Just as I thought life was getting back to "normal" things were slightly derailed. Once I have a chance to mentally regroup I'll go into more details. In the meantime enjoy this great guest post by Michael D. from Credit Card Forum.

From past blog posts, I know Mr. and Mrs. NtJS aren’t exactly the biggest fans of credit cards to say the least. I actually run a credit card forum/blog myself, and as ironic as this may sound, I actually agree with most of their viewpoints on them! There are definitely quite a few problems that come about with using credit cards. Today I want to talk about one of those problems that most people don’t consider.

First, let’s rewind back to the 80’s and 90’s… do you remember how little credit cards were used? In the small town I lived in Michigan, I remember grocery stores only accepted cash or checks for payment. In fact back then, the only places that always took credit were department stores and the like. Nowadays it seems that almost everyone takes plastic… grocery stores, doctors’ offices, and even charities. That last one is what I want to talk about, let me give you an example…

A while back I read a book called the The Hole in Our Gospel: What does God expect of Us? It’s written by a man named Richard Stearns, previously a “jet set” CEO who ended up becoming President of the Christian charity World Vision, initially against his own will. In a nutshell, this raw and brutally honest story is a must-read for everyone and the message is so powerful that World Vision is now my favorite charity. But what does this have to do with credit cards? Let me explain…

Since reading the book, I’ve been sponsoring a child through World Vision. I have this amount automatically charged to my credit card every month. In addition, the bulk of my giving is made to their general fund, another amount which is charged to my card. Now this is a very efficient organization (a very important criteria for me when giving) and while reviewing their most recent annual report, here’s how the numbers break down:

For every dollar:

• 89% goes directly to the programs
• 7% for fund raising costs
• 4% for administrative/management/general expenses
  

Now that’s pretty impressive… only 4 percent goes to actually running the organization. But what about that second number, the 7 percent? Make no mistake about it, that is an extremely low amount to pay for fund raising regardless, but what if everyone used checks instead of credit cards for their donations? How much lower would that fund raising number be? Because yes, unfortunately the credit card companies don’t even give charities a break… they still charge them those pesky processing fees.

Now I’m not an expert on credit card (interchange) fees, but according to Wikipedia the average is 1.79% in the United States. That means 1.79% of transactions goes to the credit card company. I’ve been using my Chase Freedom card, which is a rewards card, and those typically carry a fee that's even 0.30% or more higher. So according to those calculations, probably around 2.09% or more my giving to World Vision is being eaten up by Visa and Chase Bank. It may not sound like much, but if you take 2% of all their credit card donations, that ends up being a lot of money!

So what’s the lesson? I definitely need to use the check book from now on. If every one of their donors skipped credit cards, just imagine how many more people could be helped… with the same amount of money given! Of course at the same time, I do realize there is a “convenience factor” of credit card giving that may bring in some money from people who normally wouldn’t give because of the “hassle” of writing a check (and obviously a 98% donation is better than none at all!) but for everyone else, please don’t be lazy… use your checkbook and your money will go even further.

About the Author: Michael is a forum moderator and blogger at CreditCardForum.com, which is a website for credit card reviews and discussions. Although he’s fanatical about raking up his rewards, he does acknowledge that credit cards truly do have a lot of drawbacks, are definitely not suitable for everyone, and can lead to nightmares if a balance is carried.

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Life is full of scary things. Even as an adult there are just somethings that seem scary. One of the biggest ones for me was taking the plunge to stay home full time with my kids. Just the thought brought so many scary ideas to my head. What if the Mr. lost his job? What if we can't live on less then half our current income? What if I want to go back to work but can't because I've been out of my field to long? Even with all those scary thoughts running through my mind all's I could think about is how different life would be if I could just stay home with my babies. If I could just be there for when they needed me. If I didn't have to miss all of their firsts. Needless to say, my motherly instinct kicked in and I kicked my fears to the curb.

We have successfully lived on my husbands income for over 3 years now. It has been one of the best decisions that we ever made. However, if we had not carefully planned it out it could have been the nightmare I feared.

Here are ten steps to take the fear out of living on one income.

1. Plan ahead of time- Like most things in life it takes time to work out all the kinks in the plan. On average it takes 6 to 12 months to fully implement the changes and take the plunge.
2. Unified Dream- The most important key to making this dream happen for your family it to make sure that you and your spouse are both on the same page. It truly takes a team effort to cut the expenses and make such a drastic lifestyle change. If you spouse is not on board then it's not going to work no matter how hard you try.
3. Evaluate- Take a hard look at why you want to stay home. Is it because you want to be there for your kids 24/7 or is it because you really just don't want to be at work. If your reasoning is more on the job side then you might just need to find a new job or career.
   
4. Make the cuts- This is the toughest step. It's time to sit down and make the cuts. Looking at your budget together as a couple you need to decide what stays and what goes. Vacations, kids sports, new clothing, and eating out are the main things that go when you start to make the harsh cuts. It's important to do some practice budgets on paper to make sure that the math will add up.
   
5. Have a plan- What are you going to do at home all day? LOL, It's never boring around our house but I have friends who could not handle the "isolation" of staying at home. Make sure you have a plan for your time. Think about what you can do at home to save your family money (coupon clipping, sewing, gardening, garage saling, etc) as well as ways to get out of the house with your kids (story hour and play groups) during the day.
6. Support Network- This might sound odd to some people, but its a sad fact of life. Not all working moms will want to continue your friendship. Everyone has their own reasons, but a lot of times your working friends will fade away or you will want them to because of their criticism. Make sure that you start to surround yourself with people who support your decision. It will make your life much easier once you take the plunge.
7. Check into the Details- Double check things like health insurance, taxes, investments. All of them will change as your jobs and income levels change. Make sure to include these changes in your practice budget.
   
8. Debt Free- Some people are going to say that this is not required but in my book it is. It's hard enough to work your way out of debt with two incomes, do you really want to try to do it on half the amount you were living on? Unless you did the math and you were losing money by working, focus on getting out of debt so that you can realize your true dream. It will help you to become gazelle intense when you realize that the debt is keeping you from your kids.
   
9. Emergency Fund- Before you turn in your notice at work make sure that you have a fully funded emergency fund. It will help you to enjoy being home with the kids. If you don't have one you will be constantly worried about things like hubby losing his job, a major car breakdown or a house fire.
   
10. Trial Run- You have done it. You have walked through the first 9 steps and now it's time to give it a try. Minus childcare expenses and other expenses that you are incurring solely because you work sock away the rest of your income in a savings account. Test it out to see if you can really life on just one income for 3+ months while saving the rest. If you can do it then you are ready to make the switch. If not, then you need to take a hard look at why it's not working for you and make some adjustments to the plan.
    

These ten steps might seem tough but they will pay off big time in the long run. The day you get to stay home with your kids will be pure joy without fear weighing you down.

Does your family live on one income? What advise do you have for a family thinking about taking the scary plunge?

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In the past, I've talked about my affinity for Consumers Union. I've also made no secret of my criticisms of CU. As a subscriber, CU dropped me this little note the other day. Titled "Unbelievable", I thought it would be pretty important to read. I was a tad surprised by their misguided request.

Dear Mr. Not the Jet Set,

It was unbelievable the first time the credit card companies jacked up our interest rates, doubled minimum payments and tacked on huge fees to try and beat a new February law that will end many of their abusive ways.

Now, they're at it again, and getting even more creative — but with your help, we can stop them cold!

Thanks to a huge outcry from American cardholders, the House just passed a bill to freeze interest rate hikes on your card balances, and give you new protections starting Dec. 1 — just in time for the holiday season. Now, we need the Senate to do the same!

E-mail your Senators right now to stop the rate increases — we can't afford to wait!

This continued attack on your wallet is no accident. A major credit card reform law goes into effect in February. The card companies begged Congress to delay its implementation so that they could "update their systems" to comply with the new law.

But instead, they've spent the time hitting you with new tricks — like a fee for paying off card balances each month. Or variable rate cards that only "vary" if interest rates increase, but don't give you the full break if interest rates drop in your favor.

If the companies can retool their computers to accommodate these tricks, there's no reason they can't abide by the new rules right now. After the recent bipartisan House vote, we have real momentum to stop these abuses. Now the Senate must hear that we can't afford the credit card company tactics, especially with the holidays approaching.

Tell your Senators to stop the rate increases and implement reforms NOW!

After you e-mail the Senate, please forward this to anyone you know who is fed up with these tactics. We have immense power when we band together — let's put the pressure on now!

Sincerely,
Jim Guest
President, Consumers Union

Well, Jim, I have to say, "No". Thanks, but no thanks. I for one will not be contacting my Senator on this initiative. While I don't agree with these incredibly anti-consumer practices, I also feel strongly that Consumer's Union is barking up the wrong tree here.


Legislation is not the answer
These snakes have shown again and again, that they can and will find a way around. They have more lawyers than you can imagine. They will find the loophole, and they will exploit it. The CARD Act of 2009 is a perfect example of two attributes of the credit card industry:

1. Their incredibly powerful lobby that bought them the time to run wild on consumers. Everybody knew that Congress gave them far too long to comply - their actions should come as no surprise.
2. Their insatiable thirst to screw over consumers. Too harsh? Hardly. These companies are not here to help. They are not here to provide a valuable product or service. They have made it very very clear, again by their actions, that they are simply out for your money.

Even in prior acts of Congress on fair debt collections and reporting, they have found their ways around it, and have carried on business as usual. Legislation is not the answer.


Congress, dare I say, has better things to do
In the United States, we have:

• A bloated tax system that penalizes those that save and succeed
• A health care industry that's on par with credit in terms of abusiveness to consumers
• A social security program that we all pay into, and yet stopped making sense decades ago

Not to mention a global war on terror with fronts in Afghanistan and Iraq. Far be it from me to stamp my foot and tell Congress to step up and fix my credit card.


There is a better way
Stop waiting for Congress to fix your problems. As we see with CARD 2009, they didn't quite get it right. Why would we expect their next action to be any more competent? The best thing for consumers to do is to take matters into their own hands. 5 years ago, we opted out. We stared down their offers of points and rewards and said thanks, but no thanks. We shredded those cards and never looked back.

So, Jim, I have to say that your plea for help has fallen somewhat on deaf ears. We've already solved this problem. We 'voted with out wallets' and took these snakes out of our lives. Consumers needn't beg and plead, dreaming of a day of rose tinted credit cards. Pink, puruple, orange, black or green - they all go through the shredder the same. I do wish you well in your fight. We simply have no need to fight this battle.

What's your take? Is this a problem that you think the government should handle? Or is it better left to consumers to handle?

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It's open enrollment time at my employ, and while the Mrs and I are decided and done, it seems that most folks have hardly logged on. Since we're going through the second major plan overhaul in 3 years, people have TONS of questions and no clue as to which one to choose.

The Providers and their vague presentations and explanations have come and gone and folks are still sitting around at lunch saying, "I don't know what to pick." Now, I don't intend to demean these folks. Modern health care is quite complicated and an incredible amount of responsibility is in the lap of the consumer. This is a difficult and important decision - more now than ever.

My response, usually starts with, "Here's how we decided..."


First, a little backstory:
We have two options for employer sponsored health insurance. One plan is like a PPO, but they have added some hoops to jump through. The other is an HSA. To make this decision, you really need to know three things about the plans:

• The Deductible (the amount you are responsible for before the insurance actually kicks in)
• The Premium (the amount that you kick - monthly, yearly, whenever)
• The Out-of-Pocket limit (the co-insurance amount you are responsible for above the deductible)
  

Here are the numbers for our plans (these are for employee and family):

PPO		HSA
$1,000	Deductable (per yr)	$4,000
$X + $70	Premium (per mo.)	$X
$4,000	Out-of-Pocket Limit (per yr)	$4,000

For this example, you can assume that most other details are equal. As you can see, the PPO has higher premiums ($840 per year), but the deductible is $3,000 less than the HSA. The out-of-pocket limits are the same, making that part irrelevant. So what does all this mean? "Well, here's how we decided..."

For two years running, we've hit our out-of-pocket limit in April or May. Lately, we've been what they refer to as 'heavy users of insurance'. We don't have chronic ailments, but we did have a baby last year. And this year, we had 3 ER trips. the net result of 2 busy kids and 2 active parents. We're healthy people, but lately we've been quite accident prone.

Really, each employee has to make a gamble. either we choose the PPO and plan on using up the low deductible, or we choose the HSA and hope hardly see the doctor all year (thus taking advantage of putting in less per month). While we like the idea of rolling over unused HSA funds to the next year, so far that hasn't been a reality.

We chose the PPO.

Is it right for everyone? Definitely not. A greater difference in the premiums would make the HSA more attractive. This is especially true with a fully-funded emergency fund. We could use it to cover $4k in medical expenses, but that also means that the EF would be depleted and not able to be use for other emergencies.

What has your experience been? Does the HSA work for you or your family?

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Before you read this post please read my disclaimer below:

I'm by no means a biblical scholar or a theology teacher. What I do know is that you have to read the bible, think about how it would apply to today's world, and look at what your specific faith teachings/ interpretations are for that specific bible verse, parable, or allegory. Please discuss this topic with your own Priest or Pastor if you want a clearer outlook from your faith's perspective.

Okay, On to the post.

Last week I posted about my view of Suze Orman's advice to married couples. I knew my stand would be controversial but most of the time following God's will is not the path of least resistance. Because of that I did get some feedback from readers that didn't see things my way and that is just fine. I don't expect everyone to see the world the way I do. If I did then life would be boring and I'd never learn anything new. However, one commenter did ask where in the bible God said that we should have joint accounts. I felt like answering that question in the comments would not give it the full justice that it deserves.

Here are some of the places in the bible that I feel address this topic of having unity in your financial lives as a married couple.


> Gen 2:24 "Therefore a man leaves his father and his mother and cleaves to his wife, and they become one flesh" By one flesh it means that you have one set of hands, eyes, ears and so on. If you are to truly be one you would have to truly say what is mine is yours and yours is mine. We share everything we have, including money.

> Mark 10:9 "what therefore God has joined together, let not man put asunder" If you are not let anything get between you that means more then a job or another woman. It means the kids, politics, and money too.

> 1 Corinthians 12:4-7 "Now there are varieties of gifts, but the same Spirit; and there are varieties of service, but the same Lord; and there are varieties of working, but it is the same God who inspires them all in everyone. To each is given the manifestation of the Spirit for the common good." It's rare that both spouses are financially savvy. It's also rare that they both have enough free time on their hands to do double the work. God gave us each our own set of talents and as a married couple you are to share them as "one flesh" not withhold them from each other. My husband is good at hanging pictures, I'm not. He hangs all the pictures in the house even the ones I want hung. I'm good at sewing, he would probably sew his fingers together. I mend all the clothes in our house. We share our gifts for the common good of our marriage and family.

> Proverbs 15:22 "Without counsel plans go wrong, but with many advisers they succeed." Two heads are better then one. If my husband and I both look at all of our money together we can make better decisions together. As a parent I want to make sure to include my husband on issues of raising our kids. If we discuss and agree on a parenting method (like sleeping habits of the baby) then we are much more likely to succeed by working together vs. each trying our own method which would confuse the child. The same goes with our income. We put all of it together and decide together what to do with all of it.

> Proverbs 31:10 "An excellent wife, who can find? For her worth is far above jewels. The heart of her husband trusts in her, And he will have no lack of gain. She does him good and not evil All the days of her life." Trust each other. Have faith in the other person. You are on the same team so act like it! If we as a married couple can trust each other we will have no lack of gain. If you spouse should be worth more then jewels and your heart is to trust your spouse, why then would you not trust them with joint accounts?




As a Christian the ultimate marriage to look up to is that of Christ and his bride, the Church. So I ask myself, "What would Jesus do?" Would he not fully share his money with his spouse?

Outside of the bible specifically most if not all Christian teachings do say that you should have shared everything. The most known Christian personal financial teachers all say it too. Including Dave Ramsey, Larry Burkett, and Phil Lenahan.

Another thing those same PF gurus will teach you is about communication in a marriage. Something most marriages need more of. Clearly, in the case of Jon and Kate Goslin, they needed more communication - not less. Separating your finances is simply a brick wall for communication - a place for spouses to hide their spending sins. Joint accounts takes your marriage in the opposite direction to a place called unity. My husband has full knowledge of the amount of money I spend on my garden and on sewing projects. I'm fully aware of how much he spends on his tools and other stuff. It's okay to spend money on things that only one person enjoys without feeling ashamed or the need to hide it from your spouse. It's just apart of having a mature and selfless relationship.

On a personal note, while we never had separate accounts, we were not always on the same page about our finances. I can assure you that this did not do us any favors in maintaining a healthy marriage. He spent and I got upset. I spent and he had no clue. Hurt feelings, confusion, blaming.... maybe you've been through this too? But since we got on the same page, since both of us agree on our spending before we do it, since both of us understand our common goals as well as our personal goals, we now have this incredible unity in our marriage. There's no ambiguity, and we love it. The more open and vulnerable we become to each other the stronger our marriage and finances become.

So how are the accounts arranged in your marriage? How does it correlate with your faith and it's teachings?


Feel free to join us tomorrow for Two Cent Tuesday!

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There's been a lot of discussion lately on credit cards and debit cards (as if it ever really settles down). After several great discussions and debates, I ran across a string of posts from the Consumerist - one of the few consumer advocacy blogs. The articles were interesting individually, but more compelling as a body of work.

Hit the link below for a summary of this collection and a little reminder for those of us who have taken the plunge and gone credit card free.


From "Consumers Pay Down Credit Card Debt for 11th Straight Month":

The Federal Reserve has released data on consumer debt for August, and for the 11th month in a row we've paid down credit card debt and increased savings. Take that, rate-hiking credit card companies!

Great, right? For many millions of Americans, this theory of 'just pay off the balance each month' panned out to be little more than just a nice theory. The reality was credit card debt, and we also know that the leading causes of that credit card debt is due to a loss of income and/or medical expenses, not uncontrollable spending.
_____

From "Man Puts Deposit Down On Used Car, Backs Out, Can't Get Money Back":

Back in April, Nait put a $500 refundable deposit down on a used car, then decided he didn't want to buy it anymore when he found it needed $10,000 in repairs. Five months later, neither the dealership nor Capital One, will refund his money. He gives a blow-by blow here.

So much for credit cards being that magical line of defense between the consumer and a shady business.
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From "Ending The 0% Balance Transfer Era":

Ah, the glory days of American credit cards. When your credit card's interest rate went too high, you could find a different card with a deliciously low promo balance transfer rate, and revel in your low interest. At least, until you let the card sit idle too long or made a late payment, and then started the cycle over again. But no more.

The first comment here is also of note:

I've never found a balance transfer that would help my wife and I spend less and/or pay off quicker. Has anyone found a good way to do this that doesn't involve a balance transfer?

Right, and you never will. The balance transfer can only be effective as a temporary band-aid on the hemorrhaging that is your money. It may stop the bleeding, but yet hasn't solved anything. Want to spend less, and/or pay them off quicker? Close 'em, Shred 'em, and Forget 'em.
_____

From "BofA Pledges To Stop Raising Credit Card Interest Rates":

The AP reports Bank of America has promised to stop jacking up interest rates on credit cards with fixed interest rates. But that doesn't mean your rate won't jump.

Sounds a lot like previous promises to stop beating their wives abusing customers. No, no - I'm sure they mean it this time.
_____

From "Help! My Credit Card Is Adding An Annual Fee!"

Michael is in a situation that we anticipate will become very, very common in the coming months. His credit card company has imposed a $99 annual fee. He can accept the fee, or close his account. Not only is this his only credit card, but it's the oldest credit line he has, so closing it would hurt his credit score. What would you do?

You guys are just pitching them underhand.... that's an easy question - Close 'em, Shred 'em, and Forget 'em.


So those 5 recent posts, as I said, make for a compelling body of work. How so? Think about it this way:

If you have no credit cards, then none of this has any affect on you. Any of it.

The first is nice to hear, and even nicer not to be participating it - or even capable of participating in. Of the many things credit cards claim, simplicity is not one of them.

Just a reminder...

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Step One: Listen to Suze Orman

Step Two: There is none needed after step one.

Does that seem a little harsh? I don't think that it does. It actually took me several days to calm down enough to write this post. Last Friday I was watching the Today show while folding laundry. It's the one time I actually watch TV. Anyways, on comes Suze looking like she just rolled out of bed with a hoodie on and her hair not done. I usually don't judge people by their looks but come on, your on national TV. Matt proceeded asked her about what couples should do with their money so that they don't end up like Jon and Kate (I guess Jon emptied their bank accounts before he moved out). What is her wise advise?



Don't trust your spouse from the beginning. The preacher didn't REALLY mean "and now you are one". And if you are a stay at home wife you must feel like a little child asking her daddy for her allowance. How in the world does any of this advise make for a strong marriage? I can tell you right now that if we didn't have joint accounts on everything along with 100% open communication about our finances I would not feel comfortable staying home with my kids. I also would never fully trust my spouse. How could I if he doesn't fully trust me?

On top of all of that depending on what state you live in your death could cause even more financial stress then the emotional stress of losing a spouse. Right now we are "walking" with a widow from our church who is suffering. She lost her husband last month unexpectedly. Because they had bought off on bad advise like Suze's she didn't know what type of financial stuff was going on in her husbands life. It turns out that he had a mountain of credit card debt that she didn't know about. She didn't even know he had the cards.

Right now you are probably thinking so what? She isn't liable for his debt. You are right, but his estate is. Their home as well as their paid for cars where all in his name since they could qualify for better rates that way. Now she is looking at losing everything they had work for. Along with the home they raised their 12 kids in.

If they had joint accounts she would have known what was going on. She would have said "No thanks honey, I don't NEED a new coat this winter." She would have made different decisions. He would have been held responsible for his actions as well. Living two seperate financial lives in marriage only caused their family extreme pain and suffering after his death. She lost her husband and her whole world. She is now faced with moving out of state to live with one of her children because she has no home.

If that is what you want your future to be then go ahead and take Suze's advise. Have separate accounts and just one "monthly shared bills" account. For me and my household... We will serve the Lord. We will be one in marriage. We will make all of our financial decisions together in an open and honest way. We will give, spend and save while keeping in mind that we are called to be good stewards of all God gave us. Because really, it's not ours to begin with! Why hide it from our spouses when we are called to do just the opposite?

And by the way, if you work for the Today Show I'd like for you to know that was the last time I will watch your morning show so long as she is a guest on your program. I'm sure that some of your competitors have better experts on their show. I mean really, can't you do better then a never been married lady in a hoodie, with bedhead giving out serious marriage financial advise?

You can view the follow up post based on the comments below at this link.

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Microfinance is rather broadly defined as

"financial services for the poor or low-income"

This definition includes say... a community-based savings bank in Cambodia. The intent of such banks was to serve those that traditional banks could not or would not reach. Not going to find B of A there any time soon, and thank God. In more recent years though, this theory has taken to the web and spawned several microcredit services. Kiva, MicroPlace, and Prosper have all popped up and attempt to take advantage of the poor fill a niche.

Previously, I've payed almost no attention to any of these. As you may have gathered by now, we're rather debt-averse. I know that Kiva and Prosper were all the rage three or four years ago. People helping people. What's wrong with that? Well, it depends upon your definition of help.

What got my attention, was when a group at church discussed doing microfinance as a part of social justice. hmmmm....


The group, just finished with their 30 week Bible study course, was looking for ways to put what they had studied and discussed into action. That's great - prayer and Bible study should lead to more action. Then she hits us with this:

"We're also looking into microfinanace - where we can lend as little as $25 to help people in third world countries"

There is so much wrong with that short statement that I nearly fell out of my chair.

First - as a Christian, I'd direct you to Proverbs 22:7 which states that the rich rules over the poor, and the borrower is servant to the lender. I love it when God just tells it like it is. Are we looking to enslave, or empower?

Second - The Bible never uses debt to solve a problem. So why do we assume that lending = help? No one would disagree with helping those less fortunate, but how is this the solution?

Third - If we are really interested in helping these folks, why - as Christians - would you not just give them the money? If the money is truely the help they need (debatable), then why demand repayment and charge interest?

Now, the person presenting the idea is a sweet lady, and I was not about to overturn her table over this. Nor was it really the time to critique this or the other ideas being presented. So I chose to focus this on my inside voice.

Am I over-reacting? Or is it really as crazy as I think it is?

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Behind on bills? Debt piling up? Facing foreclosure? For many Americans in these situations, one of their biggest concerns is protecting their credit. Which is sad. At a time when you should be more concerned with feeding your family, producing an income, keeping your house, and hanging on to your marriage, instead their head is wrapped around a three digit number. Perhaps this is a good time to review exactly what your credit score is NOT - a measure of winning.

After the jump, we'll review 4 things that don't affect your FICO score.

1. Income - It seems so basic. An almost indispensable measure of ones ability to pay a bill. Yet when assessing your ability to do just that, a cable company or mobile phone provider isn't looking at that. For all they know, you may make $100k per year, or be unemployed. A FICO score does not reflect that. Six figures is trumped by three.
   
2. Investments - As much as you income is not considered, neither are your investments. $50k in mutual funds? Not nearly as important as that phone bill that got sent to collections 5 years ago.
   
3. Savings - Ok, ok, investments aren't exactly liquid. Are liquid assets weighed as a part of your score? Emergency funds? CDs? Money Market accouts? No way.
   
4. Net Worth - The no-holds barred measure of financial success. What you own minus what you owe. As Dave Ramsey often discusses - he has no FICO score, he hasn't borrowed money in so long that Fair Issac cannot calculate a score. He's a multi-millionaire. He can't rent an appartment at that complex down the street. He could cut a check and buy the entire place, but they wouldn't rent to him.

No one would dispute the importance of these 4 things. The 4 most important considerations in assessing your financial well-being. And yet none of it factors into your FICO score.

So what does that tell you?

It has nothing to do with your financial success. It simply shows your history of making payments and your willingness to stay in debt - your creditworthiness. Stop worrying about it. Stop stewing and fretting. Stop borrowing money and you'll find how little your FICO score matters.

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Occasionally, as a personal finance enthusiast, I'll read a blog post or two that make me realize that blogs are really just a digital form of water-cooler talk. I read one the other day about how gosh-darn important FICO scores are to every aspect of your life.

I hate FICO scores.

Let me rephrase that.

I hate posts about FICO scores.

That's a tad more accurate. But why? I'm glad you asked. My issue is not due to my own negative experience with FICO scores. Not because of the inappropriate ways they are abused by various industries. No. My issue is that 99% of the information you'll find about FICO scores falls into one of 3 buckets:

1. Lies
2. Myths
3. Half-truths

What's the difference? Lies are when you know the truth and say otherwise. Myths are when you don't know the truth, but for some reason you're still talking. Half-truths are when you fall jut short of lying by giving enough information to still be misleading. Without judging my fellow bloggers, writers and commenters, let's look at the other side of some of this mis-information floating around.

1. Your FICO score can affect your ability to get a job. Absolutely dead wrong. This is a sure sign that whoever you're talking to doesn't know the difference between a credit score and a credit report. Some employers will request to check your credit report - a detailed list of your financial reputation mostly focused on debt repayment and timeliness with bills. This is typically done when the job entails some sort of financial responsibility, which gives them every right to want to know how you handle your own finances. Now maybe there is some niche industry that can somehow gain value from assessing candidates by reviewing credit scores. I don't know who it would be. If an employer wants to review your credit score as opposed to a credit report, then turn and walk out the door - they are idiots.
2. Your FICO score affects your ability to buy a house. Wrong again, though it may limit who you can work with. Before the days of automated underwriting, lenders used to do this magical thing now known as manual underwriting. Some lenders will not offer this service for home loans as they are far too lazy to go through the process. If you have a low score or no score at all, then according to FHA guidelines, you can override the automated system by proving that you have payed your landlord and other bills on-time or early over the past 12 months - 24 months is even better. They will also look at things like your employment, income, and assets. Three things not necessarily considered in automated underwriting. BTW - it was that fun-loving Freddie Mac and Fannie Mae that championed auto-underwriting. What does that tell you?
3. Your FICO score affects your ability to rent an apartment. Yes and no. There are many apartment communities that do not allow the management staff to use their brains. They are reduced to submitting a leasee's information for a credit check and not even getting back the score, but rather letter grade based on the score. (You're going to start to notice a trend here, but these sorts of things should tell you a lot about who you are dealing with.) Often times, these are the apartment communities that look more like a resort than a home. There are no shortage of landlords out there who are more interested in the person they are renting to than a three digit number.
4. Your FICO score affects your insurance. At some point in the 1990's, insurance companies conducted studies that associated FICO scores with the likelihood of filing a claim. This would fall under the heading of 'Non-Traditional FICO score uses'. In fact, Consumer Reports has found that the insurance industry has "no standards, little disclosure" when it comes to insurance scoring. Consumers Union has been urging legislators to ban it's use for years, and you should do the same.
   
5. Your FICO score affects your ability to get utilities. Ummm.... yeah. A bad FICO score could mean you have a poor history of paying bills on time. Thus, your local water utility may require a higher deposit, but you can still get service. Cable and cell phone providers may turn you down altogether. But then again, you don't need cable or cell phone and if for one reason you think you do, then maybe that's a good motivator for you to clean up your act.
6. Your FICO score affects your ability to open a bank account. We're almost crossing the line into fear-mongering here. It has been reported that Citibank runs in-depth credit checks before granting a request for a checking account. Funny - they are strict about checking accounts that contain your money, but require little more than a pulse to issue a credit card (and even that may be optional)?! So what is your first hint that you shouldn't be doing business with Citi? Or for that matter, any of the other mega banks?
7. Your FICO score can affect your personal relationships. I'm no dating expert, but I've never heard of anyone requesting a credit check before a date. Facebook friend requests? Nope. LinkedIn contacts? Nope. Now don't get me wrong, if you are in a serious relationship and considering marriage, money and finances are a subject that you need to discuss and be in agreement on. Even still, your current financial behavior should be more important than a score. And if you start to sense that money is more important than the mate, then it is definitely time to move on.

So did you see the trend? Those that place a high value on a credit score are not using their brains. They are not people that you want to do business with. You don't want to live in their apartments, work for their company, have money in their bank, and you don't want to date them. Many people fail to realize that the way of the FICO is in fact not the only way. In several areas, it is the default way, and many times if there is a semi-intelligent manager around, you can be considered as a person - rather than a number. Remember - your FICO score does not consider:

• your income
• your assets
• your investments

And if you still have questions, see our post on the difference between credit scores and credit reports.

Take charge of your life. Your FICO score only determines your life if you let it.

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Many of you are likely saying, "Rabbi Who?!"

Read on.

Some time ago, the Mrs and I were taking a rather lengthy road trip to a friend's wedding. Knowing it would be a long and tedious drive, I loaded up a stockpile of Dave Ramsey Show podcasts for the trip. The podcasts are typically the first hour of broadcast, and the theme hours including guest speakers are typically in the second hour - which sucks for cheapskates like me, who are unwilling to pay for all 3 hours.

One show in particular did not fit that mold. Dave was doing a full three-hour show with Rabbi Daniel Lapin as his guest. The fun part about Dave's show is that that he's more financial guru than radio host as he originally introduced him as "Daniel 'Rabbi' Lapin" as though he were some kind of boxer. What's even better is that Dave can laugh at himself and correct his own error.

In the show they discussed the Rabbi's book, Thou Shalt Prosper, as well as took calls with both giving responses. It was quite entertaining to hear the two perspectives on each topic. The Rabbi gave a brief synopsis of his book and discussed a few of the concepts covered in it. The book examines:


• Why Jews throughout the ages flourish economically
• How you can benefit from this Jewish wisdom
• What "being in business" means, whether you're flipping burgers, a professional or a CEO
• Why you should never retire

The Rabbi himself described it as the only time in history when the removal of a small piece of skin could turn bigotry into science. I could tell that I was going to like this guy, and needed to find out more. I knew that I needed to read his book (still on my list!)

One of the concepts from the book that he discussed was Candles vs Cake. He described how some folks view money as if it were like cake at a party: There's only so much of it, and if one person gets too large a slice, then others, by definition, will get less or none. In personal finance, this works to their detriment, holding them back from even believing success is possible. Others, more correctly, see money as if it were the candles on the cake. Like the flame on one candle, money can be spread around to benefit many. One candle with a large flame does not imply that others will go unlit.

This is an amazing analogy once you realize how right he is. Take today's economy. Shopping at a local retailer, means that shop owner has more money to buy a new sign out front, which gives work to the local sign maker, which mean he is buying more materials from the paint supplier and lumber yard, who can now afford that part-time help.... and on down the line. None of them are harmed by the transfer of money from one to another, but rather all benefit little by little.

Anyone read Thou Shalt Prosper? What did you think?

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Here at the NtJS ranch, it's no secret that the Mrs. handles the majority of our finances. She prepares the budget, handles most of the shopping, pays the bills, and generally keeps us heading in the right direction. Not that I'm not involved, but she is clearly the point person.

Recently, the Mrs. handed me a stack of papers. It was the latest statements for our investments. Through everything else she does, she just doesn't have the time to decode the statements, and keep on top of each account. This one she was going to defer to me.

That night, we reviewed each account and attempted to decipher each statement. And there is a lot to go through. We have my 401k, my SEP IRA (rolled from a previous job), my Roth IRA, her IRA, and 529s for both of the kids. While doing this, we made a shocking discovery that I'm still not sure if I should be happy or madder-than-smoke about.


The first pass I made in reviewing each statement was, "What is this invested in?". Which is exactly what I asked the Mrs. while reviewing her IRA statement. She wasn't sure as she had rolled her old 401k to the IRA and had told the custodian to transfer the money to the same funds.

Now to her credit, the Mrs. spent months getting this one sorted out. Our custodian's (former) assistant was dropping the ball big time, and not getting things done. In the end, we were happy just to have the money in the correct account! After that, we didn't pay much attention. Well, with that kerfuffle and the change in personnel, our request slipped though the cracks! Until last week when I asked the Mrs., "What is this invested in?".

The answer is: nothing.

For about 2 years, her IRA funds have sat 'unplugged' in a cash account. I still find it difficult to believe.

I'm mad about it because - this is a huge goof on the custodian's part. How could you let this slip and just not invest the money!?

I'm happy about it because - that sizable chunk of change missed out on that 40% hit that most funds took last year.

Since then, I've been scrambling to get on-line trading set up for the account and research mutual funds on the open market. Mutual funds are on sale right now, but many are rebounding so I don't want to waste time.

As for the other accounts, I have a handle on my 401k and am quite pleased with the funds I've selected there. The rest are invested, but appear to be in managed accounts that we don't control. That's about to change, but not until I get this IRA invested in something.

How do you manage your investments? Any tips for staying on top of all these accounts?

image from WST-Broker

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A few weeks ago, the Mrs. had a nice post about opportunity cost - what it is and how we account for it whether you realize it or not. Also, I had a post last week about robbing the car replacement fund to put the money towards the new roof. This post will tie the two together nicely.

My sister-in-law and her husband were visiting the other day. Her husband and I were in the driveway coincidentally talking about our roof, when the Mrs. Comes outside with the phone and asks, "Do we want to buy Mom and Dad's car for $6500?"

"Sure...." I said


".... if we had the money."

Her parents had bought this car used a couple years prior - a Volvo wagon. It was still in great shape with a lot of life left in it. Besides that, it is a pretty sweet ride (for a family car / wagon) for $6500. At the time, they settled for this car since the one they really wanted just wasn't available. They live on a farm and wanted a diesel car for both the mileage, and the fact that they buy diesel in bulk for the farm equipment.

Well, with updates made to meet newer diesel regulations in the US, the car they wanted was now available. But the dealer was only willing to give $6500 on their car. Good farmers are also good business men, and he would rather sell the car to one of his kids for that amount, than let the dealer steal it for that amount.

A very generous opportunity, but we both had to turn it down. We had made our choice - the cars will have to wait and the roof comes first.

What opportunities have you passed up due to needing to put your money elsewhere?

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Now I'm not hatin' on Kevin and his post, but wow, check this out.

The Discover® Student Card is our top pick for student credit cards
because it has an excellent rewards program, a fairly low APR (for a student
card) 14.99% variable, and no annual fee. The Discover Student Card allows you
to earn up to 5% cash back on groceries, gas, travel and at restaurants. You can
then double your points if you cash them in for gift certificates at selected
merchants, effectively earning 10% back on your purchases. If your looking for a student credit card that allows you to earn great rewards, and build your credit without hitting you with an annual fee - this is the best card out there.

What's wrong with this picture? A lot. Lets take a look at the Discover Stupid Student Card.

1. If 14.99% is a low rate, I'd hate to see a high one. For a kid who likely has no job and no personal finance knowledge, the odds of keeping a zero balance are.... not good.
2. 5% cash back? Oh sure, I'm sure Junior is going to need all kinds of encouragement to spend money on this thing. Even when Mr. Instant-financial-Savvy doubles it to 10%, that 14.99% from above likely isn't too far behind. Who do you think is winning this one? Not Junior.
3. What credit card pitch would be complete without the ultimate myth of needing to build your credit. That only works, by the way, if you don't get behind on the stinkin' thing! Even then it's really not worth much.
   

I think we've Discovered Stupid.

How about this, Junior - You go to school, get your education, and see if you can't finish with no debt and no credit cards. Chances are, you'll be far more financially smart than all the goobers lined up to get that super-cool Frisbee they were giving away with this piece of crap.


image from the situationist who also has a great post on this topic.

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So we had one guess - you guys are no fun. Ya ya's Mom guessed 50 shredded credit cards in the jar.

At the time of this picture, our half-gallon mason jar held 150 shredded credit cards.

One hundred fifty!

As crazy as that number is, it now holds 170. All shredded during the first 9 weeks of our FPU course. There are 37 families enrolled in the course plus 3 couples coordinating the course. Some of them had no debt or credit cards coming into the class. Others did and have since made the choice to change their behavior - permanently.

Other blogs may spout about getting the best rewards cards, or justify their home-equity loan, or why they just had to buy a new car. We're not here to participate in stupidity. We're here to get you to think a little differently than everyone else when it comes to your money. We're not the jet set.

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"Opportunity cost is the value of the next best alternative foregone as the result of making a decision." as defined by wikipedia.org

Do you ever think about your own personal finances with an opportunity cost mindset? Even if you did now what the term was called I'm guessing you did. If you create a budget at the beginning of every month you decide what you will do and not do with your money for the month. This is the same thing. If you go to make a purchase and you say to yourself "If I buy X then I will not have the funds to pay for Y". That my friend is analyzing the opportunity cost of your purchase.


We have had to do a lot more opportunity cost analyzing lately because of buying a fixer upper house two years ago. All of the funds we have put into the house has meant that some other want or need has been sacrificed. By installing a new well, boiler, remodeling the kitchen and bathroom, updating electrical and phone along with gearing up for a new roof we have had to make a lot of tough decisions and sacrifices. There are lots of things we would love to do with our money other then spend it on our houses mechanical needs however we had to make a decision. Which was more important, a house with running water, heat and no roof leaks or a trip to France, cool paint colors on the walls along with a new couch? I know that we gave up a lot of wants over the past two years because of our needs. This was tough and we sometimes whine about our plight in life. However, we are grown ups. We made the decision to buy a fixer upper really cheap and then over time spend the money we saved fixing it. I know we made a very wise investment that will pay off for us in the end, but right now I really love to be in the south of France to see it's spring beauty. So for now I just keep reminding myself that it was worth the opportunity cost of running water to miss out on a spring time trip to the south of France.

What are some of the hard opportunity cost decisions that you have had to make lately?


photo from about.com

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I have to admit, I was pretty nervous going into this week's class. We had chosen not to preview this week's video lesson. But that really didn't have me nervous. We had a couple weeks off between classes. But that really didn't have me nervous (ok, maybe a little).

Really, it was the previous two classes that had me nervous. I'll explain why inside.


Weeks 3 and 4 were Cash Flow Planning and Dumping Debt, respectively. These two are by far, the most difficult lessons. Also two of the most important. Weeks 1 and 2 are really just warm-ups for the real work of the budget and debt snowball. For many, this is the first time they are faced with the reality of their financial situations. The good, the bad and the ugly are all laid out in front of them, and if you didn't get week two, then God help you in weeks 3 and 4.

The unfortunate outcome in our past classes was drop outs. Even when we felt overextended by the size of a class, we knew, based on reports from other class coordinators, to expect a certain drop out rate. In practice, we saw this hold true.

This time, I am pleased to report that if we do have drop outs then they are quite minimal. Maybe it's the economy, and people are feeling more of a need to stick with this. It may also be that Dave re-ordered the lessons with the newest version of the class. Relating with Money used to be after Cash Flow Planning, and I think the new way makes far more sense.

As for this week's lesson, we were fortunate to have many families who had not been behind on their bills and had not dealt with collectors. At the same time, it makes it difficult for them to relate to the situation, or to see the value of the lesson. "Because that won't happen to me". Well, I hope not, but then again, it may just be that a friend or family member is in that position and needs some guidance. Wouldn't it be nice to be able to help them separate the signal from noise and come out the other side of that situation?

Alternately, you don't know what may come. While in college, I had a couple of bills get cross-ways and end up in the hands of collectors. Even though I settled those accounts and had them paid-in-full, years later I was contacted by some scum-bag collector trying to get me to pay on it again. With the information I learned in this lesson, I knew my rights under the Federal Fair Debt Collection Practices Act. I knew that if challenged, they had to provide proof of the debt. I knew how to handle it and what to expect. I also now know the value of hanging on to those statements showing the balance was in-fact paid.

How have you dealt with collectors in the past?

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The other day, I was reading (and commenting on) a post by Ashley at Wide Open Wallet. Apparently, 2 months of self-employment has her convinced that business credit is a 'necessary evil'.

I'm convinced otherwise.

Once upon a time, I too started my own business. And while our two ventures vary greatly, I know that with proper planning, a business can be started and operated debt-free. All of this got me thinking about two of my previous employs - both of which were small businesses, started from scratch.

But the two were operated very differently.

The first, let's call it One + One, was operated by let's call him Gordon. This was actually my first job out of school. And since I didn't know any different and certainly didn't have our financial act together, it was difficult to see the err of Gordon's ways at the time.

Now I wish I could tell you than Gordon was kindly enough to give me frequent peeks at our P&L, giving me an inside knowledge of our assets and liabilities. Not the case, but also not the focus here. What was plainly visible was the way the business was run. I can recall one summer when business had slowed a tad and we were just into May. Now these were consulting businesses, and peaks and valleys were to be expected. The weird thing was that during that valley, we hired someone. She was pleasant and skilled, but why was she here? I can remember the looks from my co-workers as if to say, "but there isn't enough work for us, let alone another". The valley continued and a month later, she was gone. Another month and one of our senior staff was cut. It was a rough summer.

A year or so later, business was much better and much steadier. We had acquired a few more staff and had moved into a fancy office that Gordon had sunk big, big money into. As the work continued, so did Gordon and his business plans of the week. Soon it was announced that our goal was to become "the premier such and such in the region" and to have a staff of 10. OK, but why 10? Gordon seemed convinced that bigger numbers would impress clients and bring in more and better work. It didn't. I can remember later at an open house when we were told that if anyone asked, we were to say we had a staff of ten. We couldn't quite figure out who the ten were unless his parents and wife were on the payroll. When folks started counting desks, we'd try and change the subject.

Inevitably, another valley came, but this time I was the one swallowed up. After that, One + One had true staff of five - three of which were in administrative roles. Things made less and less sense at that point. Money seemed to flow like a river, though usually out the door. Was it debt? It almost had to be. Everything was for show, even us employees, and we seemed to come and go with the wind.

The second, let's call it Hot House, was previously a one man show, operated by let's call him Kurt. I actually met Kurt while employed by Gordon. Our biggest client had actually lined us up to work for Kurt. We were jealous immediately. Here he was, one guy, and he had the big project from the big client - the type we'd dream about at One + One. What was so special about him? We'd worked hard, built our company up, with six or more employees at the time. This was when I first began to see that Gordon was running at 100 mph, but in the wrong direction.

After leaving One + One, I started my own venture - a story for another day - and through a mutual friend, caught up with Kurt again. To my delight, He wanted me to do a bit of work for him. I worked on-site at his office, which at the time was an apartment. Technically not allowed by the lease, but the staff approved it at the time, and it was far cheaper than a commercial space. On top of that, he was sharing the space with friend who had a similar, but non-competing business. He was also named Kurt (same spelling) and with the same last initial - the Mrs. was confused for weeks. The other Kurt also had a guy doing part time work for him and the four of us ran two businesses out of a single one-bedroom apartment with make-shift desks and hodge-podge computers. It felt like we were running a speakeasy.

Now keep in mind, I'd spent the last 3 years keeping up appearances for Gordon, and here working with Kurt, appearance was last on the list. Even better, we were getting the good work at Hot House. While we had many of the same clients at One + One, we didn't get near as good of projects - mostly it was the work no one else would take. But Gordon was always taking those jobs, always promising they would lead to better work. I can't say that ever panned out.

A few months later, the lease was up at the apartment and the new management was having none of our little business venture in Apt. 12B. The Kurts, still friends, chose to part ways. Kurt decided to make a real business out of his hobby, offered me a full-time job, and got a real office.

As we were discussing his plans for the business one day, he shared with me that the way he had it figured, if we each billed 20 hrs per week to clients, then we'd break even. ...................... I was floored.

Floored, not only that he shared that with me, but that our business was actually that lean. He also told me how when he mentioned to clients that he was moving into a real office that they could actually visit, that while encouraging and enthusiastic, he could also tell that they didn't care. It didn't matter to them. "Yeah, what's that", he joked, recounting the phone call, "You're moving into a tent on our front lawn? Great, great, I'll bring you a coffee tomorrow. Good for you, Kurt. How's that project coming?"

Another time, we were discussing our work load, and he must have been kicking around the idea of hiring a third person. We still had peaks and valleys at Hot House, but they were more like 'crazy' vs 'manageable' than 'busy' vs. 'bored' at One + One. I can recall Kurt, thoughtfully discussing why someone might hire more help. "Is it to do more work? Just more volume? To be greedy and make more money? Or is it to do better work? I don't want to grow for the sake of growing or take more work just to try to make more money." That very moment was the most secure I ever felt in a job. This guy got it, and I didn't have to worry my job might be the victim of some megalomaniacal scheme. The type of scheme he had clearly been burned by before as well.

The best, was day when a man from the County came to our office. To this day, I have no idea if he was genuine or just casing the joint. But he claimed to be assessing business taxes for the County, and would need to assess our office. Kurt was out to visit a client, so it was on me. As he was talking about the sort of things he was looking for, I though about what we did have there. So what if he was a crook? We had jack squat as far as he could see. Our desks were very nice designer office tables, second hand - they could have been from Wal-Mart for all he knew. Besides that was three computers and some so-so office chairs. Our data was our real value and that went home with Kurt each night. So I let him see the back office and I smirked as he said that we had nothing really of value. Computers weren't even a big deal as, "they go down in value pretty fast". It was yet further confirmation to the way Kurt was running the business.

Looking back on these two companies, Kurt could have easily been sucked into the same trap as Gordon - hiring as fast as the work was coming in. Anyone could. The difference was the intent - the plan. Gordon, I would later find out, tried to sell One + One. Then all the window dressing made sense. It was all about padding the books - "We have X number of employees, handled over a hundred projects last year each lasting an average of 11 days, and not to mention the year over year increases in revenue...." It was fluff, just to net him a big payday. Kurt on the other hand, wanted quality over quantity. Slow and steady, we churned out work, the two of us handling more note-worthy projects at once than I ever saw at One + One. The difference was intent.

Ashley - and I'm not pickin' on you here - seems to need a line of credit to cover payroll as the profits don't come in as fast as the pay goes out. This is cash-flow insolvency in business. In personal finance terms, this is a matter of not living within one's means. Either way it leads to debt. If you can be debt-free in your personal life, then you can do it in your business. In both cases, you need a plan based on a set of core values. If one of those values is "free from debt", then there is no reason you need business debt.

If Gordon could make his business work the way he wanted with 4 employees, then how is the "more cowbell" approach going to help? We certainly weren't doing better work and adding capabilities with each new hire. Meanwhile, Kurt's business was absolutely killin' it. With two people and a shoestring budget.

If you're still unconvinced, then I'll offer this one parting shot - I know that it's anecdotal, but all of these companies complaining about access to credit in the recent financial crisis are the ones with massive lay-offs, closing their doors for good, or begging for a bailout form the Fed. If I were opening a business, I'd do the opposite those guys. Debt doesn't seem to be such a blessing there, maybe you should avoid it at all costs, even if it means politely turning away work.

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This is one of our favorite classes in FPU. "Worth the price of admission". Last year we wrote about my time as a reluctant spouse. It's one of my favorite posts as we each wrote about it from our own perspective. You can clearly see - we were not on the same page. A big focus of Financial Peace University and specifically this week's class is bringing husband and wife together to talk about money in a constructive way.

The first time we lead an FPU class, we were also taking it ourselves. We really didn't know what we were getting into, or what to expect. One couple showed up for the first class, and clearly they had been fighting on the way over - probably about money. The scowls on their faces said it all.


They sat next to each other, reluctantly. No touching, no talking. By this lesson, they were laughing, elbowing each other, and holding hands. Where they were previously guarded and quiet in the small group discussions, they were suddenly talkative and open. They were so excited - collectively - that they were reading ahead, and knew the jokes before they were coming.

It was amazing to watch. Especially come the final class when they admitted that without this class, they would likely be divorced. It was a truly humbling moment, to know that this class had that big of an impact on a marriage. They were talking, budgeting and had a shared set of goals. A couple that had previously filed bankruptcy and were still struggling, now had a path to success.

This updated version of FPU has this lesson in week two, which makes a lot of sense to have this lesson before the budgeting lesson - aka, The Big Fight! Just kidding. If you get this lesson, you'll have much less to worry about come cash flow planning time.

Has money been an issue in your marriage?

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