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Gospel According to John
Gospel According to John
Here is a copy of the first booklet I ever wrote.  Please do not print.  If you would like a copy please request it.

Thank you for purchasing The Gospel According to John.  I hope you find it interesting and helpful.  This is not a get rich quick scheme.  This is a very simple and easy to follow program designed to help lower to middle income people manage their money and have a better financial future.  If you have interest in more in depth material or have comments, my address is on the registration page.

Here is a list of some of the things I have done:

Bachelor of Science in Business Management, Oakland City College 1993
Associate in Social Science in Political Science, Vincennes University 1986
Former licensed life and health insurance agent
Worked as a mortgage broker
Worked as a bill collector
Recipient of 1993 Olive Smith Business Award
          Here is a list of some of things I believe in:

People can make it if they apply themselves.
Their is only three ways to acquire things:  Earn, Gifts and Stealing.
Capitalism, or the Free Enterprise System.
" The obvious and simple system of natural liberty"  Adam Smith.
Single class basketball in Indiana.
No person actually owns anything.  Everything really belongs to God.  When we die we leave everything behind.

This book is dedicated to Jesus Christ, the author of the greatest quote in this book.  "What gaineth a man to gain the whole world and lose his soul?"

     I wish to thank all my friends and family that helped with this project.  I also wish to say a special thank you to  Susan Williams, Quinn Braselton, Charlie Brauser, and the fine people at the Oakland City, Princeton, and Newburgh Public Libraries.

Introduction

"The most important thing one can learn from poverty can be summed up in two words… no fun."- John Ozzy Williams
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With bankruptcies at an all time high, (over 1 million in 1996),  this may be the first generation in American history that doesn't do better than its predecessors.  Economic problems of the American family cover our nightly news.  We are starting to hear about a new group of Americans, the working poor.  These are people who work their tails off and go home broke.  Who is to blame for this?  We all are, we failed to educate our citizens in common sense money management.  In almost every country in the modern world, individual savings are substantially higher than in the United States, yet we complain when foreign investors buy an American landmark.  Perhaps we need to look at the facts:
We have the highest credit card delinquency level since 1981.
The average credit card balance is $1,900.
The average American carries 8-10 credit cards.
90% of bankruptcies are due to out of control high interest debt.
50 % of all marriages end in divorce and the majority list money as the number one reason.
     Looking at theses facts, I must ask whoever or what is our master?  On the average we Americans have $1200 in savings and $16,000 in high interest debt.  Think for a moment now.  Who is your master?  Luke 16:13 says, "No servant can serve two masters."  As a whole, our country is living an illusion that we are doing all right with money, when in reality we are living beyond our means.  Simply, we are not doing well with financial responsibility in this country.  

     It is my hope that you will use this book to evaluate your present position, start making better financial decisions, and finally fight your way out of debt to control your life and strengthen your family.  Greg Walls said it very well when he said,  "The choice is simple - you can either stand up and be counted or lie down and be counted out."  The time is now to move forward and make a personal declaration of independence.  Just as our forefathers waged a revolution for freedom you to must now fight for your personal freedom from debt.  If you want to be debt free, fill in the Personal Declaration of Independence now and be sure to talk to your family about this decision.
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     In the course of my life I have developed a deep and personal need for debt free living.  On this day, before my God and my family I make this Solemn vow:  I shall make better financial decisions, repay all of my creditors, and finally obtain the freedom that can only be enjoyed by those who are debt free.




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          Signature                                                                 Spouse

Witnessed on __________________________ by:


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_________________________________           _________________________________



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"Empty your mind of worries by filling it with knowledge."- Greg Walls

     Congratulations for having the guts to make the commitment that you just made.  I have compiled a list of  some of my favorite quotations.  You may find them helpful as you embark on this quest to save your financial life.  I recommend that you copy some of these quotes down on small pieces of paper and place them in places that will remind you of your personal commitment.  For example, put one on your bed room mirror, one in your wallet, and one in your pocket with your change.  I also recommend that you rotate the material as you go along on this mission to prevent the paper from becoming something you see, but ignore.  If you do not like these quotes you will find several more scattered throughout this book, just pick something that motivates you.



"The mind will not reach toward achievement until it has goals.  It is then the switch is turned on, the current begins to flow, and the power to accomplish becomes a reality."

"If we don't take the risk of failing, we won't get the chance to succeed."
"No one can be the best at everything.  But together, we can be the best at virtually anything."
"Every man should make up his mind that if he expects to succeed, he must give an honest return for the other man's dollar."- Edward H. Harriman
"There is no great secret to success.  It is the result of preparation, hard work, and learning from failure."- General Colin Powell
"Goals are what keep us going.  To keep improving after achieving one goal, we must set a new one."
"The odds are with us if we keep on trying."
"The greatest mistake a man can make is to afraid of making one."- Elbert Hubbard
"Most success arises from ordinary people working together in extraordinary ways."

"Every successful man I have heard of has done the best he could with conditions as he found them…"- Edgar W. Howe
"The power to succeed or fail is ours alone."
"People may doubt what you say, but they always believe what you do."
"The successful man will profit from his mistakes and try again in a different way."- Dale Carnegie
"Think of goals and expect little achievement.  Think big goals and win big success."- David Schwartz
"Winning is not a sometimes thing; it's an all-the-time-thing.  Winning is a habit.  Vince Lombardi
"Nothing great was ever achieved without enthusiasm." - Ralph Waldo Emerson


Day One:

It's Day One of your war for independence.  You will need supplies.  The supplies you need are box or file cabinet.  Don't waste money by running out and buying a cabinet.  At this point a cardboard box will do nicely.  You will also need a shoe box, folders, and either a note book or a three ring binder.
     Even if you do not have all the supplies, you can start evaluating your situation.  Many Americans don't have any idea just how far in debt they really are.  Fill in the chart below with your debts.  You may not know all the information on these debts.  Now is the time to find out.  Be very careful gathering this information because this will be the basis for future decision making.  After carefully filling in the chart, add up the monthly payment column and the balance column.  (Be sure to base this on a monthly basis).
DEBT
NAME
PAYMENT
DUE DATE
BALANCE
APR
TOTALS
APR=ANNUAL PERCENTAGE RATE (The yearly cost you pay for this account.)

NOTES:________________________________________________


FIGURE YOUR LIVING EXPENSES

     Now that you have some idea how much debt you have, we need to figure out your living expenses.  With a good grasp on expenses and debts we can begin to develop a plan for improvement.  Fill in the expense chart.  Be sure to include due dates on expenses that have due dates.  If you have a miscellaneous expense be sure to write it in.
                                                             MONTHLY AMOUNT                          DUE DATE
HOUSING:
  RENT/MORTGAGE
  INSURANCE
  TAXES
  WATER
  GAS
  ELECTRICITY
  MISCELLANEOUS
TRANSPORTATION:
  CAR PAYMENT
  GAS
  MAINTENANCE
  INSURANCE
  LICENSE
  MISCELLANEOUS
OTHER STUFF:
  FOOD
  DINNERS OUT
  CABLE TV
  LOTTERIES
  CIGARETTES/ALCOHOL
  CHILD CARE
  CHARITIES
  LAUNDRY
MISCELLANOUS:
   ***TOTALS***

DEVELOPING A PLAN

     You may already see some obvious changes that you could make.  If you do, great!  Quickly jot your ideas down and stick them in a folder labeled PLAN.  On the outside of the folder write this quote:
"In order to get out of debt I must have a plan and the desire to get there."
     You will see this quote whenever you pay bills, and it will serve as a reminder of your goal.
Now lets take a look at the debt exercise chart.  If you have several credit cards, pick the lowest interest and most universal credit card.  Now get a pair of scissors and Plastic surgery the others.  These may be some beloved cards, however, you have to ask yourself are you committed more to yourself and your family or that card?  You should very rarely carry a card for just one store.  They typically have much higher interest rates, and obviously you are forced to shop that store.
If using too much credit has been a problem in the past, get a small plastic bowl, tape the card  face down to bottom, fill with water and freeze it in the freezer.  You have a card for emergencies; however, impulse shopping is less likely.  You may even want to wrap the bowl in foil after it freezes.  This will help prevent a thief from looking in your refrigerator and stealing your card.  If you don't like this idea, you will need to develop another way of limiting impulse spending.
Budgeting

     As you make progress, you will determine a set amount to spend on each item each month.  This is a budget.  At this time our government does not have a balanced budget amendment so it can spend more than it takes in.  You have to abide by these rules:

Include some fun.  Life needs to be enjoyable.
Your budget must "balance".  (money spent must equal income)

Many analyst recommend saving at least ten percent of your income.  At this point you may not be able to do that.  You should make it a rule to save something at this point and to strive to increase it as you progress.  You may hear the term "Pay Yourself First" that may very well be a good idea.  You have to have some form of a saving plan.
Delinquency
     If you are having trouble paying all of your creditors, contact them.  Most will work with you.  Creditors are always more receptive to the customer who calls them than they are to the customer they have to call.  Not calling or screening calls looks much worse.  If you should contact a bill collector and he refuses to work with you, politely terminate the call, and continue on with your plan.  Remember that you signed their contract.  They are a business, and not a charity.  They are not obligated to make any concessions to you.  If they do work with you, you should be appreciative.  
Absolutely under no circumstance do you ever use obscenities when speaking with a bill collector.  We have laws that govern communications and using obscenities is regulated.  It is possible that the bill collector could file a complaint with your telephone company and you could lose your telephone.  Another good reason to be courteous with the telephone collector is they may have some program to help you out.  Most collectors can:
Waive late fees or penalties.
Negotiate possible lower interest rates.
Offer alternative ways to get your account up to date often called a "re-age."
Offer a reduced settlement amount.
Offer reduced payments for short time hardships.
Never pay a bill collector with a bad check.  This will substantially harm any chances of this creditor helping you in the future.  The creditor will undoubtedly charge you a bad check fee and so will your bank.  Depending on how delinquent you are with this creditor, a bad check may be the last straw.  They may seek legal action against you.  If you're already having trouble, you don't want to fund a legal battle against a large corporation.
The Collector is Being a Jerk
     Collectors are trained to intimidate in order to get payments.  They often use intimidation tactics to get you to pay.  However, they do have rules to follow.  Collectors must abide by the Fair Debt Collections Practices Act.  They can not use obscenities over the phone.  States have different laws regarding the hours collectors can call. Collectors can call on Sundays and holidays.  They do not have to use their real names.  They do have to register their fictitious name and can only use one at a time.  If a certain collector is being unfair, take notes.  The burden of proof is on you.  You can ask to speak with the collector's supervisor.  If you do, have your complaints in order and still use common courtesy.
Due Date Calendar

     The next exercise is one to help prevent late fees and adverse credit reporting.  Simply look back at your debt exercise and your expense exercise and copy the name of the creditor or bill on the date due on the calendar below.  Without any doubt late fees will be the highest rate of interest you can ever pay.  Each time you pay bills look up this chart use it to help figure which ones to pay.  Consider things like late fees and penalties as money wasted, and use the chart to help figure out how to avoid wasting money.
"Failure is success if we learn from it." - Malcom Forbes

 "Let our advance worrying become advance thinking and planning." - Winston Churchill

EXTREMELY SIMPLE FILING SYSTEM
     The average American family does not have any form of a record keeping system.  This may be one contributing factor to our fear of IRS audits.  Very rarely does a business succeed without good record keeping, yet the American family boldly thinks they can succeed without one.  We all need to keep at least a basic record system.  The chart above is an example of an extremely simple filing system.   
By now you should have acquired the supplies that were mentioned in the Day One section.  Put the shoe box in the bigger box.  If you have some stamps or envelopes around put them in the shoe box along with your unpaid bills.  Take your files and label one for each of your debts then also label the ones from your expense list.  You may want to neatly write some important information on the folder like account number, telephone number, and address.  Now go around the house gathering bills and statements, and file them in the files.  It may seem painfully simple, however, if you ever discover a mistake with a bill these files quickly become valuable.
Be sure to keep the files neat.  You may want to unfold statements and throw out advertisements etc.  Be sure to keep your files in alphabetical order, this will make it a lot easier to find the file that is needed.  In the back of the file box keep your checks.  Always keep your canceled checks in numerical order.  This will make it easier to prove you paid a certain bill.  One really nice thing about checks is that they provide an instant receipt.  Always keep receipts.  They help protect from faulty products and can help with taxes.  It is also a good idea to keep old checkbook registers.  They can make valuable references.
Very valuable documents should not be kept in the file box.  They should be kept somewhere that is more theft and fire resistant.  For example, deeds and car titles should be kept in a fire proof lock box.

Month One


     "The greatest successes were created by people who recognized a problem and turned it into an opportunity." - Robert Collier

     Now for the hard stuff.  This will be a one month exercise to test character, seek possibilities for improvement, and turn the financial crisis around.  Look back to the expense exercise.  How many items can you eliminate and still survive?  Use a no frills emergency shut down.  Only spend money on absolute essential items.  Make minimal payments on debt.  If the expense is not vital to survival or well being, do not spend money on it.  No spending on wants.  Additionally for at least the first month write down each penny you spend.  You will definitely want to discuss this with your witnesses to your Personal Declaration of Independence.  Be sure to explain the dire situation to them and that this drastic action is temporary.
The spending constraints and writing things down achieve two things:
Provides you with an accurate picture of your spending habits.
Develops a think before you spend mentality that will help you in the future in preventing a return of your present hard times.
     At the blessed end of the first month, don't become careless.  Meet with your family and discuss the new position.  Thank them for participating in helping to turn the tide.  If you managed to get out of Month One in better shape than you went in congratulations!  You have the means to regain control of your life.  

If you did not improve your position then you need to seek out help.  Here are some suggestions for assistance:

Consumer Credit Counseling Service (CCCS)-  be sure to contact the not for profit charity that is funded by the United Way.  There are many for profit services with similar names.  You want to be very careful here because some of the for profit services are scams.
Local government agencies, you may be eligible for some form of assistance.  You may have a personal issue of pride and be reluctant to pursue this avenue.  Stupid pride is just that, STUPID! Government programs are for people that are trying.  Look at it this way, if you get help, that makes less money available for the people who try to abuse the system.
Contact your pastor.  Your pastor should know if there is any church based assistance available.  Back in the early 1980's President Reagan called on the churches to start food  and clothing banks.  Many churches did and these services are continuing to help people in need.
Debtors Anonymous is a 12-step support program that is similar to Alcoholics Anonymous.  Debtors Anonymous has meetings all over the country.  To find out where a meeting is send a self addressed stamped envelope to:  Debtors Anonymous General Services Board, P.O. Box 400, New York, NY 10163-0400 or call (212) 642-8220


Bankruptcy

"The wicked borroweth and payeth not again"  Psalms 37:21

Do not hire a bankruptcy attorney until you have exhausted all possible avenues for assistance.  Bankruptcy may be the only way out for you.  However, if at all possible, you will want to avoid bankruptcy.  Bankruptcy will severely damage your future ability to obtain credit or find a job. Life takes you down many paths.  You may live to regret filing bankruptcy.

Here are some facts about bankruptcy you need to be aware of:

It cost money to go bankrupt.  Attorney and filing fees can add up to hundreds of dollars.  Perhaps more than what it would cost to get current on your bills.
Not all debts are dischargeable.  Child support never is.  In most cases student loans and taxes are not either.
Bankruptcies make your financial position public record.  For example, the fact that you filed bankruptcy gets printed in the newspaper.
Credit bureaus can keep bankruptcies on your record for up to ten years.
Creditors can contest your bankruptcy.  You risk losing, or at least running up more legal fees.
A bankruptcy can be reported beyond the ten year mark in certain conditions. Two examples are (1) applying for a loan or life insurance over fifty thousand dollars; (2) applying for a job earning over twenty thousand a year.  Not many employers are willing to hire someone who has declared bankruptcy.

Brainstorming

"Every situation, properly perceived, becomes an opportunity" - Author Unknown

You probably are wondering, "what is brainstorming?"  Brainstorming is where you go someplace with blank paper (no notes go with you) and you think about how you can improve your life.  (No radio, TV or other distractions).  You jot down your ideas and place no limits on the ideas.  You test the ideas out later.  The sole purpose of this exercise to generate NEW ideas.  Gather as many ideas as possible.  Do not stop to consider the idea.  You may consider  ways to get more for your money, cut spending, or increase income.  Remember, it's your note pad.  You can think anything you want.
If you are having difficulty, try brainstorming with a friend.  Be sure to get work done (do not waste time visiting).  If you are married, you should first try to do this with your spouse.  You may come up with ideas that might strengthen your marriage also.

 "Our thought and imaginations are the only real limits to our possibilities."- Orison Swett Marden


Consolidation Loans

You may want to consider refinancing or consolidating your loans.  Often this is a very good move, because you can get lower interest rates and have more convenient payments.  Obviously lower interest rates save you money.  With a consolidation you want to consider all the aspects of the loan.  Be sure to ask the lender about all the fees that may go with new loan.  Be sure to close old accounts.  This helps prevent you from running up a larger debt, and when you get the consolidation paid down you don't have a bunch of open lines of credit.  You want old lines of credit reported on your credit bureau as paid and closed so that future lenders feel safer loaning to you.  It is also wise to shop around when looking for a consolidation loan.  You will find every place you go charges different interest rates and fees.  Remember the idea is to get you out of debt cheaply and quickly!  
Do not be discouraged if you get turned down, keep paying your bills and keep looking for opportunities.  It may be that you have to pay your bills on a timely basis for six months or so before lenders will consider loaning you money.  

To recognize opportunity you must see beyond the obstacles.
We develop opportunity by applying persistence to the possibilities.

"Do what you can, with what you have, where you are."- Theodore Roosevelt
Job Hunting

     You may feel that you need more income, and the solution to that may be looking for another job.  Before seeking better employment, evaluate whether or not you should.  Americans are becoming "job jumpers" by changing jobs every  2 ½  years.  According to the United States Department of Labor, job satisfaction is at its lowest level since 1975.  Thirty percent of American workers plan to change jobs in the next three years.  You must determine if you feel secure in your present position, if the pay will improve if you stay, and if there is a possibility of advancement.
     Whether you stay or more move on you should keep resume information on file.  Put it in a file labeled RESUME.  Be sure to include dates of employment, phone numbers, and references.  You should also look for ways to make your skills more marketable.  These are things to help secure your position or shorten the hardship if you should be laid off.  Sergeant Major Withers always told me, "Williams, you should look at training as a good thing."  No matter what your job or level of ability, you have more potential than you can ever develop.
     You may determine as you look at your skills you are under employed.  Being under employed is not uncommon in todays economy.  Do not quit your job to start looking for a better job.  Remember low pay is better than no pay, and experts claim it is easier to find a job if you already have one.  Your local library will have lots of information on job searching.
 
   Networking is the most powerful tool you can use in your job search.  Some people get networking confused with multilevel marketing.  Multilevel marketers like to use the term to distance themselves from pyramid schemes.  In the job market networking is about talking to people who might know where a position is going to open up.  Most positions are already filled before any ad gets placed in the paper.  Putting the ad in the paper often is just a technicality.  If you are going to find a good position in the field of your choice you will have to develop some networking skills.
     You may see an advertisement for a job fair.  It really is the way it sounds.  Several potential employers set up booths and talk to perspective employees.  It may be the best place for you to practice networking.  If you have never been to one, you should.  Before going get your resume ready, clean up, and go with a positive attitude.  Do not expect to be hired, your goal is to learn and possibly set up an interview.
     Another alternative in your job search is an employment agency.  This is a place that charges (either you or your perspective employer) to find you a job.  Often employers pay, however you may be the one to pay.  You should try on your own and try your local governmental employment office before paying a private employment agency.  The governmental employment office will not charge for your referral, and they may know of special government programs that you may benefit from.
Self Employment
Roger Fritz wrote a book called, Nobody Gets Rich Working for Somebody Else.  In a sense he is very accurate.  If your goal is to be rich someday, chances are you should consider some form of self employment.  Since it is very early in your recovery you may want to wait a while before trying self employment.  Every one has some skills they can market and every one should try self employment at some time.  Self employment has good and bad sides.  
Good Side:  Being your own boss can be fun, you learn a lot about people, personal satisfaction, and several tax benefits.
Bad Side:  Unlimited liability, self employment tax, and the work can be very time consuming.

Multilevel Marketing
     Perhaps you have been approached by a multilevel marketer.  They make big claims about what you can do.  The claims seem to good to be true.  The truth is that it is harder to overcome peoples skepticism than it sounds.  However, some multilevel marketers make huge money.  Multilevel marketing is a legitimate way of doing business.  These may be the boldest and most daring entrepreneurs ever to walk the face of the earth.
     You may wonder how do these programs work.  First someone brings you in the business.  At this point you naturally use the products, and you may sell some to close friends.  Secondly you find more people to bring in to the business also.  Usually this is called sponsoring.  Your business grows as you sponsor more people and the people you sponsored start to sponsor still yet more people.  This can go on and on, eventually building a huge organization and virtually unlimited income.  If you have never witnessed a presentation of multilevel marketing plan you should try it out.
A multilevel business has both good and bad sides:
Good:  Unlimited growth, can be fun, usually very high quality products, and above all else you learn a lot about free enterprise.
Bad:  Membership cost can be expensive, the program is not as easy as it sounds, products may be over priced even at alleged wholesale prices, and products can take a long time to receive.
Saving and Investing

"Working hard can get you to age sixty five.  Working hard and smart can get you through life comfortably."-  Ozzy Williams

     Many people under estimate the importance of investing and saving.  The truth is, the only way you can ever be financially secure is to own something.  The only way you are ever going to own anything is to invest in something.  If you fail to save, you are investing in failure.
     One of the most amazing things ever discovered is the power of compound interest.  Compound  interest is really on the side of the small investor.  By making regular investments and compounding interest you can build real financial security.  Now that you have a way to make ends meet, it is time to go on offense.  Investing is the answer to future needs.

Based on saving a quarter a day  ($.25 X 30 days = $7.50 a month)
Years       1%               3%                  6%                9%                12%                   15%
  10        947             1,049              1,224             1,433              1,680                   1,973
  20     1,992             2,457              3,417             4,826              6,899                   9,953
  30     3,147             4,352              7,344           12,858            23,106                 42,239
  40     4,424             6,896            14,378           31,872            73,448               172,850
  50     5,834           10,316            26,972           76,887          229,799               701,247
  60     7,391           14,912            49,527          183,452         715,400            2,838,909


The Rule of "72"
     The rule of "72" is a neat tool that you can use to figure out how long it will take to double your money.  You take 72 and divide it by the interest rate and shazam there is how long it will take.  For example:
3% interest will take 24 years (72 / 3 = 24)
6% interest will take 12 years (72 / 6 = 12)
18% interest will take 4 years (72 / 18 = 4)
     Now you see why so many credit card companies charge 18% or more.  They can double their money in four years or less.

_________________________________________
Checking and Savings Accounts

You should have both a checking and a savings accounts.  Checks make an excellent way of keeping track of payments by providing an "instant receipt".  Some say that they can't handle keeping a checking account.  These people have to learn how to, or they have no business handling their own money.  Having a savings account is important because you have at least started to invest and have emergency money.  Having even just a small minimum balance provides a very small piece of mind.  
Savings accounts help stabilize banks by providing low cost funding and providing a cash flow buffer.  Perhaps you have never thought about how valuable the bank is to your community.  Banks provide numerous services to the community, and make good neighbors.  Just think how difficult it would be to buy a home or car without banks.
Here are some key Savings account points:
Provide low interest
Easy to open
Looks good on credit application
Great place for emergency money
Very liquid investment (easy to get cash)
Helps prevent impulse spending
Can be fun (especially for kids)
Extremely safe, insured by FDIC*

*FDIC is Federal Depositors Insurance Corporation.  The government guaranties your money is safe.
Individual Retirement Accounts / (IRA)
Because people were not saving for retirement and because Social Security is not enough to live on, the government decided to encourage people to save for retirement.  They developed IRAs'.  The idea is you are allowed to put $2000 a year in an IRA and not have to pay taxes on it.  The money is taken directly out of your taxable income.  After you retire and your income drops then you start taking money out and claiming it as income.  Because the money is intended to be a long term investment banks often pay better interest on these accounts.  However, if you remove your money early you may have to pay a penalty.  Your banker would be delighted to explain his plan to you.
Many companies offer employee incentive programs.  Often these plans are eligible for the same tax benefits and the employer sweetens the pot some more.  Some employers will put in a percentage of however much you puts in.  This is called matching funds.  It is an instant high rate of return on your money.  By all means find out what is available at your job.
Mutual Funds

     The average family that is working for a living can't afford expensive financial advise, and can't afford to be without it.  If you invest in the stock market short term you can make or lose a lot of money real fast.  If you make consistent smaller investments over a long period of time you buffer the chances for loss.  (This is called dollar cost averaging.)  By using a mutual fund, people put their money right into the market.  It is managed by professionals who will try to optimize performance.  A mutual fund allows people to who know nothing about stocks to invest.
     Mutual funds work like this.  Lots of people pool their money together and use professional advise to invest in the stock market.  By making small regular investments in a fund one can build a great deal of money.  I recommend that you study mutual funds before picking one.  You should also keep in mind that you want to reinvest any dividends that your fund may pay.  Some funds offer discounts for reinvesting.  You want to take advantage of any break you can get.  
Direct Stock Purchase Plans and Dividend Reinvestment Programs DRIPs

     Perhaps you have a certain stock you have lots of faith in.  Contact that company's shareholder relations department and see if they offer any direct stock purchase plans or dividend reinvestment programs.  Many companies have programs set up so you can buy shares of stock directly from them.  Most limit you on how much you can invest at a time.  Stock brokers do not like these plans because it cuts them out of the picture and they insist on selling professional advise.  Their are several books out that explain these plans in detail. Go to the library or books store and do some homework before investing.  One must admire the boldness of these plans.

Life Insurance

     When you buy life insurance are you buying security for your family or making an investment?  You should see life insurance as security for your family in the event of death.  Life insurance is a product that provides an instant estate in the event of death.  Insurance companies want to sell you a whole life policy (one that builds a cash value) because they make more money selling them.  If an agent tries to sell you a policy that builds a cash value find out what the cash value will be in two years.  The answer will be ZERO.  
     If you need more insurance, buy term life insurance.  If you need an investment, invest.  The insurance and investing industries are two different industries.  It makes about as much sense as asking a butcher how to bake a cake.  The butcher may or may not know how to bake a cake.  The butcher will be the first to admit it is not his trade.
     Art Williams championed the term, "buy term and invest the difference."  He may have been correct in saying that.  If you believe what Art Williams says you have to remember the key word is invest.  

Drops in a Bucket

"Nothing is particularly hard if you divide it into small jobs."- Henry Ford
     This section is basically a list of suggestions to help free up money for you to invest and buy you freedom.  It is imperative if that you use any of the suggestions that you follow through and invest the savings.

"Divide each difficulty into as many parts as necessary to resolve it."

Lotteries
     Don't chance it, if you don't have it to lose.  This is the first thing you must know about gambling. Do not ever gamble if you have any suspicion that you may develop a gambling disorder.  Some poor people think the lottery is the only way they can ever get out of debt.  You should look at lotteries strictly for their entertainment value not as an investment.  If you believe that a fool and his money are soon parted ask yourself this:  How quickly can I lose everything on the lottery?

Clean out your sofa and loose change spots.  Look around in the car and any other place you may keep loose change.  This may be a small amount.  You simply have to start somewhere.  Clean out the loose change every couple of weeks.  You may be surprised what you have been taking for granted.  I once heard a blues tune say, "There's no such thing as a small change when your broke."  Deposit the money into a savings account.  You will be surprised how quickly it grows.


"Too many pray for mountains of difficulty to be removed, when what really need is the courage to climb them."


Shopping
     Here are a few pointers on shopping:
Always take a list.
Never shop when hungry.
Before going check out the advertisements.
Only take advantage of coupons on items you would buy anyway.
Consider generics.
Compare prices (be sure to compare sizes).

Charities
     You will still want to support some charities.  You want to pay attention to the charities you contribute to.  Never give to a charity that disagrees with your values.  Churches often sponsor very good causes.  Churches themselves are in need, church contributions fell three percent in 1995, 1996, and 1997.  Do not give to high pressure TV preachers.  Only contribute if you believe the money is going to a good cause.
Scams
     Here is some information to help you protect yourself from scams:

Be wary of someone you don't know who comes to your door to sell you something.  
Do not call a 900 number to learn about investment or business opportunities.
Know who you are dealing with.
Many states attorney general offices have a fraud hot line to help keep consumers aware of scams.
Make it a rule that if someone calls you on the telephone they will not get your credit card number.
Keep in mind if it sounds to good to be true, then it probably is.

Recycle anything you can

* It takes about 20 cans to make a pound.
Coins and Stamps
     Coins and stamps can be a lot of fun.  It would be foolish to go out and purchase either without knowing about them.  Learn to watch your change for some rarities in coinage.  For example, you might watch for coins that aren't being minted anymore.  As for stamps, start out by saving the canceled ones from your mail.

Miscellaneous

Decide if you are getting your moneys worth from your cable television, magazines, and newspapers.
Some utilities offer discounts for paying bills early.
If possible file your own tax return.
Wait on your tax refund, only use rapid filing systems in emergencies, not for wants.
If you get earned income credit look at possibly using it to lower taxes paid in during year.  This will increase bring home pay.
Stay above minimum balance in checking to avoid service charges.
Don't order your checks from bank.  Banks usually charge too much for them.
How much do you spend on things like tobacco and alcohol?

Wills
     It is just as vital to your family that you have a will as it is to have life insurance.  Check your phone book for legal aid, you may eligible for free legal assistance.  With a will:
You save your family many legal cost.
You decide who gets your stuff.  People don't fight over it.
You might be able to help protect your family from taxes.
You express who you want to care for your children.
     This not a subject to take lightly.  If you die without one, your family may suffer.  After you get a will you should let your executor know where the will is, and you should leave a copy with your attorney.  You should ask an attorney if your will is valid if you move out of state.  Do not leave your will in your safe deposit box.

 Free Stuff

     This is a small collection of some free things you can do to increase your financial knowledge.  By increasing your financial knowledge you will help yourself by making more sound decisions.
Free Publications
     The Federal Trade Commission (FTC) has numerous booklets to help people with credit or debt problems.  Most of the publications are free.  Here are a few examples:
Fair Debt Collection.
Fair Credit Reporting.
Fair Credit Billing.
Fix Your Own Credit Problems and Save Money
     Simply write to :  FTC Public Reference, 6th and Pennsylvania Avenue Northwest, Washington, DC  20580.
Register to vote, select who you like, and go vote.  This will increase your awareness of what's going on.  Allowing for more informed financial decisions.  Increase the civic value of yourself.  Politicians are a lot more apt to help those who help them.  They claim to represent the citizens.  More specifically politicians represent the voters.  Non voters simply do not carry the same clout as voters.

     Your local public library is perhaps the most under rated place in your community.  A huge percentage of the information that you bought when you bought this book could have been yours free at the library.  That's where I got it.  When you brainstorm think about the services offered at the library and how you can take advantage of them.  Here is a list of some services:
Free loans of books on every subject
Vast reference books (even on how to fix your car)
Computers hooked to the Internet
Videos, tapes, records, and CDs'
Literacy programs
Entertainment programs for kids
Newspapers and magazines


Registration Page:

I hope that this book has been helpful.  Please use this page to register for future information.  Your comments will be appreciated.  If you should develop an idea that is good enough to print in "Drops in a Bucket," you will receive a free copy.
I am willing to meet with groups, and may conduct personal consulting with select individuals.  Please list your request below.
Please mail this page to:
Perpetual Church
Po Box 51
Richland City, IN 47634


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