Goodbye Nelnet

Past Due:	$0.00
Current Amount Due:	$0.00
Pay This Amount:	$0.00

Outstanding Balance:

$0.00   View Payoff Details

Steve and I made the final payment on his Nelnet student loan today.  One down, one more to go and we are DEBT FREE, except for the house. 

The Important of Starting to Save Early

Learn From Ben - Start Saving NOW!

Saving money consistently is so important! The earlier you start, the better. Let compound interest work in your favor! While you can’t change the past, you CAN start right now! What is every high school student couldn't graduate until they could understand and explain this chart?  I sure I would have!
Example - Ben and Arthur

Both save $2,000 per year at 12%. Ben starts at age 19 and stops at age 26. Arthur starts at age 27 and stops at age 65.

Age	Ben Invests		Arthur Invests
19	$2,000	$2,240	$0	$0
20	$2,000	$4,749	$0	$0
21	$2,000	$7,558	$0	$0
22	$2,000	$10,706	$0	$0
23	$2,000	$14,230	$0	$0
24	$2,000	$18,178	$0	$0
25	$2,000	$22,599	$0	$0
26	$2,000	$27,551	$0	$0
27	$0	$30,857	$2,000	$2,240
28	$0	$34,560	$2,000	$4,749
29	$0	$38,708	$2,000	$7,558
30	$0	$43,352	$2,000	$10,706
31	$0	$48,554	$2,000	$14,230
32	$0	$54,381	$2,000	$18,178
33	$0	$60,907	$2,000	$22,599
34	$0	$68,216	$2,000	$27,551
35	$0	$76,802	$2,000	$33,097
36	$0	$85,570	$2,000	$39,309
37	$0	$95,383	$2,000	$46,266
38	$0	$107,339	$2,000	$54,058
39	$0	$120,220	$2,000	$62,785
40	$0	$134,646	$2,000	$72,559
41	$0	$150,804	$2,000	$83,506
42	$0	$168,900	$2,000	$95,767
43	$0	$189,168	$2,000	$109,499
44	$0	$211,869	$2,000	$124,879
45	$0	$237,293	$2,000	$142,104
46	$0	$265,768	$2,000	$161,396
47	$0	$297,660	$2,000	$183,004
48	$0	$333,379	$2,000	$207,204
49	$0	$373,385	$2,000	$234,308
50	$0	$418,191	$2,000	$264,665
51	$0	$468,374	$2,000	$298,665
52	$0	$524,579	$2,000	$336,745
53	$0	$587,528	$2,000	$379,394
54	$0	$658,032	$2,000	$427,161
55	$0	$736,995	$2,000	$480,660
56	$0	$825,435	$2,000	$540,579
57	$0	$924,487	$2,000	$607,688
58	$0	$1,035,425	$2,000	$682,851
59	$0	$1,159,676	$2,000	$767,033
60	$0	$1,298,837	$2,000	$861,317
61	$0	$1,454,698	$2,000	$966,915
62	$0	$1,629,261	$2,000	$1,085,185
63	$0	$1,824,773	$2,000	$1,217,647
64	$0	$2,043,746	$2,000	$1,366,005
65	$0	$2,288,996	$2,000	$1,532,166
			...And he never caught up!

http://www.daveramsey.com/

Newlyweds: What Do We Need To Know About Money?

Unity over money will build a strong foundation for your marriage
from daveramsey.com on 12 May 2010
 
If you’re getting ready to tie the knot, then one thing you definitely want to talk about with your honey is money!

You probably have lots going on, and emotions are running high. But believe us: now is the time to get on the same page about money. Money fights and money problems have been the leading cause of divorce for decades—but the good news is that these issues are preventable! Getting on the same page creates a strong foundation for a healthy, lifetime marriage. Plus, you’re stopping money fights before they start!

A lot of couples find that being unified with their money increases their intimacy overall. Like Dave says, “When you can talk about money, you can talk about anything.” Talking about money is easier than you may think—especially if you start before you say, “I do.”

The process of bringing your money together doesn’t have to add stress to a time of pre-wedding bliss. It can actually be fun! Here is a quick five-step checklist to get you started building a solid foundation for your life together:

1. Put It All on the Table
   Transperency is Key!
2. “Marry” Your Accounts
   When you get married, combining your money into joint accounts is a crucial step.
3. Start Budgeting Together
   Get tips for uniting over the budget.
4. Make A Plan
   Set priorities together and make a plan for moving through Dave’s Seven Baby Steps as a team.
5. Put Your Relationship First
   Whatever you do, don’t stress! It’s just money. Your relationship is so much more important.

Financial Peace University (FPU) is Dave’s class that is perfect for newlyweds! Take a break from the hassle of wedding planning for a couple of hours each week to have a great time connecting over money. FPU classes are offered at locations all over the nation. Learn more about this life-changing class and locate one in your area as you prepare to say “I do.”
Source

Goodbye Sallie Mae!

Today I made the last and final payment to Sallie Mae.  It feels kind of strange actually. I have been making monthly payments to Sallie Mae for since I graduated in 2004.  I don't think I will miss them though.
For the past few weeks, I have been working about 50-60 hours a week.  I have been called a work-a-holic by some and crazy by others, but today it all became worth it.
She has officially been kicked out of our back bedroom FOREVER.
We are not debt free by any stretch of the imagination. We still have Steve's student loans to pay on, but this is a success on the journey.  I'm so excited to finally be done.  During the past few Budget Committee Meetings between Steve and I, I could see the number falling and it started to make me angry that it wasn't gone yet.  A healthy anger, of course.

“And my God will meet all your needs according to his glorious riches in Christ Jesus.” – Phil 4:19

The Wealthy are Evil and Must be Punished

Suppose that every day, ten men go out for lunch and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

The ten men eat in the café every day and seem quite happy with the arrangement, until one day, the owner threw them a curve. “Since you are all such good customers, he said, “I’m going to reduce the cost of your daily lunch by $20. Lunch for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still eat free. However, what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his “fair share?” They realized that $20 divided by six is $3.33. However, if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to eat his lunch. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same bracket of earnings, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% saving s).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before And the first four continued to eat free. However, once outside the restaurant, the men began to compare their savings.

“I only got a dollar out of the $20”, declared the sixth man. He pointed to the tenth man,” but he got $10!”
“Yeah, that’s right”, exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than I!”

“That’s true!” shouted the seventh man. “Why should he get $10 back when I got only two? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”

The nine men surrounded the tenth and beat him up.

The next day the tenth man didn’t show up for lunch, so the nine sat down and had lunch without him. However, when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start eating overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia

Guess Who's DEBT FREE!!!

If you guessed the YWCA, you would be right!!! I love my job. I sent this email to the Dave Ramsey Show and he actually read it on the air.

Hi Dave,


I work for the YWCA of St. Joe County in South Bend, Indiana. We are a non-profit organization that serves about 1300 women and children every year escaping Domestic Violence and going through Chemical Dependency Treatment. We are one of only a few organizations in Indiana that allow women to bring their children with them during Residential Chemical Dependency Treatment. We also have Transitional Housing for women and children and Permanent Housing for women with disabilities. WE ARE DEBT FREE!!! Even on the building. I love my job and I’m so proud.


My husband and I have been working your plan and we are credit debt free. All we have left is student loans and our house. Thank you for all you do.

Go to this link to listen to the call.  Listen to the November 4th show. You will have to listen to about 20 - 25 minutes of the show before he reads the email on the air.

Book 7: Rich Dad, Poor Dad

I just finished reading Rich Dad, Poor Dad by Robert Kiyosaki. I must say that I was a bit disapointed in it. It came highly recommended. For the most part, I liked the book. He compared his real dad, who he called Poor Dad, to his friend's dad, who he called Rich Dad. His Poor Dad was highly educated and had a government job and his Rich Dad was uneducated and was self-Employed.

My main dislike of the book is that he seemed to discount the value of education. To me, it seemed like he didn't see the value of education and he thought the only way to be successful was the own your own business. His plan seemed like a get-rich-quick plan, but hardly works for most people. According to the other books I have read this year, I have learned that financial success takes time, effort, and a "crock pot" mentality. Wealth building takes time.

He tells the story about how he made all his money in Real Estate. Real Estate is a really great investment, but it does come with risks. He said he took a $500 weekend seminar and learned how to flip Spec Houses. It's a good idea but it doesn't always work and to suggest that it does, is wrong. Houses don't always go up in value. Sometimes markets bubbles burst and if you have a bunch of debt piled in Spec houses, you will get foreclosed on (ie. Our House). The man who owned our house watched the weekend seminar, drank the kool-aid, and bought a bunch of rentals and now my dad's bank owns most of them. If you want to invest in Real Estate pay cash for it.

"Studies show that 100% of the foreclosures happen on homes with a Mortgage." - Dave Ramsey

He did have some good points where he says too many people let their money control their lives. That they go through life working for money and never really making it, instead of letting their money work for them.

"Many great financial problems are caused by going along with the crowd and trying to keep up with the Jones." (If you remember the information from The Millionaire Next Door most of the "Jones" are broke.)

Roberts doesn't like to pay taxes...and I don't think I know anyone that does. He made some interesting observations about them though. At one time, Americans were anti-taxes. It wasnt until 1913 that an Income tax became permanent in America. Before that the only taxes collected were temporary to pay for wars.

"It is the idea of Robin Hood, or taking from the rich to give to the poor that has caused the most pain for the poor and the middle class. The reason the middle class is so heavily taxes is because of the Robin Hood ideal. The real reality is that the rich are not taxed. It's the middle class who pays for the poor, especially the educated upper-income middle class...The idea of taxes was made popular, and accepted by the majority, by telling the poor and the middle class that taxes were created only to punish the rich...Although it was intended to punish the rich, in reality it would up punishing the very people who voted for it, the poor and middle class."

Book 6: The Millionaire Next Door

I loved this book. I love statistics and numbers and this book is just full of them.
The Millionaire Next Door was written by Thomas Stanley and William Danko in 1996. They began studying how people became wealthy. They started by surveying upscale neighborhoods and soon realized something odd. Many people who live in expensive houses do not actually have much wealth. Then they discovered many people that do have a great deal of wealth did not live in the upscale neighborhoods. When most people try to picture people of great wealth, they often picture expensive large house, new luxury vehicles, large flashy jewelry, and such. What they discovered in their 20 year long survey is people with great wealth most often do not fit that picture. Also, they discovered that most of the people that were wealthy did not inherit wealth or have flashy high degrees. Wealth is rarely gained through Lottery, in sports, or from a TV show. Wealth was more often the result of hard work, perseverance, planning, and self-discipline.

Usually the wealthy person is a business owner who has lived in the same town his whole life. He is married once and remained married. There kids are educated. He lives in upper middle class or middle class neighborhood next to people with a fraction of his wealth. Most of the time the neighbors have no idea their neighbors are wealthy.

• 80% of American Millionaires are first generation rich.
• About half the wives do not work. Of the wives that work, the number 1 occupation is teacher.
• 97% are homeowners living in houses with the average value of $320,000.
• They wear inexpensive suits and American made cars. Only a minority drive the current-model-year car. Only a minority ever lease a vehicle.
• As a group, they believe education is very important.
• About 2/3 work between 45-55 hours per week.

During the investigation, they discovered seven things that were common among those successful millionaires.

1. They live below their means.
2. They allocate their time, energy, and money efficiently, in ways conductive to building wealth.
3. They believe that financial independence in more important than displaying high social status.
4. Their parents did not provide them with economic outpatient care.
   
   

   They are generally frugal when it comes to their own consumption, but not nearly as frugal when it comes to gifts for their children and grandchildren. Children of the wealthy are not guaranteed to be as success as their parents. They often conclude that children could not maintain a middle class lifestyle without help from them. Giving those gifts often creates more spending, not saving because the recipients start to depend on it and budget their lifestyle accordingly. Not all economic help is harmful, but it must be done after the children are already responsible and do not NEED the money. It is only then that they will use the money to prosper.

   According to the survey, Millionaire parents all too often weaken the weak. All too often parents are more willing to give large sums to money to their underachieving children. For example, lets suppose a couple has two children. One is a college graduate; very successful with handling money, with a full time job and the other child is a High school graduate, living at home, with no income. The parents desire to give a gift of 20,000 to their children. Do they divide is down the middle and give both 10,000? No. According to the survey, most parents in this situation would give the underachiever 15,000 because they feel this child needs the money more and give the successful child only 5,000. These well-meaning parents feel like they are helping the underachieving child, but in reality, according to the survey, the actually cripple the child further by making them more reliant on outside assistance. This can also cause conflict and jealousy because the high achievers will start to resent the gifts.

5. Their adult children are economically self-sufficient.
6. They are proficient in targeting market opportunities.
7. They chose the right occupation.

Being frugal is corner stone to wealth building. Often when you see people spending big money on television (like celebrities and sports players), those people may have a large income but most have little investments and little wealth. They spend all they have. They may technically me Millionaires but when compared to other people in their income range, they are actually very poor.

Rules for Affluent Parents and Productive Children
The affluent who have successful adult children gave them these guidelines on how they raised their children.
1. Never tell your children that parent’s are wealthy.

Children that grow up in wealthy families that have high consumption tend to want to maintain that level of spending even after the move out. All too often though they do not have the income to support their lifestyle, so they have to rely on parent’s assistance and credit.

2. No matter how wealthy you are, teach your children discipline and frugality.
3. Assure that your children won’t realize you’re affluent until after they have established a mature, disciplined, and adult lifestyles and profession.
4. Minimize discussions of the items that each child and grandchild will inherit or receive as gifts.
a. Because you may forget what you said…and they probably will not.
5. Never give cash or other significant gifts to your adult children as a part of a negotiation strategy.
6. Stay out of your adult children’s family matters
7. Don’t try to compete with your children
8. Always remember that you children are individuals.
9. Emphasize achievements no matter how small.

Teach children to achieve not just consume. Earning money just so you can spend
it should not be your ultimate goal. People are not impressed by what you own,
but by what you’ve accomplished.

10. Tell your children that there are a lot things more valuable them money.

Pella Windows

Steve and I finally had out meeting with Dave the Pella guy last night. Our windows are officially ordered. I'm excited to finally be getting this project done, but I'm also a bit nervous because they are not going to be cheap. We shopped around to several different companies, so we are pretty sure we are getting the best deal. Dave the Pella guy is also a Christian and a Financial Peace grad, so he didn't even pressure us to use credit. The other companies we had out to give us quotes all looked at us funny when they asked if we wanted to sign for payments and we said, "No, we will be paying in cash." It was actually kind of fun to see the blank stare from them. :0)
Dave the Pella guy hooked us up with some good windows and he made sure they would qualify for the tax-credit. He was very knowledgeable too. He answered all out questions and explained exactly what was going on.

Pella is going to install the big window in the front and Steve is going to install the rest himself, with the help of some good buddies. I am very happy with our choice to go with Pella and I can't wait to have our new windows in.

I Want to Scream...

...I'M DEBT FREE. I'm listening to the Dave Ramsey Radio show right now. Fridays is Debt Free Friday. It is when people call in and tell their stories and SCREAM over the radio. I love listening to the stories because they are inspiring and they make me so excited and pumped. They also make me so mad at my debt. I'm so ready to be done with. We are working really hard and we are making good progress. It just feels like it's taking so long.

All we have left in Baby Step 2 is our Student Loans. Things were moving really well while we had our second job, but we don't those jobs anymore so things are going to be moving more slowly. I know we can get other jobs, but the job market is so tight right now. The YWCA did move me back up to 40 hours, from only 36, so that is going to help us. Steve and I now both have the opportunity to work overtime, but it is generally encouraged that we don't.
After the summer is over, we will probably start looking again for other part time jobs. So many people right now are laid off looking for their only full or part time job, so part of me feels bad if I go in and take a job from someone who needs it more than I do.

Anyone else going through this process have encouragement for us as we go on the journey?

Therefore encourage one another and build eachother up, just as you are doing.
1 Thessalonions 5:11 NIV

Dave Ramsey: Town Hall For Hope

The Town Hall for Hope has finally been uploaded to Hulu.com. I went and saw it "live" via simulcast with my friend, Stacey. It was pretty inspiring. It is about 90 minutes long, but totally worth the time. Watch it over and over again with friends. Dave is hilarious, yet insightful.





There is hope out there.

Currently Reading: Bridges Out of Poverty by Phil DeVol

Hello again! I am currently on book 3 of my goal. My goal is to read one Non-Fiction book a month. Dave Ramsey says, "If you want to be skinny, study skinny people. If you want to be rich, do what lots of rich people do, not what some myth-sayer says to do." Apparently rich people read, on average, one non-fiction book a month, so I thought I would try it.

This book has a lot of things packed in it. I might have to summarize each chapter separately just to unpack all of it.

Here is a summary of what I've learned so far from the book, as well as from working with the program. (I'm only on Chapter 1.)

Bridges Out of Povery is a program that the YWCA supports that helps bring bring women out of the cycle of generational poverty. The program is for 3 hours once a week, for 13 weeks, and helps the women gain the knowledge and skills they need to succeed in a Middle Class environment. The YWCA also trains business leaders and managers in poverty, so they can better understand their employees and help them succeed.

Dr. Ruby Payne’s Bridges out of Poverty book brings to the forefront a major problem in America. When children grow up together in poverty it forms a bond that is almost unbreakable in them. Children begin to believe that there is no way out for them. They start to follow the example of their parents and continue the cycle of poverty with their children. Parents are finding themselves unable to support their families. Proper health care and high education are often seen as unachievable. The cycle of poverty will never end unless someone does something about it.

Poverty is defined in the book as the "extent to which an individual does with out resources." Generation Poverty is defined as having been in poverty for at least two generations. Situational Poverty is defined as a lack of resources due to a particular event, such as a death, illness, divorce, etc. Often the attitude in generational poverty is that society owes them a living. In situational poverty the attitude is often one of pride and a refusal to accept charity.

Dr. Ruby Payne’s book is a starting point where one can develop accurate models of poverty, middle class, and wealth. It is a new lens by which we can see and learn from each other. The more people know about poverty, the better chance there is to get people out of it.

There are hidden rules of class that are unspoken cues and habits of the group. Being physically able to fight or having someone else fight for you is important to survival for people in poverty. However, in middle class, being able to use words as tools to negotiate conflict is essential. Teaching people in poverty how to use words is one of the first steps the Bridge out of Poverty. Another difficulty in getting out of poverty is the ability to manage and save money. People in poverty tend to be thinking in the moment, so when they get money or other resources they spend them.

The idea of using money for security and wealth building is mainly seen in the middle and wealthy classes. Relationships are often more important then anything else for people in poverty. Relationships are seens as one of the resources they can't do without. If they come into extra money, they are more likely to give it to a friend in need, then buy something for themself. They see it as an insurance policy of sorts, because if they were ever in need, they would want the person to return the favor.

Being careful not to make assumptions about different classes is often difficult. Many people find themselves in the same class their parents were in so that is all they know about.

There is hope for those in poverty if everyone works together.

Currently Reading: Who Moved my Cheese by Spencer Johnson

Who Moved my Cheese by Spencer Johnson is the book I just finished. I loved it and I totally recommend it to anyone, especially going through big changes in your life right now. I don't recommend reading it when you are hungry though.

• "Cheese" is a metaphor for what you want to have in life - whether it is a good job, a loving relationship, money, a possession, health, or spiritual peace of mind.
• "The Maze" is where you look for what you want - the organization you work in, or the family or community you live in.

Four characters:

• "The Mice" - Sniff (Who sniffs out change early), Scurry (Who scurries in action)
• "The Little People" - Hem (Who denies and resists change as he fears it will lead to something worse, Haw (Who learns to adapt in time when he changing leads to something better
  
• We all have one thing in common, we must all survive in changing times. The world around us is always changing.
  
• The more important your "cheese" is to you, the more you want to hold on to it.
• Sometimes fear can be good. When you are afraid things are going to get worse if you don't do something, it can prompt you into action. But it's not good if it paralizes so much that you can't do anything.
• "Movement in any direction, helps you find more "cheese."
• Haw: "He was letting go and trusting what lay ahead for him, even though he did not know exactly what it was."
• "When you move beyond your fear, you feel free."
• Imagining myself enjoying "new cheese" even before I find it, can lead me to it.
• Think about what you can gain, instead of what you are losing.
• Realizing that you are not living in fear, but instead you are taking a new direction can lead to new strength.
• Change is natural, whether you expect it or not. Change can surprise you only if you didn't expect it and weren't looking for it.
• Haw: "He had to admit that the biggest inhibitor to change lies within himself, and that nothing gets better until you change.
• Fear should be respected because sometimes it keeps you out of danger. But most fears are irrational and keep you from making the changes you need to make.

Change Happens: They keep moving the Cheese
Anticipate Change: Get ready for the Cheese to move
Monitor Change: Smell the Cheese often so you know when it is getting old
Adapt to Change Quickly: The quicker you let go of old Cheese, the sooner you can enjoy new Cheese.
Change: Move with the Cheese
Enjoy Change: Savor the adventure and enjoy the taste of new Cheese
Be Ready to Change Quickly and Enjoy It Again and Again: They keep moving the Cheese

Which character are you?

20 Somethings and Money

Do you ever hear financial advice and think, "Oh man, I wish I would have known this when I was younger." I know I have. In this video, Dave Ramsey takes calls from 20-somethings and gives them advice on money. It's a must see video if you are in your 20's now, will be in a few years, or you wish you were 20 again. :0)

Dave Ramsey 2nd Annual Plasty Awards

These are great. He encourages his listeners to send him in videos of them destroying their credit cards in fun, different ways. Then he gives out awards for the best ones.

City Not Participating in the Recession

Embedded video from CNN Video

Thrifty spending the newest style?

Source

Article published Feb 23, 2009

Thrifty spending the newest style?

Expert says consumers should save for future, spend smartly.

By KIM KILBRIDE Tribune Staff Writer

Terri Sibaja has come up with her own version of unemployment insurance: Shelves stocked with enough food to feed her family of three for the entire winter. Tucked away in a small room in the basement of her Cape Cod in Mishawaka is an unexpected storehouse of food.

Shelves spanning 15 feet across, from floor to ceiling, are packed full of canned soups and vegetables, dried beans, rice and pasta, flour, sugar and evaporated milk.

It's all about saving money, she said, taking advantage of sales and stockpiling during the warmer months when her husband, Jose, a painter, is busy.

Now, the family can eat almost exclusively from its reserve to make it through the cold-weather work slowdown and the recession. South Bend mom Tama Crisovan belongs to a cooking group that meets monthly to swap homemade frozen meals."

As the economy has tightened," she said, "rather than making six meatloaves (to exchange), we'll cook beans from scratch and bring six containers of chili."

It's hard to say how much money she's saved by the endeavor, she said."But, I don't have to have that pizza night where I spend $20," she said. "I have ready-to-go entrees in my freezer."

From scaling back on cable and Internet services to brown bagging it to work and cooking more meals at home, it seems everywhere you look these days, people are finding ways to cut corners. In some cases, folks who once were loyal donors to local Salvation Army thrift stores are now the customers.

From October of last year through January of this year, Maj. Timothy Best reported, sales at the Salvation Army's seven area thrift stores were up 12 percent to 15 percent."

Anecdotally," he said, "we're hearing people can't afford to shop elsewhere."

Goodwill of Michiana, which operates some 20 thrift stores, also reports an increase in sales since last fall.

Across the country, people are also saving more -- 3.6 percent of their income in December compared with negative numbers just months earlier -- because they're somewhat uncertain about the future and they're concerned they won't be able to draw on easy credit to finance major purchases.

Heck, even Oprah recently featured "The Thriftiest Family in America" on her show. It seems that frugality, once a term reserved for miserable misers, is now stylish. But, is what's good for families also good for the economy?A flip side to thrift?

Grant Black, an assistant professor of economics at Indiana University South Bend, explained what's known as "the paradox of thrift." There are two opposing schools of thought on whether spending or saving is best.

One view, he said, is that spending in the short run is good because it drives a lot of economic activity. More consumer spending leads to an increase in output among businesses and potential job growth.

On the other hand, Black said, savings allow financial institutions to loan money to businesses and individuals." This is important for longer-term growth," he said.

Can a healthy balance be struck between mindful spending and saving?" People need to be smart spenders," Black said. "It's not good to sustain high levels of debt."

That said, even during recessionary times, prices and interest rates can drop. Then, he said, "People can spend a little more or borrow a little more with lower prices and easier lending (terms.)"Will it last?

Will Americans who adopted newfound saving ways sustain them after the recession?"

It's unclear," Black said. "I think we're going to have to wait and see." Unlike their predecessors who lived through the Depression, he said, today's generation tends to have the view that everything will always turn out OK.

Sibaja, meanwhile, said she figured out a way to strike a balance between curtailing her family's spending on food this winter and enjoying an occasional meal out. She asked for gift cards to restaurants for the holidays.

"Some people think that's impersonal," she said, "but it didn't feel that way when we were (out at a restaurant) eating our steaks last week."

Asked about her new, in-vogue attitude about money, she laughed. "I don't feel sexy. It's just necessity that's caused me to use what we have instead of going out to shop.

"When the recession's over?

"Yes, since I'm on the 'Dave Ramsey Debt Diet,'" she said, "my miserly ways will continue."

Staff writer Kim Kilbride: kkilbride@sbtinfo.com (574) 247-7759

2009 Dave Ramsey Pick Up Lines

Dave Ramsey pickup lines

Thursday, Feb 14 in Funny nice stories, Dave Ramsey pickup lines Comments (42)
Written by our own Chris Russell, courtesy of My Total Money Makeover.com.\

1) I still have money in my "restaurant" envelope ... can I buy you dinner?

2) Would you like to dance? I'd love to show you my Baby Steps.

3) Why am I nervous about talking to you? Because you're better than I deserve.

4) Allow me to introduce myself ... I am "borrower", and you must be "lender".

5) Good thing I got just term life insurance ... because I saw you and my heart stopped!

6) You can't spell Financial Peace University without U and I.

7) I've already kicked Sallie Mae out. Want to take her place?

8) I just bought a bass boat with cash ... and it's a good thing, because you're quite a catch!

9) I'm not mortgage interest baby ... don't write me off.

10) The good news? I'm debt free. The better news? I'm also date free.

11) What would you say if I asked you out? (response: no). That's not good enough

Courtesy of one of Dave's listeners: On a scale of 350-850, I'm a Zero!

Obama Stimulus Package

According to Obama, "Our economy may never recovery if we don't pass THIS stimulus package, right now." I realize that some of these things are probably needed but do they need to be part of this package. How will they create jobs? Does it need to be so big? Is there a better way? I agree that we may never survive if we don't make the right decisions right now. It will probably recover, in time though. My question is...Is this plan, the right decision right now? Why is this package filled with so much pork projects that will not help the ecomony recover or create jobs? Why did Obama remove the "Buy American" part of the plan? Part of what got us out of the Great Depression was the war, because Americans got jobs creating war supplies with American materials. Now, all American manufacturing is outsourced to other countries. Other countries are now prospering when we go to war, because they are creating our materials. Anyone else see a problem?

I seem to remember Bush using the same scare tactics to get his Stimulus Package passed and the whole country was OUTRAGED because he was "scarying us and using fear tactics", but Obama use the same tactics and everything is ok. So we passed Bush's Stimulus and I haven't seen the Ecomony turn around from it yet. I guess he was wrong. But of course, Obama isn't going to be wrong too.

-Bridget

Highlights of Economic Recovery Plan

Spending

Energy

$32 billion: Funding for "smart electricity grid" to reduce waste
$20 billion +: Renewable energy tax cuts and a tax credit for research and development on energy-related work, and a multiyear extension of renewable energy production tax credit
$6 billion: Funding to weatherize modest-income homes

Science and Technology
$10 billion: Science facilities
$6 billion: High-speed Internet access for rural and underserved areas

Infrastructure
$32 billion: Transportation projects
$31 billion: Construction and repair of federal buildings and other public infrastructure
$19 billion: Water projects
$10 billion: Rail and mass transit projects

Education
$41 billion: Grants to local school districts
$79 billion: State fiscal relief to prevent cuts in state aid
$21 billion: School modernization

Health Care
$39 billion: Subsidies to health insurance for unemployed; providing coverage through Medicaid
$90 billion: Help to states with Medicaid
$20 billion: Modernization of health-information technology systems
$4 billion: Preventative care

Taxes
Individuals:

* $500 per worker, $1,000 per couple tax cut for two years, costing about $140 billion
* Greater access to the $1,000-per-child tax credit for the working poor

* Expansion of the earned-income tax credit to include families with three children
* A $2,500 college tuition tax credit
* Repeal of a requirement that a $7,500 first-time homebuyer tax credit be paid back over time

Businesses:
* An infusion of cash into money-losing companies by allowing them to claim tax credits on past profits dating back five years instead of two

* Bonus depreciation for businesses investing in new plants and equipment
* Doubling of the amount small businesses can write off for capital investments and new equipment purchases

* Allowing businesses to claim a tax credit for hiring disconnected youth and veterans
Source: Associated Press

Dave Ramsey on How to Pay for College

Link