This week we have a very special guest, Mike (Mish) Shedlock.  Who is the author of Time Magazines #1 Financial Blog in the country.  The blog is called Mish’s Global Economic Trend Analysis.  I liked it so much that I put a link to it on our website.

Mish is a registered investment advisor with SitkaPacific Capital Management.  He has a good understanding of the factors that create changes in the national and international economies.  Mish is a straight shooter and whether you agree with him or not, you will love the direct way he attacks issues and his plain spoken way. 

 

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I talk to lots of people each week about their money and their plans for the future.  I really enjoy it because it helps me understand where people are and what they believe is possible.  Not just with their money but with the things in life that they are passionate about.  I find that the bigger the dreams, the more focused people are on the task in front of them.   

The common thread I am hearing now in the stories of the people I am talking to, is that little voice of insecurity.  They are wondering if what they have been doing with their money is still going to work.   

The baby boomers are concerned about whether they have enough money stashed, and for most the answer is no.  they are coming to grips with the possibility that they will have to put of or forego retiring from work. 

The Gen X and Gen Y generations are wondering how they are supposed to make it if the plans their parents used didn’t work.   Do they completely abandon the strategies their parents used and if they do try something else, what should they do? 

The truth is that our economy and especially the world of personal finances has forever been changed.  We are now seeing the purging of the old ways and the implementation of the new ways.  We are not going to go back completely to the financial ways of a few generations ago, but close. 

You have to understand that the days of easy credit for everything are gone.  If the days of easy credit and free flowing money do come back it will be after we have learned to live without it.   

I don’t mean to say that we are going back to living without any kind of credit use at all.  That won’t happen.  But that old saying that the only people that banks loan money to are those that don’t need it, is becoming truer by the day.   

Going forward, if you want to be financially successful you will have to do the following things.  These are not my rules, these are my observations.   You have heard me say some of this before.  The truth is, with the current changes to our way of life.  You will have to do more on your own. 

Here are my top 3 things “Working America” will have to do to survive in the financial future. 

1.    Make a reasonable income.  Most people are not making enough money to support themselves.  If you have to hone your skills to make more money.  Then you might as well get on it now.  You may need to take on a second job or figure out a way to make that hobby pay.  In the future you won’t be guaranteed much.  You will be paid what you earn.  You are on your own.  Remember we are competing with people all over the world. 

2.    Live on less than you make.  You no longer will be able to live above your means and make up the difference with a credit card.  Unlike the times of the past, you will still need a credit card and you will have to use it wisely.  Until you have enough extra money put away to meet those unexpected bumps in life’s road, a credit card may get you through but understand that it is only a temporary solution.  Future credit card use will have to be done on a month to month basis.  Use it, pay it off. 

3.    Invest your extra money.  You are going to have to become more educated about investing.  It is obvious that your local banker is not up to speed.  Most will only tell you about the banks investment products.  If you look at what the banks have done, you need better advice.  You need to have someone who understands money and investing in your corner.  You will have to understand more than you have had to in the past.  This is your money and you will have to take care of it.   

I am not sharing these things with you to scare you.  I am  telling you so you can get a jump on the trend.  I believe that people are inherently smart and given the right information most everyone will actually excel.   

You have lots of options and as a matter of fact there is lots of opportunity right now.  So please don’t sit back and expect some company or family member or charity group to take care of you.  You may survive, but you won’t be satisfied.   

You need to understand the new rules of money.  Get out there and show the world what you are really made of.  Hone your skills, change your mind and take some action. 

On our inauguration day show we have a guest that speaks to a critical need for education in our country.  That is the education of our children when it comes to money.  It should be obvious to everyone that the people who run the financial arenas in America need to go back to the basics of handling money.  

Candi Sparks, author of the “Can I Have Some Money” series of books is on the show to talk about how to teach your kids about money.  We all know someone who has grown kids who are not self sufficient when it comes to money.   Candi explains that kids have the ability to learn about money from a very early age.  She goes on to give us some valuable tips on how to have those discussions in a way that is fun, easy to understand and will have a long lasting effect.

Candi is full of energy and I know you will love listening to this strategy filled interview.  For more information on Candi and her mission to provide financial literacy for our nations youth, go to www.CanIHaveSomeMoney.com

I hope you enjoy the show.

 

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I often think about the vacations we took when I was a kid.  Air travel was not as affordable then as it is now, or we didn’t have the money to fly, I don’t know which.  But when we took a family vacation it was in the car.  I remember going back to Mississippi a couple of times to visit relatives and to Vegas to see friends but what I remember most was what seemed like endless hours in a very hot car. 

Before we left, my Mom and Dad would get out the maps and figure out which way we were going to go.  The route we would take depended on the time of year and what they wanted to see along the way.  There were lots of different roads we could take to get there but the first thing they determined was where we were going and when we wanted to be there.   

That brings up a couple of questions for you… 

Do you know where you are going with your money?  Do you even know where you want to go?   

If you are like most people, you are on a path that was either set for you or one that was set by the job you have or other choices you have made along the way.  If you could have set a different path initially, would you? 

You can change your path.  Have you ever sat down and actually written down what you want to see in your life?  Most people never really dream big beyond winning the lottery and buying that new house and new car.   

I bring this up because what if changing your path was as easy as putting on your blinker and making a turn in your car.  I don’t claim to have the magic pill to life altering prosperity, but I have heard it said that if you change your course by one degree and follow it out over enough time, you would end up in another galaxy.   

If you want to change your direction when it comes to your money, keep listening.   

A couple of weeks ago we talked about BHAG’s, those Big Hairy Audacious Goals.  These are the dreams we put down on paper in short, broad terms.   

The next step is to be a bit more specific about what you want to be, to do or to have in your life.  The trick is to do it without limiting yourself.   

In this exercise, you don’t have to know every turn you are going to take, just the destination and the time you want to be there.  In fact, if you do try to figure out every turn, you will get in your own way.     

I find that creating this vision is so important that I added it to my schedule of workshops we teach.  I even put a copy of the workbook on our website for you to download for free.  You can get it at www.themoneything.com and click on resources.   

My wife and I do this every year and we have completely changed where we were going.  This one exercise has helped us to create a whole new purpose to our lives, our relationship and of course, our money too.   

If I told you that you could spend and hour and you would create a new direction for your life, would you invest that time?  That is exactly what you should do.  If you have listened to this segment much, you know that every week my wife and I have a date night.  This week, make a date with the people in your life that matter and create a new direction for your lives.   

It’s the new year, we have a new president.  If you want change in your own life too.  Here is a great way to get started. 

In this time of financial uncertainty, it is important that we do whatever we have to to balance our lives.  For many it is looking at their spending or getting second job.  Some are content to wait until the new administration comes into office and takes care of everything. 

For those of us who believe there is a higher source, we have brought in Stuart Migdon author of Jesus Take the Wheel, 7 keys to a transformed life with God.  Stuart talks about his conversion from Judiasm to Chrisitanity and how that has impacted his life.  Stuart talks about the biblical way to handle your money and how changing the focus of your life can change your financial situation too.

I hope you will enjoy this interview and the book as much as I have.  God is my source and helps me through the good and not so good economic times.  There is an important message here and with it you can change your financial life.

For more information on Stuart and his book, go to www.letJesustakethewheel.com

 

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In this segment you have heard me speak about the plodding determination of the turtle.  The persistence to complete the race and not quit actually allowed her to win the race.   As we move into 2009, it is important that we keep that need for persistence in mind as we deal with our money too.In fact, I want to offer a different twist to this same idea.   

It comes from a quote my wife gave me the other day from H. Jackson Brown Jr.  A New York Times bestselling author of many books of common wisdom. 

Here is the quote:  In the confrontation between the stream and the rock, the stream always wins, not through strength but by perseverance.

So why is this insightful tid bit important when it comes to dealing with your money?  Like the water in the stream, all of the issues you encounter in dealing with your money will come and go. 

Money itself comes and goes 

Bills come and go. 

Lack of money will come and go. 

And so for that matter will prosperity. 

The stream is rejuvenated by many sources, natural and manmade.   As the stream is recharged, it sends it’s water on to take care of feeding whatever is downstream that needs taking care of.  Whether it is feeding the plants or the animals or the fish, it is used by whatever it touches for whatever is needed.  

Along the way, the water goes around over or through whatever it has to in order to keep moving.  Water is not a fixed thing.  It can get to where it is going regardless of how the path changes or what gets in it’s way. 

This year in particular consider these thoughts as you take a new approach with your money.

1.     If money comes and goes, where is the real source of your money?  What are you doing to nourish those you come in contact with?

2.    If bills come and go, do I need to worry so much about something that is temporary?

3.    If lack comes and goes and I am lacking today, remember, this too shall pass.

4.    If I am not prosperous.  What could I change to be more fluid in my thinking so that I can go around, over or through the obstacle. 

When it comes to your life and your money, do you take after the rock or the stream?  

Especially in these economic times, it is important that we do what we can to take care of ourselves first.  Be flexible.  Take another look at your source and nourish those you come in contact with. 

The solution to the universal financial mess is to make sure that we as individuals are stable first.  Your personal financial stability starts with your spirit and your mind.  This leads to a balanced life and a better 2009.