mobile Mvelopes is something that I’m excited about, too.

Q:  What advice would you give to new Money for Life Coaching participants?

A:  First of all,  I think that people should consider that the cost of the coaching-at first that was a little daunting for me–but the benefits are huge.  Listen carefully to your coach and trust that this will work.  Go into it with a positive attitude.  Practice with it.  Play around with it.  The books are also good resources.  But “be there” with the coach.

Q:  How long have you been using Mvelopes?

A:  I started using it at the end of 2009.

Q:  How has Mvelopes assisted you in living within your income?

A:  That’s not been a big problem for me, but what I’m doing now is, instead of having to dip into savings, I no longer have to go beyond my salary.  I have some consulting income, too, and I used to be somewhat dependent on it.  I look at things differently now.

Q:  How much consumer debt have you been able to eliminate during that time?

A: I just don’t have it, so that doesn’t apply to me.

Q:  How much have you been able to save while using Mvelopes?

A: I have probably added $1,000 to one of my savings account.

Q:  How much has your average checking account balance increased while using Mvelopes?

A: I have at least $500 more in my account than I used to have.

Q:  What financial goals have you achieved while using Mvelopes?

A: One goal is that I’m much more careful about discretionary spending.  I know that sounds a little trite, but for me it’s true.  I set that goal and I’ve met it.

Q:  What are your next financial goals?

A: I would say, immediately, is to finish paying off my car and a home repair.  After that, I plan to pay off my mortgage.

Q:  What advice would you give to new Mvelopes users?

A: Just think about learning it a little at a time and be sure to stay with it.  It’s very different.  Most budgets give you an initial report and then it’s static.  Stay with it and trust the information as well as you would trust your bank account.

At the completion of my interview, I asked Marcia if she had any other comments to share.  I appreciated her sharing these final words:

Intellectually, we’ve heard it all before.  We know the ideas-common knowledge about managing money–but we don’t do it.  And there will be setbacks, but I’m better equipped to deal with things.  I can figure it out.

I’m grateful I made the decision and I’m grateful Lori was my coach.  If I hadn’t had coaching, it would be unlikely that I would use the program the way it’s intended to be used.  For some of us, we just need the coaching part.  That was really instrumental for me.

Marcia,  thank you so much for sharing your experiences and insight with us.   We wish you continued financial success and happiness.

Peter and his beautiful family

I recently had the privilege of interviewing Peter–a delightful Mvelopes member who lives in California.  Peter and I discussed his recent experience with our coaching program.  That discussion follows:

Q:  How many coaching Sessions did you complete?

A:  A total of five.

Q:  What coaching session(s) did you find most valuable?

A:  Definitely the sessions that dealt with review and instructions on how to use, apply, and navigate through the Mvelopes program.  Reviewing the rules, theory and discipline of budgeting, while using Mvelopes, was also very helpful.

Q:  How has the coaching program helped you take control of your money?

A:  It helped me to realize that there are some lessons and disciplines I have to apply in order to be successful.  In addition, I was able to realize the areas I was making mistakes and I learned effective ways to correct the mistakes and prevent them in the future.

Q:  How has the coaching program helped you reduce consumer debt?

A:  One of the things Lori (my coach) repeatedly told me is, “Peter, you have to live within your budget.”  As simple as that sounds, it takes a lot to learn that concept and understand what it really means.  When I started living within my budget, then good things started to happen for me.  I stopped spending money that was not budgeted–money I didn’t have.  I know it sounds so simple, but it was somewhat revolutionary for me.  If I have to take money from an envelope to cover a purchase that hasn’t been budgeted, then that really makes me stop and think.  Now my motto is–if it’s not funded, I don’t spend it!

Q:  How has the coaching program helped you reduce your stress related to money?

A:  My stress has been reduced a number of different ways.  The stress between me and my wife has diminished to the point where it’s about 5 percent of what it used to be.  As my wife and I continue to understand the program, that stress is reducing even more.  It’s so nice now because my wife and I can both easily go to Mvelopes, look at it, and we don’t even need to have a discussion about it.  Even though I’m managing the Mvelopes program right now, my wife also has access to it and can see everything herself.  In fact, we were working on our budget just yesterday and we could both clearly see where the money is going.  There’s no more guessing and no more confusion.  Stress can be caused by confusion and unanswered questions.  We have eliminated the confusion and we know exactly where our money is going now, so we have eliminated a lot of stress.

Q:  How much has your budgeting and money management knowledge increased since you started the coaching program?

A:  Actually, I had a lot of budgeting knowledge prior to participating in the coaching program.  I read books and I had a good understanding of budgeting principles.  In the past, I’d even utilized the “traditional” envelope budgeting system–where you physically put cash into paper envelopes.  Mvelopes took that knowledge and put it in a system that made it useful.  It helped me to realize, in a different way, that simple rules can truly become profound.  It wasn’t so much that my knowledge increased, but it was facilitating that knowledge that was so powerful.  Budgeting is no longer burdensome.  It’s actually simple and easy!

Q:  How much has the knowledge of the envelope method helped you manage your money?

A:  As I mentioned, my wife and I had previously used the traditional envelope method of budgeting, with limited success.  In fact, it was really lacking.  At that time, I wanted my wife to be responsible for our budget and I wanted as little involvement as possible.  I wanted my wife to just make sure all the bills were paid on time and to make sure we still had enough money to cover everything else!  Obviously, that approach caused a lot of problems.  It was just by chance that I found the Mvelopes software on the Internet.  I went from not being involved with our budget at all to now being 100 percent involved–and my wife is now supporting me.  That has been a big change for us!

Q:  How have your attitudes about budgeting and money management changed since you started the coaching program?

A:  I guess my whole set of concerns has changed.  I’m no longer focused on managing the money and knowing where it’s going.  Instead, I now think more in terms of maximizing the use of my money, really making progress, and getting ahead financially.  Before, I was just trying to stay afloat and not go under.  Now I’m no longer worried about going under.  Instead, my desire is to make headway–I’m focused on getting ahead.

Q:  How has coaching helped you gain a clear overall picture of your spending?

A:  Prior to using Mvelopes and completing the coaching training, my wife and I really didn’t realize where our money was going.  We’d make it, spend it, and wonder where it went.  Those days are now gone.  Actually, we really didn’t realize how dependent we were on credit cards before–we were utilizing credit cards too much.  For the past 5-10 years, we were continually overspending and now that has changed.  We’re now doing a good job of controlling our spending.

Q:  How has your Mvelopes usage changed since starting the coaching program?

A:  Prior to coaching, I wasn’t as comfortable with using it as I am now.  I had a lot of questions and there were things I just wasn’t sure about.  After coaching, it improved a lot more.  It’s kind of hard to learn everything that’s available.  The coaching experience really helped me to understand it.  For awhile, I was using it every day, now I’m checking every other day, and it takes just minutes to keep up on everything.

Q:  What advice would you give to new Money for Life Coaching participants?

A:  It’s kind of hard to know what you need to know.  Try to utilize the program as much as you can before you sign up for coaching.  Write down questions and set aside time to get your questions answered.  There’s no way to know what you need to know until you start using the program, so use it and write down questions.

After Peter and I discussed his coaching experience, I then asked him some general questions about his Mvelopes experience.  That discussion follows:

Q:  How long have you been using Mvelopes?

A:  I started using the program in December 2009 and used it a little at a time.  I purchased the book and was reading the book and using the program.  Now I’m solely using the Mvelopes program (without the assistance of the book).

Q:  How has Mvelopes assisted you in living within your income?

A:  It has facilitated making it easier for me–and my wife–to monitor our finances.  We don’t have surprises anymore.  There are no more unanswered questions, such as:  Why did you spend this?  What was this purchase for?  Now those purchases pop up in a day or two and we can drag and drop them into the appropriate envelopes.  Also, if I happen to use my personal funds to buy something for the house, I want it taken out of the “household expenses” envelope.  We’re tracking so much better.

Q:  How much consumer debt have you been able to eliminate during that time?

A: I wouldn’t say that I’ve been able to reduce a significant amount of debt right now–perhaps a couple thousand dollars.  However, I am working on paying off a loan in the near future.  But what it has really helped me do is to not incur more debt, which has been great.

Q:  How much have you been able to save while using Mvelopes?

A: Quite a bit.  We used to live from paycheck to paycheck.  We have now saved approximately $8,000!

Q:  How much has your average checking account balance increased while using Mvelopes?

A: We went from having a few hundred dollars in our checking account to now maintaining an average balance of $7,000 to $10,000.

Q:  What financial goals have you achieved while using Mvelopes?

A: One goal we’ve achieved has definitely been to monitor our finances.  The second one is living with and maintaining a budget and actually living within that budget.  Those are huge goals.  We now have a plan in place to eliminate debt and we’re actually following the plan.

Q:  What are your next financial goals?

A: As mentioned, we plan to pay off a loan in the near future.  We want to fund a vacation and have the money set aside before we spend it.  We’re going to eliminate consumer debt.  We want to put three months of expenses aside.  Those are our immediate goals.

Q:  If married, how has Mvelopes helped you better collaborate with your spouse?

A: It has reduced the amount of frustration and stress that we’ve had to deal with in the past with regard to our finances.

Q:  What advice would you give to new Mvelopes users?

A: Be patient.  Read the material.  Use the program and don’t try to do everything overnight.  It could take a little while to input information and integrate it into your life.  Just be patient and it’ll start coming around and will make sense.  The more you and your spouse can agree on things, the easier it will become.

At the conclusion of our interview, I asked Peter if he had any final comments or questions.  Here’s what he had to say:

Finances are a huge and vital part of people’s lives.  People are simply not taught about finances.  It’s more than just paying your bills on time.  Young people starting out really need to educate themselves on finances and how to control them and how to integrate them into their lives.  There are people who are really good with money.  However, there’s also the reverse side where people are either living in bondage by being deep in debt or they’re so frugal that they’re afraid to spend.  Learning to manage finances will have a positive affect on either of those two extremes.  It will create the freedom to use money the way it’s supposed to be used instead of allowing the money to control you.  You have to find your way–and I’ve found it!

Peter, thank you so much for taking time to share your experience with us.  It was a privilege for me to be able to share your story!