debt problems

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November 6, 2009

And the Winner is….

Posted by barbarastanny under Barbara Stanny, Finance, Inspiration, Money, Savings, Support, Women, debt problems
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Long time…no blog!  Did you miss me?

In case you were you wondering what happened (or not), I’ve been waiting…for all your contest submissions to flow in.

Remember?  In my last blog, I asked you: How have you overcome inertia in your financial life…without waiting to be hit over the head with a sledgehammer? The winner would get a mouse pad.

To all who entered, thank you. There were some great ideas.

To all of you who are struggling with inertia and haven’t a clue what to do, help is here…take a look:

  • Honorable mention goes to Tracy, who quoted a bumper sticker: “Debt is Normal. Be Weird.” Great words to live by!!!!
  • Third runner up is Donna, for calling me “a genius for starting this contest.” …in all due modesty.
  • Second runner up is a financial coach, Michele, who advocated hiring a “financial coach like us.” Makes sense to me!
  • First runner up is Barbara W. who declared  “a deadline can be a powerful force against inertia, even if it’s self-imposed.” For example, she suggests, “agree with a friend to update your wills by the end of November, and schedule cocktails to celebrate.”  Cheers to that idea!
  • The Winner is: Laurie, who suggested a great exercise: “write down the best things that could happen if you change what you’re doing now AND the worst things that could happen if you don’t change. Then share the results with one person and receive feedback.”  This is quite an eye-opener!

Congratulations, Laurie…if you email me your address, I’ll send you a bright red mouse pad that says “Scare Yourself Every Day!!! You’ll be the envy of the office. But let them know, they too can order one on my website: www.barbarastanny.com. Come to think of it, those mouse pads would make great Xmas gifts.

 

September 29, 2009

Contest Announcement, For All Blog Readers: Best Ways to Break Inertia

Posted by barbarastanny under Barbara Stanny, Inspiration, Money, Support, debt problems | Tags: , |
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Just hung up from talking to a man who’d hired me to speak to a large group of employees.

The purpose of the event, he told me, is to reach out and educate these people about their Deferred Compensation Benefit Plan.

The problem, he explained, is that members were only putting in the small minimum amount each pay period. They wanted to encourage participants to increase their contributions and understand what they’re investing in.

The real issue, he admits: “How do you break their inertia?”

Isn’t that the Big Question for all of us when it comes to money?  (And a lot of other things, I suppose!)

How do we break our inertia?

Most people do it the way I did—by waiting for a crisis. There’s nothing like a catastrophe to kick us out of our stupor. For me, it was a whopping tax bill following my divorce.

Why didn’t I take action when I first found out my husband was grossly mismanaging my money? Why did I wait and put my whole family in jeopardy?

Truth be told, inertia, like ignorance, can be bliss. But the penalty for procrastination is not pretty.

So I ask you:  How have you overcome inertia in your financial life…without waiting to be hit over the head with a sledgehammer? What advice would you give a roomful of foot-draggers?

In fact, let’s make this a contest. A prize goes to the winner with the best suggestion.

The prize: a bright red mouse pad that boldly declares: Scare Yourself Every Day.

Come to think of it, that just might be the best solution for fighting inertia!!

Barbara Stanny

The leading authority on women & money
barbara@barbarastanny.com
www.barbarastanny.com

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August 17, 2009

Saving Can Be Sexy!

Posted by barbarastanny under Barbara Stanny, Empower, Inspiration, Savings, debt problems | Tags: , , |
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The Money/Happiness debate continues.  Just today,  USAToday http://www.usatoday.com/news/health/2009-08-05-happiness-apa-money_N.htm asked the age old question, yet again:  Does money bring happiness?  Well, I’m here to resolve this issue, once and for all! (drum roll, please).

Money does NOT make you happier.  But poverty doesn’t either.  What  DOES  make you happier?: taking control of your money, instead of allowing your money to control you!

Let me give you an example.  Here was  a woman (a successful attorney),  who for the last three years,  felt helpless,  hopeless,  and (obviously) very unhappy as her life,  and her debt,  spiraled out of control.

Then, last month, she called me for coaching.  We’ve only had 3 sessions so far.  And most of our time was spent dealing with her resistance (“I’m NOT going to change my lifestyle,” she told me firmly) and getting her out of denial (“OMG, I’m spending way more than I earn!!”).

Finally, last week, she sprang into action.  I share her latest email with you because its proof positive how much happier life can be when you take charge of your finances.

“I have been working diligently to shave my monthly expenses and I am having a blast!” she wrote.

Of course, it wasn’t easy, she admits. “One thing I will say:  it’s a lot of work and takes a lot of discipline to save money,  and was much easier to stay in debt – which is how the system is designed.  But I like the power I feel now much better.  Saving money is actually making me feel very sexy, and probably the sexiest thing I have ever done!”

You’ve got to admit—she’s one happy camper!!!  How did she do it?  With this 7 Step Formula.  She:

  • Opened a savings account:   “$10 per month is automatically transferred from checking,”
  • Cut spending:   “I shaved $1400 from my monthly expenses.”
  • Stopped using cards, even her debit card:  “I was using my debit card the way people use their credit cards and it was getting me into trouble.  I cut it up.”
  • Negotiated with creditors:  “I am working liking crazy with my credit card companies” to decrease rates.
  • Created a spending plan:  “I figured out how much money I needed this month by category and have gotten out the appropriate amount of cash, put paper clips and sticky notes to each allotted amount, and that is all I can spend.”
  • Stuck to her budget no matter what, even during a major move:   “In the past I would have just gotten out my credit card, charged the move and said I would deal with it later.  Now I am planning, looking at all of the expenses and figuring out the best steps and ways to save money.”
  • Followed the coincidences (which always occur when you start taking charge):  “On top of this, I just landed a HUGE new client in Santa Fe, NM -  out of the blue, of course.”

Ultimately, this woman created her own happiness by making 2 crucial changes:  she changed her behavior along with her attitude.

Getting out of debt, she told me, has become “such a fun game.  It’s amazing to see where my money goes!  Wow - to be conscious is incredible. Thanks Barbara – I am loving this!”

Don’t YOU want what she’s having??

Barbara Stanny

The leading authority on women & money
barbara@barbarastanny.com
www.barbarastanny.com

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August 12, 2009

Want to Become a Financial Recovery Coach?

Posted by barbarastanny under Barbara Stanny, Career, Empower, Workshop, debt problems, wealth | Tags: , , , |
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I did a massive closet cleaning yesterday.  Gave away bags of clothes to Goodwill.  I’m a big believer in letting go to create space for something better (see my blog post about it!).

As I was tossing stuff into garbage bags, I found a framed certificate I’m definitely keeping.  It declared that I’d completed the “Financial Recovery Counseling Training” in 2000, and was signed by founder Karen McCall.  The training was intense and life-changing.

Karen McCall is THE pioneer in the field of overspending, underearning, and chronic debting… and my long-time mentor.

She was one of many professionals I visited in those early desperate days of my own financial crisis.  She was, however, the only one who told me I was an “underearner”.  Initially I balked at the accusation.

But she broke through my denial, and I became her client… then her student. I often wonder, if it wasn’t for Karen, would I be doing what I’m doing now?

If you are a coach, looking for a rewarding new career, or simply want to make changes in your own financial life,  you need to know this — In  early September, Karen is offering her final training program this year.

As she told me; “This is very likely the last class where I will personally be doing the majority of personal mentoring with my students.”

The cool part of this extensive 6 month program is that Karen not only trains you in her Financial Recovery process, but mentors you on starting a successful business.  Check it out.  There are only 4 slots left. http://www.financialrecovery.com/training-int-req.html

Barbara Stanny

The leading authority on women & money
barbara@barbarastanny.com
www.barbarastanny.com

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July 30, 2009

Giving Debt a Whole New Meaning

Posted by barbarastanny under Barbara Stanny, Inspiration, debt problems, wealth | Tags: , , |
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This will give you cause to pause… especially if you’re in debt.  Have you ever looked up the definition of  “debt”  in Webster’s dictionary?  Try it: http://www.merriam-webster.com/dictionary/debt

A client of mine did recently,  and,  in her words,  “I was absolutely shocked!”  Merriam-Webster’s first definition of debt -  Sin.  Yes… SIN!!!

Do you realize that a whopping majority of people are “living in sin”?  Are you?

Barbara Stanny

The leading authority on women & money
barbara@barbarastanny.com
www.barbarastanny.com

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June 26, 2009

It May Be Time To Let Go!

Posted by barbarastanny under Barbara Stanny, Empower, Inspiration, Money, debt problems | Tags: , , , , |
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Want to kick things up a notch (or 2 or 3) in your life? Ask yourself this: “What do I need to let go of?”  Seriously.   “Letting go” is a profound strategy few people fully understand.

When you pinpoint what’s holding you back, and are willing to let it go, miracles occur.  There is one catch, however.  Usually, the very thing you most need to let go of, is that which is most scary to give up.

Let me give you an example.  This just occurred in my latest Overcoming Underearning® teleclass (see www.barbarastanny.com/coaching-tele-seminars).  One woman, let’s call her Dee, was desperate to get out of debt.  Her main problem – her house was more than she could afford, but she couldn’t bear to let it go.  Her home was her sanctuary,  a retreat from the world,  tucked away in a little village that was nearby, but felt worlds away from the big city. Her closest friends were her neighbors.  She never had to lock her doors.  How could she  ever leave this?

Yet as our class continued, it became clear.  Dee needed to sell the house.  It broke her heart, but it was the right thing to do.   From that point on, things happened quickly.

She’d sat down to write a newspaper ad  when there was a knock on the door.  A man introduced himself as the father of her next-door neighbor.  He wondered  if, by any chance, she’d sell her house.  Dee’s jaw dropped, but she kept her cool.  They closed the deal, that very day, for $15,000 above what would’ve been her asking price.  And the man paid cash (yes, a big wad of cash now sits in the bank).

Dee’s bound to miss her house. But she won’t miss the debt.  And the relief  in her voice was palpable.  In fact, she was down right giddy.  Besides, she’s surprisingly excited about looking for houses in her price range.

The moral of this story?  The next time you feel stuck or weighted down, instead of asking; “What do I need to do?” Ask yourself; “What do I need to let go of?” Then take the leap and watch for the miracle… and please share your story with me!

Barbara Stanny

The leading authority on women & money
barbara@barbarastanny.com
www.barbarastanny.com

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May 7, 2009

Is Now The Time To Ignore Your Debt?

Posted by barbarastanny under Barbara Stanny, Economy, Finance, Money, Savings, debt problems | Tags: , , , , , |
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I’ve been in a tizzy ever since Suze Orman changed her tune.  Last month, the ubiquitous financial guru stood before the masses and told them to “listen up”,  stop paying off debt,  and put every extra penny into savings.

credit card debt

Now,  let me make this clear.  I’m a HUGE advocate (borderline obsessive) for adequate savings.  I personally have way more than 10 months (Suze’s barometer) socked away in cash.  But to say to everyone: “only pay the minimum due on your credit card balance and instead make it your top priority to build as much of an emergency cash fund as you can.”  Huh????  That pronouncement made my head spin!!

Then I read my favorite financial columnist (the Web’s favorite too!),  Liz Pulliam Weston,  on msn.com.  Liz did what she always does for me — made sense of what sounds complicated,  or in this case,  crazy.

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/why-suze-orman-is-wrong-again.aspx?page=1

Liz made a critical distinction Suze apparently overlooked.  Such a severe approach only applies to those in dire straits.  As Liz explained,  the only times when “paying the minimum or,  preferably,  just a bit more is the best of bad options” if:

  • You’ve been or are about to be laid off.
  • You’re on the financial brink.
  • Your accounts have already been frozen.

For everyone else,  Liz advised, “a more balanced approach might be the best course.” As she astutely points out,  it could take years to build up a big bundle in savings.  Dumping repayment plans for a lengthy period leads to unnecessary interest,  damaged credit scores,  and possible victimization by lenders.  Instead,  Liz  wisely suggests:

  • Stay the course. Continue paying down credit card debt,  but look for extra expenses to cut to pad your emergency fund as well.
  • Open an escape hatch.  If all your credit cards are with the same issuer, consider getting a card or two from different issuers so all your credit isn’t in the hands of one lender.
  • Monitoring your accounts.  Many lenders are trimming credit lines with little notice,  so checking your credit limits at least once a month is good practice.”
  • Pushing back.  Card issuers are hoping you accept their changes without a fuss,  but if you have good credit scores (FICOs of 720 or above),  you have some leverage and should be able to get them to rescind their decisions or take your business elsewhere.

Moral of this story: Beware of experts touting one approach for all.  Cookie cutter solutions can be harmful to your financial health!

 

March 11, 2009

Do You Suffer From Financial Loss Syndrome?

Posted by barbarastanny under Barbara Stanny, Economy, Inspiration, Money, debt problems | Tags: , , , |
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Who pays?Who hasn’t been effected by the economic crisis?    And now there’s a name for what you may be feeling.   Financial Loss Syndrome (FLS).   My good friend, and financial advisor extraordinaire, Victoria Collins identified this malady in a recent article:

https://www.kellerinvest.com/KELLER/WEB/me.get?WEB.websections.show&SCH3305_312

“FLS is a group of symptoms we observed in clients over the past year.”  Victoria explained. Symptoms include: anxiety, embarrassment, guilt, distorted thinking, vulnerability, insomnia caused by loss—not just loss of money—but of control, identity, even status.

FLS occurs in 6 stages (similar to the well-documented stages of grief):

1.      Denial—like the proverbial ostrich, you hide your head in the sand rather than look at your portfolio. Major feeling: Numbness

2.      Realization—this stage begins the moment you open your statement and realize the damage. Major feelings: pain, fear/terror, embarrassment.

3.      Anger—someone must take the blame…often it’s yourself. And it doesn’t help that the bad guys are getting bailed out.  Major feeling: fury

4.      Bargaining—this stage represents a last grasp at control. You swear you’ll do something, you’re just not sure what. “If  my stocks get to ‘X’, I’ll sell.” Or,  “I’ll stay in the market and buy more.” Major feelings: confusion, fear

5.      Depression—it finally, really hits you: you have no control.  The economy is tanking, taking everybody with it. Major feelings: apathy, lack of motivation, helplessness.

Beware the first 5 stages, warns Victoria. “This is when people make irrational decisions, lock in losses, anything to stop the pain.” Instead, she urges, “focus on what you can control, like making a budget.” Healing begins at Stage Six.

6.      Acceptance—it’s time to face the facts, figure out what you can control (i.e. spending), update your financial situation, then make a plan for the future.  Major feelings: sense of control, renewed confidence.

Being the wise advisor that she is, Victoria declares:  “Panic is not a plan. It doesn’t work.” She recommends a far better plan:

·         Turn off CNBC.

·         Grab a calculator and a yellow pad.

·         Figure out your networth and cashflow.

·         Make an appointment with a good financial planner.

·         And then, relax with a nice glass of wine, and congratulate yourself for taking action based on KNOWLEDGE, not FEAR, IGNORANCE, or HABIT.

 

January 29, 2009

Ready to $tart getting $mart???

Posted by barbarastanny under Barbara Stanny, Earning, Economy, Finance, Invest, Money, Savings, Support, debt problems | Tags: , , |
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Does this sound like you?

“It’s a new year! I’m finally going to tackle my finances.  Yep, I’m really ready to get smart about money. Well…sort of.   I mean, I do want to learn…but it just seems so overwhelming.  Where do I start?”

Start with this article: http://www.creditcards.com/credit-card-newsReading up/savings-money-club-comeback-1264.php. Not just because I’m in it! The author, Dana Dratch,  does a fabulous job of explaining how to make  financial education fun! FUN????

Yes, FUN!  Invite some friends, bring some food, and start a Money Club.

“The idea has been around for years,” Dana writes. “A small group of friends, co-workers or, in some cases, complete strangers meet regularly to polish money skills, discuss money challenges and set concrete goals. Don’t confuse money clubs with investment clubs, in which members focus on investing skills and may even make investing decisions as a group or pool their money. “

Dana also interviewed Ginita Wall, the co-founder of www.wife.org (which I believe is the best financial education site on the internet for women) and a major proponent of money clubs. Ginita created the site; www.TheMoneyClub.org, where you can download a  free Leader’s Guide for “individuals interested in starting a club, and a menu of lesson plans for meetings.“

Money clubs are exploding in popularity. I’d love to hear from anyone who’s in a money club…got any tips or advice for the rest of us?

 

December 12, 2008

Achieving Financial Success, In Spite of Fear (yours and everyone else’s)

Posted by barbarastanny under Barbara Stanny, Business, Economy, Empower, Finance, Money, debt problems | Tags: , , |
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Have the headlines got you spooked?

I Can Do This !! Let me introduce you to my 2    Laws for Financial   Success…In Spite of Fear  (yours and everyone else’s!)…(drum roll please!)…expressly for the faint-hearted and other victims of the current fear mongering.

1.  Stanny’s Law of Resistance—the amount of resistance you experience in any endeavor is directly correlated to the amount of power and pleasure available on the other side.

2.  Stanny’s Law of a Lousy Economy—no matter how bad the economy, there will always be people who are prospering.

The following email demonstrates these laws in action.   The writer, a seminar graduate, ended up in the hospital after the first day of a 2 day seminar!  Even though she was in utter fear and the economy sucked big-time, she tenaciously respected Stanny’s Laws!  Look what happened:

Dear Barbara,

I took your Overcoming Under Earning Workshop last fall.   I am the woman who spent the night (after the first day) hooked to an IV in the emergency room.   My body was physically rebelling the changes that were taking place  in  me emotionally in your workshop!   As crazy as it seemed, I forced myself back for the second day… knowing I had every excuse not to launch deeper into more of my financial  mud pit.

Thank goodness I did… I am very happy to report that despite the economic upheaval of our Country I am better than ever.!!!! Since I saw you I have made some real tangible changes.  First off, I got the courage to go back to court and get a child support adjustment… this was something that I had been avoiding for 9 years… results a 233% increase!!!! Long overdue, obviously.

Even better than that, I finally know my financial future is completely in my hands… and that is incredibly empowering.   I now know that I control my financial future.  (I feel excited just writing this, and even more excited living it!!! )  I am working “smarter not harder“.

I have adjusted my business focus to accommodate the economic environment.  I now do what I had been doing full time, part time, and am working more full time with my internet brokerage company.  The  shift in focus has given me great financial success, as a matter of fact by staying on the course I am on  now, I am estimated to triple my best income  ever within 12 months!!!  Wow, didn’t even know what leverage was about a few years ago.

Just wanted to send you my  success story and express my thanks   for you, and the door that you helped me open in my life!

The moral of this story: never ever let fear or resistance stop you from going for the gold… regardless of what’s happening ‘out there’ or going on ‘in here’ (i.e. your head).  Resistance is simply a clear indication of what you need to do next!!

 

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