What Would You Do With a Cash Windfall?

It's raining money. Well, not exactly. But it might feel that way when you come into money that you weren't expecting to get: Lottery winnings, an inheritance, a Christmas bonus, a tax refund. So what would you do if you got money that you weren't expecting to get?

I know many of us will say that we'd save it for a rainy day, invest it, or payoff debt. But, have you done that with any unexpected cash in the past? And if not, what makes you so sure that you'll do it this time?

I recently gave someone a savings bond that I had been holding on to for 20 years. It was a $50 bond, which means the giver paid $25 for it. He took it to the bank the same day and cashed it for $69. And within an hour, that $69 was gone. That got me to thinking. One, it would probably take him about two hours to spend the other bonds that I have for him. (I haven't given them to him to find out.) Two, how much would that $69 have been worth in 20 years if he had added $31 to it, and treated it the same way that I'd treated the bond for the same length of time? What if he had bought two $100 bonds and not touched them for 20 years?

With the government bond rates being .30%, he certainly wouldn't double his money. And the same can be said if he had invested the money in a Certificate of Deposit (CD). There's not much of a return on investment there either.

Here's the deal. When you're broke, and someone puts $69 in your hand, it looks like a lot of money. But when you look at it in terms of a long-term investment, and you see that you won't get much on your return, you think why bother? Well, here's why you should bother, you have to start somewhere. You have to see starting small as the beginning of something big, because you then start the habit of saving. And as you continue to invest small amounts regularly, you'll start to see them yield bigger results.

Feedback Friday Question: Imagine getting a cash windfall of $1,000, $10,000 or $100,000. What would you do with the money? Is any part of it worth investing?

Shake Those Haters Off!

Hater: A person that simply cannot be happy for another person's success. So rather than be happy they make a point of exposing a flaw in that person. Hating, the result of being a hater, is not exactly jealousy. The hater doesn't really want to be the person he or she hates, rather the hater wants to knock someone else down a notch. (Source: Urban Dictionary)

By show of (virtual) hands, how many of you are sitting on what you believe to be a million-dollar idea, because your critics have silenced you? Come on now, be honest. They said one bad thing about you or your idea, and you took it to heart.

While doing research online for a project today, I came across a book review that inspired this post. The reviewer gave the book two stars out of five, and then proceeded to cut the author down at the knees because he used the people he knew to make his book a bestseller, and then used the book as a springboard to create a multimillion dollar internet business. Ummm, what's wrong with that?

It was clear that the review had more to do with someone hating on the author than it did the book's content. The reviewer also has a a print book and several ebooks, but the author of the book he was reviewing has used his as an in to his profession, making millions of dollars training people to change. And when I visited the reviewer's website (of course I went there), I saw that he has a program that is very similar to the author's. So that got me to thinking. Did he give this book a poor rating because his hasn't experienced the same level of success? I can't say for sure, but it's possible.

At the same time that I was doing my research, I was listening to a discussion about Tyler Perry's latest Hollywood project, For Colored Girls. And then it came to me like an epiphany. While we're sitting here chatting it up about all the reasons we do or don't like Tyler Perry's body of work, he has already shaken his haters off, and is somewhere working on his next multimillion dollar project. And I was like, dang girl, get a clue. Let these people have this discussion, and get back to work securing another contract for yourself. It's not like this is Siskel and Ebert, where anyone in this discussion is getting paid to give this movie a thumbs up or down.

As I sit here writing this, I can hear Venus Williams on the TV behind me promoting her new EA SPORTS game. Imagine where she would be if she had allowed the people who criticized her because of her hair and her braces to cause her to not become the tennis phenom that she is today. She certainly wouldn't be promoting a video game.

So, go ahead and shake those haters off. Otherwise, you may never develop that million-dollar idea.

Feedback Friday: Why Parents Should NOT Pay for College

Are you a parent who struggles to give your child the best of everything, including a house that's not a home because you're losing sleep at night worrying about how you're going to keep it, vacations charged to credit cards that will take you the next 20 years to pay off, and a college education that you can't afford to pay for? If this is you, then I beg of thee to stop it...NOW.

I just watched CNN's Black in America: Almighty Debt, and I was greatly disturbed by the parents who were facing foreclosure, because they're 26 months behind on their mortgage, yet they're concerning themselves with how they're going to pay for their daughter's college tuition to Yale, Harvard or Princeton, while this young lady incurs $400 monthly cell phone bills. At first I was miffed at the daughter because of her misplaced values. But after some thought, I realized the WHOLE family's values are in the wrong place.

Where is it written that parents MUST pay for their child's higher learning? I told my children early (probably daycare) that they needed to get good grades so they could go to college.; I never led them to believe that Mama would be paying for anything. Now, don't get me wrong, I would have contributed in any way that I could, but as a single mother raising four children, establishing college funds for each of them on my salary was not realistic. Nor is it realistic for a couple sitting on the front steps of foreclosure to think they can pay for an Ivy League education.

The couple on Almighty Debt said that it's important for their daughter to be able to go to the college of her choice. Well, if her college of choice is Yale, Harvard or Princeton, then her grades should reflect such. And if not, then she's already made her choice to enroll at the community college around the corner, where she can get enough through financial aid, including work study, to pay her own tuition.

Feedback Friday Question: Should parents pay for their child(ren)'s college education?

Lisa Maria Carroll is a wealth strategist and along with Kim Crouch, is co-creator of the Millionaire Journey. To learn more about Millionaire Journey, go to http://1yearmillionaires.blogspot.com or join us on Facebook at http://tinyurl.com/yhdwa78

Are You The Biggest Obstacle To Your Success?

How much do we limit ourselves? I was thinking about this today as I spent time with my sons showing them how to prepare dinner. Normally, preparing Sunday dinner is a ritual in my house because it’s an opportunity to wind down from the hustle and bustle of our busy week, which includes school, work, sports and a host of extracurricular activities. It’s a time to laugh, share, having fun and just bond around Sunday dinner.

Now, on Sundays, I also give them a pop quiz on current events. It is nothing formal but more general conversations about what’s taking shape in our ever expanding global world. But today, I decided to quiz them on how to make macaroni and cheese. It was one of the items we had prepared for dinner.

Almost instantly, my older son began telling my younger son to quit copying off his paper. When asked why he was copying, my younger son said because no one said he couldn’t. After listening to my son, I realized he was technically right. I hadn’t said no copying, no cheating, not etc. According to him, he was following the rules as given to him, and it wasn’t his fault that we assumed that the word quiz implied no copying, sharing or discussing the answers with someone else. He hadn’t taken quiz to assume any of that especially since I hadn’t said it.

As a good friend of mine said when I informed her of this: “Your son is going to be a good businessman. In school, it’s called cheating. In the real world, it’s called don’t reinvent the wheel.”

And while funny, it was also a revelation of how we often place self imposed limitations on ourselves. How often do we imply things or limitations that don’t really exist? What my son reminded me of today is how easily it is too become so socialized that you sometimes forget the obvious or to think outside the box. He also showed me how we impose limitations on ourselves even in situations where they haven’t been imposed on us because we assume every situation is the same. After all, there are closed book quizzes and open book quizzes. My son’s point was why should he make things harder for himself if he doesn’t have too?

After listening to him, I was reminded of one of my favorite quotes: “someone else can hold you down temporarily. Only you can hold you down permanently.” Today, I ask how many of you are the biggest obstacle to your success and/or are holding yourself down permanently because you’re imposing limitations on yourself that don't exist?


Kim Crouch is a wealth strategist and along with Lisa Maria Carroll, is co-creator of the Millionaire Journey. To learn more about Millionaire Journey, go to http://1yearmillionaires.blogspot.com or join us on Facebook at http://tinyurl.com/yhdwa78.

How To Create Financial Legacies for Your Children

I once heard it said that in Japan, when a child is born, an account is started for that child’s grandchild. This is a stark contrast to what we do in America. Our national savings rate is only 6.4 percent and many Americans are living paycheck to paycheck, buying on credit and robbing Peter to pay Paul.

Last night as part of the Millionaire Journey show, Lisa Maria Carroll and myself discussed how parents can create and leave financial legacies for their children. As many parents prepare to send their children back to school in the next few weeks, this is a great time to begin to talk to your kids about finances or to begin to prepare them for financial literacy. You don’t have to be a genius to teach your children about finances nor do your children need to be teens in order to understand money. You can begin teaching your kids about money as early as preschool. This includes everything from teaching them the value of different currencies, to taking them to the grocery store with you to compare.

The truth is by the time your child leaves your home at 18, many experts believe they should know the following money skills:

Here are some things you can do to begin to teach your kids about finances:

• Learn how to budget
• Make and deal with spending decisions
• Understand rewards of work
• Delay gratification


1. Start early. You can begin teaching your kids about money as early as preschool. This includes everything from teaching them the value of different currencies to helping them understand people have jobs that pay them money.

2. Budgeting. Include kids in on your budgeting decision. Everything is a teachable moment about budgeting. With school starting back this is a great opportunity to help them create a budget for back to school clothes or extracurricular activities. Include field trips in the cost of your budget as well. It’s also a great opportunity to help them understand their money (or at least yours) will go farther if they take their lunch.

3. Teach them to shop. Most parents spend their time teaching their children how to save money. But ask yourself, have you taught yourself to shop? If you have the time, take your children to different stores such as Neimans, Macy’s and even a second hand store to give them an understanding of how to stretch their dollars while getting a good quality product.

4. Everyday moments. Recognize that everyday brings opportunities to teach your kids about finances. Whether it’s taking them along to with you to the bank, the grocery store so they can learn comparison shopping to tipping at restaurants or explaining why you chose one gas station over the other (if price related even if they sit opposite each other. Also consider playing board games with them such as Monopoly that starts them thinking about finance and property ownership.

To Hear the entire show, click HERE

Here are two good books I recommend parents read on raising financially savvy children.

1.

2.

Leaving a Financial Legacy

What are your saving and investing habits teaching your children about money?

In Japan when a child is born, an account is started for that child's grandchild. In America when a child is born, we buy a few bibs, some Pampers and throw a party: all things that are disposable and, unlike a financial legacy, are momentary and fleeting.

Our children are returning to the classroom this month, and this is the perfect time to teach them financial literacy no matter how young or old they are. In order to create a financial legacy of wealth, not debt, we must teach our children how to make, save and spend money. We must encourage them to be entrepreneurs and business owners, because we want our financial legacy to be that of faith and values that determine how they handle finances for themselves and future generations.

What do you want your financial legacy to be?

Join us this Sunday, August 8th, on our Blog Talk Radio show (http://www.blogtalkradio.com/1yearmillionaires/2010/08/08/leaving-a-financial-legacy), as we give you strategic steps on creating a financial legacy for your children.

Find the Luggage: Time To Send Fear Packing Again!

Every now and then, we all suffer from FEAR! According to Wikipedia, Fear is an emotional response to a perceived threat. It is a basic survival mechanism occurring in response to a specific stimulus, such as pain or the threat of danger. As we get older, our fear increases because we believe we have more to lose. The truth is far too many of us allow fear to control our lives.

Whatever the cause of your fears, I thought this would be a great time to share with you again the recording of the telerally that Lisa Maria Carroll and I hosted earlier this year in which we discussed the 5 ways to Send Fear Packing.

Just remember in listening to this recording that FEAR is False Evidence Appeared Real, and your goal is to not let some perceived state prevent you from accomplishing real things.


Click HERE to listen to the audio tape.

Kim Crouch is a wealth strategist and along with Lisa Maria Carroll, co-creator of the Millionaire Journey.