2012 – What’s New This Year For You???

Ah, the beginning of a new year.  It’s the time when so many of us have such “HOPE” for the new year.  It’s a time where we can start a new.  It’s a time when we can learn from our past and make changes.  Just look around,  seen any weight loss commercials lately?  Have you seen all the workout gear and supplements in between all the Valentine’s Day chocolates.  Kind of a contradiction in shelf space – right?  Yes, it is indeed the time for change. 

So what are you planning on changing this year – financially?  

I believe that I can speak for myself and for my family; in that we too have aspirations to make a change this year.  However, if my memory is working correctly; I believe my family and I went through this very same exercise last year.  Somehow, we did not end up financially where we were wanting to go at the end of 2011.  We thought we had a great plan of attack, and the knowhow to implement change.  Heck, I even went to the extent of creating a brand new Financial Seminar in 2011 speaking to this subject matter.  So I had all the correct plans and answers staring us in the face.  I even taught three seminars on the subject matter in early 2011.  So, why is it that at the end of 2011 my family and I felt “let down” on our financial performance in 2011.  Why did many of you out there feel this same way?  

In the end, you either have success, or failure.  Some of you may be saying, “Hey, is there not somewhere in between that you can be satisfied?”  My answer to that would be, “NO!!!”  You either accomplished your financial goals or you did not.  Seems a little harsh, but I am just being honest with myself and with you.  Ask yourself this question, “Do you simply want to be satisfied with your financial livelihood?”  If your answer is “yes” then I can’t argue with you.  Your mind is made up to just settle.  However, I just don’t want to “settle” for things in this life.  I imagine many of you feel the same.  If your answer was “no”, then you left things on the table so to speak.  It didn’t feel good - did it?

So now it’s down to the million dollar question, how do I change this year?  How is this year going to be any different from the year’s past? 

You got to take a long hard look at last year – financially.  You have to identify what lead you to failure.  Yes, you failed if you did not reach your goals.  Sounds harsh, but again it is what it is…if that was even a sentence.  Hopefully, you get what I am trying to say.  We are destined to repeat the past if we simply keep doing the same thing we have always done  or insane for thinking things will change.  (I think there are two quotes in there somewhere from very smart and famous people…sounds good though so I will leave it.)      

Here is what my family and I did last year.  I can only share with you of our account, but I imagine our story is the same as many of yours.  We tried to fool ourselves and lived in denial.  That being said, we did not have a terrible year financially, we just did not accomplish our goals.  We had a wonderful time spending money on all sorts of stuff.  We spent money on things we needed, things we wanted, things we didn’t need or want.  Somehow the stuff just followed us home or came in the mail – mysteriously.  We did manage to pay down our debt load – some.  Heck, we even gave some of our money away.  Which is an important thing to my family.  Because of all of those reasons and not “living” our plan; my family did not achieve our financial goals for 2011.  In the end, it wasn’t a bad year.  However, financially we had a bad taste in our mouth.  We could have done so much better.  We decided as a family to make a change and hold each other accountable.  We are “all” involved in the process now.

So what is different and how is it going?

We already had a good plan in place.  All it needed was to be ”tweaked” for 2012.  We redefined some goals and made them more realistic and attainable for our lifestyle.  We also put into place simple ways to account for our money and to keep track of what’s going on with our money – cash flow.  Our main change this year as opposed to last year is that we are all on the same page, committed to reach our goals, and we are all accountable to one another.  Even though mommy and daddy make the money, our daughter (age 10) has some say-so on things.  (It’s amazing how kids can help keep you “honest”. )  We got together as a family - made our goals and made some hard decisions – as a family.  We are already communicating better than we have ever done before.  We are all excited and engaged in the process.  It is not a chore any longer “talking” about our finances.  It is working for us, not to say we don’t have our challenges, we are just a regular family trying to make it happen.  

I believe the most important element from this experience is that we have actually executed our plan.  Our plan has several financial goals, but we have already taken the most basic step.  One that I have taught, spoke, and preached for some time now – about six years.  We can look at ourselves in the mirror and say that we are paying ourselves – first.   There is no more,”if we got some extra cash left over let’s stick it in savings”.  We have already made the first deposit this year.  And that’s a great feeling…my family values that “feeling”.

Everyone out there is at a different stage in their financial journey.  Figure out where you are at, where you have been, and where you want to go in the future.  Then make a plan and start to “live it”.  Will it always be easy – heck no.  There will be ups and downs in your financial life.  Just stay committed, hold yourself or each other accountable, and start thriving.  Don’t settle for just surviving another year, make 2012 your best financial year yet!!! 

- Phillip

No One Is Perfect – Holiday Shopping

I came across this wonderful piece on Holiday shopping and thought I would share.  Hope you enjoy it as much as I did…now I don’t feel so bad.  

Experts Make the Same Holiday Shopping Mistakes that You Do

Holiday shopping is full of “coulda, shoulda, woulda’s”

Published on December 16, 2011 by Kit Yarrow, Ph.D. in The Why Behind the Buy

Holiday shopping is full of “coulda, shoulda, woulda’s.” As in, “I could have gotten if for less if I’d waited,” “I should have bought it last week, now it’s sold out,” or “I would have just gotten her a gift card if I’d known it was going to cost this much to mail it.” It seems like you have to be a retail expert to get through the holiday shopping season without a few slip-ups and regrets.

It turns out that even the experts get tripped up by the same shopping mistakes as everyone else: overbuying, procrastination, impulsive purchasing and falling prey to promotions. It might be a comfort to know that even though retail pros know better – and all the in’s-and-out’s – the rush of the season can get the best of anyone.

Retail analyst Jennifer Black, President of Jennifer Black and Associates, spends a lot of time in malls – after all it’s her job to get a fix on who’s buying what. You might think she’d be immune to the excitement of big promotions, but instead she says, “I get caught up in the fever like everyone else.” On Black Friday she found herself at Victoria’s Secret, “buying things I didn’t need just to get the gift with purchase.”

Jayne O’Donnell, USA Today’s retail reporter, knows all the tricks of the trade and she’s a top-notch bargain shopper. Like over ⅓ of Americans she purchases holiday gifts months before Christmas. And like many others, she sometimes forgets what she’s purchased. O’Donnell confessed that this year was no exception, “I did not keep good track of what we’d bought (daughter) Cate and so over-purchased.”

Retail consultant, Doug Stephens, otherwise known as The Retail Prophet, says that he shops, “irrationally like everyone else.” He also laments that although he knows all about new digital shopping tools, “I don’t leverage technology to its full potential when I’m making holiday gift decisions. I feel in too much of a hurry.”

Just as you’d expect from the author of “Generation Earn” and the AlphaConsumer blog for U.S.News & World Report, Senior Editor Kimberly Palmer attacks holiday shopping by planning ahead, making a list and starting her shopping early. But she confesses, “I usually end up splurging on a few last minute in-store purchases that are entirely unnecessary.” Palmer finds in-store demonstrations and tasty samples particularly alluring and recently left Williams Sonoma with a pricey bottle of olive oil that she described as, “not exactly a necessary purchase.”

Like many, David Rogers, author of “The Network is Your Customer: 5 Strategies to Thrive in the Digital Age,” is a holiday shopping procrastinator. Rogers says his holiday shopping takes place in three stages, “1) Denial, 2) Avoidance, 3) Amazon.”

A lot of people will get to the end of the holiday shopping season wondering if they could have done better: spent less, gotten better deals, found better gifts or shopped more efficiently. Keep in mind that even top retail experts aren’t perfect either.

Merry Christmas or Happy Holidays – Phillip

Secret Santas

I am sure that most of you have heard about Secret Santas…either from encounters at work or with friends.   The concept has been around for a while, folks giving gifts to someone and remaining anonymous.   If you listen to the news or read your news, you may have heard about a popular growing trend of Secret Santas.   This new trend really takes the secret santa concept to a whole new level.   Checkout this article from Time to see what’s going on at some popular retailers.

I hope you and your family have a very Merry Christmas and wonderful start to the New Year!!!

- Phillip

 

The Season is In Full Force – Watch Out

I wanted to pass along some guidance this Holiday Season to be aware of the “bad guys”.  It looks like they are out in full force this year.  They are taking advantage of every means possible to get at your wallet.  One such way is using technology against you.

In order to be prepared to stop the scammers before they strike, CBS “Early Show” reveals the top four scams circling the ‘net this year:

1. Smartphone device malware. With a growing use of QR codes, thieves have found ways to leverage the code to retrieve your personal information.  According to the National Retail Federation (NRF), more than 50% of U.S. consumers who own a smartphone will be using it for shopping this holiday season. Malware has been developed to specifically target smartphones, with the Android most vulnerable, using QR (quick response) codes.According to Jennifer Jolly, tech lifestyle editor at Tecca.com, consumers should be on alert for suspicious codes. Jolly advises consumers to treat their smartphone the same way they treat their computer. “Most people don’t think twice about getting (protection) on their computer these days,” she says.  “Get it on your smart phone or tablet as well. Also, only download apps from official app stores, from iTunes or from the Android app store. Download an app to preview the QR code first. I use an app called RedLaser and that will at least let you check out what that URL is, what that web address is.  If it’s .exe, don’t go to it.”
    

2. Fake social media offers.  Your Twitter and Facebook account is vulnerable to these faulty targeted promotional campaigns. The scammer taps into your Twitter or Facebook account and posts a message to your friends that appears to be from you. Once your friend clicks on the link “you” sent to them, the friend is asked to “share” the link by clicking “like.” The link is instantly posted on the friend’s wall containing the scam message. Your friend is then surveyed for some personal information (so they can receive the fake offer) and that’s when the scammer strikes.  While some actual retailers may be offering social media promotions, how do you discern between the real and fake offers?Jolly says that a real promotion won’t ask for your personal information, it will use a direct link to the actual company page and suggest that instead of linking from the social media site, consumers should just go directly to the retailer’s website.   She recalls a big social media scam under the guise of the Cheesecake Factory.

   “This one is no fault of the stores or the Cheesecake Factory,” she said. “One of the red flags with that one is saying, download this app. [Also]. it’s against Facebook policy to make you like something to get something, that tit for tat. ‘Share this with your friends and we will give you this in return.’”

   “If it looks too good to be true, it is,” she added. “You’re not going to win an iPad right now. You’re not going to win two free plane tickets. Don’t share your private information, no matter what. Use the direct link to the company site. So if it takes you off to this other weird site, don’t go to the dark alleys of the Internet.”

3. Fake shipping/credit union alerts.  If you receive an email from your credit union indicating a problem or information request, call immediately.  The scam could reference an issue with direct deposit, electronic funds transfer or an urgent message asking for you to update your information or provide your PIN.  Many credit unions will tell you that you should never provide your personal information online and to ignore and always call first.Another shipping scam is a fake message from UPS saying that there is a problem with your bill or account.  Like with your credit union, Jolly recommends that you should not respond to the email but instead call UPS or shipping provider.

4. Hot holiday gift scams. That “hard to resist” online coupon could be leaking your personal information to scammers.  Thieves know which toys, electronics and items are hot this year so they target those items using counterfeit coupons with the goal of luring the consumer to a fake website to purchase the item.Jolly says that a common scam is to get the consumer to the fake site to register to win a free iPad.  She says that the consumer clicks on a phishing site, which may result in email spam and possibly identity theft.  She notes which gifts are highly targeted this year:

    Apple iPhone 4S

    “Harry Potter and the Deathly Hallows, Part 2″ DVD

    “Angry Birds: Knock on Wood Game”

    Steve Jobs biography

    Fijit Friends Willa Interactive Toy

    Michael Buble “Christmas” album

    Apple iPad 2

    Kindle Fire tablet

    Silver “Heart” pendants

    “Call of Duty: Modern Warfare 3″

 Be careful out there!!!

- Phillip

It’s Friday – Friday – Gotta Get Down on Friday

Does anyone out there have that song running through their head this morning?  I have a nine-year old daughter and that song is a staple at our house – unfortunately.  Today is Friday, November 25, 2011 and that can only mean one thing.  Yes, it’s that day after Thanksgiving and it’s time for saving money – right?  It’s the day were lots of consumers go out and capture those great deals.  In fact, some have camped out for those wonderful opportunities to save some money.  I think those folks have a false sense of what saving money is all about.  In fact, I think most people have a false sense of what saving money is all about.  (Including me at times…)

Pull up a chair and let’s chat…or just keep sitting there reading.

Scenario…you hear that at 4:00AM on the day after Thanksgiving there is going to be a sale.  Yes, 4:00AM and that is late by some stores opening times.  In this “sale”, you hear that you will be able to “save” money on that television set you have had your eye on.  I mean come on…you have a 42″ TV in the living room, but Super Duper Buy Store has a 51″ Plasma TV on sale for $150.00 off normal price at 4:00AM.  You think to yourself, “I can save $150.00 off the price of that TV…I’m there.”  So you pack up the tent and sleeping bag and truck off to the wild blue yonder of the side of the Super Duper Buy store.  After hours of waiting, or days in some cases, you are the proud new owner of a bouncing baby 51″ Plasma TV.  You have a smile of satisfaction that you are only a hand full of folks around that saved some money. 

I have a question for the masses…did that person actually save any money yet? 

I imagine some would say, duh Phillip…he saved $150.00 at Super Duper Buy store on an awesome 51″ Plasma TV.  Then I say, “Oh really???”  Then I drop the bomb of…”Let me see where the guy/gal deposited $150.00 into a savings account.”  Then some would say, “What???”  I repeat my self,  just to make sure we were speaking the same language. 

Now I know my readers are much more savvy and get the point I am trying to make.  But I have another question for you though.  If you get the point, then why do you use the same logic over and over again trying to fool yourself.  You know what I am talking about.  How often do you go to buy something…end up paying less for it than what you expected…then you walk away from the transaction saying…”I saved some money.”???

You actually just paid less for something…that is all you have done.  No savings happens until you take that difference in what you expected to pay and the actual lower cost for the item and put that difference into a savings account.  Or put that money into some kind of mechanism for saving money.   

Yes, another lesson is here in this example as well.  Remember that poor little 42″ TV you currently have in the living room.  Enough said…

Please excuse me…I need to run now…the door buster “sales” at Super Duper Buy are almost over.  Gotta go save me some money…It’s Friday – Friday – Gotta Get Down on Friday!!!

- Phillip