Part five is the last of this interview series. We get down to the bottom line of financial education and how simple adjustments will have you on the road to financial freedom.

Vince : How easy is it then? You’ve mentioned money principles that many people don’t know about and most people never use. What kind of life can our viewers expect to have if they put this financial education to work for themselves?

Teacher X: I’ve mentioned them before, but let’s put them together. Vince, give me a hand.

Vince : One of the first steps is developing a realistic understanding of money.

Teacher X: I agree. Money can be a force for good in your life and the lives of the
people you care about. You want money to serve you. And you never want to become a slave to money.

Vince : Which means creating a healthy balance between spending and saving money. Being smart about money doesn’t mean you can’t buy things that make you happy. You just need to do it the right way. Spending money wisely is as important as saving and investing.

Teacher X: Definitely. But this isn’t grandma telling you to save your pennies and use coupons. It’s more like deal-making on steroids. It’s about getting what you want when you want it, but without breaking the bank and putting yourself into debt. Want a hot car? Forget about walking into the dealership and paying sticker price. Only chumps do that.

Vince : I might not have put it so bluntly, but I agree. By spending wisely, you can enjoy more of the lifestyle you desire. Also, this helps you free up more money for…

Teacher X: Investing. Stocks, bonds, mutual funds, real estate, businesses. Boring stuff, right? I’ll tell you something right now: If you think investing is boring or a waste of time, you will never have financial freedom. Pure and simple.

Vince : Putting money to work for you through investing is the best way to achieve financial freedom. A lot of people don’t know that Arnold Schwarzenegger was already a millionaire by his mid-twenties from investing in real estate and businesses. And that was before he became a movie star. His investments were his “backup plan,” so he could pursue his dream—which obviously was an acting career.

Teacher X: Great example. By investing, you’re earning money without working for it. That’s one of the keys to freeing up your time, so you have the freedom to do what you really want to do, like travel, pursue your passions, enjoy your family, help others—anything that adds meaning to your life.

Vince : One last note about investing: Most people think it’s hard to invest, so they don’t even try. But it’s so easy today with all the automated ways to invest. You can be set up in about 30 minutes. Then each month you can just check your statements to see how much your investments have returned.

Teacher X: Yes, keeping it simple is the key to getting it done. Simplicity equals consistency and consistency is important to becoming financially free. But I think we’re getting a little ahead of ourselves. Before you start making money and investing, before you even get out of school, you need to master one critical money principle. It can make all the difference between financial success and failure.

Vince : You’re talking about credit and debt, right?

Teacher X: Yes. If you take only one thing from these videos, make it this: Use
credit wisely and keep debt under control. Credit can be a powerful financial force for making money and enhancing your life. But if you abuse it and fall into debt, you’ll watch your dreams go up in smoke.

Vince : I couldn’t agree more strongly. Never, never finance your lifestyle with credit cards. You might feel good for a little while when you buy cool toys for yourself, but when the pain of debt hits you—and it will—that pain will last years, if not the rest of your life.

Teacher X: And one of the best ways to avoid borrowing money and falling into debt is knowing how to make money. That way you’ll have the money to buy what you want without borrowing.

Vince : You mean by getting a good job or by starting a business?

Teacher X: Either. Learning how to land a good paying job on your terms is one way many successful people get started once they’re out of school. And like everything else in life, you can do what most people do, or you could do it the SMART way.

Vince : And the same applies to people who start their own businesses.

Teacher X: Exactly. Starting your own business—even while you’re still in school—is a great way to bring in the money you want and set your own schedule. Plus, it’s easier than ever today to start you own business. And there’s no limit on how much money you can earn. For people in the know, it can be a fast shortcut to financial freedom.

Vince : Everything we’ve talked about is important to achieving financial freedom, but there’s still something missing

Teacher X: Yes and probably the most important part, too. It’s why some people do everything we’ve talked about, yet never achieve financial freedom or the lifestyle they desire

Vince : It’s what made the difference for both me and you. Until I mastered it, I kept running into a wall.

Teacher X: Same for me. When I first starting investing in real estate seven years ago, I made the same mistakes most people do.

Vince : No goals, no plan, no clue.

Teacher X: You bet. I didn’t know what I wanted and no idea where I was going. I wasn’t happy with teaching and I wanted something more for myself. So I starting throwing a bunch of stuff against the wall, hoping something would stick.

Vince : And what happened?

Teacher X: About what you’d expect—a whole lot of nothing. Then I decided to get serious.

Vince : You set concrete goals and drew a roadmap for yourself, right?

Teacher X: It sounds simple now, but it wasn’t. I did it on my own, but my biggest regret was not finding someone to point me in the right direction from the beginning. A mentor would have shaved years off the time it took me to get where I am today—enjoying a life I chose and created for myself.

Vince : It really is easier when you have someone to follow, someone who’s been there and done all the hard work for you, then laid it out for you in step-by-step detail.

Teacher X: I can’t begin tell you how valuable that kind of help is.

Vince: Hey Teacher X, sorry to cut you off but we’re out of time. I have to thank you for educating our listeners on the importance of financial education. Until next time: defend the weak, help the less fortunate and stand up against injustice….this is Vince Shorb wishing you all much success.

Vince : “A money rebel.” I like that.

Teacher X: Glad you do. But I’m not saying it to be cute. So-called “common sense” approaches to money have left most working people in America only a paycheck or two away from financial disaster.

Vince : That’s a little hard to believe.

Teacher X: Think about it. The personal savings rate in the U.S. has declined from 10.8 percent of disposable income in 1984 to zero in 2005. That’s right. ZERO. No savings to fall back on for emergencies. We spend more than we earn. In fact, recent studies show that most American families spend $1.22 for every dollar they earn and in 2004, the average credit-card debt of US households was $9,300. People are actually spending more money than they bring in. People are living paycheck to paycheck and this overspending is being passed down from generation to generation…its actually getting much worse. Are you starting to get the picture?

Vince : Ya I am , and it’s actually a pretty bleak picture.

Teacher X: Absolutely. Did you know that the average college undergraduate has over $21,000 in student debt, college debt and credit card debt by the time they graduate? It’s no wonder many of them have a hard time living on their own after college. In fact, a recent study reveals that 57% of college graduates plan to move back home with their parents.

Vince : I’ve heard about the problems of student debt and they problems their having with credit card debt. Many credit card companies are actually bribing college students to sign up for credit cards on campus. The give them pizzas, t-shirts, and candy just to get them to fill out a credit card application. They know they don’t receive practical financial education in high school so they know they are preying off the uninformed. It sounds very unethical if you ask me.

Teacher X: About as deplorable as cigarette companies finding new ways to encourage young kids to smoke. And almost as bad for their financial health. It’s like, “Here’s, a big pile of debt before you graduate.”

Vince : Not a great way to start your life as an adult, is it?

Teacher X: Not in the least. And it only gets worse. Consider this: Most Americans live paycheck to paycheck, barely keeping up with minimum credit payments. Can you start to see how it wouldn’t take much—say, losing a job or being laid up from an accident or illness—to lose everything, even wind up homeless and living on the street? I know it’s hard for most of you to believe, but trust me when I say that homelessness is a LOT closer than you think.

Vince : Isn’t there anything we can do about this problem?

Teacher X: Yes, what I’ve been saying all along. Education is the key. EVERY young adult needs to know about making money, managing money, saving and investing, using credit wisely, and becoming financially free.

Vince : And you’re telling us that schools will not teach this vital information?

Teacher X: No. And they’re not likely to without radical reforms. Let’s face it, you’re on your own if you don’t want to become a statistic. It’s up to every young adult to search out these money secrets and put them to work immediately. Parents need to be aware of just how critical this knowledge is—and make sure their kids have access to it. It’s only their future we’re talking about, after all.

Vince : I understand where your coming from and can see why you’re so passionate, like I am, about getting practical financial education to be taught in public high schools.

Teacher X: It’s not only about helping kids get a better start in the world by giving them financial education. It bigger than that. The more adults we have in society who have a practical financial education, the better off the entire country is. Here are a couple simple examples: When people understand how credit works, debt is reduced and more public resources are freed up to help the people who truly need it. Entrepreneurs who understand how to make money create new businesses that provide jobs. Did you know that small businesses create 2 out of 3 new jobs and employ half of America’s workforce? I’d say that’s a big positive impact on society.

Vince : I’ll stop you right there with those examples. If we had time, I’m sure you could list dozens more. But I need to ask you, how can young adults and their parents learn more about these money secrets that are really the key to a better life?

Teacher X: I think you already know the answer to that question, Vince. But for the viewers out there, I have a few suggestions. First, find someone who’s achieved what you want. It’s easier to follow someone who’s already blazed the trail for you. Second, create a plan for what you want to accomplish. It won’t happen by itself. You need a plan to stay on course. And lastly, do it. Follow your plan. Many people know what they should do. The winners are the ones who actually do it.

Vince : And what’s in it for people that make the effort, who, in your words, “actually do it?” What’s the payoff?

Teacher X: You can have a life that other people only dream about. And it’s easier to accomplish than you ever imagined.

This interview Teacher X laid it out. Money doesn’t by happiness but it gives you the ability to fully experience life. Come back for part five of this interview where I lay down my thoughts on money.

Part 2 of this interview was a little over the top I try to reign in Teacher X during the third part of the interview to get to the root of what financial education does for today’s youth.

Vince : That’s a pretty harsh statement.

Teacher X: But accurate. Our High School education system has an agenda—a set of subjects to be taught—and financial education is not part of it. Once you graduate, you’re no longer their concern. Their only job is to get you to graduation.

Vince : Listen - I know you have an axe to grind with the school system and I agree financial education should be taught, but let’s move on. You mentioned “lifestyle” earlier. What do you mean by that and how is it tied to money and wealth?

Teacher X: Lifestyle can have different meanings. It depends on who you ask. I like to think of lifestyle as the way you live your life—all aspects of your life. And I like to live life on my terms. For me, that means having enough money and time to make what I want happen.

Money alone can’t buy happiness. But knowing how to, grow, use and make money smartly can help you to create a lifestyle that most people only dream about.

Vince : Can you give me an example?

Teacher X: Sure. Say I like to surf. I’d want to live near prime surfing waters in places like Santa Cruz or maybe even Costa Rica. But to do that I’d need money—I need ot knw how to make money, invest money—to be able to have the time to live in those places and surf. On the other hand, for a person who wants to make a positive impact on the environment, lifestyle may mean having the time, money, and freedom to work with non-profit environmental organizations

Vince : Doesn’t lifestyle also take into account the clothes you wear, what you do for fun, the kinds of people you like to hang out with, and even what you like to eat.

Teacher X: Yes, it’s all part of your lifestyle. The key to enjoying the lifestyle you want, however, is having financial freedom. And financial freedom means having the money and time to make the choices you want to make. If you don’t have the money to make your dream lifestyle come true—either because you don’t earn enough or you have too much debt—then you’ll be forced to compromise. In other words, you’ll let circumstances and other people decide what kind of life you’ll live.

Vince : So we’re back to knowing how to use and make money? Basically, you’re saying money gives you freedom—the time and the means to afford the lifestlyle you want.

Teacher X: Of course, it’s all tied together. You can’t have a great lifestyle without coming to terms with money.

Vince : So, does that mean everyone should become a doctor or lawyer and earn huge incomes? Wouldn’t that give someone the money to live the lifestyle they want?

Teacher X: Hardly. First, not everyone can afford or even wants to go to medical or law school. It’s about discovering what you’re passionate about and figuring a way to make money doing what you love.

Vince : So if high income jobs aren’t the answer, then how can the average young adult to have the money, time, and freedom to enjoy the rewarding lifestyle that your talking about?

Teacher X: Of course, but it’s a good place to start. When you follow your dreams you can avoid the stress and burnout that people suffer because they’re just working for that next big paycheck. Many of them are too busy putting in long hours to truly enjoy the lifestyle they want. They have the money, but not the time to enjoy what it can do for them. That’s not freedom to me. I have a lot of respect for people who work that hard but, hey, it’s for everyone.

Vince : Doing what you love is great advice, but isn’t there more to it than that?

Teacher X: First, forget about what everyone else is doing. 9 out of 10 people don’t have the first clue about money. You have to think outside the box. You must become a money rebel.

In part four of this interview we reveal what a ‘money rebel’ means and how by becoming a money rebel you can life on your terms.

Were back with part two of the Teacher X interview. I have to warn you he makes some serious statements in the second half of the interview. Let me know if you feel there is a ‘conspiracy theory’ scenario going on with the lack of financial education taught in public high schools.

Vince : Like dumping goldfish into a piranha tank? Isn’t that a little melodramatic?

Teacher X: Not at all. Vince, let me ask you a simple question: Would you hand the keys to your car to someone who never learned how to drive?

Vince : Of course not. Nobody in their right mind would do that.

Teacher X: Yet that’s exactly what happens every time another young adult graduates from our school system without financial education. They’re handed the keys to their life—so to speak—without the real world money training or even a road map of how to get where they want to go.

Vince : And you claim this financial education they’re missing is out on is about how to deal with money?

Teacher X: Absolutely. Look, Vince, the reality is that we live in a country with a capitalist economy. With rare exception, you need to make money to provide yourself—and your family—with the basic essentials of living: Food, clothing, and shelter. Do you agree?

Vince : Without a doubt. But everyone knows this. We all spend and make money. It’s simply the way we live in today’s society.

Teacher X: But why do some people make more money than others—while most people struggle to make ends meet? What’s the key difference?

Vince : Well ..The people that make more money know more about how to save and make money. Or, some argue, they were lucky. They inherited their money or even won it in the lottery. But you’re the teacher, so tell me.

Teacher X: First, let’s forget about inheriting or winning money, since that’s something few of us have any control over. And did you know that you have better odds of being struck by lightning than winning a lottery jackpot?

Vince : So inheriting money and winning the lottery are out. Where does that leave everyone else who’d like to have and make more money?

Teacher X: Let’s go back to what you first said, The people that make more money know more about how to save and make money. Well, where do people learn about money?

Vince : From their parents, in most cases.

Teacher X: Yeah, one study says that 87% of young adults learn about money from their parents. But—and I mean no offense to parents—most parents aren’t qualified to teach their kids about money. No one ever taught them, either. If you’re a parent and you haven’t achieved financial independence yourself, how can you possibly teach your kids? I say let people who are experts about money do the teaching.

Vince : And from your experience, I’d say that leaves out high schools.

Teacher X: Look. I taught high school for 9 years and the secrets of making money was never on any curriculum that I saw. In fact, I never learned the basics about money and investing until I was out of school and on my own. I was already teaching kids myself before I started to learn real money basics…let alone be able to explain them to kids.

Vince : But isn’t that what most people do? We learn as we go along. We make mistakes and we learn from them. It’s part of the process of becoming an adult. Some people even call it “getting your degree from the school of hard knocks.

Teacher X: And you don’t think there’s something wrong with that? Do you teach a young child not to run into traffic by letting them get hit by a car first?

Vince : Of course not. That would be stupid, and have some severe consequences.

Teacher X: My point exactly. Schools are doing the same thing to our young people every day when it comes to money, wealth, and lifestyle. Let’s get realistic. Take a look at the sorry state of Social Security and private pension plans. Today’s young people will not have Social Security and pensions when they’re ready to retire.

Vince : So what’s (is) going to happen to them?

Teacher X: It means they’re on their own. In order to self-fund their retirement, a young person today would need over 1.3 million dollars to retire with an annual income of only $33,000. And that takes into account increases in cost of living, inflation, and life expectancy.

Vince : I’ve read the reports and I do agree with you. But how can the average person hope to ever save that much?

Teacher X: It’s easy—if they start while they’re young. Consider this: If an 18 year old started investing only $100 every month—and did nothing else—by age 57 they’d have over a million dollars, they could retire young. And that’s using dead simple investment strategies. With slightly more advanced strategies you can do it before you’re 30. How many people learn this in school?

Vince : Well….None, that I know of….but I’m sure if they did teach that simple strategy there would be a lot more people saving at least $100 dollars a month.

Teacher X: And that’s the problem. If you wait until you’re 30, it’s too late. These strategies won’t work. You need to know about them when you’re young.

Vince : Can you explain what you mean by that?

Teacher X: Sure. There’s two basic ways of making money: Working for money and letting money work for you. You work for money when you get a job or start a business. Money is paid to you in exchange for providing service or goods. Making money by letting it work for you is what happens when you invest money.

Vince : That’s a bit oversimplified, but I agree.

Teacher X: OK. Our simple strategy of saving $100 every month from the time you’re 18 and having a million dollars at age 57 is an example of letting money work for you. As you continue to add $100 every month, your money earns interest. And the interest you earn also earns interest. That principle is called compounding. But for compounding to work it’s magic, you need time. The more time your money has to earn interest and compound, the greater your payday.

And that’s why it’s critical for today’s young adults to get this information as young as possible. Studies show that young people who take personal financial education courses have a higher savings rate, contribute more to their 401k and have a higher net worth. So the older you are when you learn this information, the more money it’s costing you—literally hundreds of thousands of dollars. Even millions. And imagine what a difference that money could make in your life and the lives of those close to you.

Vince : With that much money—and people’s futures at stake—why in the world aren’t schools teaching this?

Teacher X: I’ll share a dirty little secret with you. The school system could give a damn about your future.

Stay tuned for part 3 of this interview where we cover what financial education really does.

I just had I just had a chance to interview a friend of mine who was a high school teacher for 9 years. He is very opinionated and feels that financial education needs to be taught. Let me know your thoughts of this interview.

Vince: Welcome to our special video interview. Today we talk to an education insider who blows the whistle on how high schools are setting students up to fail. Because what he has to say is so explosive, our insider believes his career could be in danger. So to protect his identity, he has requested to remain anonymous and will go only by an alias, Teacher X. Welcome, Teacher X

Teacher X: Thank you, Vince.

Vince: Teacher X. I have to say, what you told me before the show is shocking. If even half of what you revealed to me is true, you’re going to make a lot of educators very angry tonight. So tell me: Why break your silence now?

Teacher X: Vince, I didn’t dare open my mouth when I was still teaching. That would have been suicide. But I’ve been retired for several years and the guilt weighs too heavy on me to stay quiet any longer.

Vince: Guilt for what?

Teacher X: Those kids trusted us with their lives, their futures. And we betrayed them.

Vince: Whoa. That’s a serious accusation. Can you be more specific? Who is “we” and how did you betray these students?

Teacher X: By “we” I mean the entire education system—teachers, unions, administrators, even the politicians who drive the state and national financial education initiatives. Everyone who has a hand in setting and delivering the curriculum, we’re all guilty.

Vince: Yaw but guilty of what, exactly?

Teacher X: Of sending young adults out into the world with dangerously little preparation to deal with the most powerful force in our society.

Vince: And that force is?

Teacher X: Money.

Vince: Money?

Teacher X: Yes. Money runs our society. Those who have and control money enjoy life more. They have more privileges than people without money.

Vince: That sounds like a secret society. Besides, not everyone cares about getting rich. Most of us simply want to live life on our terms—have a lifestyle we can enjoy and do what makes up happy.

Teacher X: And that’s precisely what a solid understanding of money, a financial education can do for you—give you more control over how you live your own life. It brings you financial freedom.

Vince: And you’re saying that schools should be teaching young adults about how to use money giving them a financial education so they can have a better life?

Teacher X: Exactly. Letting young adults out into the world without financial education and a basic knowledge of money is criminal. Like dumping goldfish into a piranha tank.

Like I said he didn’t hold back on this interview. Although I put it in more politically correct terms I know that the lack of financial education is condemning many of today’s youth to a lifetime of struggle. Until next time post your comments and wishing you all the best! Vince Shorb

I just had I just had a chance to interview a friend of mine who was a high school teacher for 9 years. He is very opinionated and feels that financial education needs to be taught. Let me know your thoughts of this interview.

Vince: Welcome to our special video interview. Today we talk to an education insider who blows the whistle on how high schools are setting students up to fail. Because what he has to say is so explosive, our insider believes his career could be in danger. So to protect his identity, he has requested to remain anonymous and will go only by an alias, Teacher X. Welcome, Teacher X

Teacher X: Thank you, Vince.

Vince: Teacher X. I have to say, what you told me before the show is shocking. If even half of what you revealed to me is true, you’re going to make a lot of educators very angry tonight. So tell me: Why break your silence now?

Teacher X: Vince, I didn’t dare open my mouth when I was still teaching. That would have been suicide. But I’ve been retired for several years and the guilt weighs too heavy on me to stay quiet any longer.

Vince: Guilt for what?

Teacher X: Those kids trusted us with their lives, their futures. And we betrayed them.

Vince: Whoa. That’s a serious accusation. Can you be more specific? Who is “we” and how did you betray these students?

Teacher X: By “we” I mean the entire education system—teachers, unions, administrators, even the politicians who drive the state and national financial education initiatives. Everyone who has a hand in setting and delivering the curriculum, we’re all guilty.

Vince: Yaw but guilty of what, exactly?

Teacher X: Of sending young adults out into the world with dangerously little preparation to deal with the most powerful force in our society.

Vince: And that force is?

Teacher X: Money.

Vince: Money?

Teacher X: Yes. Money runs our society. Those who have and control money enjoy life more. They have more privileges than people without money.

Vince: That sounds like a secret society. Besides, not everyone cares about getting rich. Most of us simply want to live life on our terms—have a lifestyle we can enjoy and do what makes up happy.

Teacher X: And that’s precisely what a solid understanding of money, a financial education can do for you—give you more control over how you live your own life. It brings you financial freedom.

Vince: And you’re saying that schools should be teaching young adults about how to use money giving them a financial education so they can have a better life?

Teacher X: Exactly. Letting young adults out into the world without financial education and a basic knowledge of money is criminal. Like dumping goldfish into a piranha tank.

Like I said he didn’t hold back on this interview. Although I put it in more politically correct terms I know that the lack of financial education is condemning many of today’s youth to a lifetime of struggle. Until next time post your comments and wishing you all the best! Vince Shorb

Knowing how to manage money is one of the most important skills you need to master in life. Essentially, with proper money management skills you will have a well managed and effective life plan.

You would think that learning how to manage money would be a required course in high school and college. Instead, we learn by watching our parents, following our peers, and by making money management mistakes.

So, what is the key to great money management? Like learning to drive a car, there are some basic money management strategies to guide you. By learning these simple money management skills at a young age you will benefit your entire live. Isn’t it better to learn the easy way, rather than the hard way? I’ve learned the hard way and talked to thousands that learned money management through trial and error. Now there is a better way.

There are basic money management guidelines that will allow you to live your life more fully, and put you in better control of your money. It just will take you an hour to learn the basic money management skills that will put you in control of your finances.

Saving by cutting your spending
You may be familiar with the Eastern philosophy of Yin and Yang, which describes opposing but necessary forces found in nature. This concept can easily be applied to spending (yang) and saving (yin) money.

When you follow practical money management techniques you will find spenging and saving equally support each other if kept in a balance. This money management balance can help you to have money in the bank while you are able to enjoy a full rewarding life.

When practicing proper money management your spending and saving are in balance. They are interdependent and cannot exist without each other. For example, if you never save you won’t have the money to spend later in life.

Separating your wants
A key to proper money management is understanding your needs and wants.

• A need is something you must have for survival. Things like shelter, clothing and food are all good examples of needs - you can’t live without those items. Without proper money management you may not be able to afford food or shelter. There’s a lot for people living paycheck to paycheck that are dangerously close to being homeless. Don’t let that be you – manage your money.

• A want is something you would like to have. It ‘s something that is not absolutely necessary, but you would enjoy having. Wants are things like those $4000 purses, $50,000 new cars, the latest clothes and of course who could live without their plasma T.V. Now if you manage your money right you can enjoy these wants.

I’m not telling you to be a tightwad however you need to manage your money. If you able to put away at least 15% of your paycheck, have no debt (besides that which secures assets like real estate) and are following your plan to reach financial freedom – go out an enjoy life and but the things you want (within reason).

When managing your money, make sure to budget enough to pay for your needs and plan for your wants.

It’s the holiday season for many and often during this time of year we are reminded to show our gratitude. That’s a great thing so go with those feelings; however it’s important you do that the other 11 months as well.

No matter how much or how little you have, by experiencing the feeling of gratitude it will get you into a wealth attraction state. If you have watched the movie “The Secret” you understand how important just subtle shifts of thought will help you achieve whatever results you want in life.

I know sometimes it’s easier to believe that the grass is greener on the other side. However instead of wishing for more, be grateful with what you’ve got because there are a lot of people have survived on a lot less!.

I just received this letter from a friend of mine in the Philippines.

“Thank you for your reply and concern, please tell me what best for me or any advice or help you can offer will be appreciated deeply. Right now I am still single I’m already 30 yrs old, planning to get married next January 08 or maybe this month. I just want to give a better life with my future Family. To have your own house, food and education for your kids. I don’t know much of my future, I just laid some plan a, plan b, plan c and plan d, incase it don’t work for me.”

All he wants is an opportunity to have the opportunity we have in America. Remember that over 30% of the world’s population lives on less than $2 per day. That’s $60 per month, or just $720 per year!

You may not have everything you ‘want’ in life. But if you are eating, sheltered and clothed, you have your “needs” covered, and have plenty to be grateful about.

Cultivate the feeling of gratitude, because the more grateful you are, the more money will come your way, the more people you can help and the happier you will be.

In Spirit! Vince Shorb

We all have a limit to the amount of money we have available to spend. The ability to teach your kids about money is one of the most important money management skills you can give them.

Children that don’t receive this practical financial education can get in financial trouble. Financial trouble spills over into other areas of their life. Money problems are the top cause for diverse, top cause of health problems and a top cause of emotional stress. It is your parental responsibility to teach your kids about money. Teaching your children proper money management skills should high on the check list on how you raise your children.

It is important you lead by example. Now if you like most American’s you are experiencing financial hardship. It may not be apparent to you now however most people will not have enough to retire, are indebt and are living paycheck to paycheck. If that describes you, that’s OK. We all have to start somewhere and that is where I personally started. Teach your children about money by working on your finances together. Create family financial goals and share your positive and negative money decisions with your children. Teaching kids about money can bring your family closer.

It is vitally important if you do not have professional money management training to teach your kids about money by someone that has this training. You send them to school for subjects that they will never use again in their life so get a course on money that will benefit them for life. Teaching kids about money is easier than ever with ‘Financially Free by 30’ multi-media home study course. This is the first and only course on the market that gives them practical financial advice that they will need everyday of their lives. So if your not comfortable teaching your kids about money; find a resource.

For the other people that do have some money management training, make sure to take time out and teach your children about money. Treat this like a home school class that you are giving to your children. Give them assignments and homework. You owe it to them to prepare them for the financial real world plus it will save you the frustration of your children coming back and always asking to have money.

The average college graduate will move back home after they graduate and they have over $20,000 in debt - so teach your kids about money so they can avoid this problem. Also on a selfish side - Do you want be forced to live with your 30 year old child. Don’t laugh because over 22% of 30 year olds live at home.

Teach your kids about money! You and they will benefit for a lifetime!

In Spirit, Vince Shorb

Define what financial freedom and financial security mean to you.

Everyone has their own definition of financial freedom and financial security . Define what It means to you. The one thing many people that have achieved financial security find is that their relationship with money is more or less “balanced.” Their focus in life is not on the money, but on living life. So their focus is not on the trappings of money, but on life’s goals.

The ultimate focus of living financially free is doing the things you are passionate about. The freedom to live the life you want to, whether it’s playing beach volleyball everyday, spending more time with the people you love or surfing all over the world. Not having to worry about money allows you to be who you want to be.

Warren Buffet has billions of dollars, for instance, but he lives in the same house that he bought for about $30,000 in the 1950’s! This guy is worth billions yet he lives very modestly. Why would he do that? Living in that house in Omaha suits him and his wife, so why upgrade? He could live in a palace if he wanted, but that is not one of his values in life. He does with his money what makes him and his family happiest. He is living his dream and if a mansion isn’t important to him great. But since he is completely financially secure and can afford whatever he wants if he does decide to buy a huge house – he can.

In contrast, look at Donald Trump or Diddy. Obviously they like the finer things in life and the bling to go along with it. Each to their own, as we all live our lives according to what is important to us.

The best part about life in America – It’s your choice. How do you want to live your life. How much money will make you feel financially free and financially secure. It’s a personal question you need to answer for yourself. Once you figure that out figure out a way to make that dream a reality.

All the best! Vince Shorb

I was asked last night – what do you teach? This question had just come after I had just read several financial education books in the past week…these things were boring and dry. So I thought about the question for another second and I came to realize I entertain and education and I teach Financial ‘Success’ Education.

One of the first lessons that motivates people to learn about money is for them to clearly define what ‘success’ means to them. The rest of the course is will then give them the tools to reach their personal ‘success’ goal. Other financial education courses miss this critical element.

The ‘Financially Free by 30’ course takes a holistic approach to ‘money’ and is broken down into three distinct phases: ‘Get Your Mind Right’, ‘The Foundation of Wealth’ and ‘Three Keys to Wealth’. The end result for people that follow the course is a ‘Life of Wealth. This refers to ‘Wealth’ in all areas – mentally, emotionally, spiritually, financially and socially.
I am committed to producing high quality content. Because of this I took painstaking measure to make sure this course is not only the most complete financial education course on the market but deigned in a way to promote effective leaning. This is the first and only multi-media financial education course designed to give students a ‘real world’ financial ‘success’ education.

Since every student learns differently he made sure each learning style was addresses. Combining audio, video, activities, interactive tools, manual and online progress tests there are learning methods available for each learning style – visual, auditory and kinesthetic learning. What’s more I have incorporated neuro-linguistic programming in this material to motivate and excite young adults to learn about money.

Over a year was spent in direct contact with young adults of all background to make sure I understood what the main motivators were for them to learn about money. Today’s youth don’t want a ‘financial education’. Yet they do want to learn about money when it relates to freedom, recognition, friends, love, passion for a cause, status, acceptance from peers, care for their family, travel and to have memorable life experiences to name a few. Although it is ‘financial education’ when positioned properly these little nuisances greatly increase the effectiveness of a course.

People in high School, College and adults under 30 years old want to learn about money!

In Spirit, Vince Shorb

The list of the most common money traps continued -Teenage parenting advice online.

How you treat money
Because of the lack of financial education many treat money differently. Moneys …. money right? You have $50 in savings and $50 from your great aunt for your birthday. Why is it easier to spend the $50 that was a gift? Money is money. Will you go out of your way to save $2 for lunch, but pay an extra $2 on a DVD player? We tend to track money in categories, and it makes for some interesting decisions.

The Jonses
Its all about keeping up with the Jonses…many people see their friend with a brand new car and they want one no matter how deep in debt it will put them. (As a side note never buy a new car…a $40,000 becomes a $30,000 car when you drive off the lot…would you throw away $10,000?) Here’s an example. You see the latest iPod in your friend’s pocket and suddenly you want a new one, too. Don’t - not until you think it through. Managing money and kids can mame you want to just blow through these decisions but don’t. Think to yourself - Can you afford to spend that money right now? Would you rather spend that money on something else? Try to avoid jumping head first into rash decisions. Through making smart money decisions you are leading by example. Your friends will benefit financially and respect you because you’re positioning yourself as the person in the group that is the money leader.

Decision making
It is true that the more choices you have, the easier it is to do nothing at all. It is what I call paralysis by over-analysis. Sometimes we just fear making the wrong decision. At other times it seems so complicated that we give up and make no decision at all. That’s a bad idea.

Think back to when you stumble upon a good sale price for something you have been considering purchasing. For instance, you researched one manufacturer of DVD players, and when it’s on sale, you go to pick it up. Right next to it is a brand you are not quite sure of. Both are on sale, so they are both good choices, but the brand you don’t know is cheaper. For most of us, this makes it hard to make a quick decision.

The tendency to fall into indecision comes into play when it comes to investing, too. The problem is that putting off financial decisions - ones that are considerably bigger than selecting a DVD player - can make you miss great opportunities. Worse, you can lose valuable time, and time is your best friend when it comes to investing your money and having it work for you.

Unnecessary risks
As you will learn later, taking a risk after researching everything that might go wrong, and being ready to accept that risk, can be OK; however taking dumb risks can lead to major financial pitfalls. I’ve taken my fair share of dumb risks, too, and sometimes I had to pay the consequences. Managing money and kids can be challenging but do take this teenage parenting advice online and talk to them about the risk facing today’s teenager – DUI’s, car accidents, pregnancy and other challenges that can cost them a lot of financial hardships.

Overconfidence
Most people think they have better knowledge about money management and investing than they actually do. This is especially true after hey experienced success in making money. As we saw with the stock and real estate boom it was easy money for a while. That makes uneducated investors think they have it wired. When things turn around however many people go back to FEAR mode and freeze. They are hesitant to ask for help, and because of that they make mistakes.

Low Confidence
The polar opposite of being cocky is being shy about financial matters and managing money and kids and your wealth. Since they don’t teach financial education in high school or college it is important you learn form somewhere. Books, seminars, teenage parenting advice online, and videos are all great ways to learn financial education. Also you will get a high quality financial education if you aren’t to shy to ask successful investors to give you financial advice. Many people lack confidence in their decisions. This lack of confidence often stems from lack of knowledge on financial matters. When your managing money and kids it is important you know all you can and give yourself a practical financial education before making any financial decision and so you can pass this personal money management tips to your children.

Emotional spending
Advertising messages surround us and bombard us with urges to buy on emotion alone. Don’t get me wrong; I like my gadgets, but there is a limit. I believe that our consumer-based society makes it incredibly tough for those people who use shopping as entertainment and, worse, shop to get an emotional lift to boost their day. This is one reason that some people overspend – shopping is a drug to them and high credit card debt is a symptom, this can be even tougher when managing money and kids.

Even small purchases, bought without much thought, can add up to big debt problems. This is how college debt, credit card debt and student loan debt add up. And if this habit is supported by a credit card, the end will come soon. In my own life, it wasn’t charge cards that got me into credit trouble, but I know what it’s like to screw up your credit history. Word to the wise: don’t.

To avoid debt and by not falling prey to emotional spending, you need to learn how to create a budget, and practice living within it. If you are still living at home, now is the time to make a few mistakes and get your skills sharpened for the adult world. Keep your college debt to a minimum and enjoy life without a large credit card debt hanging over your head.

Faking the Appearance of Wealth
You will find as your life experiences increase that many people exude the illusion of wealth. They drive the nicest cars, have the latest fashions, live in plush homes, and appear to be doing well. Some of these people are as wealthy as they seem, but others are living way beyond their means (that is, in serious debt). They have nice homes, several cars, the latest toys, college debt and high credit card debt.

I have seen people driving a brand new BMW, new Range Rover, living in a million dollar condo at the beach, flat screen TVs in every room, eating nightly at nice restaurants, and taking first class trips around the world; however, they are one paycheck away from getting into dire financial problems. The debt that they are accruing now will haunt them for years.

Don’t get caught up in the credit card debt game and avoid faking the appearance of wealth. Live as comfortably as you can afford to, at this moment and time.

Financial education helps people avoid potential pitfalls (like debt) and regularly take inventory of their thoughts and actions to ensure they avoid negative consequences. Take this teenage parenting advice online and use it to help you in managing money and kids. People that lack a practical financial education consistently find themselves caught up in “debt traps” and are left struggling to get out.

All the best! Vince Shorb

Many of the decisions we make about money we learn from our environment. Public high schools don’t teach ‘money’ so most of us learned about money form the school of hard knocks. Some parents try to teach their children about money but after talking to over 20,000 about their personal financial situation I can tell you most people lack the basic financial education needed to teach their children properly.

Many of us – myself included for many years - fall into the same common traps. The most common money traps include overspending, lack of retirement planning, poor credit decisions, no or poor investment decision making ability, and most importantly they have negative mental associations to money. People’s core attitudes come into play, making some of these traps more dangerous for you than others.

After personally diagnosing the financial health of over 10,000 clients over the years, I have found some common “money traps” people find themselves in. Many of these potential pitfalls are caused by their own thoughts and actions. Be wary of these money traps—they are inherent in day-to-day life!

Young adults today not only need a practical dollars and cents financial education but a ‘mental financial education’. All the experts agree yet for some reason the mental financial education component is forgotten. In the next two postings I will address the main reasons why a ‘mental financial education’ training needs to be taught to all high school and college age youth now more than ever

Greed
We’ve all experienced this – greed. Being consumed with money, obtaining money or material possessions at any cost, are symptoms of greed. It’s great to work hard to obtain the things and lifestyle you want, but it becomes unhealthy when you cross the line into greed. A mental financial education would help young adults recognize this feeling before they make a pooor investment decision.

Fear of loss
Most of us get really nervous if there is a chance that we may lose money. We feel the loss of $100 more intensely than if we got a windfall of the same amount. The fear of loss has a negative effect on our decision-making ability. We become focused on not losing money instead of staying on course with our financial goals. In later chapters you will learn that it also affects our decision-making for investments. I have been able to help people out of major credit card debt however they get frozen by fear and make poor decisions. Many people don’t make tough decisions that may cause short term loss but would help them achieve long term gains in the long run.

Word games
It’s all in how I pose the question… At this stage of your life, you probably have some amount money coming in; you may work, or still receive an allowance from your parents to get by. So you have income and you have to live within that. (At least that is what you will learn from this book!) Now, if I asked you if you could save 20% of your income, what would you say? What if I asked if you could live on 80% of your income?

If you are like most people, you quickly said “no” to the first, but answered “yes” to the second. Isn’t it all the same? The lesson here is to be aware of how a positive or negative presentation of the same situation can sway your thinking.

These are just a few money traps people get into please post some of your own and I will be adding to this list shortly.

All the best! Vince Shorb

How much is enough? That is entirely up to you and is determined by the lifestyle you want to live.

You may want to live like Diddy and have $500,000 cars, the latest fashions, a couple of mansions, personal assistants, an airplane, and also throw lavish parties - that’s chill. Make sure to invite me! In that case, you will need a lot of money.

Many people just want to have enough money to be financially free… to do what they want, when they want, but not splurge on the excesses.

And yet other people want to live a simple life, content with working and having enough for basic necessities. The great thing is that you get to decide. There’s no right or wrong answer. What type of lifestyle do you want?

Here are some options:

•In the Poor House – Broke, hungry, can’t afford to pay bills, trying to get out of debt, worried that your car will be repossessed, forced to borrow money from family and friends to survive, can’t afford to heat your home when its cold out; if that’s you, then you’re officially in the “poor house.” Its tough but there is hope…I was broke for many years of my life and with a practical financial education there is a way out. Many here just lack the practical money skills needed to make money and properly manage money.

•Just getting by – This is where most Americans are right now. They have enough to pay the bills now, but they are one paycheck away from the poor house. In talking with many homeless people this is where they started. It’s scary to think that there are so many people in this country on the brink of homelessness.

•Safe and Sound – For those of you with 6 months of your bills set aside and a plan for retirement this is you. You have a solid budget that you can stick to, can afford to pay your bills and are not racking up debt. In fact being safe and sound means you do not have debt (besides debt used to purchase appreciating assets – real estate, businesses, other investments), paid off any student credit card debt. It’s a good feeling knowing you have money set aside for a rainy day – job loss, medical expenses, car repairs. You’re safe and sound as long as you maintain this lifestyle.

•Financially Free – This means you can do what you want, when you want. If you want to work, you can, but you don’t need to since you have the freedom to take time off for yourself or family. You still have to live within a certain budget, but you can afford most of the things that you want. Financially responsible people can easily achieve ‘financially free’ status. That will enable you to retire young, and fully enjoy life.

•Master of Money - Money is no object; you travel the world and buy anything you desire. Yet, some people that live this lifestyle are not happy with their lives. I know it’s hard to believe, but it’s true. That is why it is important to balance the art of achieving financial mastery with living a happy and healthy life.

My goal is to have everyone that is reading this blog to be “safe and sound” or better. When you have enough money that you’re financially independent and your basic needs are met - your entire life improves. Money does not buy happiness however it is proven that people that have enough money to have their basic needs met have lower stress, better relationships and live a more rewarding life.

All the best! Vince Shorb

In this first blog post it is important we help to develop a healthy relationship with money. Whether your a young adult just starting out or a parent teaching children about money. To do so we need to understand how money fits in with our lives.

In today’s society, money plays an important role in our lives. Unless your one of the few that lives off the land, barters and have the ability to build your own home, chances are you need money.

You can’t buy happiness with money and I’m sure you’ve heard “money isn’t everything”. However, having enough money can certainly lead to an easier life without bills piling up, thus adding to your financial freedom and financial security.

Financial freedom gives you the freedom to do what you want, when you want. That gives you the ability to live a full, exciting life. Money = Time, freedom and lifestyle.

The financial security that money can bring also has benefits. A certain degree of money will make you feel “happier”. Once you’re able to afford basic needs like shelter, food and transportation you’ll likely find that acquiring a lot more money doesn’t guarantee that you’ll be a lot happier. But it can help.

True happiness, has more to do with your attitude to life than it does to do with the size of your bank balance. Money’s great, but remember, don’t let it rule you. The money’s inside your pocket, not the other way around.

You see, achieving financial freedom and financial security can play a role in how your feel about yourself, but it’s only one aspect of creating a better life. Also very important to happiness is having close, trusted family, friends, and acquaintances; being physically healthier; enjoying your profession; going with the flow; laughing; doing things you enjoy. Strive for a healthy balance, and the rest will follow naturally.

Use money to live a balanced life. Strive for financial freedom so you can enjoy the lifestyle that money brings. Strive for financial security so you and your loved ones needs are met. Both financial freedom and financial security will help you to take the focus of your needs and allow you to work for the greater good. Vince