As I had a chance to reflect on one of America’s great historic figures this weekend, I couldn’t help but think of you. Granted, what this man endured had nothing to do with personal finance, but it had everything to do with amazing self-sacrifice, determination, courage and hope. These are all things that are needed when trying to defy overwhelming odds in order to make big changes in your life.

On August 28, 1963 Martin Luther King Jr. delivered one of the most inspirational speeches ever, about a dream and a vision he had for America. That dream was inspired by something inside him that believed it was possible to change something very wrong with his country. His dream was brought on by some truly sad times of racism that I couldn’t possibly begin to understand.

What I do understand, however, is that he never gave up, even though his opposition must have been overwhelming! As he found himself jailed for his activism, he very easily could have given up, but at what cost to his dream? He could have just let his surroundings and his situation deter him from what he knew to be right. Instead of giving up though, when times were difficult, he marched on, thinking not of himself, but of those he was trying to help. He sacrificed so much for what he believed in, which in the end, cost him his life.

Martin Luther King Jr. may not have lived to see the result and impact of what he did so many years ago, but I have to believe that if he had to do it all over again—he would.

Perhaps some will say that my using Martin Luther King, Jr’s story to inspire financial freedom is quite a stretch. Maybe in content, but not in character, principle, or in action.

What I see, and how I relate the two, is very simple.

What you are experiencing today financially, may seem so overwhelming that you just can’t comprehend being able to overcome it. My assumption is that there were likely times when MLK must have thought he was fighting a losing battle, yet I have read nothing to imply that he ever thought of giving up.

“Faith is taking the first step even when you don’t see the whole staircase.” Martin Luther King, Jr

Change comes with lots of hard work and sacrifice. It is not something that just happens because you want it to. Change is not easy, but one thing is for sure, if you keep doing the same things with your money, you will keep getting the same results. You may struggle along your path to financial freedom, but that is precisely what will teach you the most, as well as strengthen you for what is to come. Be strong—do not let your struggles and perceived failures be the reason for your financial demise. We all have struggles, even those of us who have managed to turn our finances around. Financial success isn’t reliant upon the absence of problems, it is reliant upon how you handle those problems you face.

“Change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom.” Martin Luther King, Jr

Your solution, or the solution that society seems to look to first, are not necessarily your best options. It may seem as though they are at first glance, but using a debt consolidation company to manage and pay off your debt, teaches you nothing. It can also cost you more than just the fees they charge for the opportunity to do so. Most people end up right back where they started, because they didn’t learn what needed to be learned to keep from returning to the debt they eliminated. The easiest way is typically not the best way.

Bankruptcy seems like the right thing, because after all, you pretty much get to start all over. Just like with debt consolidation companies, you didn’t really solve the problem that caused the financial mess in the first place. You technically just avoided the problem all together and treated the symptom instead of the cause, which happens to be your behavior.

Think about what is at stake before you make each financial decision.

“Rarely do we find men who willingly engage in hard, solid thinking. There is an almost universal quest for easy answers and half-baked solutions. Nothing pains some people more than having to think.” Martin Luther King, Jr

Martin Luther King, Jr might have been fighting for the rights of blacks in America, but you should be using the same principles to free yourself from the bondage that enslaves you.

• You may not see the light at the end of the tunnel at first, but know that it is there!
• It may be difficult, and at times feel impossible, but know you can do it!
• It may be hard to believe in your ability to turn things around, but keep this in mind—you are your best solution!

You are the one that must step up to the plate. You are the one that must be strong and courageous! It is YOU that will make the difference!

I hope you’re able to take from this story the message of hope and hard work, determination and courage, and above all, the belief in your ability to make great things happen.

You don’t have to be in debt. You don’t have to live paycheck to paycheck. The choice is yours, and your dream is what you make it. If you follow your dream the way he followed his, chances are, your dream will become a reality.

What is your financial dream, and what are you willing to sacrifice to accomplish it? Are you willing to pay the price and sacrifice to become financially independent? If you’re not, what cost are you willing to pay to do nothing?

Great Articles From Good Friends

• How I Saved $10,000 in Six Months – Evolution You
• 20 Signs You Need a Financial Makeover – Budgets Are Sexy
• Life After Bankruptcy: 3 Things That Could Change After You File – Stumble Forward
• Too Much Debt? 5 Steps To Pay Off Your Debt – Free From Broke
• Don’t Let Yourself Drown in a Sea of Financial Stress – Financially Poor
• 10 Guiding Principles For The “New Retirement” – Redeeming Riches
• Avoid the Blame Game—Take Responsibility for Your Financial Affairs - Free Money Finance
• Student Loans: Necessary for a College Degree? – Couple Money
• 11 Ways to Convince Your Boss to Give You a Raise – Out of Your Rut

Enemy of Debt Around the Blogosphere

• Best of Money Carnival #65 – Bible Money Matters
• Best of Money carnival #66 – Personal Finance By The Book
• The Top 30 Personal Finance Bloggers You Need To Be Following On Twitter – Own the Dollar
• Create an emergency fund to avoid costly, unnecessary debt – Personal Money Store
• Emergency Savings – Out of Debt Again

Enemy of Fat Updates

• Workout Hell, The Beginning – P90X Day One
• P90X Workout Update -Day 3
• P90X – Days 4 and 5 (Yoga & Legs and Back)

This is a guest post from a recent series of three from the folks at Century 21. Make sure you are insured, but most importantly make sure you have the right coverage for you!

While there are a plethora of options for auto insurance coverage, it can be tough to find the right provider that works best for you when you need to make that auto insurance claim. But they’re out there. However, the right coverage can’t find you if you don’t go out and look for it.

If you’re not sure what discounts you may deserve on your auto insurance coverage, I have some tips to share with you that might clear up some of your uncertainties and bring you plenty of savings on your auto insurance. First off, you can’t find savings without shopping around. Rates vary from company to company so always get quotes from at least 3 different companies. When you file an auto insurance claim, the deductible is the amount of money that you lay down before your insurance starts up. Remember that higher deductibles can bring substantially lower premiums, but make sure you have the funds to cover it in case you have to make an auto insurance claim.

It’s important to know that how insurance companies decide on your premiums have a lot to do with statistics. Unfortunately, there are some things that are out of your control like the fact that insurance agencies take into consideration your gender. Statistics have proven that males generally drive more recklessly, drive more often, get more speeding tickets and annually drive more miles. All of these statistics will influence agencies to charge men higher premiums for insurance.

But there is no sense worrying about what’s really not in your control. It’s time to focus on things that you can do to lower those rates. It certainly helps to know your car. Do you have an older car? For older models, it might not make sense financially to pay premiums over many years to keep collision and comprehensive auto coverage. You will only receive the book value of the car if it is totaled in an accident. If you’re thinking about buying a new car, remember cars that are expensive to repair or ones with high theft rates will raise the costs of your auto insurance coverage. However, having safety features like air bags and anti-locks might get you discounts, depending on your insurance company.

When you finally find that provider you trust to process your auto insurance claims, ask about their possible discounts for bundling. You already get your auto insurance coverage from them. Why shouldn’t you get your other car insured by them or your homeowners insurance as well? Many insurers will give you a break if you buy two or more types of insurance. Hopefully one or more of these tips will help in keeping your insurance premiums low.

Photo Credit: bubblemonkey

Ahhh, Friday Has Arrived!!

As most of you tidy up your workspace, and prepare for the weekend ahead, the last thing you might be thinking about is how to better manage your money. In fact, some of you may be schematizing (yes, it’s a word) your way into a brand new car, a state-of-the-art plasma, 3D, blu-ray, movie theater-sized television, or some special gadget that is going to take you to the moon. That’s fine if you have your ducks in a row, all accept for the new car of course. (buy used) BUT…what if you’re living paycheck to paycheck and have stress-inducing debt?

Shouldn’t you be trying to find ways to increase your income, pay off your debt, and stop living paycheck to paycheck? I’m not knocking any of the above luxuries, I’d love to go to the moon myself! All I am saying is, are your priorities in order? What’s important to you, and are you doing all you can to fulfill those goals?

They ARE goals, right?

Perhaps you’re looking for that kick in the butt to get you started, or you’re just overwhelmed with your entire situation. The truth is there are answers to all your problems, even if you don’t like what they are, or simply refuse to accept them. I find the Personal Finance Community to be the biggest hope for folks like you. Even folks that have their “ducks in a row” use this community to stay on track.

You can listen to some hot shot, that has an opinion on television, (because maybe he is promoting his new book, or about to release a new course promising “secrets” that only HE knows) BUT the blogging community wants to truly help you transform your life, and most of us know there is nothing secret about how to manage your money! It’s why I started Enemy of Debt, and I know for a fact that it’s why a lot of bloggers do what they do. We care about how you end up financially! Where do you think my passion for debt freedom and personal finance come from? I assure you it’s not because I’m making millions of dollars from Enemy of Debt—because trust me—I’m not.

I’ll stop babbling and get to the point!

Introducing…

This is the mission on MoneyedUp.com—in their own words!

“Most of the content on moneyedup.com will focus on spending and saving money wisely, being financially literate and increasing our income. We are here to help inform on financial matters and help people live the life they want.”

The blog, www.moneyedup.com, is a place where many minds have come together to give you more options, more ideas, and a fresh look at the “big bad world” of personal finance. Finance doesn’t have to be big or bad, it just has to be deliberate and consistent over time.

Maybe this will encourage you to start now!

Want A Chance To Win $500?

Oh, you’re wanting to think about it now huh? I thought so. Even if you have already grabbed the bull by the horns, subscribing to a great financial resource, and winning $500 is pretty irresistible right?

You could put it in your Emergency Fund! Pay off the next debt on your Debt Snowball! Start an Educational Savings Account for your children’s college! You could even get a head start on your Retirement! The options are endless. If any of those things are on your to do list, maybe you should forget about that new boat until you start checking some of them off. Hmmm…

What Would You Do With $500?

So head on over to MoneyedUp and be sure to enter for a chance to win BIG! There is some quality content for you to devour. Check out a few of the articles I have enjoyed the most!

• 5 Reasons Why You Will Never Be Rich
• The Importance of Understanding How Money Works
• How To Make A Budget And Stick To It
• 5 Things You Should Never Say About Money
• 5 Ways To Pay Off Your Mortgage Faster

Take Control, and Get Moneyed Up!

Seriously…what would you do if you won $500? I want to know! Share your thoughts below.

Photo Credit: TedsBlog

Hello everyone, I hope you are all having a magnificent week so far! Before I get started, I feel I need to clarify a few things about my views and beliefs concerning a mortgage. As most of you know, I am against debt, but I do realize that not all people are going to go out there and save, save, save, in order to pay 100% cash down. Some people, if not most, would even consider that to be impossible. I’ll save that discussion for another day, but I just want to point out that I understand that the average person will not even consider the sacrifice and commitment that it takes to pay for a house without getting a mortgage.

With that said, I started this blog to help people, and if I ignored the fact that most people (even those adamantly opposed to debt), will still consider a mortgage to be good debt, I’d be doing a great disservice to many of you. For those of you that do not hold my belief that all debt is bondage and unnecessary, and fully intend on getting a mortgage, I want to help you get the best mortgage you can. Owning a home is often considered the American Dream, but you should know what you are getting yourself into.

That’s why I agreed to do a quick review and giveaway, for a book written by Dale Robyn Siegel, called The New Rules for Mortgages. She is an attorney and licensed mortgage broker with more than 20 years of experience, which includes owning a mortgage brokerage company for more than 10 years. As most of you know, the rules have changed since the colossal free fall of the housing market in 2008. This book sets out to help you understand those changes in the midst of all the chaos.

It is intended to present “just the facts and the vocabulary you need to understand the subject matter.” It provides short explanations for the basics, without confusing you with unnecessary gibberish that you really don’t need. If you want the most current information available, no matter what state you live in, this book is for you. Best of all, it’s less than 200 pages!

I did not read the entire book, but I did pick a few chapters of interest so that I could go ahead and put this book in your hands. In chapter two, the author talks about income, obviously a big part of qualifying for a mortgage in the first place, hence the reason I chose it. Did you know that in 2008, average families were spending as much as 60% of their income on housing. (proof this book is much needed) That only leaves 40% for everything else! Not only should those numbers be flipped upside down, but realistically, you should responsibly try to spend around 25-35% as a reasonable percentage. Once you get over 40% you are entering dangerous territory, and it’s time to start taking drastic measures to either reduce that number by earning more, refinancing, or even selling!

“The More Toys You Have, the Smaller Your House”

Now this is my favorite part of the chapter 2, because we’re talking about behavior and how it affects your decisions, or as I like say, Behavior Versus Reality.

Here’s an excerpt that states something I think most Americans fall victim too—themselves and their bad habits!

“The problem is the the more money you spend on cars, time-shares (YIKES!), and credit cards (TRIPLE-YIKES!), the less you can spend on a house. The more payments you have on stuff you don’t need, the less you have left over for the house with the white picket fence. So think before you spend on stuff you can do without, or knock yourself down a few levels on that car!” Chapter 2: Income, Yeah You Need That! (my emphasis added)

Take away the car payments and the credit cards, and you’ve got yourself the possibility of owning a nice home with a white picket fence—and within your means.

Furthermore, the chapter covers all of the different income scenarios, what you can use, what you cannot, and why, to help you get a mortgage. Another subject of interest for me was in the same chapter, about co-signing and how it can harm your borrowing power. For obvious reasons, if you are going to be held responsible if someone else doesn’t pay (and statistics show you likely will), the risk to the bank increases because it is at least possible you will not be able to make your payments in the future. Anyone that reads EOD knows I think co-signing is one of the dumbest things a person can do financially. If you’ve never done it, DON’T START NOW, and if you have, I’m sorry.

I was planning on covering another chapter, but I think I have said enough. You get the point. If you are going to get a mortgage then you are going to want the newest and most helpful information available, to assist you with the biggest financial decision you may ever make. As I always say, do your own research and understand what it is you are getting yourself into. Once your name is signed, you are obligated.

There are a number of things covered in this book that I would never recommend to anyone, but to be fair, they are written for informational purposes. If you only read about 15 year fixed-rate mortgages (my recommendation), and then hear something about an interest-only mortgage that will reduce your payments, from a shady mortgage brokers perspective, you will at least know what it is they are selling. We have an interest-only mortgage and my advice would be to RUN as fast as you can in the other direction!!! (not kidding) Once you’re in, it’s really hard to get out, and we’re experiencing that right now!

You may even find that owning a home is something you just can’t do right now. No worries though. Just make a responsible and well thought out plan so that you can do it in the near future.

The New Rules for Mortgages Giveaway

I am giving away two copies of this book! Be sure to enter!

All you need to do in order to enter for a chance to win is be a current subscriber to Enemy of Debt and leave a comment below. In your comment answer one of these two questions: (worth 5 entries)

1. Have you ever had too much mortgage, or a bad mortgage loan you regretted getting? What did you learn from your experience?
2. If you’ve never owned a home, why do you think it’s important to buy a house you can truly afford? (Don’t confuse afford with “I can afford the monthly payments”, because there’s more to affording a home than just the payments.)

Want to increase your chances of winning? These can be done at the bottom of this post. (Be sure to leave a comment letting me know about your extra entries.)

1. Tweet this post. (make sure @enemyofdebt is in your tweet.) Worth 5 extra entries!
2. Stumble this post. Worth 5 extra entries!
3. Tip this post. Worth 5 extra entries!

Giveaway Deadline

All entries must be submitted by Saturday August 28th at midnight! I will be selecting the winners via random.org, and will update THIS POST to let you know who the winners are on Thursday.

Good Luck!!

WINNERS!

Jenn and Melissa won a copy of this book! Congratulations for taking the time to leave a comment and participate!

This is a spontaneous post, brought on by my lingering frustration with how people still manage their money. Hasn’t towering unemployment, record foreclosures, and the looming threat of a double-dip recession (as if there ever was a recovery) taught people anything? For some of us it has, but for others, not so much. That is still better than before we were hit by this recession, BUT I feel I should remind you that we have proven to be a nation plagued by amnesia.

As soon as things improve, some of the very same people will go back to their old routines, not thinking a single second in advance about their family’s future. I’m happy to know that none of those people are you, because you read Enemy of Debt and have decided to nip it in the bud once and for all! Right? Let me get to the point.

Last week, I was waiting in Sears, so I could get the two front tires replaced on our paid for Volvo 940. While I was standing in line waiting to see what my tire choices would be, the lady in front of me seemed to be in a bit of a pickle. (Please know, that I do not intentionally make other people’s conversation my business, but this lady didn’t seem to mind anyone hearing. You should also know that her situation wasn’t so foreign to me, because I had been in her shoes before.) When I give you the numbers you’ll see exactly why I think she should have been a little more discreet about her “pickle”!

Here’s her situation.

Her muffler and exhaust system died on her and guess what? She did not have an Emergency Fund to cover the cost. SURPRISE!!

SIDE NOTE: The savings rate in the United States has been a dismal reminder that Americans do not think saving money is a priority. Perhaps the need for bigger and better cars, fancy televisions, and the ever important need to have the newest Apple product in their hand, has been quite the distraction. To quote an article on CNN Money, it is “worse than we thought“. The article indicates that the savings rate has dropped well below ZERO into the negative. A graph shows that while the savings rate has been a declining trend over the years, it’s worse than it has ever been going all the way back to 1952. SCARY RIGHT? Apparently not, so maybe the recession has taught us nothing after all.

So she had the commissioned salesman rapidly typing in her information for multiple applications of credit so she could fix her car. That’s right, she was going into debt to repair a car that she must have known would eventually have to be repaired. The four letter word of all four letter words, was her only option!

D-E-B-T

After hearing the results, I wasn’t sure if I should grab her head and gently place it on my shoulder, while signaling to the bearer of bad news to bring her some tissues, or just start crying right along with her. I was kind of glad that my long wait in line was cut short as the man that was helping me returned. Here’s what the man helping the lady told her.

“You did not qualify for a Sears card, but you did get approved for another card, which would give you a $400 line of credit. The card comes with a $59 annual fee, and has a 28% APR.”

The bad news was not that she got declined for the Sears card, nor was it that the line of credit she was approved for came with an extremely high interest rate. Nope, it was that she put herself in a situation to have to accept such an offer. To make matters worse, the $400 line of credit wasn’t going to be enough to cover the repairs. I must also point out that while Sears is considered by most to be a merchandising operation, it actually makes more money off of it’s easy-to-become-a-slave credit program. I guess the lady already had a rather large debt-burden to not be able to get a Sears card.

So not only is this lady out of luck, but the only option she has to get her car repaired is to add some more debt to her name! Is that really the only option you want to have? After living most of my life that way, and then turning my financial situation completely around, I can say with confidence that this is not the best way to live your life.

Having an emergency fund in place is the NUMBER ONE best way to avoid debt! If you have an emergency fund, IT DOESN’T MATTER IF THERE’S A RECESSION! It doesn’t matter if your car breaks down! It doesn’t matter if you lose your job, because you will have time to find another one. Anything that can, and usually will go wrong, can be covered by simply planning for the unexpected! By realizing that your financial security is more important than your wants and desires, you will empower yourself and remove a level of stress from your life you wouldn’t believe!

Someone with an emergency fund would probably say there is no such thing as the unexpected, and I would say they have an excellent point. In other words, you should expect things to go wrong whether you know what they will be or not. Expect life to throw a monkey wrench in your debt loving world, and instead give the debt free life a try. I know for a fact that it’s a much easier one!

Wondering where to start? Here’s some tips to get you started:

• STOP borrowing more money! (Stop enslaving yourself.)
• Create a financial goal list (It’s important to know where you want to be.)
• Track your spending (Know where every penny is currently being spent so you can make some important changes.)
• Put yourself on a budget! (Take charge of your money by putting yourself on a plan.)
• Save an Emergency Fund as fast as you can! (Because it’s important!)

Take a financial stand, because you’re future should always be more important to you than the fun things you can buy yourself now. (Especially when you consider that you are going into to debt to get them.) Instead buy them later, and when you do, take solace in knowing that they didn’t come at the cost of your sanity, your financial freedom, or even worse…your family.

Do you currently have an emergency fund? If so, explain why it has been helpful, and if not, give your very best reason for not having one. (I won’t pick on you, I am here to help you. I am just curious as to why.)

Photo Credit: Bunmun

We all feel hopeless at times. I sure did, and my wife would certainly agree, at least when it came to our finances. When it seems like something just isn’t possible, hope is lost. People in debt feel that debt is the only way, or at least struggle with the overwhelming odds our society has embraced as truth when it comes to paying off debt.

What I do know is, that belief is so completely wrong and misguided, that to believe it is like believing that the sky isn’t blue. The truth is you have within you the strength and the courage to win financially. The only thing standing in your way is your behavior, and your debt!

DO SOMETHING ABOUT IT!!

Well, it’s been a while since my last Debt Free News article, so I thought today was as good a Friday as any! This happens to be the last of the submissions, so I hope if you are debt free, you’ll be sure to head on over, after reading this post, to fill out the Debt Free Questionnaire. Your story could inspire many, so if you have become debt free, then you probably know how your life has changed ever since, so please feel free to share it.

This Debt Free News edition shares a debt free story from someone I have become good friends with in the last year or so. We really connected due to the fact that we shared the same views on personal responsibility and self reliance. We both believe that if you want something done, you have to do it, and if you make a mistake in life, you have to own it. I believe personal responsibility separates those that deserve from those that do not. In other words, taking responsibility for your actions and responding accordingly usually requires a level of maturity and hard work that someone who feels entitled does not share. Clair and I believe that life, liberty, and the pursuit of happiness are the only things we are entitled to. Other than that it’s up to us to provide the life we desire.

Because of our common beliefs, I joined Clair’s team as a contributor on the Self Reliance Exchange. I no longer write for them because of time constraints, but I highly respect their mission and admire their dedication to help spread the idea of self reliance.

Click here if you are interested in reading more from me on the Self Reliance Exchange.

Clair Schwan has been completely debt free since 2005 and loves every minute of it. Learn more about him and his adventures in frugal living over at Frugal Living Freedom where the motto is, “…living well, and well within your means…”

I hope you please continue to visit Enemy of Debt to stay m0tivated and focused in your DEBT FREE journey!

Check out Clair’s Debt Free News! Please enjoy, but most importantly be inspired!

The Enemy of Debt Questionnaire – Clair Schwan

How much debt did you have and how long did it take you to pay it off?

Well over $250,000 and it took me 8 years to pay it off and place myself in a comfortable financial position. I had about $100,000 associated with a Chapter 13 bankruptcy. I paid that off in 5 years, and then I took on about $150,000 in debt for my home and paid that off in 3 years.

How does becoming debt free actually feel? Does it feel better than you imagined it would?

I’ll be in the minority on this one. It’s a wonderful feeling to be debt free, but it isn’t something that I get all excited about simply because it wasn’t a surprise. I worked hard to make it happen and it happened – not by accident, but through deliberate action. That means good planning, realistic goals, hard work, proper timing and tenacity. So, when I became completely debt free in 2005, it was really quite expected and not the exhilaration that I thought it would be. Nevertheless, it’s a very pleasing place to be.

What were some of the struggles that you had to deal with along the way? Was there ever a time where you almost gave up?

I faced what seemed to be insurmountable odds. I had more debt to pay off than my salary could handle. At the same time, I had alimony payments to make. My monthly payments peaked at $3,000 and stayed there for years. In order to make the payments that I knew were coming down the pike, I had to quit my job and start my own business.

The two big problems associated with that were: funding a start-up enterprise when you’re bankrupt; and, the delay in payments that you experience when you first start a business. It isn’t like getting another job – you pay to get yourself into business and then you wait for months before your first check arrives.

I never thought of quitting. I’m just too stubborn for that. Besides, who ever won by quitting?

What would you consider to be the most important key to becoming debt free? What helped you the most?

The key to becoming debt free is to realize what is important in your life and then keeping your eyes on that. It’s very motivating and allows you to endure a lot of “horse manure” knowing that there’s a “pony” waiting for you at the end of your struggle, and that “pony” will be all yours.

For me, it was the benefit of owning my land and home. When you realize that the house you’re in and the land it sits on can be yours, and not something you’re simply paying for, you get a feel for the financial security that this offers as well as the tremendous amount of money that you can save by paying off the mortgage early – in my case, in 3 years.

It seems a lot of people have bought into the idea that debt is essential in order to prosper, what do you have to say to those people?

If you’re making certain investments, sometimes debt is warranted. Most people can’t afford to pay cash for a house, so getting into debt is a way to have a nice home now instead of “living in a tent” while you save up some money. We need to understand that debt is a ball and chain. It’s a form of enslavement. And, there are more than an ample number of commercial organizations that love to financially enslave millions of people so they have a steady source of income. You don’t have to be one of the slaves. For the most part, debt is a choice that we make, and we either make wise choices or we pay the consequences.

In a way, it’s true that debt is essential to prosper – your indebtedness is essential for banks and credit card companies to prosper.

What was the biggest sacrifice you would say you made in order to become debt free? What about you changed the most?

The single largest sacrifice that I made to become debt-free was to give up my personal life and become focused on my business life. I traveled all over the country and many times around the world – up to 75% of my time each month – just to “make hay while the sun was shining.” I knew that my personal life would have to be put on hold so I could work like hell to build up sufficient financial resources to pay off debt, build a nice financial cushion, and then save enough money to pay off the house.

Such a demanding work and travel schedule made my social life nearly non-existent. But, I knew the sacrifices would be short-lived. The vision in my mind was many years of hard work and frugal living that would lead to a point where I’d be able to throttle back and start my current “more life, less work” program. It took me 8 years in all to make it happen in a very deliberate and well-planned manner.

Did your friends and family give you a hard time about your new mission to eliminate the debt from your life? If so how did you deal with it? Do you think you inspired others by your journey?

I never got a hard time about my mission to succeed. Most people looked at my level of effort and shook their head, glad not to be in my shoes. Now, of course, these same people say “you’re lucky” and I’m very quick to point out that luck had nothing to do with it.

The best comment came from my father who commented to my mother, “I don’t know how that kid did it.” Sometimes I wonder how I did it too. All I know is that I was in the heat of battle and I had to keep pressing forward, taking more and more financial ground, until I had won the war and achieved all of my most important goals. There was nothing anyone could have said to discourage me. There was nothing that anyone could have said to offer me the necessary encouragement either. I was my own best “cheerleader” and that was all I needed.

Consider that no one knew better than me what I was trying to get out from under. No one knew better than me what I was trying to accomplish. And, everything I did was in my own best and long-term interest, so what more motivation did I need?

What is next for you? What financial goals do you plan to accomplish?

Many financial goals related to being debt free have largely already been accomplished. I pay cash for everything, and I don’t really care whether I am credit worthy simply because I never intend to be a debtor ever again. I maintain a credit card only for convenience and because some places won’t (or would rather not) take checks or cash.

There are three larger picture financial goals that still need to be conquered. First, I’m building revenue streams through my own entrepreneurial efforts to completely supplant whatever the Social Security Administration has been telling me I’ll be paid once I reach retirement age. I don’t count on Social Security at all, and I never have. That’s pure foolishness because you’re depending on government to support you – good luck with that approach.

Second, I’m setting about to eliminate recurring costs associated with my lifestyle. These include heat, lights and food. I’m creating my own marketplace alternatives to help chip away at these large and recurring costs. I’m not focused on self sufficiency as that is a full-time job, but I also don’t want to be held hostage over marketplace fluctuations that I have no control over. I realize that some modest investments in these areas will allow me greater independence from the marketplace, so I view it as a type of financial investment.

Third, I’ll continue to live my frugal and self-directed life that includes building and making things myself, buying things at private sales, bartering instead of buying, and continuing to focus on needs instead of wants. I recognize that financial success isn’t a destination, it’s a lifestyle, so I continue to keep the faith and stay focused on the principles and actions that have proven themselves to be so successful for me.

photo credit

Debt Free News From A Debt Free Reader Series

Debt Free News: The Kick Off - yours truly @enemyofdebt
Debt Free News From A Debt Free Reader #1 – Kelsalynn @KelsaLynnFitLog
Debt Free News From A Debt Free Reader #2 – Nick @Nickfro
Debt Free News From A Debt Free Reader #3 – Paul @fiscalgeek
Debt Free News From A Debt Free Reader #4 – Peter @MoneyMatters
Debt Free News From A Debt Free Reader #5 – J Money @BudgetsAreSexy
Debt Free News From A Debt Free Reader #6 – Dustin @EngagedMarriage
Debt Free News From A Debt Free Reader #7 - Fabian @debtfree
Debt Free News From A Debt Free Reader #8 - Don @money_reasons
Debt Free News From A Debt Free Rreader #9 – Deacon Bradley @bradleycoaching
Debt Free News From A Debt Free Reader #10 – Golda
Debt Free News From A Debt Free Reader #11 – Clair Schwan @ClairSchwan
More to come…but only if I get some new submissions!

This is a guest post from the folks at Century 21. Perfect timing too because I just renewed my auto insurance and saved myself by using two of the below methods. My total savings for 6 months of coverage dropped by nearly $50. I raised my deductible and change my coverage to better reflect our situation. $50 may not seem like much, but it brought our final insurance quote below $400 for the six month term. I’ve been paying over $400 since I have been with my provider so I was really excited to hear it dropped some more. I made sure to point out my good driving record to, which also helped lower the price. Every little bit of savings adds up.

I received my insurance renewal quote in the mail, but instead of pay it and move on, I called the company and asked if I was getting the best price.

What can you do to lower your auto insurance cost?

No one really likes to think about auto insurance. It’s kind of boring. But we all need it and it’s expensive. According to the Insurance Information Institute, the average American driver spends about $850 a year on car insurance alone. So it’s a smart move to give it some thought and make sure you’re not paying more than you should. Here are a few tips that will help you save money on your auto insurance

1. Raise your deductible: The quickest, easiest way to save money on your insurance is to increase your deductible. By increasing your deductible from $200 to $500 could save you as much as 30 percent on your collision and comprehensive coverage.

2. Know what your car is worth: Your auto insurance company will not pay more in repairs than your car is worth. So if you’re driving around in an old car that’s not worth more than a few thousand dollars, you should consider dropping your collision coverage. Especially when you factor in your deductible.

3. Make sure your have the right coverage: You may be tempted to get minimum auto coverage to save some money. But you could be putting yourself at risk. If you hit an expensive car, cause a chain reaction pile up, or cause significant property damage, your current coverage may not be enough. The Insurance Information Institute recommends that you have at least $100,000 of bodily injury protection per person and $300,000 per accident. If your net worth is more than $300,000, consider buying additional liability protection today. Higher limits cost less than you might think. You can double and triple the value of your coverage for a small fraction of the cost of your current coverage.

4. Get at least 3 quotes: If you’re only getting one quote to compare with your current policy, you’re probably not going to get the best deal. There are a lot of companies out there and they all have their own unique way of determining rates. Multiple auto insurance quotes will give you a better opportunity to make the right choice. Make sure you have your current policy handy so you can compare apples to apples.

5. Use your connections: Many companies provide lower rates to drivers who get insurance through a group plan. Check with your employer, trade association, business group, alumni group or any other association to see if they offer a discount auto insurance program.

6. Consolidate: Buying your auto insurance and homeowners insurance from the same company can usually save you money on one or both policies.

7. Get what you deserve: When getting a quote make sure you’re getting credit for all the discounts you for which you qualify. Most companies will discount your rate if you have more than one car on your auto policy or if your car has safety features like air bags, automatic seatbelts and anti-lock brakes. Some companies even have discounts for young drivers who earn good grades or complete driver education courses.

Photo credit: Hamad Saber

Have you ever used any of the above methods to lower your auto insurance rates? If so, feel free to share your story in the comments section of this post.

Do you often find yourself repeating the words that so many people spout when referring to their financial abilities? I know I have been guilty of using this phrase in my younger years. “I don’t make enough money to do that!” Those words, whether you realize it or not, condemn you to inactivity. They pave the road to nothingness because, quite frankly, if that is your response, then you are in essence claiming that there’s nothing else you can do.

That is a mistake, and a tragic one!

If you work your butt off at your main job, but you don’t make enough money, why would you stop there? Why accept the fact that you do not make enough money, and instead, go make enough money? The ball is truly in your court, but in order for you to play, you have to get out there and play! You can’t watch from the bleachers and expect to score the winning basket! Go make things happen!!

Don’t settle for mediocrity, do something about it!

There are many ways to make an extra buck, but here are a few ideas to help you surpass your current income. It doesn’t have to be full-time, nor does it have to get in the way of your main job. It just has to be a way for you to make extra money so you can never, ever again say, “I don’t make enough money to do that!”

• What do you love doing? Is there something you are extremely passionate about? Brainstorm on ways to make SOMETHING happen. You may be surprised to learn that your brain is pretty resourceful when you start poking around in there. Brainstorming gives birth to new ideas, and those ideas create the spark for more to follow.
• Have you ever tried selling on eBay? Maybe you should consider it. Sure, at first, it may seem overwhelming or even pretty intimidating, but I assure you it can be learned and you don’t even need a college degree to get started! We have made a boat load of money in the last two years selling on eBay! Whenever we are done using something, we sell it! Whenever we find something in demand at a discount, we buy it, and then we sell it! You could also have a yard sale!
• Ask for a raise! If you are a hardworking employee for your company, and you feel you are a valuable asset, go make the case to your boss. Ask for a meeting, and then go in there prepared to sell your talents. Explain to your boss why you think you deserve a raise. Maybe it’s not possible, but either way, wouldn’t it be better to know—which brings me to my next money making tip!
• Find another job that DOES pay enough! If you don’t make enough, why stay where you are? I can’t think of anything more defeating than working a job you probably hate because you don’t make enough money doing it! Can you? (Unless you are not worried about how much you make which means this wouldn’t apply to you.) Why would you want to continue to work a job that doesn’t pay enough money, AND has no room for growth? Isn’t that a no-brainer? Even if you don’t do that, if anything, give yourself a raise!
• Get an extra job! Deliver pizzas, sell some papers, offer a service to people who need it, but whatever you do, DON’T do nothing!. If you do make enough but want to make more, this post is still for you. Your main job, doesn’t have to be your only job or your only source of income. Think BIGGER!
• Ask for some overtime! You never know, it could be available, but you won’t know unless you ask. There’s nothing a boss likes more than an assertive employee! Even if overtime is not available, it could open up more employment opportunities for you once your boss sees your willingness to work a little harder.
• Lastly, STOP thinking that your options are limited! You could be your own worst enemy in terms of your ability to make more. GET OUT OF THE WAY!

Whether you are looking to save an emergency fund, money for your next vacation, a way to pay off your debt faster, or even earn extra money to steamroll your retirement, it’s worth the extra effort to make things happen! Nothing ever happens to people that sit around waiting for something to fall out of the sky right into their lap. YOU have to MAKE things happen!

Thankfully, I have been able to help many people from this website alone, as well as through other efforts at my church, and the one thing that seems to kill the possibility of financial success more than anything else, is a person’s inability to think outside of the box. If you are not making enough money the last thing you should be thinking is that you have zero options! I have watched more people give up using this excuse than anything else. Believe in yourself and your ability to create the financial security you deserve!

If you don’t make enough, look for a better job, but don’t just sit there and accept your current situation as if it were your fate. Instead, do something, but don’t expect big changes unless you are willing to make big changes!! To get something different, do something different.

Some Ways We Have Avoided the “I Can’t Do That” Mindset!

• GOT OUT OF DEBT!!!!!
• Delivered Pizzas (and made LOTS and LOTS of money doing it!)
• Sold things we didn’t need anymore on eBay, craigslist, or had a yard sale
• Bought things to re-sell on eBay or craigslist
• Enemy of Debt blog
• Wife asking for overtime at the hospital
• Creating logos for websites (Logos 4 You blog)
• Photography (I just did a wedding)
• Upcoming Fall Launch (Inside Charlottesville blog)
• Upcoming eBooks (Enemy of Debt & Self Reliance Exchange)

My point is to stop accepting the way things are—as the only way. I became a stay-at-home-dad the first of the year, which meant a BIG drop in income. My wife is a nurse, has better than great benefits, and a higher income than I did, so it made sense for our family since we were not willing to use daycare. We could have just rolled over and played dead by thinking this is what we make and there’s nothing else we can do…BUT we didn’t! Every single day, we are trying to come up with other ways to increase our income.

I believe that instead of saying “I don’t make enough money!”, you should instead ask yourself, “What can I do to make enough money?”

Most importantly, STOP IT with the excuses!

Photo Credit: Don Hankins