The Financial Challenge: Fasting for Success

I know fasting often scares people and the moment we hear the word most of us immediately kick, scream and run in the other direction.  Yet, if you've ever done a fast, you are very aware of the tremendous benefits.  It brings clarity, revelation and breakthroughs that will blow your mind.  In Michelle Singletary's book "The Power to Prosper" she uses a 21 day fast to break poor financial habits and helps get to the root of our financial issues.  She says "The fast is really about curbing the need to consume."  The fact is, if you really want to get out of debt or become a better manager of your money, you'll jump at the opportunity to participate in this 21 day fast. It is because of her book that I am challenging each person that reads this blog to take this fast.  First, I would encourage you to go to www.amazon.com to purchase the book. However, even if you don't, I am going to give you instructions on what you are to do during this 21 day fast.  

I am only challenging you because I did this fast almost a year ago to the day and it has accelerated my debt payoff plan by leaps and bounds.  Most of this information, I won't be able to share until I have reached that goal but trust me when I tell you this fast works.  I mentioned in another blog that the book is based on the word of God but even if you are not a Christian, the principles can be applied and they will bless you in the process.  

Here are the rules for the next 21 days, if you are serious:

1)Only purchase necessities (that means food and gas).  

2)You cannot use any credit cards and you must take out enough cash to cover your expenses for the week.  She even advises you NOT to use a debit card if possible.

3)The food purchased MUST be from a grocery store.  You cannot eat out and you cannot allow someone else to take you out to eat.  

4)You cannot go window shopping either.  That's right, no trips to the mall! 

I would encourage you get the book because she has so many tools to help you complete a budget and daily assignments that I won't do justice in this blog.  I know this may seem harsh but it takes drastic measures for us to go from one direction to the next.  Clearly what we've been doing in the past hasn't been working for us.  If you have a close friend, let them know what you'll be doing and have them hold you accountable.  Let someone know what you're doing so they can support you during the process.  If you plan to take the fast, inbox me on facebook.  I would like to get your feedback during the process and once you're done.

It's time to put some skin in the game!!!!

The Blessing is in the Process

This journey of becoming completely debt free can be a grueling and frustrating process. However, it is through this very process that we are blessed. I remember when I sat down and added up my debts and I prayed that God would just drop the money in my lap. I really did ask for that kind of miracle. It’s funny now looking back. Although God could do it, had He just dropped the money in my lap, I would have learned nothing and chances are I would have ended up back in debt again. Going through the process caused me to look at myself, do a budget and make some HUGE sacrifices. The fact is I prayed that prayer because I didn’t want to go through the process. I wanted the problem to be gone overnight. It is only because I have made a complete commitment to this process that I have been tremendously blessed. The greatest blessing in it all is that I have learned and can share with others. I just put one foot in front of the other and God does the rest.

What’s so amazing about the process is you really learn more about yourself than you do about money! Remember, previously I mentioned that money isn’t the core problem, it is us and our issues that dictate how we manage it. As we learn about ourselves and introspect, it is then we become more powerful and aware that the choices we made in the past were actually made as a result of being in a state of unconsciousness. But now that we are aware of our patterns, we can make wise choices from a state of consciousness (awareness).

After going through this process, I will never do this again and chances are you won’t either. Trust me. It’s been hard but rewarding at the same time. It has taught me an invaluable lesson that I will NOT repeat. I recently heard some amazing testimonies about people who had accumulated $100,000 and $200,000 worth of debt and paid it all off. Now that’s a blessing!

This week, think of at least one person around you that you know is either seriously in debt or their debt is a huge burden upon them. Now, think about how you will be a great blessing to that person once they hear your testimony. If you can get beyond the fact that it’s not about you, it will help you to press through the process. Be encouraged, it’s not about you!

What does your debt/spending say about you?

By this point, you’ve hopefully acknowledged you have debt and are putting together a plan in 2011 to wipe it out. Now, let’s talk about what your debt says about you because it speaks loud and clear, you just may not be listening. Debt, which is a result of spending, is an action that reflects something about your character. I am going to share with you what mine used to say about me and trust me when I say it’s true so don’t fight me on this one!

Let me lay a quick foundation before I proceed. About three years ago I became involved in a ministry called Vertical Leap. It was started by Coach Al & Hattie Hollingsworth. Coach Al is one of my greatest mentors to this day. Coach used to teach us about operating from the “inside out” and not from the “outside in”. Society teaches us to pursue material wealth, outside possessions (ie; riches, cars, men, women, clothing, etc) because they will make us happy. Indeed they do… for 5 minutes, then what? We aren’t satisfied. So we buy a bigger house, a newer cell phone, a better computer, etc. And then we consume, consume, consume and go around in this viscous cycle of chasing things that never fulfill us. This is what he means by "outside in." However, when we are fulfilled spiritually and seek after the things of God (wisdom, knowledge, understanding, patience, love, etc), we can get out of this cycle of spending for the wrong reason because that void that we are trying to fill is gone. Now, it doesn’t mean we may not want these things but we no longer chase them in order to be whole or happy and most importantly, we won’t create debt while trying to get it.

I began to acknowledge how my spending in the past was in direct correlation to my lack of self-esteem. It wasn’t until I heard Suzie Orman mention this that I even realized that money management and personal finances are directly tied to one’s self-esteem. There are always a few exceptions to the rule. However, when I stopped and assessed my personal finances, I was shocked to realize that a large percentage of my money had been spent on shoes, clothing, and other material things. I realized that I was trying to compensate for something that was seriously lacking in my life. And the reason I had to keep buying is because nothing I purchased ever filled the void. Ever! And the same will be true for you. That is if you are buying to fill a void in your life. Chances are you are looking to upgrade to something else because it’ll be better, chances are it’ll cost you more and chances are you’ll get bored with it and repeat this cycle.

It’s the beginning of 2011. I want you to add up all your debts and I want you to go back and look at what you spent the bulk of your money on in 2010. You might not like what you see but how can you possibly change if you don't jump off that merry go round for a minute? Look at your bank account transactions. Once you have done that, be honest with yourself and admit if you are spending to fill a void. Now, spend 2011 focused on decreasing that by 20%. Start small and ask yourself what more meaningful things can you do with your financial resources? Who could you have helped financially if you were a better steward over your resources? After all, we are blessed to be a blessing!

Who's Your Master?

Proverbs 22:7 says “The poor are always ruled over by the rich, so don’t borrow and put yourself under their power”. (Message Version) Another version reads…..”and the lender is slave to the borrower.” (NIV)

I didn’t want to use this scripture but it was the closest thing to understanding the bondage of debt. It paints a picture of what happens once we accept money from a lender. Most of us are so focused on the thing we want, that we don’t stop and count the cost. The point I want to drive home in this blog is the fact that whoever you’ve borrowed money from (e.g., Visa, Mastercard, American Express, Salley Mae, etc.) essentially has POWER over you and to some level is your master. You may think this is an exaggeration but consider this... You get up everyday and work hard to pay off a car note, house note, school loan, credit card bills, etc. and if you don’t pay it back there are serious consequences. Either they’ll take the product back if you don’t pay for it or they’ll ruin your credit. So who really has the power? They do. I understand that we may have to get a loan to buy a car, go to school and get a home. However, why take 30 years to pay off the home when we can put a plan together to pay it off sooner! Or why not start saving more cash so we can pay for large purchases in cash?

There are many people I know that have jobs or careers that they don’t even enjoy but because of the debt they are tied to it. I seriously want you to imagine your life without owing anyone a dime. The problem is we have been programmed to think that debt is inevitable so most, not all, can’t even fathom what being debt free looks like. Just imagine, all of your money going to savings. Or just picture being able to have the freedom to walk away from a career you no longer enjoy in order to take a risk pursuing your passion! Imagine being able to give more to others in need!

This week, I want you to meditate for 15 minutes at least 3 days on what it would be like to be debt free. Write a list all the things you would do if you had NO DEBT. I also want you to take a 3 x 5 note card and write DEBT FREE on it and post it somewhere you can see it on a daily basis as a constant reminder that you can, and you will be debt free!

Taking the first step to freedom!

The last blog I wrote, someone wanted to know my recommendations for financial advisors, books, mentors, etc. It was an excellent question because it's really the first place to start. So, for this blog I wanted to take a step back and give advice on what to do even before you begin the budget. The first thing we must all have in order to achieve anything is a sincere desire and passion for that which we are pursuing. The next important step is to be open to seeking out individuals who have a greater understanding in this area than we do, in other words, get a mentor.

A mentor doesn’t even have to be someone you meet with in person or even know personally. It could even be an author whose work and accomplishments you respect. One of the experts that I have personally sought advice from is George Thompson of Thompson Wealth Management in Culver City, CA. I had the opportunity to serve with him in a ministerial capacity and gained incredible insight on the importance of being debt free. He truly is the first person that really opened my eyes to the importance of getting rid of debt.

The first book I would recommend everyone read is “The Power to Prosper” by Michelle Singletary. I love this book because it covers everything. Seriously, she leaves no stone unturned. She helps you get to the root of the problem. This book is only for those who are serious. You will certainly be challenged but you will also be empowered. This book is based on the biblical principles but even if you are not a Christian, the principles work and will guide you into a life of prosperity. I would then recommend “Financial Peace University” by Dave Ramsey. Financial Peace University is even more in depth but worth every moment of your time and money. Both require serious commitments and really are for people who are fed up with being deceived and controlled by the world’s system.

If you have other books that you have been meaning to read, by all means do so but this week, I would challenge you to buy a book on financial empowerment. Do not hesitate. We are moving into a new year and what better time is there to start getting your finances in order? Let’s make it a priority for 2011!

"The Dreaded Budget"

If I could be financially successful without a budget, I'd get rid of it in a minute and never say that "B word" again! Unfortunately, that's not possible. Every financial expert will tell you this is one of the first things we must tackle. Tedious as it is, it's the roadmap we need to get from point A to point B. Even if you are good with money, you still need a plan and your budget is the key component of that plan. If you are already successful financially, it will enhance your success. For the record, I don't know anyone that is financially well off that doesn't have a budget. I see it as the mechanism that helps create the big picture.

I remember starting a budget and not sticking to it and at times just completely avoiding it all together. I know I avoided it because I really didn't want to focus on the necessary work I needed to do. To be honest, it was just too difficult for me to acknowledge that I had not had control over my money but my money was controlling me. One day, I asked myself that famous Dr. Phil question, "How's that working for you?" The answer was, it wasn't. Yet, I knew that if I really wanted to be completely debt free and financially well off, I had to begin to do the dirty work.

In March of 2009, I finally decided to sit down with a financial advisor and after that meeting I was so stressed and frustrated that I said to myself this has got to change. We looked at all my income coming in and going out and it was very scary. Even with a great job, I still had not managed my money effectively. Because I made the decision to look at it, I am now in a much better situation and should be completely debt free by June 2011. When I met with her, I couldn't see the light at the end of the tunnel, now I am staring right at it. That budget she and I created freed me and I began to continue to make more and more financial sacrifices. This from a woman who could say "no" to anything. Especially a great pair of shoes!

The great thing about a budget is now with technology, there are some awesome tools out there that can help you. I love www.mint.com. Mint.com allows you to see all your financial information in one place. You can set goals for buying a home, planning trips, etc. and see exactly when you'll be debt free(if you have debt). What I love most is you can set budgets for each category and it will notify when you have exceeded the budget. That means it'll hold you accountable;-)

Here are some benefits of having a budget:
1. It tells you what is coming in and what is going out.
2. It helps you make the necessary adjustments.
3. It forces you to look at where you are right now versus where you want to be in the future.
4. It gives you control and discipline.
5. It helps you to tell your money where to go.

Finally, creating a budget is great but without action to back it up, you will not succeed. What can you do today? Try by using www.mint.com or a friend to hold you accountable so you can create a budget and stick to it. Once I got serious about my commitment to living a different life financially, I cut my expenses over 50%. Next week I'll share the areas I immediately cut cost.

Releasing the shame!

"Brethren, I do not count myself to have apprehended; but one thing I do, forgetting those things which are behind and reaching forward to those things which are ahead," (Philippians 3:13 NKJV)

Before I continue with any further blogs, I first want to deal with the issue of shame from our past mistakes. It was shame that took me over a year to start this blog. Shame paralyzed me and in the process, kept me from being a blessing to others. I kept putting it off and putting it off and putting it off. I told myself that I'll start blogging once the debt was completely paid off. And then a good friend told me to stop waiting. That is wasn't about ME. That is why I referenced the above scripture to encourage all of us on this journey. The past is the past! Most of the poor financial choices I made were years ago and because I didn't know any better.

I know I am not alone because I remember as I worked on the Stewardship Committee at my church , all the people in need during the housing crisis but many would not come forward because of shame. Most people could have gotten help sooner but because of the shame, didn't get help. They didn't want their peers to know they had fallen behind on their house note and needed help.

In order for us all to grow during this process, your honesty is needed as well as mine. Once we stop focusing on ourselves, we begin to bless others by sharing our story. Our past is only to be used to help others avoid our mistakes. So, as you comment, don't be ashamed to share your story because we are now moving FORWARD!

I have been blessed to meet Patrick Haas, who will be featured and provide tips to us on how to save, etc. Patrick has had 30 years of experience handling his money responsibly so I want him to bless us with his knowledge.

Kristine Lynn