Choose to Get Out of Brokeville

iUniverse, Inc.

Contents

Prologue.....................................................viiSection I The Reality........................................11. Reality Hurts.............................................3Section II It Is All about You...............................52. Broke Is a Cycle; Stop Pedaling...........................73. Raise the Bar.............................................164. Start with the Basics—Your Home.....................185. Improve You...............................................226. Schedule It Out...........................................267. Think Outside the Box.....................................348. You Are an Oyster—Make a Pearl......................38Section III Effect on Others.................................429. Do You Know Where Your Children Are?......................4410. The True Value of a Piggy Bank...........................4811. The Mentality behind the Tag.............................5212. Whose Side Are You on Anyway?............................63In Summary...................................................69About the Author.............................................71

Chapter One

Choices. Choices. Choices. That is the bottom line. That is what we will consider in this book: choices. We will see how the choices you make today will affect everything from you to your family and from today to many tomorrows. Little choices are just pebbles on the trail to where you want to go, and where you want to go is what you have to decide. Will you take the trail to Brokeville or to a life of success and financial freedom?

This book will help you look at yourself honestly. It will help you look at decisions, and it will give you a formula you can use to make wise ones. It will identify attitudes Brokeville is famous for and ones needed to move out of that town.

This is a book to be read in an honest manner. Are you broke? Do you know someone who is? Do you want to make sure you are never broke? Then this book is for you. Read it with the intent to change where you need to change. Doing the same thing you have always done will only get you what you have now. If you want to better your life, choose to do so. Congratulations in taking the first step by reading this book. Now take the second step and apply the advice.

Folks, I only want to help you. Day after day I meet broke people—people who live within pennies of their paychecks. And within minutes of meeting them I know why they are broke. That is why I have written this book—to say what needs to be said but would be considered rude for me to personally point out. So take this book and put yourself in it. Be honest; see where you fit in. It may be there are many people like me who are just being nice and not telling you the truth. And what is that truth? You chose to be broke.

Choices are like truth—they can be bitter or sweet. We make our choices, and we either have to suffer the consequences or reap the reward. Which have you been doing? Suffering? If so, I implore you to read this book with an open mind, apply its counsel, and put into actions the things you learn. Don't make this just another great idea you meant to incorporate into your life. Start now. Sit back, put your pencil in your mouth, and chew on what I am about to tell you. If you see yourself in these scenarios, see yourself changed with the suggestions. This book is designed to get you out of Brokeville and into the life you want—the life you choose.

Chapter Two

So you are broke. Is anyone else around you broke? Did you marry someone broke? Are your parents broke? Are your friends broke? Do you work at a place where everyone stays broke? If so, why do think you would be any different? Can you be?

Broke is a cycle, so stop pedaling. You are going in the wrong direction. The chain is stuck in Brokeville. The pedals look like you are moving forward, but you are going nowhere. So stop.

How? Change the scenery. If all you see is forest, you will feel like a tree. Nature makes us want to fit into our surroundings. It is comfortable to fit in. I say it's time to get uncomfortable. Get out of your sweatpants. You no longer fit in with those you know in Brokeville.

People may love you, but the honest truth is that people like to feel they are equal or better than others. What do I mean? Your friends will not like you as much if your success shows up their failure. Not that you would do this on purpose; it is just a fact of life. Who doesn't prefer to sing after the crazy woman who sings so off-key that whoever follows her will sound great no matter what? No one likes to follow the lady who got a standing ovation. However, don't we all long to be the lady with the standing ovation? Well, we can be. Do you think that morning she got up and thought, Hmm, I think I want to try to sing today and see how it goes? No. That voice was trained. She practiced her singing, learned the song, and sang it with a confidence that came with knowledge that she could do it. So what does this have to do with us, and what does this have to do with Brokeville?

We have to learn how to be better at life. We have to train ourselves to hit the notes. We have to gain confidence in ourselves and our abilities. Then whatever we do, we can exude confidence. Now, to be better at life we have to decide we want more than what we have now. We need goals. We need reasons. We need motivation. We need action.

If we have always lived in a one bedroom, then we have to know why we say we want a four bedroom. We have to set that house as a goal and tell ourselves why it is a goal. That "why factor" is personal. Is it for your family? Is your daughter worth the energy it takes to work to pay for a house in which she can have her own bedroom? Is it because you are worth it? Does your wife deserve more than a glorified hut? The why factor is up to you. Search deep and put it on paper. Put it on your refrigerator. Put it on the bathroom mirror. Put it on your ceiling. The key is to focus on the why. That will get you to the next point.

Your Actions Speak Loudly

Action is needed to accomplish your goal. Will you get what you want out of life by sleeping in? Will it come by taking time off? Granted, we need time off, but this is where folks can get lost. How much time off we need is dependent only on how much we can afford to take off. That is determined by how we have chosen to spend our time and money in the days prior to thinking of taking time off. What do I mean?

If you are broke, you don't take time off. I am going to say that again. If you are broke, you don't take time off. Why? Because you have not earned it yet. Time off is for rest, not to further tax your resources. When we take time off, it should be to refresh us so we are able to get back and work to meet more goals. The first goal in this book is to get out of Brokeville. Thus, take no time off until you get out of it.

Bank up Reserves

In addition to taking no time off until you get out of Brokeville, take no time off until you have reserves that will not be affected. Again, what do I mean? I mean savings. If you take time off when you don't have savings in the bank, then you are not yet in a safe spot. Have you ever been hiking? Have you ever brought just one bottle of water on a hike? What happens? You may try to be smart and wait until you get to the top of the trail to drink the water, but eventually the fact that you have not prepared sufficiently catches up to you. The trail is harder to climb and harder to descend when you have no reserves. Bank up your reserves. When you take your hike, make it enjoyable.

Relax with reason, not on credit.

Again, taking time off is only allowed after we have earned it. Thus, when relaxing, don't start spending on credit. Otherwise, we return home in the negative. We start a work week burdened and in the red.

Pay yourself, not the rich folks.

We want to gain interest on our money, not pay interest to use someone else's. Thus, do not buy on credit. Save your money and make a purchase only when you can pay for it—all of it. Just think: the bank saved its money. Why? To be nice to you? No. Because they already figured out the system. They know whoever gets the interest wins. They gain. Paying interests results in a loss for you.

Once I took a loan out for a car. I was advised to take out a five-year loan with a 4.9 percent APR instead of a three-year loan for 2.9 percent. Why was I counseled to do this? I was given two reasons: it was a great rate, and I could space the payments out over five years. To be honest, I listened to the advice, and I paid for it. Literally. I paid off my car in less than three years by making extra payments, and I ultimately paid more than the 2.9 percent. From the beginning I knew I wanted to pay off the loan quickly. I had no desire to be in debt for five years. But by listening to the prevailing attitude of today's "have it now, pay for it later" mentality, I threw money away. If I had taken that extra $600 that I paid in interest for going with the 4.9% instead of the 2.9%, and invested it, I could have been the one gaining interest. Instead, I now not only don't have the interest but also don't have the $600. And what does that mean for me? It means I have to work more to make up for the money I lost in interest—money that could have gone toward savings or a mortgage. Instead, I "donated" $600 to the bank.

For Those Already in Credit Card Debt

If you are a driver on the steep and dangerous road of credit card debt, do not lose heart. You can drive over this hill. In order to get off the debt highway, you need to know what avenues to take.

First Avenue: Set a Goal

Make it your aim to get out of debt. Don't look at debt as a normal and acceptable part of life. It may be a common sickness, but it is not part of normal, healthy living.

To get out of debt, you need to set goals, and you need to set timeframes for your goals. For instance, if you are in debt $10,000, ask yourself if you want to be debt-free in one year, three years, or five years. Then organize your life, your budget, and your work around meeting that goal. For example, if you want to pay off your debt within a year, you will have to make approximately $850 extra per month to do so (after taxes).

Pick a date you want to be out of debt, and stick with it. Tell your family the date. Tell your wife or your husband. Tell your kids if they are at an age that they can understand and learn the word budget. Make yourself accountable. Encourage the entire family to live in a way that supports that goal.

Note: Striving to pay off your credit card requires paying more than the minimum monthly payment. If you pay only the minimum payment, over time you will pay an enormous amount over the original cost of your items. Have you ever noticed how much you're really paying for purchases made with your credit card? Get out your credit card statement and read the section called "Total Minimum Payment Warning." Note how many years it will take you to pay off your debt and, here is the kicker, the total amount you will end up paying if you continue to only make the minimum payment. Ouch. It's a lot, right? This is why you must always pay more than the minimum payment.

Second Avenue: Budget

Yes, you need to make a budget. That means taking out a sheet of paper and making a list of your bills and life's necessities. The necessities include items such as food and fuel, not extra shoes. Figure how much money you can allow for each item, write it down, and then (and here is the trick) only spend that much money.

Tip: Label several white envelopes: Food, Gas, Unforeseens, etc. Put in each envelope the specified amount of cash you've assigned for each category at the beginning of the month, and only use the cash in the envelopes to pay your expenses. Do not use your credit card anymore. I repeat: do not use your credit card. Use your cash.

When you budget this way, you will see where your money goes, and some of that money should go toward your goal of paying down your credit card debt. Part of your budget should include the amount of money you need each month in order to pay off your debt by your target date. That envelope is not optional. View it as being as important as your house payment. If you have an emergency and cut back somewhere, eat more beans instead of chicken. Don't touch the money set aside for your credit card payment.

Third Avenue: Maintenance

While you are working to get yourself out of debt, be careful in the meantime to not create additional debt for yourself. As previously mentioned, don't use your credit card anymore. That is the first step, but there is another as well.

Remember your budget envelopes? What should you do if you have some money leftover at the end of the month? Should you run out and spend it? No. Here is an idea: save it. Who knows what the next month will bring? Just because you have money doesn't mean you need to spend it. Just think, if you have money leftover each month and you save that money, it can be used to build your savings, to make an extra credit card payment, or for whatever need may arise. By saving your extra money, you will get out of Brokeville and begin to breathe the fresh air of financial freedom.

Tip: Be a treasure hunter.

Remember when you went treasure hunting as a kid? You hiked through the woods and explored caves and looked under rocks—all for what? You were probably hoping to find something valuable that cost you nothing but your time and energy. I want you to do the same thing with your life today. Search for ways to find value in things that cost you nothing. For instance, can you wash your own car? Can you change the oil yourself? Can you plant a garden? Think of practical things you can do that will save you money. These things may save you a small amount of money at the time, but they will add up, saving you a great deal of money in the long run.

Note: Remember, the goal of doing things yourself is to save money. Your garden doesn't have to look like it belongs in a magazine. Keep it neat, but don't go over the top. Be reasonable. Make it work for you, not the other way around.

Example of a treasure: a tax refund. Many people view their tax refund as vacation money. Does the government put "vacation money" in the memo section of the check? No. That money can be used to pay off your debt quickly or to start a savings account. Remember, found money is not "I have to spend this because I have it now" money. View it as a gift to pay down more of your credit card. Keep in mind that the quicker you pay off your debt, the sooner you will be free. It's up to you how long you want to be in those chains.

Chapter Three

Have you ever noticed how people who grow up in a wealthy environment tend to look for jobs with a higher income projection? Now, why is that?

As we grow up, our environment shapes us. The people around us affect our attitudes. We are molded and shaped, and what we are accustomed to becomes just that: our custom. Would someone who grew up in a house with four bedrooms, three bathrooms, a three-car garage, and a pool dream of looking for a minimum-wage job and moving out into a one-bedroom apartment in the shady part of town? Not usually. Why? Because that person was not raised to see that as an acceptable lifestyle. He has higher standards. He has been programmed to expect more. Some may say this kind of attitude is haughty, and they might be right. But generally it is simply a result of what a person knows as normal. For instance, if you go to a third-world country and want peanut butter, you may be viewed as a snob. However, you may not actually be a snob; you just miss the peanut butter and jelly you grew up with. When I visited a third-world country, I was willing to help and serve and eat what they ate. I just missed peanut butter. Why? It was part of my everyday life back home. Would I live if I didn't have it? Sure. But due to my background, I wanted it and thought it was no big deal; it was just peanut butter. Later I found out that certain people that live there thought differently about me because I had searched for and found and purchased the peanut butter. To them, that was a luxury. To you and me, it's just peanut butter!

Now, what can we learn from this? What we grow up with is typically what we are comfortable with, what we expect, what we like or prefer. Whether you grew up with luxuries or not, with high-income parents or not, no matter what you have been shaped to expect or prefer, you can always raise the bar. What do I mean? You can always improve. Improvement is not always measured monetarily. This book is not about being rich. It is about you. Improve your attitude. Improve your surroundings. Improve your appearance. Improve the way you deal with others. Improve the way you budget. Improve the way you work. Bottom line: improve. If you do, you will be a better person, and you will add to your success and to the success of those around you.

Chapter Four

If my friends dropped in to say hello, would I smile and welcome them into my clean place or yell for them to wait as I run through the house like a tornado, collecting clothes and dirty dishes and papers? I mean, they need to be able to sit, right?

Improve. Are we talking about impossibilities here, folks? No. Some things are basic. Are you a clean person? If not, soap is cheap. A clean house will give you a sense of pride. Even if you have a modest space, remember that it is your space. Make it speak about you. Do you want it to say, "Hi, I don't like to wash, and I have no idea where things go"? No. You want it clean and fresh and organized. Ask yourself, would you invite someone you highly respect and admire over at any time, any day, without having to worry about how he or she would judge you based on the way your place is arranged? No matter how much space we have to live in, little or ample, we need to keep it clean and organized. I have a friend who helped me learn this years ago. If she didn't use something, she threw it away or donated it. Immediately. Too often we think, Oh, I might use this one day or I will find someone who can use it in some way. What do we really do with that stuff? We put it in the back of our closet with all the other stuff we might use one day. Or we put it in the garage, where the car is supposed to be. Or we put it in the basement, where it will stay forever unless a flood forces us to do what we should have done in the beginning: take it to a consignment shop, donate it, or throw it away.

When we go through our stuff, we need to remember it is just stuff. It does not have feelings. There is no reason to get attached. If you don't need it or use it, get rid of it. If you have so much stuff that you have to move something out of the way in order to simply sit down, you probably are either disorganized or you have too much stuff. A few trinkets here and there are okay, but do you need fifty? Do you really read those old magazines? Are you really going to use all those take-out containers? Do all those pens work? Here's an idea for some extra cash: go through your house, closet, garage, and basement, and get rid of anything you have not used in the last six months to a year. Take your stuff to a consignment shop or have a yard sale. You will end up with more space and more money.

(Continues...)

Excerpted from Choose to Get Out of Brokevilleby Misty D. Rains Copyright © 2012 by Misty D. Rains. Excerpted by permission of iUniverse, Inc.. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.