Yesterday I carpooled with some friends to listen to a financial seminar. I wanted to go with Evan, but he wasn’t able to go with me. He volunteers in our church’s scouting program, and they had a big awards banquet at the same time. Lucky for me, Evan took both boys, and they were fed dinner. It was a nice night out, and I learned some great tips and strategies.
The lecture was free, since it was put on by one of the leaders in the business group that Evan and I are a part of. The speaker that we heard is a multi-millionaire, so I’d say he was pretty qualified to give advice. I think he was disappointed at reactions though. He kept telling jokes, and didn’t get very many laughs. I think everybody was there for some serious learning, so we didn’t come with the attitude of levity. I was amused by the attempts though. 🙂
He gave many tips and statistics, and I didn’t write everything down, but there were several things that stood out to me that I did write down. My favorite was the process to get out of debt. He made a chart on the white board, and filled it with examples. He said that it had worked with everyone he had helped, and it made a lot of sense to me. I will post that chart in our Facebook group if you are interested.
I’m really excited to start the process of getting out of debt with Evan. It can work whether you are buried in debt, or just have a small amount. The goal is to be free from other people owning your life. Collections calls are stressful, student loan mail isn’t exactly on the same caliber as a birthday card, and thinking about interest is just depressing.
He had some other things to say about interest and financing. Financing in general is a bad thing. There are exceptions though. If you truly need it, or it will bring in money later, it may be worth it. If your washer dies, and you need a way to wash your clothes, it may need to finance a washer. If you see a boat you love, do not buy that boat unless you know you can afford it, and you will use it often. If something you own has been unused for 18-24 months, sell it, and put it towards your debts.
He spent a good amount of time talking about small purchases as well. He illustrated a story about a man, trying to straighten out his finances and get out of debt. He was trying to help him, and asked him to write down everything he purchased in a small notebook. What was found was that he bought a chocolate doughnut every morning.
The chocolate was $0.10 more expensive than the glazed doughnut. He told the man, “you will buy a glazed doughnut from now on.” The man replied that he didn’t like glazed doughnuts, and this speaker insisted that from now on, he was a glazed doughnut man.
I thought it was interesting that he didn’t just say to stop buying doughnuts. I thought about it, and realized that it is easier to make a small change, rather than stop a habit. It was also interesting that 10 cents made a difference. Small things add up I suppose.
One last thing that I’d like to bring up is that he stressed to put your business first. Be a cheapskate with everything else, but when it comes to your business it is not necessary. If you will see a return on that money, it makes sense to spend your money on it. Spend money on things that will create an income!
He went over so much last night, but this post is already getting a little long. If you would like to hear more advice he gave, you can always email me at firstname.lastname@example.org, or comment below. I hope you’re having a great week!