Introduction & Basic Information - Part 1

I would first like to thank those who were in attendance for the first meeting of the All Things Financial group. I am very glad to teach something I'm so passionate about. If you're reading this and you were there, then it means you're working on your homework, and I wasn't just talking into the wind!

If you were unable to attend the meeting, I'm glad that you're joining us now, and you're also doing your homework, so that's a good thing. The weather wasn't the best for our meeting, but I am certainly hoping that we will see you out next month (on February 24), and I'll definitely be praying for some better weather conditions!

In either case - here is what went on in the meeting:

Welcome to All Things Financial.
I am Clarisse Warren, and my husband and I are huge Dave Ramsey fans. We've been through his 13 week class Financial Peace University, and have read his books. About 3 1/2 years ago we had $70,125 in debt - not including a house. By changing our lives, and following Dave's system, we have been able to pay off nearly $45,000 of that debt. When we started 3 1/2 years ago, our income was about $25,000/year, and I wish I could say it has increased exponentially, but it has not. We still have a fairly meager income, but with a lot of creativity and managing our money, we have had some amazing success. We've chosen to sell a lot of things to help us on our way. So much so, that I wonder if the kids think they are next. In any case, I have learned a lot about dealing with finances through this process, and that is what I hope to share with you all. I will be using a lot of information from Dave Ramsey's FPU class, his books, and his talk radio show, as well as citing other financial gurus like Suze Orman and Larry Burkett. This class would not be complete, of course, without a lot of fantastic council from the Prophets, Apostles and other General Authroties of the Church of Jesus Christ of Latter-Day Saints. So, let's get started.

Confidentiality:

I hope that this will be a group that we can discuss a wide variety of issues. Some of them may be very personal, and since we will be discussing PERSONAL finance, there may be discussion about things we normally wouldn’t talk about. I would certainly hope that we can keep a high level of confidentiality in here. I will not divulge any personal information regarding another person in this room, and I expect that you all will do the same.

Please do feel free to share the information we’re discussing with your spouse – just leave the personal details of others out of the discussion.

I do want you all to understand that we are here for support and love. At times I may have to dole out a bit of tough love. Some topics may be uncomfortable, but they are important to the success of your financial situation. Please keep an open mind and an open heart during these classes.

What This Class Offers:
Real Help
Real Solutions
Real Support
Real Change
Real HOPE

If nothing else, I want you all to experience the hope and the joy that is financial peace. It is not just a fool’s dream – it is very real and very obtainable. However, it cannot be reached without first obtaining the information, coming up with the solutions, getting support, and changing the way you look at and deal with money. If you do these things, I know that you will begin to feel so much peace, and above all HOPE.

Monthly Opportunities:

We are going to have a couple fun things I’d like to do for a few minutes before class each month. The first is The Scissors. This lovely pair of scissors is here for you to cut up your credit cards. I am not saying that you HAVE to cut them up, but as we are going through these lessons, you will find that you will no longer need to use credit cards. So, if you ever feel the urge, you can come on up, cut up your credit cards, and inspire us all. I guarantee you will not feel so much freedom as when you hear the snip snip of plastic.

Accountability Reports: a few minutes where you can share your victories, accomplishments, good deals, or even your setbacks – that is it in a nutshell. We all need support & encouragement, and when we have to report back to someone (or a group) then we are more likely to do it. We are here to love & support each other, and this is a great way we can share our progress – our failures and our accomplishments, or victories and defeats. It’s all part of the process, so I want to make sure we recognize them for what they are – stepping stones.

Now Let's Get Real...
Fact: 75-89% of marital problems that end in divorce stem from money fights and money problems.
Fact: 70% of American consumers are living paycheck to paycheck. That means, they have more month than money.
Fact: 52% of people say that they are not adequately saving money. Of those, 47% say they do not have any money in savings or an emergency fund.
Fact: 68.1% of High School Seniors could not pass a basic personal finance test. Only 10% scored a C or better.Fact: Less than 68% of households have an actual written budget.
Fact: Despite economic hardships, consumer spending was up 18% over the 2008 Holiday season!
Fact: Unemployment rates are at a 26 year high.

Those are some pretty heavy statistics. We hear about this stuff on the nightly news, but I don’t know how many of us stop and think what devastating effects this has on those people. What effect it would have on us?

Q: How many of us have an emergency fund or a savings account?
Q: How many feel comfortable with the amount of money in there?

Since not every hand was raised, we have a lot to think about. Many of us are probably living paycheck to paycheck. Many of us are probably being crushed by our debt. Some may be working towards becoming debt free, while others may be struggling to make ends meet. Some may not even be able to get the ends to come remotely close together. With all of the economic troubles of today – what can we do?

There Is a Way Out:

Honesty! Honesty with yourself, with your spouse, and with your children.

Like Dr. Phil says “You can’t change what you don’t acknowledge.” The truth can be scary sometimes, and honesty is not always something we look forward to. 3 ½ years ago, it wasn’t very fun when my husband and I sat down and came face to face with our debt. $70,125 and that did NOT include a house. That is the kind of honesty that jumps up and slaps you in the face, and punches you in the gut while it’s at it. It wasn't fun, but we had to be honest with ourselves.

Suze Orman said, "If you are ready to face up to what you can honestly afford, if you are willing to live within your means, not within your dreams, you can turn this around. By controlling your spending and your money, you can change your entire financial future." How do we change our financial futures? By looking at money for what it really is and by controlling it through a budget.