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

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

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

- Phillip

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

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

AFBF’s 26th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $49.20, a $5.73 price increase from last year’s average of $43.47.

“The cost of this year’s meal remains a bargain, at just under $5 per person,” said AFBF President Bob Stallman, a rice and cattle producer from Texas. “The quality and variety of food produced for our dinner tables on America’s diverse farms and ranches sets us apart from our contemporaries around the world.  It is an honor for our farm and ranch families to produce the food from our nation’s land for family Thanksgiving celebrations.”

The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10. There is also plenty for leftovers.

The big ticket item – a 16-pound turkey – came in at $21.57 this year. That was roughly $1.35 per pound, an increase of about 25 cents per pound, or a total of $3.91 per whole turkey, compared to 2010.  The whole bird was the biggest contributor to the final total, showing the largest price increase compared to last year.

“Turkey prices are higher this year primarily due to strong consumer demand both here in the U.S. and globally,” said John Anderson, an AFBF senior economist.

In addition, “the era of grocers holding the line on retail food cost increases is basically over,” Anderson explained. “Retailers are being more aggressive about passing on higher costs for shipping, processing and storing food to consumers, although turkeys may still be featured in special sales and promotions close to Thanksgiving.

“Although we’ll pay a bit more this year, on a per-person basis, our traditional Thanksgiving feast remains a better value than most fast-food value meals, plus it’s a wholesome, home-cooked meal,” Anderson said.

A gallon of whole milk increased in price by 42 cents per gallon, to $3.66. Other items that showed a price increase from last year were: a 30-ounce can of pumpkin pie mix, $3.03, up 41 cents; two nine-inch pie shells, $2.52, up 6 cents; a ½ pint of whipping cream, $1.96, up 26 cents; one pound of green peas, $1.68, up 24 cents; a 14-ounce package of cubed bread stuffing, $2.88, up 24 cents; a dozen brown-n-serve rolls, $2.30, up 18 cents; three pounds of sweet potatoes, $3.26, up 7 cents; and fresh cranberries, $2.48, up 7 cents.

A one-pound relish tray of carrots and celery declined by a penny to 76 cents, while a combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (onions, eggs, sugar, flour, evaporated milk and butter) decreased in price, to $3.10.

“Demand for U.S. dairy products has been strong throughout the year and continues to influence retail prices, as demand for higher-quality food products grows globally,” Anderson said.
 
He noted that despite retail price increases during the last year or so, American consumers have enjoyed relatively stable food costs over the years, particularly when adjusted for inflation.

The 13 percent increase in the national average cost reported this year by Farm Bureau for a classic Thanksgiving dinner is somewhat higher but still tracks closely with the organization’s 2011 quarterly marketbasket food surveys and the federal government’s Consumer Price Index for food (available online at http://data.bls.gov/) .

Farm Bureau volunteer shoppers are asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals, such as spending $50 and receiving a free turkey. Shoppers with an eye for bargains in all areas of the country should be able to purchase individual menu items at prices comparable to the Farm Bureau survey averages. Another option for busy families without a lot of time to cook is ready-to-eat Thanksgiving meals for up to 10 people, with all the trimmings, which are available at many supermarkets and take-out restaurants for around $50 to $75.

The AFBF survey was first conducted in 1986. While Farm Bureau does not make any scientific claims about the data, it is an informal gauge of price trends around the nation.

A total of 141 volunteer shoppers from 35 states participated in this year’s survey. Farm Bureau’s survey menu has remained unchanged since 1986 to allow for consistent price comparisons.

- Contents of my belly on Thursday afternoon…while watching the Cowboys beat Miami. (Phillip)

To read more statistics on Bank Transfer Day…checkout this article from Time.

Again, why did this all happen.  Perhaps consumers were just feed-up with fees, or maybe this was just another social media frenzy.  No matter what label you place on this change, it brought a lot of attention to the Credit Union Difference.  In the end, I believe the consumer will benefit from this change. 

People Helping People - Right???

- Phillip

So what is this day all about – you might say?

It is all about one consumer, Kristen Christian, becoming sick and tired of her BIG BANK taking fee after fee out of her account.  She decided to take action and move her banking accounts from a large financial institution and transfer them to a credit union.  One thing lead to another…and a Facebook Page…then bam…a movement was born.  As of right now, about 50,000+ people have signed-on to the movement and it’s going viral.  Just Google – “Bank Transfer Day”

By that date, all participants in this movement will have closed their big retail bank accounts and put their money in a local non-profit credit union or local or regional community bank.  “If the 99% removes our funds from the major banking institutions to non-profit credit unions on or by this date,” says the Facebook event page, “we will send a clear message to the 1% that conscious consumers won’t support companies with unethical business practices.”

Resource One Credit Union is ready to serve your financial needs!!!

- Phillip

About 43 percent said they’d switch to paying with cash or credit cards if their bank implemented charges, while 13 percent said they’d pay the fee if it was “reasonable,” according to the survey released yesterday by the Fort Washington, Pennsylvania-based consulting and market-strategy firm.

“There’s a lot of consumer discontent within financial services and I think there’s a lot of frustration,” said Rob Kaplan-Sherman, president of the services division of the Research Intelligence Group, a unit of Montreal-based Leger Marketing. “People express that they’re going to change their behavior, and that includes changing how and where they bank.”

The survey comes as the largest banks, including Bank of America Corp. (BAC), are testing or planning to start charging fees of as much as $5 a month for consumers who have a debit card or use one for purchases.

“Less-affluent populations often feel like they have fewer options at their disposal,” Kaplan-Sherman said.

Banks should drop their plans to add debit fees and consumers should consider changing banks if they don’t, the Consumers Unionsaid in a press release yesterday. – Bloomberg

At Resource One Credit Union – We Still have “FREE CHECKING”!!!

-Phillip

These findings come from the third wave of a landmark study, Arizona Pathways for Life Success in University Students (APLUS), funded by the National Endowment for Financial Education.  In this round, researchers again surveyed more than 1,500 students and drop-outs four years after they entered the University of Arizona in the fall of 2007.  The findings show young adults also begin to display three distinct financial identities that reflect varying degrees of parental influence and autonomy: Pathfinders, Followers and Drifters. 

The researchers link the most positive financial attitudes and behaviors to “Pathfinders,” those who actively choose their own financial management style.  Also, parents, more than anything, exert the most influence over their children when it comes to developing positive financial attitudes and behaviors—1.5 times more than continuing financial education and more than twice as much as what children hear from their friends.  “We have learned with each successive wave of this study that there are many important influences on young adults,” says Ted Beck, president and CEO of NEFE.  “These influences work together to form their financial identities.  It is especially notable that the researchers are pinpointing cumulative financial education as a key positive influence.  It always made common sense to believe that, but now we have proof.”  APLUS researchers studied how individual financial styles develop in the cohort, including the degree to which young adults relied on parents or themselves to guide their financial decisions, and how financial style affects financial capability. 

They discovered three clusters of emerging financial styles among the students: Pathfinders (31 percent): The most promising group of young adults are those most engaged in defining their financial style and see themselves as having actively chosen their approach to financial management.  Of the three groups, Pathfinders exhibit more positive financial attitudes, feel much better about their efficacy and control and report the most positive financial behaviors.  Followers (39 percent): The largest group of young adults tends to follow their parents’ guidance and imitate their parents’ financial management style.  Although they are exploring finances on their own, they also are the most unconcerned about the process of doing so.  “This is not necessarily a negative financial style when parents are good at financial management,” says Joyce Serido, an assistant research professor and co-principal investigator of the study.  Drifters (30 percent): These young adults are least accepting of their parents’ financial management style, but they have not yet established any approach of their own.  They are not necessarily unconcerned about personal finance, but their financial behaviors tend to be worse than their peers.  However, financial knowledge and awareness overall are solidly average.  Researchers believe that some young adults will retain their financial identity, while others will continue to evolve and change places as they encounter new opportunities and unexpected financial demands on the path to financial self-sufficiency.

 Although parents continue to be the most important factor in building financial capability in children, the nature of their influence changes over time.  Parental modeling declines slightly while children are in college—perhaps because students spend less time at home, or parents are stepping back to let their young adult children take more responsibility for their own finances.  Meanwhile, the reported influence of parental expectations for responsible financial behaviors, such as tracking expenses and sticking to a budget, increased 4 percent since their freshman year.

Source: The National Endowment for Financial Education