A Financial Education Event
 

Are You Teachable?

When I was a young mom, we had five babies in seven years and moved 11 times in 13 years. While on that journey and at my husband’s urging, I decided to go back to school and finish my Bachelor’s degree. Yes, I went back into the classroom between babies #3 and #4 to reach that personal goal. Colorado Christian University had a program designed for adults who worked full time and taking care of all those kids was a full-time job! In my class were other adults including Madeline, a 70-year-old great-grandma who wanted to finish her Bachelor’s degree. When the professor asked each of us our motivation for enrolling in this difficult, accelerated program, Madeline sweetly replied,

“I always want to keep learning and remain teachable.”

She became my hero that day.

Madeline finished the program and walked the stage with the rest of us, then she went on to publish three books—always remaining teachable.

As a veteran speaker of 2000+ paid gigs, an author of 15 published books, a spokesperson for 100+ brands, and a media veteran of 2800 interviews, I’m often asked to mentor neophytes on how to succeed in these areas. It seems that everyone (and their mama) wants to write a book, become a brand ambassador or launch a professional speaker career. That’s cool, it’s great to have dreams. Many have read that they should “go to someone who is successfully doing what you want to do.”  Consequently, some will come to me. That’s not a bad thing, that’s what I did when I started out. I’ve received hundreds of requests for this kind of coaching and the requests infer a pro bono offering. This can be overwhelming.

How do you decide who to mentor when you have a limited amount of time?

My answer:  they must be teachable.

I have a business and non-profit to run, a podcast to push out, a husband to flirt with, and several grandbabies to visit. Time is limited and I can’t take every meeting that I’m asked to take. How do I decide who gets a meeting and who will get the closed door answer: “I’m honored you would ask, but I regret to say that I cannot accept.”

I’m not alone, you’re probably juggling work and home, trying to find that work/ life balance that is ever illusive. You need to know what meetings to take and which ones deserve a pass. Or, you may be the person asking for the meeting—why should the experienced veteran in your field, take a meeting with you?

They need to be teachable.

Just like Madeline, are you willing to humble yourself, do the work you’re asked to do and realize that you have something to learn?

I’ve found that the least teachable people are those who feel they have nothing to learn. Some of the worst speakers I’ve ever heard are Generals, CEOs, actors, teachers, and preachers—those who speak in front of groups often. They feel that because they are already doing it, they don’t need to improve. The English teacher who is not a publishable author feels she knows her grammar, but that doesn’t mean she can write a book. The professional speaker, who can’t make the leap to media interviews because he doesn’t know how to deliver a sound bite. You get the idea.

I have several ways of vetting someone before I take a meeting. For example, I’ll send them a file on the topic they want to discuss with me, “call me after you’ve read the file and we’ll set up a time to answer your questions.” Roughly 9.5 out of 10 never read the file—BAM! I don’t take that meeting.

Or for those who want to be speakers, I’ll say, “attend a Toastmasters meeting and then we can talk.” But they don’t do the bare minimum—attend one, little meeting! In both vetting cases, the proposed mentee feels they are advanced well beyond the need to read a file or attend a meeting.

The same thing happens at conferences, when attendees have a chance to speak with the faculty to talk about their work. Occasionally, a faculty member or speaker will request more material from an attendee.  According to my literary agent, Steve Laube (super agent extraordinaire) 9 out of 10 attendees never send him their info on the rare occasion he requests it. It’s a huge open door that they won’t walk through due to fear, laziness or procrastination.

After I spoke at FinCon one year on the topic of monetizing brand ambassadorships, an attendee followed up with me as I requested. She did her research, followed my advice and today, she’s a very successful brand ambassador. You can read about “The Budgetnista” and see the work she’s doing in the space—a truly teachable lady who found success.

Madeline, from my CCU class all those years ago, remains a hero of mine and I want to grow up to be like her. Towards that end, even after 25 years as a professional speaker, I remain teachable in my primary areas. I attend Shop Talk Toastmasters, and practice new material, receiving feedback from those Toastmasters. After every speech that my speaking team does with the Heroes at Home Financial Event, I get feedback on the presentation from my team. This way, I continue to learn and grow.

Are you teachable?

Are you willing to do the work?

Do you have a way to vet your time to determine what meetings you’ll take?

Have you ever been asked for a response from someone in your field of interest and what did you do?

For more information on how to structure your work/life balance, listen to our interview on the Money Millhouse with an exceptional life coach, Ann Vanino.

Where ever you go and whatever you do, remaining teachable is the best way to grow and continue to find success along the journey.

Rent-To-Own: Is It Ever A Good Idea?

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You’ve moved into a new place, started a new job and you’re beginning another phase of your life. The only problem is that you don’t have enough furniture for the new place and you realize you’ll also need a washer/dryer.  Then, miraculously, an ad pops up on social media for a place where you can go get name brand appliances and choose from dozens of options on exactly the kind of furniture you need—all for only $21.99 a month! YEA!!!  You’re saved! After all, you have a good job, the monthly payments aren’t going to break you and you deserve to make your new place comfortable, right?

Wait a minute, not so fast.

Is rent-to-own the best option? The answer is:  it depends.

How Does Rent-to-Own Work?

Usually, you’re renting from a well known store, but, in most cases, you’ll have to sign a third party contract. I remember one time when we bought a refrigerator and my husband thought, “Let’s use someone else’s money at 0% interest.”  The only problem was the third party contract indicated that those 0% payments were only for a fixed introductory period, then there were three options. We could buy the item, continue making payments (at 200% APR interest) or return the item to end our lease. We bought it out early, so that we were in the clear and vowed to never buy into this kind of a contract without understanding the fine print first.

 

Rent-to-own also means that if you fall behind on the payments, the leasing company can repossess your leased item and you don’t get any money back. There may be cheaper ways to pay because even if you have bad credit the options of  layaway, sub-prime credit cards or  bad-credit personal loans, which run 36% APR are better than the 200% APR of many rent-to-own programs.

 

When Is Rent-to-Own A Good Idea?

 

Despite the typical APR rates north of 200% for this kind of contract, there may be some anomalies when this option is not a bad thing for your bottom line. In fact, there are some instances, when using a rent-to-own option make sense:

 

  • If the interest rate stays relatively low (less than 3%) during the entire leasing term, and the term is 24 months or less, then you aren’t losing much. But read the fine print.
  • If you believe you’ll have the money to buy the item outright at the end of the low, fixed rate introductory period, then it could be a good way to keep some money in a rainy day account while you save up for the buy out.
  • If you need to diversify your loans to improve your credit score, and you qualify for low interest, then this kind of financial contract could help your credit score. But since diversification of loans only represents 10% of your credit score, it’s not worth paying higher interest rates to diversify.
  • If you are only in a location for a short amount of time (our sons have military training at bases for anywhere from 3 months to 10 months), and your interest rate is low, you could rent and turn the item back in when you move. But make sure the contract allows you to do so. If you must move yourself and your company doesn’t pay for a move, then renting a truck and moving that furniture cross country could cost more than it’s worth.
  • If you have the good credit score amongst your roommates and you all need to get furniture for the main living areas, then you could work a deal where they use your credit (your contribution) and they pay their part of the monthly payments (their contribution). But make sure the interest rates are low for the entire contract and that you trust your roommates enough to make the payments to you (on time) so that you can make the payment. At the end of the lease, you keep the furniture. This option may be more of a hassle than it’s worth. But if you are cash strapped, it might be just what you need.

 

Before You Sign

Let’s say that you’ve decided that Rent-to-own is the route that will work best for your budget and lifestyle. Here is your checklist before you ink that contract, if any of these are not clear are it’s revealed that they are not to your advantage, then think twice about this option. Here’s the list:

  • What are the monthly payments (including all fees)?
  • When are the payments due?
  • What is the total cost to own this item (all payments, interest and fees)?
  • Who insures damaged or theft?
  • If you miss a payment, will it be automatically repossessed?
  • Is the item new or used?

After You Sign

 

Let’s say you already signed a contract before you read this blog. Or, you’ve followed all the advice shared and decide that the contract will be a good option for you. Take these steps to protect yourself:

 

  • Follow the money. Make sure you are keeping your payment records because some rental companies have had problems with giving their customers credit for payments made.
  • Pay on time. Since 35% of your credit score is your credit history, it’s crucial that you make your payments on time or even before they are due. If possible, set up the payments to transfer from your bank account so that you never miss a payment.
  • There’s a chance your debt might be sold to a debt collector Know your rights in this situation as the Fair Debt Collection Practices Act requires debt collectors from harassing customers, calling them excessively and using abusive or deceptive practices to collect on the debt. 

In the Kay family, we like to live a debt free life and will usually save up to buy furniture or appliances before we would go into debt. This isn’t always possible for American consumers, in which case it’s good to know the nuances of Rent-to-Own for you or those you care about.

What has been YOUR experience with Rent-to-Own?

Top Ten Failure Factors for Finances

Welcome to Top Ten Tuesday. Only 1 day left in January! By now, it seems that most of our New Year’s resolutions have lost some steam, been pushed to
the side, or just been dropped all together.

It is never too late to reevaluate our goals and start over. We don’t need to wait until the next January 1st to get our finances under control. When we fall off the wagon, it is best to get up and keep going. I like to imagine the young Anne of Avonlea saying, “Isn’t it nice that tomorrow is a new day with no mistakes in it?”

If we understand what derails us from achieving our goals, then we can counter those failure factors and find success. These are the top ten failure factors that impact the achievement of a goal. Read them slowly and think about what they mean in your recent resolutions.

Top Ten Failure Factors:

•   Setting unrealistic goals

•   Motivated by the wrong motives

•   Believed failure was inevitable

•   Fulfilled the need for immediate gratification too often

•   Influenced unduly by other people

•   Practiced a “deprivation mentality”  – all or nothing/black or white

•   Rationalized and made excuses rather than taking responsibility

•   Displaced emotional issues through overspending and overeating

•   Procrastinated rather than taking action

•   Lacked the tools to make compounding incremental change

Reread the list above and circle any of the “failure factors” which you believe may be significant influences in your life. Failure can be seen as a profound learning opportunity. It’s time to stop trying so hard and start training toward a new way of addressing your wealth challenges. Past failures do not need to be repeated. Before my husband and I met, he was in a debt cycle he felt would never change & financial

freedom was just a dream. But it did change because we set goals and took action. The result? We’ve been debt free for 20+ years.

After you circle the “failure factors” that may apply to your situation, take the time to write three ways you believe you can counter those factors and turn them into successful areas of your life. I believe in the old saying from John L. Beckley “people don’t plan to fail, they just fail to plan.” Having a plan can be over half the battle in discovering ways to be successful in your finances. But implementing that plan is the other half of finding success.

One of the ways that I have found most people can create and stick to a plan is by having a “money buddy.”  If you are married, this might be your partner, and if you are single, it can be a like-minded friend who is good with their own financial resources. Get together with your money buddy and go over this “failure factor” list. Let them help you come up with ways that you can counter the failure to turn it into success. Then, set a date to meet with your financial partner and track your success. It’s kind of like Weight Watchers for money matters and there is great power in unity with other like-minded people who want to overcome their own failure factors.

For great budgeting tools, go to mint.com—an excellent app for managing finances. Keep checking in week to week for help along the way. You are not alone in this financial journey! You can find success if you: Dream Big. Set Goals. Take Action