Happy Holidays from The Mortgage Doctor!

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

Ho Ho Ho! Happy Holidays and Happy New Year!

This is the time of year to spend quality time with family, friends, and loved ones. It's important to share memories and laugh a lot during this time, as it's not every day you can get everyone together! 

Also, make sure you tell the people you care about how much you love them. Life is unpredictable, and it can be easy to forget to express how you feel about those you care about! 

Happy Holidays and a Happy New Year from The Mortgage Doctor! See you on the other side!

How Can You Eat Smart This Holiday Season?

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

The holiday season is upon us! With this time of year comes great food and a whole lot of eating. To avoid Dietary Attention Deficit Disorder this holiday season, The Mortgage Doctor wants to share some tips and tricks. To stay healthy and avoid eating too much, eating unhealthy foods, and failing to stay active, follow these quick tips:

• Pre game before the party. The office or holiday party can be awfully tempting. Fill up on high fiber fruits and vegetables (apples, pears, cauliflower, broccoli) before the event so that you won’t be as tempted to eat the high calorie items at the party buffet.

• Go the distance. Put some distance between you and the buffet at the party. Engage in conversation with somebody, play a game, or do something to keep your mind engaged in something else other than the food. Chewing gum is also a great way to keep you from mindless snacking.

• Just say "No" to the food pushers. Often times we feel bad if we refuse food from somebody we love during the holidays. You don't have to be rude, but instead you can say things like, “This spread looks fantastic, but I just can’t eat another bite.” Or “Wow, thank you so much. I already tried that and it was delicious.”

• Step it up. Purchase a pedometer and start tracking your steps. If your daily average is 5,000 steps, increase that by 2,000 steps a week until you can average 10,000-12,000 steps/day.

• Shut down the cookie monster. Are you a cookie baking monster? Do you go on a holiday cookie baking binge? If so, schedule the cookie baking for 1 day. Keep less than 10% of what you bake and give the rest away to friends and neighbors. If you participate in a cookie exchange, you don’t have to bring those cookies back home. Again, you can give away to friends, neighbors, or donate them.

• Track your nutrition. There are so many apps available that can help you keep track of what you are eating and drinking. Tracking your nutrition will also help you be more mindful of what you eat. I recommend My Fitness Pal or Lose it.

• Think your drink. Whether it be a fancy latte, eggnog, or holiday cocktail, it can be really easy to drink your calories. A large peppermint mocha can have at least 500 calories! Try ordering skinny versions by ordering smaller portions, or use skim milk or sugar free syrups.  For alcoholic drinks, skip the eggnog or heavy beers. Tip: A Moscow mule is around 125-150 calories.

• Get competitive. If you own a Fitbit, you can challenge friends to daily step challenges. This can be a huge motivator on a day when you might not feel like being active. 

• Know your numbers & get a physical. Most people wait until after the Holidays to get healthy, but why not start before? Go get a physical and have your Doctor check other important numbers like your blood pressure, cholesterol, and waist circumference. Sometimes our body weight isn’t the best indicator of health. These other numbers are important too! (You can also get your blood pressure checked for free at your local pharmacy.)

• Take time to relax. When we feel stressed, that can lead to overeating. Take time to treat yourself to something restful. Maybe that’s a manicure or pedicure, maybe that’s a few minutes on calm.com, or maybe it’s just taking the dog for a walk. Whatever it is, schedule time for you! 

I hope this information straight from The Mortgage Doctor will help you avoid Dietary Deficit Disorder over the next few months. Have a safe, happy, and healthy holiday season!

Source: Stirlist Amber Pankonin MS, RD, CSP, LMNT

ENG Lending is not affiliated with the Stirlist health website by Amber Pankonin listed here. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.

What Kind of Loans do I have for You Today?

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I greatly appreciate your referrals. I'll take excellent care of them!

Welcome and thanks for taking the time to check out my new blog. I am Terry Williams, The Mortgage Doctor, and I am back to give you the most accurate information out there when it comes to mortgage lending. 

Like a lot of my clients, I too have changed employers in the past year. I am now originating mortgages with ENG Lending, a division of The Bank of England, Arkansas. 

I chose ENG Lending partly because of their full portfolio of mortgage loan products. We are going to be discussing some of these lending programs here in the next few months, so keep an eye out! One is our suite of construction products, covering everything from new construction to remodeling and improvements. We are also going to discuss reverse mortgages for individuals 62 or older that could be a source of retirement income. 

In the meantime, I can help you with all types of lending including VA, USDA, and FHA. I can do mortgages in all 50 states! If you are looking for someone you can trust, call Terry Williams - The Mortgage Doctor!

Where's Terry? | Little Italy

Where’s Terry?

Today he’s taking a trip to Little Italy to kick off his new series that will highlight what makes your favorite Omaha neighborhoods special. As can be guessed by its name, Little Italy was historically home to Omaha’s Italian population and this heritage can still be seen today.

The area hosts the Festival of Santa Lucia each year to commemorate its history. The Santa Lucia Festival, originally started in Calentini, Sicily has been celebrated in Omaha every year since 1925. Grazia Caniglia immigrated from Carletini in 1900 and recreated the festival in an effort to deepen the Italian community’s faith in the new land. The festival honors St. Lucy, who died as a martyr and is the patron saint of the blind.

The Italian culture is also celebrated in Omaha each year at La Festa Italiana, which was voted the Omaha Magazine’s Best Festival in 2013 and returns this year August 29-31. The festival boasts a wide variety of authentic food and imported drinks to enjoy as well as cultural celebrations through traditional music and dance.

Today, Little Italy can be found on 10th Street, south of the Old Market. Right now is an exciting time to move to Little Italy, with several renovations in the works. In addition to residential properties, the historic Blue Barn Theater and Burlington Station are also undergoing impressive refurbishments.

If you would like to celebrate the Italian culture in Omaha, share your favorite Little Italy memories, or why you love the neighborhood, on this blog post, or in the comments of this Facebook post. The first five people to comment will receive a coupon for a free large house pizza from Toppers Pizza at 741 North 114th Street. The first five comments will be determined by the time of the post, and the giveaway will run until September 5th. Coupons will be mailed to the winners.

Keep your eyes out for Terry in your neighborhood and stay tuned to Where’s Terry? to win more prizes and discover what Omaha has to offer.

Getting Ready for the Offer

There are 2 components of your purchase offer that sometimes get overlooked in negotiations, but each has a significant effect on your mortgage. These 2 items should be considered when making your initial offer and reviewed during any counter offers. Even if you aren't borrowing money to purchase, these items should be taken into account.

The first is seller paid concessions.

When you negotiate the purchase price, you can also factor in seller paid costs as a way to lower the net price you pay. There are limitations on various loans, but generally you can have the seller pay between 3-6 percent of the purchase price towards your closing costs. Escrow items like prepaid taxes, home owners insurance, or mortgage insurance can also be paid   by the seller for you at closing. Also, other closing costs like appraisals, fees, discount points can all be paid by the seller on your behalf at closing. This greatly reduces your cash requirements to close as well as lowering your net purchase price.

The second is closing date.

Typically a closing date is scheduled 30-45 days from offer. But, there are a lot of other timeframes that can be negotiated for various reasons. When discussing closing dates, keep in mind the mortgage underwriting process. There needs to be adequate time given for proper appraisals, title work, etc. Usually 30 days is enough, but there can be mitigating circumstances that would delay this process and potential impact your ability to close on time. Always ask your mortgage originator how long he or she will need to close once a contract is accepted.

As always, if you have any questions, please send me a note or give me a call!

How Employment Changes Can Affect Your Home Loan

How Employment Changes Can Affect Your Home Loan

In the last video blog, we discussed how credit and debt ratios could have a negative impact on your ability to close on your home loan. Another factor to consider is employment status change.

Consistency is key during the underwriting process and any inconsistencies will impact the process. Employment status and the associated reliability of income are critical for an underwriter’s assessment. Changes in employment can either call this reliability into question or strengthen it.

Not all change is negative; there are some situations where changes in employment status can be helpful to the underwriting process. A promotion or wage increase will positively influence the underwriter’s assessment and could help to close your loan more quickly.

Other changes can be detrimental to your ability to close. A reduction in hours or to stop working completely during the underwriting process raises red flags and can have an unfavorable effect on the process.

A change in employers can also lead to unforeseen consequences. Even if your income is increasing, the questionable timeframe for receiving your first paycheck can be concerning to underwriters.

Sometimes change is inevitable, and when it does occur, transparency is crucial. Keeping your loan originator informed is the best way to navigate the process together and alleviate any confusion when changes occur.

Understanding Credit and Debt Ratios | Underwriting

Understanding Credit and Debt Ratios | Underwriting 

There are 2 topics underwriters don't like to see changes in during the process of obtaining a new mortgage loan: credit and debt ratios.

Credit is a critical factor in obtaining approval for your mortgage and getting the lowest interest rate. Credit history is reflected in your credit scores. Credit scores are one of the major approval factors and once established with the underwriter, should not change at all. However, many of the everyday things you do can impact your credit score.

Debt ratios are also affected when you take on new credit. Your total monthly debt payment divided by your total monthly income is your debt ratio. When you add new debt, your ratio is higher and that can impact the amount you can borrow and sometimes whether you can be approved at all.

After you have had a pre-approval and are in the process of closing on a house under contract, you should avoid any changes in credit and debt ratios.

For example, don't purchase a new car or even shop for one. Don't buy new furniture, apply for a new credit card, or sign up for a new Lowes or Home Depot card. Any of these things could negatively impact the underwriting process and your ability to close on your home loan.

If you have any questions, don't hesitate to contact your loan officer when considering new debt during the home buying process. Your underwriter will thank you for it!

2 More Steps Every Buyer Must Take in an Active Market

2 More Steps Every Buyer Must Take in an Active Market 

In the last video blog, I talked about the importance of getting pre-approved to arm your Realtor with the tools he or she needs to help you purchase a new home in an active market. In this video blog, I want to expand on that topic and discuss a few important steps related to purchasing a home when you have a home to sell also.

Step 1 – Contact a Realtor Before It’s Too Late 

It's important to contact a Realtor to look at your current house as soon as you start thinking about a new home purchase. A good listing agent will perform a market analysis on your current home, help you understand net proceeds from its sale, and put you in the best position to make an offer on a new home.

Step 2 – Make Adjustments Based on Market Analysis 

The process of going through a market analysis will identify areas of improvement for your home that might be worth considering before listing it for sale. Some things are obvious and easy to improve like simple repairs and de-cluttering certain areas. Other items may emerge that will help increase the value of your home like a bathroom or kitchen renovation, deck replacement, etc. A good Realtor will help walk you through the market analysis and your current home condition and make recommendations for improvements to maximize value.

 Step 3 – Understand Your Net Proceeds 

When you sell your house, unfortunately you don't get to keep all of the sales price. There are many items that get deducted from your sale at closing and affect the bottom line dollars you get to keep. Things like Realtor fees, closing costs, and escrows will greatly impact the amount of proceeds you get from the sale of your home. And remember, you proceeds are also impacted by your final sales price and any existing loans that need to paid off at closing, so only use a range when identifying your funds available for the purchase of your next home.

Finally, these steps and the steps listed in my previous video blog really highlight the need to identify a good Realtor to help you sell your existing and purchase your next home. A good Realtor will help you understand your homes current value and how to maximize it, be smart with negotiations when it's time to buy and sell, and will help you achieve the greatest value exchange during the transactions. As always, I appreciate your referrals and am available to answer any questions about home financing you or your friends may have.

2 Steps Every Buyer Must Take in an Active Market

2 Steps Every Buyer Must Take in an Active Market

In todays active real estate marketplace, there are 2 big steps buyers need to take before shopping for a home. I see too many people skip these steps, only to miss out on their dream house. Make sure you take these easy but crucial steps the next time you want to buy a new home.

Step 1 – Get pre-approved with a lender 

Yes, this sounds simple, and for many of us it is. But, even if you know you have all the qualifications to get pre-approved, the process is still important. When you get pre-approved, your lender will look at 3 major areas: credit, income, and assets. This normally entails gathering tax returns, pays stubs, bank statements, investment paperwork, etc. A lot of times, just gathering this information can cause a considerable delay in financing which is one of the reasons to start this process early.

Credit is the biggest issue when getting pre-approved. There are a lot of factors that contribute to your credit score. Credit scores will not only determine whether or not you get approved, but will also determine what your rate and terms will be. When you go through the pre-approval process with a good lender, you will know what your credit score is at the onset; and what you can do to improve and protect that score throughout the home buying process. It's never too early to check your credit.

Step 2 – Arm your Realtor

When a Realtor is engaged by you to find your next home, you want to make sure he or she has all the information possible to focus your search and make an offer. A pre-approval letter backed by a reputable lender is critical when making an offer, especially in an active, competitive marketplace.

A good lender will only provide a pre-approval letter after careful study of your application information and supporting documentation. By having both your application and supporting documentation reviewed prior to an offer being made, surprises and delays are more likely to be avoided. And, your Realtor is able to make a strong case for your offer in an active market.

As always, I appreciate your referrals and am available to answer any questions about home financing you or your friends may have.

Why I Chose First Choice Loan Services, Inc.

Why I Chose First Choice Loan Services, Inc.

As we enter the second quarter of 2014, the weather is starting to get warmer and we are entering into a wonderful time of year that allows everyone to enjoy the outside and be more active. Part of these activities may include some home improvements or better yet, new home shopping!

It’s for this reason that in the coming weeks, I look forward to sharing many of the different loan programs offered through First Choice that could assist with your home renovation needs and home purchasing. Before I get into those details, however, I want to take a moment to share why working with First Choice is an excellent idea.

Within this past year, we have been named as a Top Tech Savvy Lender & Servicer by Mortgage Technology magazine and added to the Ellie Mae Hall of Fame for Excellence in Compliance Automation.

First Choice’s President and CEO Norman Koenigsberg and Senior Vice President of National Production James Iley were named to “The 100 Most Influential Mortgage Executives in America” in Mortgage Executive Magazine. The same publication also featured First Choice on their list of “The Top 100 Mortgage Companies in America” as well as on “The 50 Best Mortgage Companies to work for in America” list.

On top of all of that, we hold an "A" rating with the Better Business Bureau.

If it sounds like I’m bragging, I am. In today’s environment, it’s exciting to work for a company and with a team you trust. I aim for my clients and business partners to share in that trust, knowing that their home financing needs will be well taken care of.

So, in upcoming videos, as I share opportunities for renovation lending, please know that it’s coming from a Loan Originator who is with a winning and respected team and who is invested in making sure that *your* investment in a home is going to fit your short and long term financial goals.

As always, I appreciate your referrals. If I can help your friends and family, please let me know.

Defensive Financial Moves help Win the Financial Fitness Game

Defensive Financial Moves help Win the Financial Fitness Game

Financial fitness is my number one focus on behalf of my clients. That means helping them understand money and the way it works.

To help my clients understand the concept of financial fitness, I’m sharing the ideas found in a book called Financial Fitness: 47 Principles by Chris Brady and Orrin Woodward. The book highlights every aspect of financial fitness that you can master to help improve your financial situation and begin to build a stronger financial future. There are a number of very valuable principles in the section of the book called Financial Defense.

Financial defense means caring for your resources and protecting against loss or decline. In this blog, I’ll talk about the second half of the authors’ principles for defensive financial fitness.

But first, I want to focus a little more deeply on principle #29 from the first set of defensive financial fitness principles I discussed in the last article: see a car as transportation, not as a status symbol.

Avoid Putting your Car in a Position to Jeopardize your Financial Health

One couple I know has an annual income of $100,000 and their monthly car payment is $1,200. One of their car payments alone is a $724 payment. The reason they have taken on these excessive car payments is that they think of their cars as status symbols, and it is jeopardizing their financial fitness.

It might be tempting to justify large car payments, with the idea that your car is important to your professional success. However, unless you are someone whose primary work is chauffeuring business executives and celebrities, your car’s primary role in your life really is simply to provide safe transportation from point A to point B.

If you can change the way you think about your car and the payments you make on a car loan, you will free up a big chunk of income to be used for your choice of many other more effective ways to strengthen your financial future.

I’ve shared this principle with my clients, and they are taking steps to change this habit for the future. I’m looking forward to helping them get financially healthy, so they can buy a new home.

More Defensive Financial Fitness Principles to Help Build a Financial Foundation

If you have read the previous articles in this series, you already know about the basics of financial fitness, as well as offensive moves you can make to strengthen your financial position. The last article covered the first half of Brady and Woodward’s defensive financial fitness principles. In this article, the last of the series, we share the last half of the authors’ defensive financial principles.

Financial Fitness Principle #33: Use the roll-down method to pay off all credit card debts
With this method, you use your extra income to first pay off credit card debts, because they are the ones that can cause the most destruction, or at the very least block, your future financial health. Once you have paid off all credit card debt, then you can use the same extra income to pay off other debts, such as secured loans.

Financial Fitness Principle #34: Learn to be skeptical of advertising, media and marketing
The world is full of wonderful opportunities and tools you can use to improve your life and help you reach your goals. However, the aggressiveness of advertising and marketing within an ever-growing list of multiple media outlets can put pressure on our sense of good judgment. Don’t believe everything you hear. Any given product is a great idea for someone, but not every product will be a great idea for you.

Financial Fitness Principle #35: Accumulate slowly
As you work to build a secure financial future, it’s critical to abandon any goal you might have to accumulate “stuff.” Instead, get in the mindset that your goals should be to accumulate something else that can provide even more satisfaction and happiness: resources and wisdom. Think of the peace of mind you could have if you gain first-rate financial fitness, including a nest egg and knowledge that will serve you well for the rest of your life.

Financial Fitness Principle #36: Get right with God and apply godly principles in all areas of life
There is so much to be said for approaching life and finances from a spiritually strong position. The basic principles of faith help you reach the right goals, such as good stewardship and serving others. Leave the impressing of others in God’s hands, and focus instead on living life in ways you can be proud of.

Financial Fitness Principle #37: Do not use consumer debt
Consumer debt is like a cancer that begins small and grows until it consumes and destroys your financial health. Cut out that destructive cancer! Wise financing is occasionally a good idea as a smart business investment, but buoying your financial position artificially with consumer debt is not a good idea.

Financial Fitness Principle #38: Make memories a part of your lifestyle, budget and life plan
Being a good financial steward does not mean abandoning the satisfying events of your life. You don’t have to wait until you are financial stable to make memories. In fact, if you try to stop living a fulfilling life until you are financially stable, you probably will not be able to sustain the effort. Memories are important payoffs for your hard work. However, keep them in alignment with your financial position. That means starting small and building up to bigger memories. Make sure big memories are a part of your plan, too.

Financial Fitness Principle #39: Be very, very careful with danger zone decisions
Certain aspects of your financial fitness hold more potential to go wrong than others. Here are the most common danger zones: taxes, home ownership, divorce, credit cards, lawsuits, insurance, seeking status, college, addictions, and investments. Here’s how to overcome the element of danger: Get good advice from your financial mentors and study each situation carefully before you take action.

Financial Fitness Principle #40: Follow the 2X rule for buying a home
This principle is very simple. It’s a rule of thumb that can help keep you living within your means. Don’t buy a home that costs more than twice as much as your annual income. For example, if you make $50,000 a year, don’t buy a house that costs more than $100,000. Want a bigger home? Then make it your goal to increase your income.

Financial Fitness Principle #41: Do not buy costly “toys” until you are financially fit
So many people believe when they earn more money they deserve the finer things life can buy. However, if your finances are not in order yet, the truth is that you do not deserve any costly toys. If you get the toys anyway, it means you are using your debt and savings on the wrong things. On the other hand, if you have done a good job of paying off debt, building a savings and following other smart financial principles, and if you have the cash available, you can buy a few “toys” and still remain financially fit.

This brings my blog series on financial fitness to a close. I hope you have enjoyed learning about the basics of financial fitness, as well as the offensive and defensive actions you can take to strengthen your financial health and help you win the financial fitness game in your own life. If you have questions about any of these articles, or would like help understanding the principles and building good habits in your own life, please don’t hesitate to contact me.

Here’s to your financial fitness…starting today!

Strong Financial Defense: On the Front Lines of Financial Fitness

Strong Financial Defense: On the Front Lines of Financial Fitness

It’s important to understand that your mortgage could be your largest financial liability. It can have a drastic impact on your financial health today, tomorrow and even through retirement. In this day and age, I believe it’s important to bring financial awareness like this to my clients, so they can cultivate financial fitness. I see a lot of clients who are not financially healthy, and my goal is to educate them and make them aware of the tools they need to be successful.

I’m working with a book called Financial Fitness: 47 Principles by Chris Brady and Orrin Woodward that highlights every aspect of financial fitness. The book contains three sections that cover the principles you need to master to become financially successful. Previous articles in this series covered the basics of financial fitness, plus financial offense—actions you can take to intentionally grow your financial strength. The third section of the book is called Financial Defense. It contains useful principles for preventing and eliminating financial disasters.

Financial Defenses: Protecting your Right to Financial Fitness

Financial fitness means finding ways to protect the money you have and avoid losing it through non-constructive financial activities.

Financial Fitness Principle #25: Get rid of debt
This financial principle is one that almost everyone knows about, because nearly every person in today’s modern world has experienced the temptation of financing. In many cases, people would not have homes, cars or college educations without having incurred some debt. The point is to get rid of it as fast as you can and build a savings that keeps you from getting into debt. The faster you remove the negative influence of reverse compounding interest through debt, the faster you can move ahead toward your real financial goals.

Financial Fitness Principle #26: Don’t get caught in the trap of using business debt
If you aren’t financially sound, especially if you own your own business, you likely will consider many different options to patch up your financial situation. If your bank or credit union offers the opportunity to borrow money for your business, it often seems too tempting to pass up. However, business debt is no different from personal debt. It still must be paid back, and the build-up of finance fees adds an additional weight to the debt.

Financial Fitness Principle #27: Don’t use credit cards to build your credit
It’s true that using a credit card and paying it off will influence your credit score in some ways on the positive side. However, when you use credit cards in this way, you first must buy something, and it’s tempting to buy things you don’t need. It becomes too easy to justify expenses you wouldn’t otherwise undertake. The benefit of using credit cards is outweighed by the danger of growing debt.

Financial Fitness Principle #28: Never use borrowing schemes to pay for necessities
The world has many ways to get your money without a care for the impact of its loss on your financial fitness. Avoid borrowing “schemes,” such as title pawning, 90-days-same-as-cash loans, payday loans, rent-to-own plans and layaway debt.

Financial Fitness Principle #29: See your car as transportation, not a status symbol
The perceived need to own and drive a “decent” car causes many a consumer to overpay for a vehicle and put too much of a dent in his or her financial strength. Do not finance a car. Save up and always pay cash.

Financial Fitness Principle #30: Use debit cards or cash instead of credit cards
With a debit card, it is impossible to overpay and get yourself into debt. Make a commitment to use only cash or debit cards to limit your financial liability and build your financial fitness.

Financial Fitness Principle #31: Teach children and youth the principles of financial fitness
Good financial habits begin when we are young. Set a good example for children and mentor them from an early age, so they understand the power of money to strengthen or destroy their lives.

Financial Fitness Principle #32: Do not get sucked into using second mortgages
When people aren’t wealthy, they often find themselves looking for ways to improve their lot in life. With good financial analysis and planning, it can be possible! However, many people make the mistake of attempting to achieve financial improvement too quickly. It causes them to consider finance-heavy options such as second mortgages. Look at the charts and really think about how much a second mortgage will cost in the end. Can your financial health afford that big a hit down the road?

Both financial offense and financial defense are necessary to get you to the final goal: financial strength. Consider each of these principles carefully, and begin to take action on the ones you know you can handle today. Commit yourself to continually studying ways you can improve your financial position, and you will win financial fitness before you know it.

The Importance of Taking Action to Achieve Financial Fitness

The Importance of Taking Action to Achieve Financial Fitness

It’s important to understand that your mortgage could be your largest financial investment. It can have a drastic impact on your financial health today, tomorrow and even through retirement. In this day and age, I believe it’s important to bring financial awareness to my clients so they can cultivate financial fitness. I see a lot of clients who are not financially healthy, and my goal is to educate them and make them aware of the tools they need to be successful.

I’m working with a book called Financial Fitness: 47 Principles by Chris Brady and Orrin Woodward that highlights every aspect of financial fitness. The book contains a section called Financial Offense that contains 17 very useful principles. In my last article, I discussed the first half of the authors’ principles for financial offense. In this blog, I want to highlight the second half of those principles.

But, before I do that, I want to expand a bit on a principle we covered in the last article, because I think it is one of the authors’ top three principles: principle #14, financially fit people analyze their life and financial habits.

Analyze your Life and Financial Habits for Better Financial Health

In the mortgage business, I see people who fall into a cycle of debt and I see people who fall into a cycle of savings. I’ve also seen many clients break their bad habits and start planning and saving. They get into a mindset of helping themselves prosper, which helps them achieve financial freedom.

They do this by constantly analyzing where their finances are and thinking of ways to improve their situation. They get help if they need it, and surround themselves with people and tools that encourage them to maintain the positive new habits they have acquired.

Let me repeat: The key is building the habit of making good financial decisions, so you put yourself in a cycle of savings instead of a cycle of debt. I believe anyone can do this at any stage in their financial lives.

More Intentional, Offensive Plays to win the Financial Fitness Game

The previous article covered the first half of 17 offensive financial fitness moves presented by Brady and Woodward. This article will cover the remaining offensive actions you can take to intentionally build your financial strength.

Financial Fitness Principle #17: Retirement is not about age; it’s about passive income
We all think of a certain age at which we expect to retire, but rather than using age as a measure of readiness for retirement, we should instead begin to think in terms of the amount of passive income we have to live on. Even if you are young, you could retire—which simply means retiring from doing things that are not a part of your ultimate purpose in life. Once you have enough passive income, you can focus on your real life’s work.

Financial Fitness Principle #18: Make a plan and focus deeply on each step
Several of the principles above can be combined to create a focused plan to get you to a destination most people crave: financial success. To reach financial success: 1) find a way to excel at your job and start a small business; 2) put in 10,000 hours to gain mastery over your business and financial fitness; 3) build enough passive income to cover your family’s needs; 4) once you are financially free, focus on building financial strength to fund your life’s purpose.

Financial Fitness Principle #19: Get good mentors and really listen to them
If you tried to learn every financial principle on your own, it could take generations. That is what it has taken for our society, by trial and error, to uncover proven principles of financial fitness. Instead of reinventing the wheel, choose financially successful mentors and intently listen to everything they are willing to teach you.

Financial Fitness Principle #20: Use money in ways that bring you more money
When you make choices about how you will use your money, identify the choices that could bring you more money than you put in. The best investment for you is yourself and your own business. Find ways to wisely and appropriately use some of your savings to increase your assets and returns.

Financial Fitness Principle #21: Put some money into preparing for a worst-case scenario
Emergency funds are critical, so when something unexpected happens you aren’t sabotaging your long-term plans. Some people save fanatically for a rainy day—don’t overdo it. But don’t ignore it. Emergencies happen to everyone.

Financial Fitness Principle #22: Build up a regular targeted savings fund for future expenditures
Compounding interest works in reverse, too. Financing consumer items, such as furniture, cars and vacations—even education—eats away at your financial strength for the future. If you know you will need a consumer item in the future, begin today to build a targeted savings account to pay for it, so you can eliminate the cost of interest.

Financial Fitness Principle #23: Only invest money you can afford to lose entirely
The shiny temptation of investment in popular industries or favorite brands leads many people to sink too much money into industries they aren’t familiar with. Doing this can greatly increase your chances of losing money. For that reason, invest only small amounts in speculation outside of your area of mastery.

Financial Fitness Principle #24: Don’t ever use your savings to speculate
If you speculate with savings earmarked for specific uses, it’s like gambling away your grocery money. Avoid it at all costs.

Carefully studying and finding ways to take the offense and implement these financial moves could help you gain financial fitness sooner and more confidently. You can’t do it all today, but you CAN get started today.

On the Offense: Taking Control of Financial Fitness to Improve your Life

On the Offense: Taking Control of Financial Fitness to Improve your Life

It’s never been more important than right now to help my clients understand financial fitness. This involves important financial events in your life, such as owning a home, paying for education and building a nest egg for retirement. There is a lot of financial stress on people at this time in history.

I’m using a book called Financial Fitness: 47 Principles by Chris Brady and Orrin Woodward to help my clients, friends and family understand money. The book contains a section called Financial Offense that contains 17 very useful principles. Financial offense means taking action to increase your income.  In this blog, we’ll cover the first half of the authors’ 17 offensive financial fitness principles.

Financial Fitness Principle #9: Financial fit people are avid readers
Those who deeply understand the workings of money and consistently invest in themselves by learning about financial fitness and financial leadership are the people who figure it out and make it happen. Take time to work on your financial education, skills, experience, knowledge and ability.

Financial Fitness Principle #10: Financially fit people excel at their work and home projects
People who excel at their work—as well as the home projects they are completing right now—are often the same people who are financial fit. Are you doing work and projects at which you excel? If not, maybe you need to make a change. Your success at work and at home will positively influence all areas of your life, including your financial fitness. However, financially fit people also invest in improving themselves to help them reach their long-term vision.

Financial Fitness Principle #11: Never sacrifice your principles for money or passion
Be honest. Keep your integrity. Keep your priorities in the right order. It’s a fact that those who allow money and passion to overshadow their principles do not find the happiness they believe money will lead them to.

Financial Fitness Principle #12: Do the work to gain the mastery
It has been demonstrated that a true master of anything has invested about 10,000 hours in activities surrounding their area of mastery. If you want to become a master of financial fitness, you must commit yourself to spending the time it takes to learn, so you can achieve what you desire.

Financial Fitness Principle #13: Don’t ask “Can we afford it?” Ask “Does this help our purpose?”
Some of the things people can afford to buy become a distraction from their long-term vision, purpose and dreams. Think about how much an indulgence you are considering will cost. Could the money be better spent to help you advance further toward your dreams in the long run? Cultivate the habit of saying “no” even when you can afford to buy what you want.

Financial Fitness Principle #14: Analyze your life and financial habits
Everyone has good and bad habits when it comes to both life and finances. You won’t completely eliminate bad habits, but you can improve your success by analyzing what is keeping you from reaching your goals—and what is helping you reach them when you do. Once you have analyzed your habits, change them as needed to support your financial fitness.

Financial Fitness Principle #15: Own a business
Even if you only begin working on your new business part-time, applying the principles of financial fitness to your own business could help you become wealthy much faster. In part, this is because people care about their own success more than they do for a business that belongs to someone else.

Financial Fitness Principle #16: Increase your passive income
In the life of any financially fit person, there is an effort to turn some financial strength toward passive income—this refers to regular income that requires little effort to maintain it. Set a goal to make most of your income passive (such as gains from investments), and then you can live off of your passive income.

Isn’t it time you went on the offense when it comes to your own financial fitness? Add these six financial fitness principles to the six in my previous blog, and watch for more in the next four blogs. Carefully consider each principle and look for ways you can begin to change your financial habits today.

More Basics to Help You Invite Financial Fitness into your World

More Basics to Help You Invite Financial Fitness into your World

A mortgage is your largest financial liability. It can play a huge part in your success today and in the future, and even your retirement, if handled properly. I made a commitment in 2014 to bring a better understanding of financial fitness to my clients. I want to help them understand money and the power of money, and why it’s important to manage money wisely.

To accomplish this for my clients, I found a book that sums up the path to financial fitness very well. The book is Financial Fitness: 47 Principles by Chris Brady and Orrin Woodward.  I discussed the first of seven basic financial fitness principles in the last article. In this article, I’ll finish presenting basics from the book.

But first I want to expand on principle #5 from the first article. I believe it is one of the most critical financial principles in most people’s lives: budget and plan for unexpected expenses.

Unexpected Expenses Jeopardize Financial Fitness

Medical bills are the number one unexpected expense that cause financial hardship. When you find yourself with large medical bills, it is difficult to pay them back. If you don’t plan ahead for this type of hit to your financial fitness, it will negatively impact your credit scores and your ability to borrow money for a car or house or any other important financial need that arises in your life.

It’s a basic principle of financial fitness to budget, save and plan for unexpected expenses. It’s tempting not to think about it before it happens—after all, you aren’t expecting it! But planning for the unexpected can prevent the loss of your financial health.

More Basic Financial Principles for Financial Health from Woodward and Brady

The following are the final two principles from the section of the Financial Fitness book entitled The Basics of Financial Fitness. Do you see a few items in this and the previous article you could begin working on right now?

Financial Fitness Principle #6: Pay 10% of your income to tithing
Even if your funds are very low, giving 10% of your income “puts you in a mindset of abundance,” say Brady and Woodward. The act of giving puts financial worries into perspective. Even if you have very little, there are always people who have less. Giving gets you in the habit of acting as though you are financially secure.

Financial Fitness Principle #7: Using money to help others naturally increases your happiness
You might believe money will buy you happiness. However, those who know money well know that is not true. On the other hand, using money to help others does help you achieve happiness. In fact, giving often leads to greater financial strength.

Once you’ve mastered the basics of financial fitness and set a foundation for financial success, you can move on to taking offensive action to improve your finances aggressively. We’ll begin talking about your financial offense in the next article.

Basic Concepts to Begin Achieving Financial Fitness

Basic Concepts to Begin Achieving Financial Fitness

I wanted to find a way to make the principles of financial health more obvious and more easily understood for my clients, so I began looking for a resource. I found it in a book called Financial Fitness: 47 Principles by Chris Brady and Orrin Woodward.  I’m sharing the most important of those financial principles in a series of videos that accompany this and upcoming blogs. 

Financial Fitness Begins with the Basics

This is the first of the six financial fitness blogs, with principles from a section of the book called The Basics of Financial Fitness. These are principles that help you build good foundational habits and get your mindset in the right place to support your desire for financial success. We’ll cover the first half of the basics in this article, and finish up our discussion in the next article.

Financial Fitness Principle #1: It’s not what you make but what you keep

Focusing first on savings is one of the most important steps you can take to achieve financial success. You’ve probably heard people say “Pay yourself first.” That means building a habit of saving starting now. Over time, your savings will become one of your most important assets.

Financial Fitness Principle #2: Money is a gift with a specific use

The authors of Financial Fitness point out that any time you acquire money, it comes with a responsibility to be a good steward of this gift. You should use the money you have—no matter how little or how much—for something that matters to you, your family and others.

Financial Fitness Principle #3: Live within your means

For this principle to work, you must always live within a budget that fits your income…always. No exceptions. It might seem obvious, but this means being able to say no to yourself, your colleagues, your family and friends when something you or they want you to spend money on does not fit your financial situation and financial plan.

Financial Fitness Principle #4: Stop getting financial advice from broke people.

It stands to reason that people who don’t have money won’t have useful advice for you when it comes to managing your money. Get advice from people whose financial habits you want to learn from. Listen carefully to what they have to say and follow their advice faithfully.

Financial Fitness Principle #5: Consistently budget and save for unexpected expenses

Many unexpected, devastating life events can put a huge dent in your financial fitness if you aren’t ready for them. Medical expenses are probably the number one culprit (more about that in the next blog). The only way to fight the lasting negative impact of these events is to consistently save for it.

These principles of financial fitness are relatively simple—a great place to start making changes in your own financial foundation. Take small steps now to begin mastering these concepts and working toward improvement of your financial situation. We’ll cover more basics in the next article.