Get Your Money Right By Kembala Evans – Book Review

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It can be easy to read a book offering personal finance advice and expect to see the same recycled information such as budget worksheets, money envelopes, and debt snowball plans.  As I read “Get Your Money Right: The 7 Keys to Unlocking a Better Financial Future” by Kembala Evans, I expected more of the same, and I was thankfully incorrect in my assumption.

Not that the book does not offer familiar advice, but Kembala’s means of delivery offers much more than regular personal finance fare.

Kembala Evans: A Voice of Reason and Guidance

The author is a coach and motivator, and that certainly shines through in her writing.  I was trying to find a good way of describing her way of communicating (I tend to think in pictures or situations), and Kembala had the perfect example in a scenario she shares in her book.

She explained that one day on the subway a total stranger decided to ask her a financial question, and while she was speaking with this woman, a group of people gradually became drawn into the conversation with a lively Q and A taking place her whole 45-minute ride.

This is EXACTLY the picture in my head – a scenario with a lot of voices speaking, but slowly and surely the whole room starts gravitating to the singular voice that makes the most sense.  Kembala Evans is that voice.  She skillfully balances a very detailed, professional approach to financial matters, while inspiring her reader to act.

Get Your Money Right

From the first few pages it becomes apparent that this book is not just about a plan to get out of debt, it’s about the mindset of the person behind the monetary decisions.

Many Americans are still in debt, still living from paycheck to paycheck – or worse, living on credit to get by.  There are many reasons we got to this point, but the fact is, we are HERE and we need to do something to get ourselves out of this mess.   

Get Your Money Rightis not another system.  It is a practical look at what we all face on a day-to-day basis in regards to money, the mistakes we make, and how, by well-informed decisions and actions, we can take every aspect of our financial life and make it work toward our goals.

This book paves that path by taking the reader by the hand, giving them the courage to move out of their current situation, and providing them with the primary tools they’ll need to make sure they never go back to a debt-ridden life again.

As far as motivation, Kembala gives: examples from her own life, words of wisdom, case studies, inspiring quotes, and success stories.  These are seamlessly weaved throughout each chapter to help cement the reader’s resolution to change.

The chapters also give basic instruction on budgeting, saving, goal mapping, and credit wisdom.  Along these lines, Kembala is extremely specific in her coaching and advice.  She does not just say, “open up a savings account”, but she discusses the different savings options, goes over important financial vocabulary you may encounter, and gives you a website where you can compare interest rates!  With every nugget given, there is great care taken to allow the reader to feel secure in the next step.

What I appreciated in her communication is that her attention to detail is in no way condescending; it is more of a testament to her proficiency, and her care that her readers succeed.  She repeatedly provides phone numbers, websites, and names resources so the reader can grow in their financial education and understanding.

My Overall Impression

As you can probably tell so far, I am really excited about this book.  One of the reasons is that as I was reading I could begin to picture people in my life that would respond well to it.  There are many books out there that one could read, but people are drawn to a ‘voice’ (eg. Some people love Dave Ramsey’s aggressive, “in your face” approach).

I think Kembala’s book, with its motivational style, coupled with her obvious expertise, and its “no-excuse” care and detail, makes it one that the most finance-leery person may be willing to read, and hopefully utilize to change their situation.

One of my favorite things about reading this book is that it made me want to recheck and reinforce things that I am ALREADY doing!  For example, in the section on ‘Watch Where Your Money Goes… Literally’, I had to fight the urge to put the book down and start calculating the most recent pay stub to make sure every penny taken out was correct.  It really is that motivating 😀

The only part about the book that I did not particularly like was the “Develop the Mindset” chapter.  While I agree that it is necessary to have the right mindset to achieve any goal, I don’t personally prescribe to the idea of positive thinking and the power of words to the extent the author presents them.  Although this is the case, I think Kembala does a fine job of explaining her beliefs on the subject, and presents the reader with common ground where it is clear that having the right mindset and a positive outlook is essential to successfully achieving goals.

Get Your Money Right drives home the fact that caring about your money does show care about yourself.  When we neglect our finances, and put ourselves in debt bondage, it speaks volumes about our priorities in terms of our own lives, our families, and our futures.

Although we may all know people that are afraid to look at their finances, I am sure those same people care about the future of their families.  I think those people should get a copy of this book, it may just be the thing to get them over that hurdle. It’s that good.

Kembala Evans is the Founder of KP Evans Financial, a personal finance education and coaching firm focused on educating, motivating, and empowering people to take control of their financial futures. She has a bachelor of business administration in marketing and management from the University of Miami. Kembala also has 12 years of business consulting experience working at Accenture. As an experienced executive, she managed multi-million dollar programs and worked with many Fortune 500 clients to improve their business performance. She left Accenture to pursue her passion for helping everyday people improve their personal finances.

4 Reasons That People Fail With Their Finances: What I Have Learned As A Credit Counselor

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[The following is a guest post by Kevin, a credit counselor who blogs at DebtEye]

Over the past few years, I’ve met with hundreds of clients face to face who were looking to get out of debt.  They come to me looking for tips & advice on different ways to get out of debt.

As a credit counselor, we must closely examine their financial health before recommending any type of debt relief program.  I usually preface the counseling session with, “How did you get into debt?  What happened?”

After listening to their stories, it’s interesting how you can see a pattern after speaking with hundreds of people in debt.  You would probably think that a lot of them suffered some sort of catastrophic financial hardship such as: losing a job, death in family, or unexpected medical expenses, without an emergency fund.  Think again!

4 Reasons People Fail With Finances: What I Have Learned As A Credit Counselor

After listening to my clients, here are the patterns I started to notice:

Huh?  What does APR mean:  I ask all my clients to bring in a copy of their most recent credit report, or a copy of their latest credit card statement.  When I ask them what their APR is (before I look at their statement), most of them have no clue what I’m talking about.  Everyone who carries credit card balance should ALWAYS know how much in interest their paying every month!  Read the fine prints!

I think I spend $200 in food: If I asked you how much your mortgage was, or even your car payment, chances are that you would be able to tell me right away.  What if I asked you how much you spend on food every month?  Most people don’t keep track of their expenses.  I know it sounds cheesy, but starting a budget worksheet will help you organize your finances.

Your mortgage is how much? : What ever happened to the 31% housing ratio rule?  Do people not follow it anymore?  Over 60% of the clients had their housing ratio 31%+.  It’s no wonder they have no money left over every month!  When you plan to buy a house in the future, do yourself a favor:  Stick with the rule, or be part of the statistics (like one of the many going through a Bank of America foreclosure).

Today, today, today: Most people only care about the present.  They only care about how much money they can save today.  How can I lower my monthly payments this month?  If I borrow money today, I can pay it back tomorrow.  This is a dangerous path to follow.  Stop thinking about today, and start thinking about the future!

I’m sure many of you may be guilty of some of the things I mentioned.  If you’re not in financial distress, consider yourself lucky!  I recommend everyone to really take a close look at your personal finance.  I don’t want to see any of you in my office!

Kevin is a co-founder @ DebtEye where he helps people get out of debt by finding the optimal solution to pay off credit card debt.  He is a certified credit counselor and previously owned a credit counseling company before joining the DebtEye team.

photo by Chris Sharp

Why Financial Literacy Is So Important

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[The following is a guest post on behalf of Advisor World on the topic of financial literacy.]

How Important Is Your Financial Literacy?

Making informed financial decisions can be difficult. You have monthly bills to pay, and you might wonder where the money is going to come from. Most Americans have no idea how to control their finances. Therefore, it helps to become educated on how to better manage your finances.

What is Financial Literacy?

In order for you to be financial literate, you need to know how to deal with credit (and take advantage of credit card benefits). You should be aware of the process of saving money, and you must know how to budget your finances. You need to have a plan for how you are spending your money.

April Is Financial Literacy Month

President Obama has announced that April is financial literacy month. Financial literacy is the capability to comprehend basic economic provisions and conceptions related to your family or business. The White House wants to help Americans better understand their personal finances, so they are trying to help citizens become financially literate.

Ways To Get Started In Becoming Financially Literate

  • Read: Find information in books, magazines, and newspapers. Become skilled in the world of finance.

  • Be willing to make changes: You must be flexible. You cannot expect to spend money frivolously.

  • Be patient: You cannot become financially literate overnight. It takes time to get a grip on your finances.

  • Take a class: There are investing and financial planning classes that are offered. Check in your community to see what financial classes that you can take.

  • Get advice from other people: If you know someone that seems very financial literate, ask for their advice.

  • Look for help online: There are many online forums where you can discuss financial decisions.

  • Quit making excuses: Don’t complain about not having enough money. In order to manage your money effectively, you need to change your attitude and be positive.

Study Your Paycheck

Your education and job have a huge impact on your income. Therefore, when receiving your paycheck, you should know the difference between your gross and net earnings. Be aware of what you are actually bringing home.

Plan A Budget

After realizing how much money you are actually making, then you should plan a budget. Keep your checkbook balanced, so you can keep track of your money. Know exactly what you are spending, and set your goals accordingly.

Loans

You should not get a loan or borrow money unless you know that you can pay it back. You should not charge unnecessary purchases on your credit card. Interest can really add up, so keep your credit card balances low.

Save Money For Emergencies

You need to also save money each month. Sometimes, you might encounter emergency expenses, and having extra money available will keep you from having to take out a loan or put it on your credit card. Your emergency fund should cover 3 to 6 months of living expenses.

Know Your Credit Score

It is a wise decision to know your credit score. You can get a free copy of your credit report annually. You can keep track of your credit, so you can make sure it is accurate and up to date.

Being financially literate can help you secure the financial future that you deserve. You should make good financial decisions so that you can use your money wisely.

Photo by Salvatore Vuono

5 Ways To Save On Your Student Loan Repayments

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5 Ways To Save On Your Student Loan Repayments

With the end of another semester looming on the horizon, and the thought of all those student loans looming over your head like a bad hangover, many students are left wondering how to pay for the past few years of higher education without breaking the bank, or stretching the payments out for the next 10 years of their lives.

Here at MyCreditGroup, we understand the stress student loan repayments can have on new college grads, so we put together 5 tips for helping you wipe them out in a timely fashion.  Pay attention – there might be a quiz after:

Don’t Put Off Your Student Loan Repayments

Okay, that’s not the most groundbreaking piece of advice, but that doesn’t make it any less true.  As soon as you’re able, you’ll want to start making efforts to pay your loans off as quickly as you can so you won’t have to worry about it again.

This is easier to do if you’re already working.  Commit as much of your income as you can afford to paying your loans down.  Any other extra cash you may see, from extra cash from mom and dad to birthday cards from grandma, put them towards your student loans.  Yeah, the money could be spent on worthwhile ventures like excess partying, but using it to you’ll be surprised at how manageable your loans will start to seem.

Take Up A Part-Time Job (Or Two)

If you don’t already have a job, even a part-time one, consider looking for a gig after classes or on weekends to help you start paying your student loans.  Anything from a retail job or freelance work, to tutoring or even babysitting (hey, it’s money…) will not only help you bring in some extra cash for yourself and your bills, but it’ll help you build up an employment history as well, and give you an advantage over unemployed students at graduation!

Join The Public Service.

If you borrowed federal funds to help pay for your education, the Department of Education’s Public Service Loan Forgiveness program may be able to help you out.  If you’d rather join the Peace Corps than become another office drone, or go into any government agency for work, your loan may be forgiven after 10 years of service and on-time payments.

If you’ve got a lot of student debt that needs to be paid, and you’ve always wanted to see the world, this could be a great way to take care of two birds with one stone.

Tack It Onto Your Income

Another option for those with federally-funded student loans, and one that doesn’t require 10 years of service, is to check if you qualify for Income-Based Repayment, a program that caps your loan payments based on your income.  Typically, these amount to 10% of your income, and will forgive any remaining debt after 25 years of payments.

Stay On Target

Finally, no matter what you decide to do to try and pay off your student loan debts as quickly as you can, remember to always at least pay the minimum balance on time every month.  Debt is an easy thing to slip into, and student loans are no different.  Unless you want to spend a good chunk of your adult life paying for college, keep paying your bills on time.

This is a guest post from Marc Chase, President of Product Development for My Credit Group, a website offering credit repair services and education.

photo by renjith krishnan

Manage Your Finances Like a Monkey!

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So, Sandy @ First Gen American asked a bunch of finance writers to participate in a writing experiment. We have to write about a personal finance topic by using monkeys as the theme. I then began to think about one of my favorite facts about monkeys. The contrarian strategy which they employ to open a banana!

As you can see in the video below, monkeys open bananas from the opposite end than humans. Instead of fighting with the stem and having to involve a knife (or teeth), they just softly pinch the opposite end and then peel back.

Unfortunately, I couldn’t find a video of a monkey pinching a banana, so this human will have to do:

Someone taught me this a few years ago, and it has changed my life! Ok, that’s a bit of a stretch, but it has lowered my level of frustration when eating a banana. So, how does this relate to personal finance, you ask?

Using a Contrarian Strategy

In many walks of life (especially finance), going along with the popular way of doing things (or thinking) can be dangerous. In personal finance, it is always best to question every move to ensure that it makes sense for you.

Many financial decisions are made based on emotion and the herd mentality! We see many people performing a certain action, and we feel as though that is what everyone is supposed to do.

Just like the idea of peeling a banana from the stem, we end up wasting time and energy attacking a situation from the wrong end.

Be A Monkey When Finding A Place To Live

Take buying a house for example. Many people have become convinced that this is the right thing to do, simply because “everybody else does it”, or “it’s what you do when you become mature and stable”. People actually borrow money to gain shelter, borrow money to furnish it, then borrow more money to make expensive, unnecessary, cosmetic changes; and after all of this, they have the nerve to call it an “investment”!

However, we need to be like these monkeys and decide if that’s the best way to handle our need for shelter! Would it be better to be patient and take the path of least resistance? Rent a property until it makes financial sense to buy one!

Be A Monkey In School

Does it make sense to go into college directly after high school? For some, yes. However, this shouldn’t be an automatic decision that we make without proper analysis. Many high school graduates jump directly into college with no savings, no scholarship, and no support! But, since they have been told that this is the normal progression in life, they take on tens of thousands of dollars worth of student loans!

Much of the time, they have no idea what they want to study, or what they want to do with their lives. They just follow the herd and apply to college. Even the ones who have an idea about what they want to do, fail to count the costs of attending college with little to no savings! They just go and assume it will work itself out in the end.

However, we need to think back to the [mighty] monkey and attack this problem from a different angle. Before filling out those loan applications, do a little math to see how long you’ll be paying off those loans, and what benefit they will have.

You might find that it’s better to take a job directly out of high school (actually, while in high school), and save up for college – or even go to a 2-year school first – rather than being in bondage to student loan repayments for 10 or 20 years after graduation!

Use A Contrarian Strategy When Investing

Warren Buffett once stated that investors should “try to be fearful when others are greedy and greedy when others are fearful“. I’m definitely not suggesting that we go around following Buffett blindly, but he does make a good point. When people are chasing after a certain stock, commodity, or industry, that’s usually the time to run away (or short that investment)! Then once people are running away from those investments (after the irrational exuberance wears off), then that’s when you consider them as viable investments (paying attention to valuation, of course).

One contrarian strategy that has actually become quite popular as of late (possibly taking away part of its effectiveness) is to invest in gold coins and other precious metals. Gold is usually looked upon as a hedge against economic turmoil. For a long time, the most prominent method of investing in gold was through derivatives, therefore limiting the amount of people who were able to take meaningful positions. However, with the rise in gold mutual funds and ETFs, we are seeing more “everyday investors” getting in on the action.

Instead of just choosing what everyone else chooses (such as a 60/40 split, or saving 15% for retirement), look at your situation and make the choice that’s best for you! If you find it’s easier to peel the banana from the stub, while 95% of the investing world is still fighting with the stem, then ignore those who are “smarter” and move toward your goal!

 

photo by wwarby

Final Thoughts

Personal Finance is named that for a reason. In many cases, one-size-fits-all solutions do not exist. In those instances, it’s best to be a good monkey and look at the full picture. You may find that the answer lies at the other end of the peel!