SweetWICK

Your Greatest Asset

sweetwick — Mon, 09 Nov 2009 16:00:14 +0000

Is not your home…

Read that again. Your greatest asset is not your home. It is your ability to earn income. Think about it, does your home pay you a paycheck every month or does your ability to produce work pay you a paycheck? Absolutely, the second, right? So wouldn’t it make sense that you insure that asset?

I want you to picture a toaster. This is a very special toaster. You have it in your kitchen and every single month without fail on the first day of that month when you push the button out pops $5,000 in cash. Every month!

Tell me, how do you feel about this toaster? Do you take care of it? I’m sure you do! You probably have it in a glass case and sealed with a key just in case someone gets too close to it. It truly is a valuable commodity in your home.

Now, let’s say you were friends with the “Toaster Fairy” that brought this device into your home. Your fairy says to you that although this is a sturdy piece of machinery, you never know when an accident will occur and you will loose the toaster. Your first thoughts might be something like, “Oh, no way! It’s sealed in that bullet proof glass case!” Or maybe, “No way! I’ve only had it for a couple of years, it’s still young!” Whatever your first reaction may be.

Then your fairy looks at you as if you have three heads and says, “Very well, good luck then.” As she proceeds to fly away you stop her and realize you don’t want to be too cocky in the matter and that truly having this toaster is very valuable for your family. So you ask her what you should do. She simply states, “Take the first $500 that pops out and put it in my mail slot as insurance. Thereby when something shall happen to the toaster, I will be able to replace it with a new one that may continue to pop out your usual $5000 per month.”

What do you do now? There’s no question is there? You definitely, and without hesitation, take the first $500 of that money, insure your toaster, and then sleep with an incredible piece of mind that your family will always be financially secure.

Why would that be any different with your income? If a toaster that pops out money every month is that valuable, wouldn’t it make sense that your life and your income producing ability is equally so? Yet, many people ignore their need for life insurance because they do not want to pay the premiums. Let me tell you something, if you feel that paying for insurance premiums would be a little tight right now, then you REALLY need it. Because if paying a monthly premium would be too much while you are still alive, how then would you manage your monthly expenses if the bread winner passed away?

Please make sure you get the right kind of coverage.

In the next few posts we’ll discuss what the right kind of coverage is and why. Let me just iterate one thing for sure. ALWAYS buy term insurance. Anything that says whole life, cash value, universal life, variable universal life, flexible multi funded premium life, you bet your life, we’ll take your life, or any of the sort is TRASH. Do NOT spend a nickel on any of those unless you want to loose those hard earned dollars.

YOUR NUMBER 1 ASSET!

Can’t You Read???

sweetwick — Sun, 08 Nov 2009 15:59:29 +0000

How serious of a problem do you feel illiteracy to be? It’s pretty scary when an adult cannot read words and therefore limits him/herself in life. If you knew someone personally that was illiterate, you would want to reach out and help, right? It’s just that important.

Here’s a newsflash. There’s a kind of illiteracy that is rampant in our country, and there is hardly anyone doing something about changing that fact. What kind of illiteracy could I possibly be talking about? Of course, Financial Illiteracy.

~~U.S. high school seniors, on average, correctly answered only half of the questions on a basic personal finance and economics test.2 (Source http://www.loma.org/res-06-04-literacy.asp)

We can mostly agree that being able to read words is of critical importance to success in life. Now, let’s agree that the same applies to being able to understand MONEY. Let’s face it, in our life we will always have to deal with money in one way or another. Whether it be through its abundance or lack, through work or home, any where at all, there will be times in our lives when we make financial decisions. The lasting affects of these decisions are monumental in many cases, and we skim by in life making MILLION Dollar mistakes all the time.

~~In 2006 approximately 1.5 million consumers sought assistance in the management of their finances from the National Foundation for Credit Counseling (NFCC). By 2008, the number of customers seeking aid from the nonprofit organization more than doubled to 3.2 million (Source http:/personalmoneystore.com/moneyblog/2009/10/19/credit-repair-illiteracy)

Most people when presented with an opportunity to better their financial situation either get defensive or embarrassed. It’s time to take down the shield and welcome the fact that there might be better ways. One of the worst things you can say when approached with new ideas in regards to money management and wealth creation is: “I don’t know anything about money.” To that I always say, “Well, isn’t it about time you learn?”

The truth is that we all have the option to be Money Smart. In fact it is our downright duty to be that way. It’s time to stop blaming financial institutions or greedy brokers and agents for our money problems and look in the mirror to the ultimate person that has absolute control over what is happening financially in our lives. If you don’t care about your money knowledge, guess what? NO ONE ELSE WILL EITHER! You are the only one who is going to care about you the most, so make it obvious and figure out a way to get money smart. Start to read, start to mentor with successful people, make it a priority to be open minded and growth oriented. It’s time to finally break the chain of being broke. The good news is that it is completely up to you!

APPLIED KNOWLEDGE IS POWER!

Emergency Fund

sweetwick — Sat, 07 Nov 2009 15:58:35 +0000

Let’s talk about an emergency fund. And no, I’m not trying to talk about “Visa” or “Mastercard” as emergency funds. It surprises me to this day how many times I bring up the term Emergency Fund and people look at me with a deer in the headlights expression. Seriously, in this day and age, it seems like there is no such thing.

How much of an emergency fund do you need? Ideally? Maybe about a year’s worth of income. But here’s the trouble. If we have put ourselves into such habits where we don’t have an emergency fund at all, if we were to even be disciplined enough to accumulate a year’s worth of income, who’s to say that we would let it sit there for emergencies only? It seems more practical that you set a goal for an emergency fund amount that is believable for you. At the very least, stock away $1,000 AS SOON AS POSSIBLE.

My suggestion would be to open up a money market account where you’ll still be liquid but your potential for a rate of return would be higher than merely a savings account at the bank.

How to get $1,000 or more as soon as possible? BE CREATIVE!
Here are some simple ideas:

1) Garage Sale

2) Craigslist

3) Part Time Work (Job or business)

4) Freelance Work

5) Claim more on your taxes (SEE YOUR TAX ADVISOR BEFORE MAKING THIS CHANGE)

6) Fund Raiser

7) Brown Bag Lunches and save the difference

Sell your car and buy a less expensive one (Only works if you’re driving a paid off car)

9) Do your own housekeeping, oil changes, mowing, shoveling, etc.

10)Commit to it!

These are all ideas to get your brain working on how to accumulate this money. The important thing is that you begin somewhere. Building up your emergency fund shouldn’t be a process that gets dragged out for years on end. Set a goal, $1,000 or $10,000 or $50,000. Whatever it may be, and then work like a mad person to set that money aside, preferably in addition to everything you’re used to doing anyway (bills, paying off debt, retirement savings, etc.).

Once you hit your savings goal, DO NOT TOUCH THAT MONEY! Yes, you may have had a stressful month at work, DO NOT USE YOUR EF MONEY FOR A WEEKEND TRIP. Yes, the new designer boots are on sale at Bloomingdales, THAT IS NOT AN EMERGENCY. Use it only for expenses that come up UNEXPECTEDLY.

Why is the concept of an emergency fund so valuable? Because you will build wealth. How? Every time you can avoid using a credit card or a loan you avoid paying interest dollars. Hardworking dollars that want to make you financially bullet proof can then be invested and earn interest FOR YOU instead of the financial institutions that funded your debt.

At the end of the day, being financially independent is what we all want isn’t it?

$1,000!

Focus on MORE than Just the Interst % Rate

sweetwick — Thu, 05 Nov 2009 15:57:12 +0000

Look, here is a million dollar plus mistake that is happening all across our country on a DAILY basis. I’ll even say HOURLY basis. Home buyers (Not home ‘owners’…don’t make your payment for 3 months and then let’s see who really owns the home) all over America get duped into the dream of a LOWER INTEREST rate and then go refinance their home. We grow up being told to “chase the rate” and as we trap ourselves into this refinance cycle over and over we wonder when we get to age 65 how it is possible to still have a 30 year mortgage.

Hmmmm…I wonder.

I have a lot of acquaintances in the mortgage industry and I really despise the mortgage industry because of their tactics. If you sit down with a loan officer, you are usually going to be asking them two specific questions:

1. What’s my rate
2. What’s my payment

Your loan officer is very glad you asked them those two specific questions because they make the most sense for them. They know if you can be satisfied with those two answers, you’ll move ahead blindfoldedly. In reality, those two things don’t do much for your overall financial picture. Instead, try asking these two:

1. What will the total cost of my loan be?
2. When will I be completely paid off?

Because at the end of the day, isn’t that really why you want a lower rate? To pay less? Well, if you continue to refinance time and time again, you always push back the day you pay off your mortgage. We’ve done this so much in our society that I have had people say to me, “We’ll always be in debt” and they seem to think this is an acceptable way to live.

You want to know one reason why you might be broke…that is one of the reasons. So do yourself a favor, if you are refinancing, remember that you might get a .25% lower rate, but you are restarting the clock. You actually just cost yourself more money and you definitely pushed back your retirement because of it as well.

Let’s get S.M.A.R.T. about our $$ shall we?

Here’s an exercise for you to illustrate this point:

Grab a little kid and ask him/her to play a game with you. Pull out from one pocket a dollar bill. From the other pocket pull out a piece of paper that has the percent (%) symbol on it. Ask that little kid which one he/she wants.

What do you think he’ll/she’ll reach for? The dollar…EVERY TIME. Isn’t it funny that kids get this simple concept so early in life, and as adults our view point can really get messed up?

K.I.S.S.

Have You Even Met the Jones’?

sweetwick — Tue, 03 Nov 2009 15:56:25 +0000

Who in the world are these Jones people that we have to keep up with?

If you’ve lived in the USA for any period of time, surely you’ve run across the saying “Keeping up with the Jones’” a time or two. It is an idiom in our country and when it is spoken of, most of time it is in humor. Let me say right now, there is nothing humorous about it.

Let’s examine these JONES people shall we?

~In 2006, the United States Census Bureau determined that there were nearly 1.5 billion credit cards in use in the U.S. A stack of all those credit cards would reach more than 70 miles into space — and be almost as tall as 13 Mount Everests. (Source: NY Times, Feb. 23, 2009)

~Eighty-four percent of the student population overall have credit cards, an increase of approximately 11 percent since the fall of 2004. (Source: Sallie Mae, “How Undergraduate Students Use Credit Cards,” April 2009)

~On average, today’s consumer has a total of 13 credit obligations on record at a credit bureau. These include credit cards (such as department store charge cards, gas cards, and bank cards) and installment loans (auto loans, mortgage loans, student loans, etc.). Not included are savings and checking accounts (typically not reported to a credit bureau). Of these 13 credit obligations, nine are likely to be credit cards and four are likely to be installment loans. (Source: myfico.com)

~Average credit card debt per household — regardless of whether they have a credit card or not — was $8,329 at the end of 2008. (Source: Nilson Report, April 2009)

~The average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008. One year earlier, that average was $10,637. (Source: Nilson Report, April 2009)

~”As household wealth has declined in the downturn, more American families are facing financial distress due to high debt burdens. In 2007, before the recession began, 14.7 percent of U.S. families had debt exceeding 40 percent of their income.” (Source: U.S. Congress’ Joint Economic Committee, “Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery,” May 2009)

~The average American with a credit file is responsible for $16,635 in debt, excluding mortgages, according to Experian. (Source: U.S. News and World Report, “The End of Credit Card Consumerism,” August 2008)

~The average college graduate has nearly $20,000 in debt; average credit card debt has increased 47 percent between 1989 and 2004 for 25-to 34-year-olds and 11 percent for 18-to 24-year-olds. Nearly one in five 18-to 24-year-olds is in “debt hardship,” up from 12 percent in 1989. (Source: Demos.org, “The Economic State of Young America,” May 2008)

~28 percent of those surveyed say their ability to pay off their credit card balance has become more difficult. (Source: Javelin Strategy & Research, “Credit Card Issuer Profitability in a Difficult Economy,” July 2008)

These are only a small snapshot of what is going on out there with people and their finances. Most of the time we get into these traps, because of trying to KEEP UP with or IMPRESS people who really don’t care anyway!

“My neighbor got the new heavy duty snow blower, I will one up him with my new top of the line model. My Co-worker buys those nice designer shoes, I will one up her with a matching designer purse.”

Silly right? The problem comes when we live on impulse, trying to match up with what others view us as, and then live an internal struggle because of our stress. If you are tempted to keep up appearances, ask yourself frankly, “Who pays my bills?” If they answer is the name of the person you are trying to impress, great, purchase it. If not, then bypass the purchase and move on with your life.

Truly at the end of the day, the person you are looking to impress is not thinking about you or your fancy purchases. They are too busy thinking about how stressed they are because of all their over spending.

RISE ABOVE THE REST!

SHOW ME THE MONEY

sweetwick — Mon, 02 Nov 2009 15:55:58 +0000

When I first started this blog in July, all I really had was an idea and a lot of drive to learn how this whole “Internet World” really works. It has been so much fun learning how to do things online from advertising, to posting and hosting and such.

One thing I’ve noticed from my blog posts is that successful blogs are those that target a specific niche. What has my niche been? Self Improvement. I believe in it, I learn from it daily, however, I truly feel that self improvement can really be an abstract concept that gets a little hokey for the everyday average Jane. When something is far too “out -> there” then it leaves no desire to be pursued. So…what good is Self Improvement when no Selves are being improved?

Therefore, I have decided to start making my specific niche a little more specific. My desire is to inspire people to think twice about things they view as normal. One area I feel passionately about is …Drum Roll Please…$$MONEY$$.

There are so many mistakes people make with money on a daily basis that they run themselves into financial ruts every day while blaming everyone else out there. If we can educate ourselves a little further and deeper on rules of the money game, then maybe, just maybe, we can begin to get ahead. One step at a time, right?

My goal is for this blog to be interactive. I will post some thoughts and ideas and hopefully you will participate. What if you don’t agree? GREAT! Let’s discuss it! You never know what may come of it from there right?

What qualifies me to write on such a hefty subject? Other than the fact that I hold financial licenses such as: Life Producer, Variable Annuity, Series 6, Series 63, and Series 26 (Investments), and Mortgage Appointment…I simply LOVE to talk about it. I study money from everyone who calls themselves an expert: Books, Magazines, Professionals. I have been in the financial industry for over 7 years and have been able to pick the brains of many many many wealthy people.

But really, who cares about all that. The only thing you can care about is if anything I write on a particular day will be of certain value to you. If it is…GREAT, then I have done my job. If it isn’t, then too bad, come back tomorrow for some more ideas.

Remember…money is a mindset. You will attract to you that which you put out. That is as valid with the money (or lack thereof) in our lives as with anything else. I hope you are all excited about this prospect as am I. Here begins our journey…

GREEN IS GOOD!

Too Much of a Good Thing?

sweetwick — Sat, 05 Sep 2009 23:03:17 +0000

So here’s a question for you: Is it possible to “Self Improve” to excess? I mean, really? There are some incredible resources out there for us to grow and develop ourselves daily. There are PLENTY of these resources. In fact, no one in one single life time could possibly get through each and every item available today, let alone all the other stuff coming out on a daily basis. You have everything from books, magazines, videos, interviews, seminars, etc. Can someone, then, who really loves this stuff, get too much of it?

I know people who self improve. Some more than others. Some feel the need to grow for themselves and other feel the need to “push” their newfound ideas on others. Some change their systems on a weekly basis due to new findings. Some do nothing differently at all. Of course, there are a select few, who actually study what they read, and apply what matters most to them, and you can see positive changes in their lives because of it.

So where is the line drawn? How much self improving can one do, before it really is just doing no good? Before the movie “BEYOND the Secret” (Basically a follow up to “The Secret” that helps you understand how you can actually implement the Law of Attraction into your life) came out, they had a panel discussion with some of the guests on the movie. Leeza Gibbons was the MC at the event and she preluded the evening with identifying several types of people who are interested in this kind of material.

She called one type of people “Secret Freaks.” She tried to cover it up as an endearing term of people who are ‘fans’ of the Law of Attraction and view the teachers as celebrities of sorts. It dawned on me, that she might not be too far off.

I know when I pick up a Self Improvement book, I love it. I eat it up. Everything about the book usually gets me in an emotional and intellectual kind of ‘high’, but then, many many many a times, I put the book away and continue living my life as if I hadn’t read a thing. Sometimes, I make changes, and I guess those are the times it counts.

Quite a few of the people in my life read self improvement material on a constant basis. Some of them can have a full day’s worth of a conversation with you on the subject, and afterwords you would feel as if you’ve met an expert in that field. However, you look at their life and you would be hard pressed to take anything they say with any credibility.

Sometimes I wonder if simply reading and watching the stuff out there gives people that high that gets them excited about the stuff, and they pick up another book just to feel that way again. Not really changing much, but wanting to, keeping that hope alive.

I guess you could be doing too much self improving if all you are doing is self improving. If you don’t take action on the material you learn, then really you aren’t moving in any direction at all. We all know, ‘when you are stagnant, you are dying.’ I think this can happen whether you read two books a year or two hundred. The purpose is to act, to move, to really change from the inside out.

Even though this is one of our challenges as human beings, taking it one step at a time is all we need to do. Change a little bit, day by day, and then look at your life over the course of a year. You don’t have to conquer the world this weekend, that will come in due time. Continue to self improve, but put a little bit of action behind each word you take in, and that is how we’ll truly experience the goals we set out for ourselves.

In the meantime…DREAM BIG!

What is the Thing You Speak of?

sweetwick — Fri, 04 Sep 2009 23:02:23 +0000

Whenever I use my facebook account, I usually like to post quotes of successful people. There are usually a handful of people who comment on them (and a lot of times, those comments are meant as sarcasm).

However, when I post a question such as “What is your favorite movie of all time?” it seems everyone comes out of the woodwork and puts their two cents in.

Why is that?

Why is it that on serious subjects, such that may even have the potential to help you think in a new direction, many people either don’t know what to say, or don’t feel like saying anything? Why is it that when you comment about superficial, everyday activities (i.e.; ‘I’m feeling blah today…’, ‘I’ve got so much to do today’, or the infamous, ‘It’s party time tonight’) that people feel comfortable contributing?

Is it because we as a society find it hard to accept the ability to rise above mediocre thinking? Is it because the effort of commenting on an activity such as movie going or partying is much easier? Or is it simply because we don’t talk enough about changing and growing as we do about the drama in the latest tabloid magazine?

Don’t get me wrong! I love movies, I love drama, I love having fun. I also want to change, and to grow. Finding the balance is what it is all about. We’ll probably die trying to find that balance, too. In the meantime, it would be nice to see more people being concerned with their mental growth as much as they’re concerned with the latest actress’ boyfriend’s sister’s uncle’s babysitter. You know?

The good/bad news is that we cannot change anyone. There is nothing we can do about what others are thinking about, we can only do something about what we’re thinking about. That is great news because, again, it puts us in control. For that, we should always be grateful!

TO YOUR GROWTH!

CARPE DIEM!!

sweetwick — Thu, 03 Sep 2009 23:01:26 +0000

Of course you couldn’t imagine I would even mention the movie “Dead Poets Society” and not write on the illustrious “CARPE DIEM” message! In fact, it is really the most powerful message in history! Seize the day! Live in the moment! Enjoy each breath you get to take!
This message really hit home to me this last time I watched the movie, because I’ve been under a lot of stress lately with the business and life in general. The reason stress exists is because we’re always looking into what will happen in the future. Although planning is a most necessary step in our life, living for the future is not getting you closer to your goals. If you’re always looking to the next day, when you get there, you will not have the time to enjoy it because, you guessed it, you’re already pinning your eyes on the day after that!
This is a quote I got in my inbox this morning from Earl Nightingale. A quote could not describe the message of Carpe Diem more accurately than this one does.

“Learn to enjoy every minute of your life. Be happy now. Don’t wait for something outside of yourself to make you happy in the future. Think how really precious is the time you have to spend, whether it’s at work or with your family. Every minute should be enjoyed and savored.”

~Earl Nightingale
Mr. Nightingale was a profound self improvement master long before DPS was released. Yet, even as old as all these teachings are, we haven’t evolved the part of our brain that easily allows us to bask in the light of this day, the thrills of this moment, or the chaos of our current circumstance.

Let today be a day where you savor each moment. Look at each minute as a gift and be grateful you have breath in you to even concern yourself with whatever challenge you may be facing. Soon enough it will pass, and you will be in a good spot again, make sure you enjoy every second of that as well!

CARPE DIEM!

The RIGHT ANGLE

sweetwick — Wed, 02 Sep 2009 23:00:38 +0000

My favorite movie of ALL time is Dead Poets Society. If you’ve never watched it, and if you really listen to the message, it is a message of change and progression, for if not we stagnate and die. Really, some of the quotes are so powerful, and the example of leadership played by the main teacher “Mr. Keating” (as portrayed by actor Robin Williams) is truly unique and absolutely remarkable. I’ll take this post into two parts, again, not to dilute the lesson it’s trying to convey.

Today I want to write about what I learned again from watching the movie AGAIN (probably for the 100th time). Really, Mr. Keating’s message is one of hope and aspiration. His work is centered around reaching the young minds of his students and implanting them with a desire to succeed, but to be unique in being themselves. One of my favorite quotes is right in the beginning when he says, “You’re in a battle, gentleman, for your hearts and souls!”

That perfectly describes our journey through this life! It’s a battle to keep true to who we are…so very deep inside. A battle that if lost, will loose our beings to the traps of mediocrity and non-achievement. Very powerful if you think about how we’ve been doing in “our” battle up until this point in time.

One of the most famous scenes in the first half of the movie is when Mr. Keating stands up on his desk, and then encourages his students to all take a turn doing the same. His point is to help them see the world from a different angle. A different perspective. He encourages this as a way of gaining new insight and revolutionary ideas in solving life’s challenges and discovering grand opportunities.

I asked myself yesterday, “how often do I look at things from new angles?” Surprisingly we stay stuck in the same mental rut as we always have been, yet expect things to change! (That is the definition of insanity, by the way) Albert Einstein said, “You can never solve a problem on the level on which it was created.” Now if that’s not one of the most brilliant things ever spoken, I don’t know what is. That quote is exactly what Mr. Keating was doing on his desk. By standing up there, you can view the world in a different scene and be on a different level. When we are faced with challenges, whether they be personal, family, or business related, the best way out of them is to look for new angles. Look for a new opening. Look for the opportunity.

Basically, stop focusing on the damn problem! The more we talk about the sorrows we have, the more we speak of the insurmountable obstacles we face, well, then, the more we have those situations come into our life. So let’s implore together to stand on a desk today (figuratively speaking, but if you’re inclined to actually do so, be my guest:o). Let’s look at the way life is going FROM A TOTALLY NEW PERSPECTIVE. What are the possibilities ahead? What are the goals we want to achieve. What is the ideal target? Then let us put our undivided focus upon that end result. Minute by minute until we have come to our planted destination. Worth a shot, right? MAY YOU SORE TO NEW HEIGHTS TODAY!