The Sixty Minute Money Workout

Today's blog is a test: do my kids read my blog or not? For example, here's a pic of my son , from a few years ago, making a New Year's resolution to be more buff. He's now a senior, how long will it be before I'm forced to remove the photo.

According to a recent survey (Source: Auld Lang Syne) 40 to 45% of American make one or more resolutions each year. Among the top new year’s decisions are resolutions about weight loss, exercise, and money management or/ debt reduction.
The following shows how many of these resolutions are maintained as time goes on:
- past the first week: 75%
- past 2 weeks: 71%
- after one month: 64%
- after 6 months: 46%
While a lot of people who make decisions during the new year do break them, research shows that making a decision to change is useful. People who explicitly make resolutions are 10 times more likely to attain their goals than people who don't explicitly make resolutions.
If you are wanting to make a decision to get fiscally fit in the new year, then take a look at my newest book, The Sixty Minute Money Workout (Waterbrook, 2011) Let’s go through each part of the workout:

Boundaries:
As people prepare for the workout, it’s important to establish boundaries, here are some of the things that you need to know before you begin.
First of all, people need to understand that you don’t have to be a couple in order to do the workout. You can do it by yourself, or with a trusted friend, or even a family member who isn’t your spouse if you are single. But whoever you do the workout with, it’s important to set some boundaries to prepare:
• no condescension or negativity
• no interrupting your workout partner when they are talking
• no name calling
• no throwing food - :-)
• start by saying one positive thing to each other
• end by saying one positive thing to each other
• create an environment that encourages comfort and success
• have a timer on hand
• Do the pretest to prepare you for the work. Each pretest will vary according to the chapter or topic you choose.


Part 1 - 5 Minutes - Make Up Your Mind Warm-Up
Here is where you set your timer for each section. When the timer goes off, then move on! In this section, you set the topic for the hour and begin with a "can do" attitude. It’s important to begin by saying or doing something positive. If you’re working out with a spouse, then begin by taking your spouses hands, looking into their eyes and saying something affirming.

Part 2 - 10 minutes - Strength Training
While step one was to start with affirming words and decide on your money topic, this next section is a time to write down goals on paper so that you will have a tangible and objective standard to work toward. Decide how you would like to see the topic resolved today, in six months and what the outcome of your goals will be in the long run. This gives you both a temporary focus (for today) and a long term focus (for the next few months) as well as a big world picture (for the long term.) Your goals will depend on your topic of the day. For example, if you are discussing a budget your goals might include: a) to set up a budget that is real and workable, b) to stay on that budget for the next six months in order to learn how to spend less than what you make, c) to have a budget become such a habit that it is a financial vehicle that will get your family out of consumer debt, help you pay for your kid’s college and fund your retirement.

Part 3 - 20 Minutes - Cardio Burn

In this step, you give feet to your goals. If you’re setting up a budget, then you write down the specifics and course of action for your topic of the day. This may not seem like a lot of time on this section, but realize that you may not get it resolved during the first workout. The key is to keep the discussion moving and work on what you can, whatever you missed, you can get the next time around. Go to my tool section for free online financial tools, http://elliekay.com/financial-resource-center.php

Part 4 - 20 Minutes - Taking Your Heart Rate
This is the point where you do any “work” that needs to be done after you’ve written a step by step plan from the previous section. For example, if you need to save money on your expenses in order to live on the new spending plan you set up, then you could spending this time on quick ways that will save you hundreds of dollars:

1) Save on Tax Preparation - Go to www.TaxAct.com in order to prepare and file your federal income tax return for free. This free software asks you all the right questions to make sure you are getting every deduction that you have coming your way.

2) Save on insurance – Go to www.progressive.com to compare auto insurance. It only takes a few minutes to get several quotes from different companies. You can save as much as $500 by shopping around.

3) Save on groceries – When you can combine sales, coupons, double coupons and store coupons, then you can save thousands of dollars every year on your grocery bill. We’ve saved over $160,000 in the last 20 years by doing this. Go to www.couponmom.com and enter your zip code they will show you what is on sale and what coupons match up with the sales items to get things for pennies or free.

4) Save with Social Media – By going to the www.facebook.com page of your favorite retailer or signing up to follow a beloved restaurant on www.twitter.com, your savings can add up to hundreds of dollars every year. Social media followers are often the first to know about limited offers or free items. For example, my college student daughter, in Chicago follows her favorite cupcake store and by saying the word of the day, she gets a $5 cupcake free. That’s a savings of $1865 every year! Somedays, she gives the cupcake away—so she saves and shares!

Part 5 - 5 Minutes - Congratulations Cool Down
The workout has gone by quickly and now the last 5 minutes are dedicated to the “Congratulations Cool Down.” End your workout and sit back, grab a glass of something cool to drink and reflect on all you've accomplished in just one hour! You started on a positive note and you’re going to end positive as well. Take this time to tell your partner one thing that you appreciate about today’s workout in order to end the discussion well.

Keep in mind that just as you don’t get physically buff in just one workout, your finances aren’t going to get in shape after the first try either. But after you and your mate have exercised with this money workout a half a dozen times you’ll find you are making progress that can revolutionize your finances in only an hour a week!

Ellie Kay
America's Family Financial Expert (R)

Bush Announces Rebates Checks Go Out Early--The Check is In The Mail!

Apparently, the check is in the mail! We've all heard that before. I remember a magazine publisher who took a bunch of the writers to a conference in Fort Worth, TX. Somehow we ended up at Billy Bob's and I found myself riding a mechanical bull--while wearing a suit and heels! Yee haw! I stayed on the bull longer than anyone and it was a wild ride. However, much to my dismay, the bull ride didn't end at Billy Bob's. Several months later, that magazine publisher got behind in their cash dispursements for their writers. They owed me $2500 and kept saying that "the check was in the mail"--right before they announced bankruptcy! What a buncha bull!

But this time, we have the President of the United States telling us that the checks are in the mail.

According to the AP news release, Bush said tax rebates will start going out Monday, earlier than expected, and should help Americans cope with rising food prices and gasoline costs, as well as aid a slumping economy. "Starting Monday, the effects of the stimulus will begin to reach millions of households across our country," Bush said Friday in remarks on the South Lawn of the White House.

But these checks won't help most Americans unless they follow three steps found in my 10/10/80 Rule (TM) :

1. 10% - Give Generously - This may seem like a radical way to start dividing your tax rebate check, but it's a way to help everyone--including yourself. Giving is the new cool. Look no further than Oprah's new hit reality show, "The Big Give" or Bill Clinton's new bestseller, "Giving." But don't leave the giving to Oprah and Bill. Here's your chance to live like a millionaire and give 10% to your community, region or even the world. Buy groceries and give them to the homeless shelter, buy some new socks and underwear for the kids up the street whose dad got laid off work. By giving away the first 10%, you're helping the economy, helping your neighbors and helping yourself feel good in the fact you can give.
2. 10% - Save Safely -- One of the safest things you can do with this part of your check is to put it in your savings account. Let's face it, baby, the economy isn't too stable and you need as big a buffer between you and creditors as possible--this is found by putting away some dough to bake future bread. So save at least 10%, if not more!
3. 80% - Spend Smartly -- Is smartly a word? If it is, then now is the time to behave smartly. This means that you spend it in a way that will s-t-r-e-t-c-h your dollars as far as possible. Buying a big screen TV and paying full price for it, just because you have the money is s-t-u-p-i-d. But buying that big screen TV at a store that offers "low price guarantees" such as Wal-mart, means that you're paying the least price possible and will have money left over to put toward credit card debt. Just because you have it, doesn't mean you should fritter it away. Save money and live well at the same time.

So enjoy the rebates, but make that enjoyment last as long as possible by giving it away, putting it away and spending it away--all in a smart way!

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/

10/10/80 Rule

My husband, Bob and I, were taking the puppies out for our traditional four mile walk this past Sunday at 6:00 AM. We usually stop by Vons and get a Starbucks coffee at the halfway point and I buy my four copies of the Sunday paper (for the coupons, of course!). When I was paying for them, a twentysomething year old man walks up to the cashier holding an Emmy. Yes, as in the statue. He was acting nonchalant, as if everyone in California carries an Emmy to the grocery store while buying crackers and cheese whiz.

This guy was tatted out the wazoo, had spiked hair and piercings and was walking around carrying an Emmy. Apparently, he was bringing it by to show a friend of his that worked at Vons. The award belonged to his dad, who got it in 1993 for sound mixing on a television series. He said his uncle had won 8 of them and another uncle had been nominated for 2, but never won. We asked him if he was going into the family [sound mixing] biz and he said, "No, I'm going to med school." He was totally serious.

If you want to win an Emmy in finances, then I recommend my 10/10/80 Rule (TM). This is a fail safe method of managing your money that helped my husband and I get out of $40,000 worth of consumer debt, buy a house, pay cash for cars and put our kids through college debt free.

Here is how it breaks down:

First 10% - Give Away

Second 10% - Put Away (Save)

Final 80% - Spend Wisely

By giving away the first ten percent, you free up your money to be able to help other people in your community. You can put this amount into a non-profit of your choosing, but it's important to give it away. The second ten percent should be saved for your future. I recommend an automatic withdrawal from your paycheck to the savings vehicle of your choice (regular savings, 401(k), Roth IRAs, etc). The final 80% should be spent wisely (without the use of debt.) For an abundance of ways to spend your money wisely, keep an eye on this blog or look at the bookstore for resources.

With the 10/10/80 Rule (TM) you are sure to spend less than you make, and create wealth for you and your family.

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/