STEP 2 to the FINANCIAL RESOLUTION !!

It's Friday!
Thanks for tuning into the 2nd Step episode. We had talked about recognizing the problem that we have fallen into. We found out what the problem is and now it is time to take the course of action. We need to realize that this is not an overnight process. Depending on how bad the situation you are in, this may take a while. Right now I want to hear you all pledge to change your habits and promise that you are in it for the long haul if need be. We can help you answer any questions that you may have and help develop a plan of action!

If we are "bleeding" in our financial stature then we first need to stop the bleeding and stabilize. We need to realize that this may take two transactions over the next year or two, to get you back in the driver's seat.

Spending habits: This is the first way to reach for the band aid while you and your mortgage professional figure out your plan. The most common area to improve in is on fluctuating bills such as food, gas, shopping. By writing these down, you will realize how much you really are spending a month on fluctuating bills.

Food:
- How often do you and your family eat out?
- Can you do your shopping at Walmart or big shopping at Costco or Sam's to save?(People do not realize that it is VERY hard to beat Walmart’s prices because theypurchase by the train load)
- How much do you spend going out to lunch with everybody at the office rather than packing a good old sandwich and chips or better yet last night's left-overs? (This will make your wife feel good because you liked dinner "so much you couldn't get enough" :)

Gas:
- Can you carpool with somebody - - you pay gas one week and they pay the next?

Shopping:
- Do you really need that new fancy thing-a-ma-jig or can it wait for a Birthday, Anniversary, or Christmas? (If you do HAVE to have it now, look at discount stores. Online is a great tool to use and a lot of websites compete for your business by offering deals or FREE SHIPPING!)

After I asked myself these questions, I saved:

Lunch = $90 over a month’s timeDinner = $195/month (approx) reduced from three times a week to once a week
Shopping = $33 shopped online and found my wife's Christmas present cheaper!

TOTAL = $318.00/ WOW my car payment was just paid!

The other way to cut a little spending is to take a glance at your steady reoccurring bills such as: Cable, Internet, Satellite TV, Cell Phone, Credit Cards, Phone, etc.

Ask yourself these questions:
- Do I really need long distance on my home phone when it is usually FREE on my cell?
- Do I really watch the Premium channels that I pay for?
- Do have the optimal Cell phone plan for my families usage and mine?
- Can I call my credit card companies and tell them that I am thinking of transferring a balance to another company that has a lower rate. Then I should ask them “What can you do for me to keep my card with you?”
- Do I really need the highest speed DSL or Cable Internet available; most of us use the Internet at work and just minimally use the home Internet. (And by the way, NO, the kids' concern about how fast the Internet connection should not be an issue!)

After I asked myself these questions I saved:
- Long Distance = $20/month
- Premium Channels = $23/month (had 2 that I never watched)
- Cell Phone plan = $38/month (bundled mine and my wife's and saved)
- Credit Card rate= Don't know exactly, but 3 cards lowered my rate by an average of 3.5%!
- Internet Connection = $15/month cheaper

TOTAL = $93.00/month, BINGO paid for my Auto Insurance for this month!

So all in all we saved about $410.00 in the first month of living like this.

Remember it is just that easy! I paid my car payment and insurance by just spending about an hour on the phone with some companies that I spend money with and vowing to change MY eating out habits. Unfortunately, I am not able to carpool, that would make a HUGE difference!

These are just simple ways to stabilize your financial situation while you work on putting your BIG PICTURE plan together. Using your home as a tool to get what you need financially is a HUGE asset that you have in your back pocket.

REMEMBER PLAN FOR THE WORST, BUT LEARN TO SAVE A LITTLE MONEY ON THE WAY!

Next up step three! We put the ball in motion!Please do not hesitate to call with any questions 303.666.6715 or drop me a line or two at matt@myprosperityfinancial.com and remember we have a ton of insightful information on our website http://www.myprosperityfinancial.com/Have a GREAT weekend!

The Mortgage Insight Specialist