How to Give “Bad Financial News” to Your Spouse

Last year, one Friday afternoon, I received a notice in the mail from my mortgage company. It basically said that my payment was about to go from $770 to $1600 effective immediately. After the shock wore off I called the mortgage company, but they were closed until Monday. So I had to keep this information to myself all weekend long. I didn’t want to alarm my wife about it without knowing some reason why.

On Monday. I called the mortgage company as soon as they opened and I learned some shocking news. It seems when they set up the escrow on the mortgage, they figured in the home owners insurance but they did NOT figure in the property taxes. In fact… they didn’t pay the property taxes for THREE YEARS! They “just” realized it and paid what was owed… but now they want to COLLECT it back from us in 12 months. This means a payment hike MORE THAN DOUBLE what we were paying before. Only problem was.. We couldn’t afford the new payment.

Now… I don’t like to cause my wife any undue stress, but this was BIG DEAL, and I don’t like keeping things from her. But before I could show her the letter and tell her what was going on, I had to find a solution. I asked the mortgage company if they would collect the deficiency over 24 months instead of 12. They agreed that the circumstances were unusual so they granted the request. Now the mortgage payment was set at $1107. It would still be hard… but doable.

The mortgage company sent us a new “Escrow Analysis” letter showing the $1107 payment, and I sat down with my wife to talk about it. Understandably she was upset at the situation. How could the mortgage company DO that? I explained everything I learned, and let her know where the money was going to come from to make the difference. She appreciated me doing my research and felt much better that we had plan was in place.

If you have “bad news” to give… follow these tips:

When you have “Bad News”

1. Don’t hide it – Many times it’s tempting to pretend you never got the bill, or the letter, or the eviction notice… but things like this ALWAYS come out at some point. When it does, you spouse will not appreciate the blind side.

2. Have a solution if possible – You don’t want to simply dump the problem on your spouse. If you have any control over the situation, present to spouse both the PROBLEM and the SOLUTION.

3. Ask for help – If you don’t have a solution, or you can’t implement the solution alone, ask your spouse for help. You will need their support no matter what.

4. Thank them – Thank your spouse for listening, for offering suggestions, and for being brave under the circumstances.

Have you had to give bad news to your spouse? Do you have more tips on how to make it easier?

Click and Share:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Blogosphere
  • email
  • Google Buzz
  • MySpace
  • Reddit

A Great Time to Set New Goals

2013 is not to far off. It’s that time when everyone sets their New Year’s Resolutions and set’s forth to achieve them. Usually, a New Year’s Resolution centers around starting a new healthy habit or to discontinue a bad one. Quitting cigarettes or alcohol, losing weight, toning muscles, and curb impulse buying are among the top ones. Some of us actually do them, while most of us fail to hit the mark.

So what makes the difference between those who succeed at accomplishing their goals and those that don’t? Is it the person or the goal? Sometimes it’s both.

Problems with the Resolution Itself

Many times a person will state a New Years Resolution but leave it vague, unrealistic, or based on results. Lets take a look a each of those problems:

Too Vague: If my new years resolution is “I want to lose weight”, that leaves a lot of open questions. How MUCH weight? What timeframe? HOW am I going to do it? The problem with this resolution is that it isn’t specific enough. It would be better to say “I want to lose 35 pounds by June 1st, 2013 by eating healthy, drinking lots of water, and daily exercise.” This statement gives you the WHAT, WHEN, and HOW the resolution is going to be achieved. A goal that is vague and not specific is nothing more than a wish.

Unrealistic: If my new years resolution is to “Win the Lottery”, “Lose 100 lbs in 3 weeks”, or “Sell my house for profit by the end of the month” then I’m just asking for failure. These goals are unrealistic because they too dependent on outside circumstances beyond your control. You cannot MAKE the lottery machine spit out the correct numbers. You cannot force your body to lose 100 lbs in 3 weeks (not the correct way anyhow), and while it might be POSSIBLE to sell your house for profit by the end of the month, it’s highly IMPROBABLE. Ask yourself what’s more likely? Is it more likely that you’ll burnout trying to lose too much weight too fast than actually succeed? Is it more likely you’ll sell your house for profit if you don’t rush the process than if you took the first offer than came along? Is it likely that you’ll win the lottery at all? Make sure your goals are firmly rooted in reality and based on things you can actually control.

Based on Results: Some goals focus on the end results instead of the means to which you can get those results. For example, if your goal was to “Sell $500,000 worth of product”, that is focusing on the results you want. Results are consequences of your actions. Getting sales is a consequence of making sales calls right? So if you were to focus on the actions you take (such as making more sales calls), then you would naturally increase your results. So a good goal in this case would be “This year I’m going to increase the number of sales calls I make to 35-50 a day”. A different example would be “For the next three months I’m going to do the P90X workout routine”. Focus on the actions only and then the natural consequences of those actions will follow.

Even if people can make a well established goal, there is still one obstacle they need to overcome: Themselves.

Personal Blocks to Achieving Your Goal

Many times…the roadblocks to accomplishing a goal or resolution are rooted in FEAR, BELIEF, and a LACK of planning. Even if your goal is reasonable, realistic, well thought out, and worth the effort, there still may be a part of you that is afraid to take the first step.

Before you even take your first step, you have to believe in your own success. If you don’t believe that you can lose the weight, quit cigarettes, or pay off the debt, then it just won’t happen. So first you have to believe that it is possible to accomplish. You’ve known people who have accomplished the goal, so you know it’s possible. Next.. you have to believe that it is possible FOR YOU to accomplish. Visualize yourself doing the ACTIONS that will take you to a completed goal. See yourself winning and feel now what it feels like to win in the future. Sometimes, your belief is all you need to motivate you to success.

Sometimes a goal never gets achieved because you never take the first step. Usually when procrastination rears it’s ugly head it is due to a FEAR of some kind. Here are some common fears:

Fear of failure, Fear of success, Fear of looking like an idiot, Fear of stepping out of your comfort zone, Fear of people leaving you, Fear of growth, Fear of gain, Fear of being hurt, Fear of death, and the biggest one: Fear of the unknown.

Many people fear the unknown more than they fear death. Strange isn’t it? We will continue to do things that are harmful to us, because we are resistant to the making change and face the unknown. But once you do… the unknown becomes known and it really isn’t so scary.

Whatever fear is blocking you from succeeding with your goal. Face it instead of delaying the start of your journey. When you feel the fear…acknowledge it and continue walking the path anyway. Pretty soon you’ll get over the fear.

Lastly…another block to achieving your goal is a lack of planning and preparation. You can’t succeed at a goal unless you have setup the environment for success. If your goal was to run a marathon in July and you signed up for it, but then did not start training for it, you won’t be prepared when the day comes. You can’t build anything without plans… and you can’t succeed at your goal until you have the right environment and the right mindset.

So..it all comes down to the final questions. Whatever your New Years Resolution is:

Is it Specific?
Is it Realistic and Attainable?

Before you get started remember to BELIEVE that YOU can achieve the goal, acknowledge your fears about it, and set up your environment.

What are your New Years Resolutions and what are your FEARs in relation to them?

Notice: Only 4 More Comments Will Be Allowed in This Blog Post...
Click and Share:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Blogosphere
  • email
  • Google Buzz
  • MySpace
  • Reddit

The “Debt” Problem – and a Strong Message

I’ve been doing a lot of reading lately about the current financial situation our country faces.  The Debt Ceiling, our rising national debt, unemployment rates, and more all are very important issues right now.  As Americans today, we didn’t create these problems… they were made LONG ago by generations before us… and it seems they will remain next generation to handle as well.  This 30 minute video explains more.

So what does this mean to you?

Can you solve the nation’s debt problem?  Can I solve the nation’s debt problem?

Unfortunately the problem is much bigger that we think and you and I cannot do a thing on our own to solve the nation’s fiscal problems.

There needs to be a EXTREMELY STRONG MESSAGE that will reach all Americans:

You are a Part of the Solution

Here’s the thing… our Government, just like most American’s today, have maxed out their credit cards.  The only way the problem will be solved is by either increasing income and cut spending.  Our Government will eventually have to do BOTH.

What does this mean to you?

You will see prices rise, you will see taxes rise, you will see interest rates on loans rise.  But you will not see your income rise in the same rate.  You will feel the SQUEEZE of the Government correcting a problem it should have corrected long ago.

It’s coming folks..  if not for us… for our children.

I don’t say this to be all doom and gloom.  I’m telling you this so that you can do something about it now for you and your children.

You MUST do the following:

- Get out of ALL debt, including your mortgage.  Pay it all off and OWN it all.

- Live on CASH.  Debit cards are fine,  Credit cards are not.

- SAVE in your emergency fund to protect you from job loss.

- Invest your money to build personal wealth

 

I realize that this is a simplistic view of what needs to be done..  but I can tell you that only 4% of Americans are actually doing this.  The other 96% are spending way beyond their means with credit.

If every American got themselves out of debt.. and started saving again, the nation might have a chance.  Unfortunately that is only wishful thinking on my part.  The only thing I can do right now is to tell you how to get there yourself.  The government is going to solve it’s fiscal problem whether you were part of the solution or not.  If you don’t start getting yourself out of debt right now…you will eventually live a substandard life because you’ll be owing 75% of your income to taxes and interest.

I’m not crying wolf here.  Others have been there and done that.

 

Click and Share:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Blogosphere
  • email
  • Google Buzz
  • MySpace
  • Reddit