Oct. 12, 2006 - Evaluate Your Finances

My friend JLP at AllFinancialMatters has developed a great crash course to help you evaluate your financial situation.  I highly encourage you to take a few minutes to read his posts and then apply this material to your situation.  You don't need a Ph.D. in economics to do it.  JLP spells it all out clearly and it won't take much time for you to apply what you learn.  Go ahead and check it out by following each link to learn more.

• First, you will learn to create a net worth statement.  Net worth is simply what's leftover after adding up all your assets and subtracting all your debts.  It's important to know your net worth because that's how you measure you're financial progress from year to year.  A net worth statement provides a concise format for listing your assets and debts so you can analyze your financial situation.

• Second, you will create a cash flow statement.  This is a great tool for identifying how your income is spent.  Money comes in, money goes out.  You need to know where it comes from and where it goes so you can make wise financial choices in the future.

• Finally, you will learn to calculate various ratios using the data on your net worth and cash flow statements.  For example, have you ever wondered what your debt-to-income ratio is?  You should know because lenders use this measure to determine whether or not to lend you money.  JLP covers serveral other ratios to help you gain even more insights into your financial situation.

You don't have to be a financial genius to get ahead in life.  However, few people get ahead without understanding their financial situation.  JLP has provided an excellent resource to get you started on your financial self-education.

Sep. 12, 2006 - Personal Finance "How To" List

I've got to give my friend JLP at AllFinancialMatters credit for his ingenuity.  He sure knows how to come up with new ways to collect and present personal finance information for the public.

JLP is one of those rare individuals who is always looking for ways to serve others.  Sure, he makes a living from blogging but he's also one of the most unselfish bloggers out there.  He's living proof of the biblical wisdom found in Proverbs 11:25 that "The generous man will be prosperous and he who waters will himself be watered."

In this case, JLP has put together a single resource with links to various bloggers who've written "how to" posts about numerous personal finances topics -- from automobiles to vacations.  It's all here.

Check it out now and come back often.  He will be adding new information to this list all the time.

Thanks for your hard work JLP!

Jul. 14, 2006 - Cool Financial Tools

I recently came across some cool financial tools at FidelityLabs, a part of the Fidelity Investments empire best known for its mutual funds.

The first tool is called "Savings Rate Finder" and it is pretty slick.

By simply entering your zip code, the Savings Rate Finder will list the banks in your area that offer the highest interest rates on local savings accounts, money market funds, and certificates of deposit (3 months to 5 years; various investment amounts).  There is also an option to compare online savings accounts.  Results are displayed quickly in order from the highest interest rates to the lowest.

The second tool is called "Free Checking."

Again, by just entering your zip code, this tool will list the banks in your area that offer free checking accounts.  Of course, "free" can mean many different things, including the fact that you may still pay some fees.  (Go figure!  But that's banking for you.)  So this tool allows you to click on the specific account name to see all of the details about the minimum initial deposit amount, various fees, and other services offered (i.e., online banking, bill pay, debit/credit cards, etc.).  It also provides a phone number and web link for further information.

What I Like Best

Most of us just don't have the time, energy, or knowledge to shop around for the best interest rates or free checking accounts at various banks.  Tools like these put the power in consumers' hands with considerable convenience.  It sure beats sifting through the phone book, search engine results, bank websites, or making a bunch of phone calls. 

A Few Caveats

Keep in mind that these tools are experimental and are in "beta" testing.  They do have some quirks and bugs to work out.

My biggest complaint is data integrity.  I happen to know (because it's my business to know) that much of the data displayed in the Savings Rate Finder is at least 2 weeks old.  That also makes me question the accuracy of the Free Checking data.  Fidelity can do better and I hope they eventually take care of this issue.  For the time being, just be sure to follow up and check out the facts with each bank before you make any commitments.

One glaring hole is that there is no data on credit unions.  Many times credit unions offer the most competitive interest rates and free checking accounts.  Of course, anyone can open a bank account but credit union membership is usually restricted by some criteria.  That may be the reason why Fidelity left credit unions out of the picture.  Ideally, however, they should include credit union information.

Go ahead and give these tools a try.  You may make or save some money.  Leave a comment so others can benefit from what you've learned.

Jul. 12, 2005 - Just One Dollar More

Just think about all the people who come to Homeschoolblogger on any given day.  I'll bet this site receives visits from every continent (except the frozen one) and every state in this country.  We all come from various cultures, religions, backgrounds, and economic situations.  But there is one thing we share in common.

We all have money problems or worries!

Those who've got money want to protect it and make more.  Those who don't have money want to get it as soon as possible.  And then there's the vast majority in-between who want to be like the former while trying to avoid becoming like the latter.  No one seems to have enough money.  Even the government can't get enough and they get to print all they want! 

Does the name J. Paul Getty (1892-1976) ring a bell?

He was a wealthy oil tycoon and at one time was considered the world's richest man.  It was J. Paul Getty who said, "The meek shall inherit the earth, but not it's mineral rights."  Spoken like a true businessman.

The following exchange with a reporter is attributed to Mr. Getty.  (Note, it is also attributed to John D. Rockefeller and, in truth, may just be a legend.  But it's useful for illustration purposes and in Getty's case, seems to fit with his overall personality.)

Reporter: "How much money is enough?"

 

Getty:  "Just one dollar more."

Can you believe it?  Just one dollar more.  The richest man in the world and he wants more money!  Getty apparently meant what he said.  At his 16th-century Tudor estate in England, he had a pay phone installed for his guests to make outgoing phone calls.  Talk about cheap!

If you're like Mr. Getty (and I respectfully submit that we all are), then wouldn't you like to have a few more dollars?  Couldn't we all use a few more bucks?  Sure!

How many of us think financial stability or security is just another raise, promotion, or new job away?  Have you ever found yourself thinking, "If only I had $____, then everything would be ok."?  But it's never enough.

Just one dollar more.

But Paul paints a different picture in I Timothy 6:8-10.

“And if we have food and covering, with these we shall be content.  But those who want to get rich fall into temptation and a snare and many foolish and harmful desires that plunge men into ruin and destruction.  For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith, and pierced themselves with many a pang.”

By and large our problem isn’t a lack of money, it’s how to manage it and be good stewards.

Perhaps that's why toward the end of his life J. Paul Getty said:  "I hate to be a failure.  I hate and regret the failure of my marriages.  I would gladly give all my millions for just one lasting marital success."  His children didn't turn out so hot either.

Maybe God knows a few things about the pursuit of money that we don't.  Better listen.

Jun. 28, 2005 - Faith, Family, & Finances

Handling personal finances is one of the most critical skills in life.  Money is an issue we deal with every day.  Our financial decisions have enormous consequences on earth and in eternity.  Right choices can lead to blessings and peace of mind while wrong choices can cost us a great deal of money and bring much heartache. 

With so much at stake, you'd think we would invest more time and energy on our financial education and skills.

But let's face reality.  Most of us were not taught how to handle money when growing up.  We were not taught in school, at church, or by our parents.  What little training we did receive was probably not consistent and was mostly based on expediency or need, rather than biblical principles. 

Suddenly we found ourselves as young adults out in the real world with a checkbook in one hand, a credit card in the other, bills to pay, and incomes that never seemed to be quite enough.  Most of what we have learned has come through the "school of hard knocks" where the tuition is painfully expensive.  We've been playing catch up ever since.

Now we're expected to train our children how to handle money!

It's time to get ahead of the curve.

As a Christian, homeschooling father, and financial professional, I understand the spiritual and financial concerns of families trying to live out their convictions.  This blog will address these challenges by focusing on the following goals:

• Examine the fundamental principles of biblical financial stewardship from Scripture.
• Teach parents how to disciple their children in biblical financial stewardhip principles. 
• Simplify the complexities of personal financial planning.
• Educate the public about the numerous conflicts of interest and hidden fees prevalent in the financial services industry.
• Highlight current financial topics in the news and their impact on families.
• Provide practical solutions to financial issues and questions.
• Address the unique financial pressures and issues facing homeschool families.

I welcome comments and questions from readers about specific financial issues or concerns.  I look forward to hearing from you in the near future and hope you enjoy my blog.  Leave comments and let me know! 

You may e-mail me at:  stevebraun [at] libertyfinancialplanning [dot] com