Nine36 Financial

Seasons

noreply@blogger.com (Nine36 Financial) — Tue, 10 Nov 2009 12:00:00 +0000

My daughter has an annoying little habit. Despite the fact that the temperatures have dropped from 80 to 55, and despite the fact that the leaves are falling and the sun is making a brief appearance between cloudbursts, she'll say "See mommy? The sunshine is out!" and proceeds to head outside to play in shorts and a short sleeved shirt. She's still living in last summer!

The cooling temperatures and falling leaves are a great reminder that we live our lives in seasons.

kids experience elementary school, then middle school, then high school, and finally (for some), college - each a different season with new learning, new relationships, new maturity, new responsibility.
women often move from the workplace to home with children and back to the workplace again - each season bringing different demands, sacrifices, challenges, joys, frustrations, and victories.
families have little ones who grow to middle ones who are suddenly leaving home - each passing season leaving special memories indelibly written on our hearts.

We are young, and we are old. We are winning, and we are losing. We have highs, and we have lows. It happens in our relationships, our health and physical fitness, our careers, our children, our ministry, and yes, even in our finances. We know this...so why are we always surprised by it?

Seasons come and seasons go. When we embrace the fact that our financial seasons are going to ebb and flow, and when we become expert at discerning the season, then we can be content in whatever circumstances we find ourselves. As Paul says in Philippians 4, "...I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation, whether it is with a full stomach or empty, with plenty or little." The key to success is living within your season!

What season are you in financially? Are you living within that season, or are you trying like my daughter to live in the fall the same way you did last summer? Embrace and adapt to your season. This too shall pass.

Deanna Koffler, Nine36 Financial (936 Financial)

What's Your Excuse?

noreply@blogger.com (Nine36 Financial) — Wed, 04 Nov 2009 11:00:00 +0000

We humans like to make excuses, and we tend to make them for a couple of key reasons. When it comes to managing our finances wisely, there's no exception...excuses abound for why we can't seem to move forward or why we don't have a plan.

1. We've done something wrong, made a mess of things, and now we feel the need to justify our action or inaction.

"It's not my fault" (this is followed by the blame game...)
"I deserve"..."I'm owed"..."I have a right"..."I need"

This is rooted in selfishness, and quickly leads to hopelessness, paralyzation, discontentment, ungratefulness, criticising and being judgemental. Ouch! Want to be know for those qualities?

2. We're trying to avoid doing something we don't want to do.

"I'm not good at it"..."it's not my gift"
"It's too time consuming"..."I'm too busy"...."I have more important things to do"
"I'm doing fine financially so this is not for me"

This is rooted in fear and laziness, and quickly leads to bondage, distractions, and an inability to pursue all that God has for you.

Our excuses are like a boat anchor. As long as we're hanging on to them, they will pull us under and keep us from ever breaking the surface to grab hold of a life preserver.

What's your boat anchor? What practical steps can you take today to overcome and move forward?

Deanna Koffler, Nine36 Financial (936 Financial)

What Kind of Giver Are You?

noreply@blogger.com (Nine36 Financial) — Mon, 26 Oct 2009 21:05:00 +0000

“Judge not, and you shall not be judged. Condemn not, and you shall not be condemned. Forgive, and you will be forgiven. Give, and it will be given to you: good measure, pressed down, shaken together, and running over will be put into your bosom. For with the same measure that you use, it will be measured back to you.” (Luke 6:37-38)

We often use this verse when we talk about giving of our finances. Give, and it will be given back to you. But this principle of giving doesn’t JUST apply to our finances, does it?
The word “it” in this verse is a pronoun that is acting as the direct object of the verb “give”. A pronoun is a word used in place of a noun. Usually, pronouns refer to something that was already mentioned in a previous sentence. In this case, the pronoun is “it”. What is “it”? Go ahead, replace “it”!

Give judgement, and judgement will be given to you.

Give condemnation, and condemnation will be given to you.

Give forgiveness, and forgiveness will be given to you.

I believe what’s illustrated here is a spiritual law, not simply something that pertains to two or three acts of our will:

Give time, and time will be given to you.

Give respect, and respect will be given to you.

Give money, and money will be given to you.

Give food, clothing, honor, grace, mercy, truth, friendship, service.......are you getting it?

Let’s be people who give the kinds of things we want to receive ourselves.

Deanna Koffler, Nine36 Financial (936 Financial)

Squeezing the Turnip

noreply@blogger.com (Nine36 Financial) — Fri, 11 Sep 2009 20:12:00 +0000

Budget in place and working...check. Emergency fund in place...check. Debt snowball rolling...hmmm...can't seem to get enough dry, crumbly snow together to actually make a snowball to get it rolling!

This seems to be a typical story these days. Loss of income is causing a lot of people - including responsible, budget-weilding, non-credit using families - to stumble on their get-out-of-debt plan. If you can't seem to get enough snow to stick together to even make a snowball, how do you ever get it rolling?

The initial (and obvious) response, especially from Dave Ramsey fans, is to look at the budget and try to figure out how to get more out of your money each month. Cut expenses here, slash activities there, try to sell a car or a house - as I see it, trying to squeeze blood from a turnip!

Instead of expending so much energy on how much you can save, cut, slash, sell...start focusing your attention and energies on creative ways to bring more in! Most of you aren't in a debt crisis...you're in an INCOME crisis! Quit blaming the debt or the expenses for your financial problems, and focus on the income side of the house.

Deanna Koffler, Nine36 Financial (936 Financial)

BudgetBuilder Workshop

noreply@blogger.com (Nine36 Financial) — Fri, 28 Aug 2009 21:30:00 +0000

We had a fantastic workshop last night at Cascadia Community College - if you missed it, you missed out! The good news is that you can always get in on the next one!

We will host the next BudgetBuilder Workshop on Tuesday, September 29th from 6-9pm. Registration deadline is September 16th - contact us today to reserve your seat...and invite a friend to join you!

Listen to what people are saying about their experience!

"Josh & Deanna are great communicators and teach well as a team. We now have better tools and understanding to improve our budget! The budgeting tool is user friendly, and we like the ability to compound savings each month." - Rachel & Diony, Kent

"The budgeting tool is very user friendly for a person like me who doesn't like computer entry!" - Jacoline

"This workshop is helpful especially accompanied with FPU. Walking away with new software so we can have a 'real budget' is great! - Brent & Joanne, Bellevue

"The most important thing I learned is having the Biblical foundation and how that is connected to my budgeting. I love how everything was helpful and presented in a way that was applicable to my life. I have tried different methods of budgeting on my own but it never worked for me. From this class, I feel I have learned how to write it and also how to follow up and continue with the plan I've created." - Betelihem, Kent

"The assessment worksheets are so clear and manageable. It makes me feel like I can DO this! The workshop was interactive, so it never lost my attention. I really had no clue even how to start a budget before this workshop, now I feel I have a wonderful start and am motivated to keep on this road. This is going to change my life. Thank you so much!" - Emnet, Bellevue

"I found the section on understanding your priorities and then setting financial goals to be most helpful. I love the budget tool, and will absolutely use it; it's incredibly well organized and does so much of the work and calculations for you! Josh & Deanna compliment each other well in presentation. They inspire!" - Naomi, Seattle

"I am reinvigorated to dive deeper and focus on our budget more regularly. I think the budgeting tool will increase my budgeting ability and help my husband to. Thank you for your time, knowledge and passion. This will change lives!" - Lesa, Mukilteo

Deanna Koffler, Nine36 Financial (936 Financial)

The BudgetBuilder™ Workshop is Launching!

noreply@blogger.com (Nine36 Financial) — Thu, 06 Aug 2009 14:07:00 +0000

We are excited to announce the public launch this month of the BudgetBuilder™ Workshop! The workshop, previously offered exclusively to members of The City Church, is now going to be available to the public beginning this month!

Workshop dates are Thursday, August 27th (registration deadline August 19th) and Tuesday, September 29th (registration deadline September 16th). Both workshops will be held at Cascadia Community College in Bothell.

The BudgetBuilder™ Workshop helps individuals and couples get traction for their financial situation by walking them through the process of creating a household specific budget. The three-hour Workshop provides classroom and one-on-one instruction in

· Biblical foundations for financial stewardship
· Personal financial assessment
· Understanding financial priorities
· Financial goal setting
· Real time, hands on budget development specific to each individual families’ priorities, goals, and current financial situation

Attendees will receive an instructional workbook along with MoneyBoss™, Microsoft Excel-based budgeting software that will allow them to manage their newly created budget on a month-to-month basis.

Workshop Requirements:
· Pre-registration – course size is limited so register early (see registration deadlines above)!
· A Windows capable at-home computer with Microsoft Excel installed (computer access for workshop will be provided)
· Pre-workshop assessment homework completed (this paperwork will be sent following registration)
· Registration fee of $109/couple or $89/individual

Maybe this workshop isn’t a good fit for your personal needs right now, but I’ll bet you can name at least one person you know that could benefit greatly from this kind of instruction. If so, please pass this information on to them so they can attend!

Contact us today at 425-931-4167 or kofflers@nine36financial.com for more information or to register for an upcoming workshop!

Deanna Koffler, Nine36 Financial (936 Financial)

June Real Estate Update for Snohomish County

noreply@blogger.com (Nine36 Financial) — Wed, 01 Jul 2009 16:35:00 +0000

Increased number of pendings and solds for four consective months now. Yes, we are experiencing an increase in buyer activity and a constant number of listings remaining, but the acitivity is not equal in all price ranges. Where is the majority of this activity? In June the NWMLS recorded 522 sold properties, of those properties, 430 were below the FHA limit of $417K and 243 were below the price of $300K. So, roughly 82% of all the sold properties in Snohomish county for the month of June were below the price of $417K. This is the first time home buyer taking advantage of today's market. In the month of June I was involved in 3 different sales (two listings, one buyer) in the price range under $417K that were multiple offer situations! There is a large group of first time home buyer's in the market right now, waiting for a quality home to come on the market that is well price!

Current interest rates have climbed to around 5.675%.

Courtesy of Joshua Koffler, Associate Broker, Windermere Lake Stevens Inc

Real Estate Trends & Opportunities

noreply@blogger.com (Nine36 Financial) — Wed, 17 Jun 2009 22:55:00 +0000

Current Real Estate Market -
The real estate market today is seeing a surge of buyers, but the surge is limited to the first-time home buyer’s market, with FHA and USDA financing as the loans of choice. The price range for this market is anything below the $417,000 price. With this surge of late, I am seeing many short sales and bank owned properties being purchased. Why the surge? Very low interest rates that are beginning to creep back up, the $8,000 dollar tax credit, lower home values, and overall affordability.

What is missing in today’s real estate market?
What’s missing in the market right now is the move-up buyer. Typical buyers in this class will be selling a “first-time home buyer” home and using the equity to move up to a larger home. But as I mentioned earlier, many of the homes that are selling now are either vacant (bank owned) or distressed sellers (short sales), meaning there’s no one to move to their next home. As I see it, this unique dilemma brings opportunity!

Why the opportunity?
Home values have dropped in the last two years to near 2005 price ranges in most areas. This means that homes have lost a total of 15% to 18% of their value in the last two years (this varies from neighborhood to neighborhood). For example, a home that was valued at $350,000 in 2007 has a market value of $287,000 (18%) and a home valued at $550,000 is now worth $440,000. The $350,000 home lost $63,000 while the $550,000 lost $99,000. This is the ideal situation for the “move up buyer”! Why? Because while the home you are selling may not be worth as much as it was last year, the home you are buying is an even bigger deal…in our example above, your net savings is $36,000! In addition, the homes in the $550,000+ price range are not moving, making sellers more motivated to make you a deal!

Conclusion -
This is a great time for first time home buyers to get into an affordable home, but even a greater opportunity for move up buyers to purchase their next home. Interest rates are very volatile right now with the expectation of inflation on the horizon, so if you or someone you know is contemplating a change in real estate (buy, sell, or refinance) have them give me a call to see if now is the right time for them!

Joshua Koffler, Nine36 Financial (936 Financial)

Consumerism of the 2000's

noreply@blogger.com (Nine36 Financial) — Tue, 26 May 2009 23:19:00 +0000

Some interesting statistics that just underscore the culture of consumption, excess and debt that we currently live in:

2000 - Americans too $26 billion in equity out of their homes

2004 - Equity withdrawn rose to $139 billion

2005 - Equity withdrawn rose to $450 billion

2006 - Equity withdrawn rose to $620 billion

Roughly 42% of the equity withdrawn went towards consumer spending or paying off credit card/consumer debt! Food for though...

Deanna Koffler, Nine36 Financial (936 Financial)

Town Hall for Hope with Dave Ramsey

noreply@blogger.com (Nine36 Financial) — Mon, 06 Apr 2009 13:24:00 +0000

Join us at The City Church in Kirkland on Thursday, April 23rd at 7pm PST where we will be hosting for Town Hall for Hope live with Dave Ramsey! Dave will be broadcasting live to the nation a message of hope regarding our economy - where we've been, where we are, and where things are going. For more information, contact us at Nine36Financial, 425-931-4167. Don't miss it!

Forclosure vs Short Sale Q&A

noreply@blogger.com (Nine36 Financial) — Wed, 25 Mar 2009 18:44:00 +0000

Understanding what the differences are between a foreclosure and a short sale and acting accordingly can be critical to your overall financial well being. Let's take a look at some frequently asked questions regarding this subject:

Q: How will foreclosure or short sale affect my ability to buy a home in the future?
A: Losing your primary home to foreclosure will make you ineligible for a Fannie Mae backed mortgage for 5 years. If you lose an investment home to foreclosure - ie, a home that is not your primary residence, you will be ineligible for a Fannie Mae backed mortgage for 7 years. If a homeowner or investor successfully negotiates a short sale, these numbers decrease to a mere 2 years for both scenarios. For future loans from any lender, a foreclosure will impact your loan application for 7 years, while a short sale will not impact your app at all.

Q: How will a foreclosure affect my credit score/credit history vs. a short sale?
A: With a foreclosure, your credit score may be reduced anywhere from 250-300 points, an impact that will typically last for over 3 years. Your foreclosure will remain as public record on your credit history for 10 years or more. With a short sale, only late payments will show, and after the sale is complete, the mortgage will report as "paid" or "negotiated". The impact to your credit score can be as little as 50 points, and the affects can be as brief as 12-18 months. A short sale is not reported on a credit history.

Q: Can a foreclosure or short sale affect my employment?
A: If your job requires a security clearance, such as a police officer, military, CIA, and others, your security clearance will likely be revoked, which can result in termination of the position. Even if your job doesn't require security clearance, employers have the right to check the credit of employees in sensitive positions. A foreclosure could be grounds for reassignment or termination. Most employers require credit checks on all job applicants, so for future employment, a foreclosure is one of the most detrimental credit items one can have. On the contrary, a short sale on it's own is not usually an issue for security clearances, and since it is not reported on a credit report, it will have no impact on current or future employment.

Q: What about the balance I owe?
A: Depending on the kind of loan, in most states, the bank has the right to pursue a borrower for a deficiency judgement on either a foreclosure or short sale. In either case, the delinquent amount may be forgiven by the bank. It is up to the borrower to negotiate and ascertain whether or not their delinquent amount has been forgiven or not. In addition, forgiven amounts may be taxed. Consult your tax professional for questions regarding your particular situation.

Deanna Koffler, Nine36 Financial (936 Financial)
Taken from "Foreclosure vs Short Sale - Consequences for Homeowners", Northpoint Escrow & Title

Debt Forgiveness & Tax Liability

noreply@blogger.com (Nine36 Financial) — Fri, 20 Mar 2009 02:57:00 +0000

If you owe a debt that is cancelled, reduced, or forgiven, the forgiven amount may be taxable. With all the foreclosures, short sales, and debt settlements taking place these days, a lot of people are asking the question: do I have any tax liability? Because each individual circumstance is unique, it would be impossible to document all the possible scenarios.

However, the IRS website has a great article discussing the Mortgage Forgiveness Debt Relief Act and Debt Cancellation at http://www.irs.gov/individuals/article/0,,id=179414,00.html. You can also go to Publication 4681, Cancelled Debts, Foreclosures, Repossessions and Abandonments at http://www.irs.gov/pub/irs-pdf/p4681.pdf or the IRS News release on Mortgage Workouts at http://www.irs.gov/irs/article/0,,id=179073,00.html.

These resources may help you understand your situation a bit better, but there are still many complexities. In short, if you have questions about your tax liability, consult your tax professional to understand your personal ramifications.

Deanna Koffler, Nine36 Financial (936 Financial)

Money & Your Marriage

noreply@blogger.com (Nine36 Financial) — Fri, 27 Feb 2009 16:54:00 +0000

Josh and Deanna will be speaking to The City Church Young Marrieds Group on "Money and Your Marriage - Achieving Financial Peace in your Home" this week. Join us Sunday, March 1st, 9am at The City Church Belltown Campus, and Wednesday, March 4th, 7pm at The City Church Kirkland Campus. For directions, visit http://www.thecity.org/.

In addition, Josh & Deanna will be presenting a "BudgetBuilder Workshop" on Saturday, March 14th from 9am-noon at The City Church Plateau Campus. For more information or to register for the workshop, please contact Nine36 Financial at 425-931-4167 today!

To arrange a speaking engagement or workshop for your church or organization, contact Josh & Deanna Koffler at Nine36 Financial today!

Deanna Koffler, Nine36 Financial (936 Financial)

Family Takes Care of Family

noreply@blogger.com (Nine36 Financial) — Mon, 16 Feb 2009 19:44:00 +0000

"If anyone does not provide for his relatives, and especially for his immediate family, he has denied the faith and is worse than an unbeliever." (1 Timothy 5:8)

As financial counselors, we see way too many people current on all their credit card payments and losing their house. This just doesn't make sense! In blog past, we've talked about getting back to the basics when you find yourself in financial crisis. Identifying the things that are most important, focusing on the priorities and letting the rest of the stuff go. It's the "Four Walls" principle - taking care of food, shelter, transportation, and clothing as a priority when there's not enough income to cover all of your obligations. Not a place you'll want to stay very long - but for a season while you work get some additional income in place, it's how you survive. You take care of your family first before everything else. And don't forget that your "four walls" don't afford a lot of security without a roof over them - and that roof is your tithe. It's your protection and your covering! Malachi 3:10-11 says that if we will be obedient with our tithe and not rob God, that He will rebuke the devourer for our sake. Make sure you and your family are under the covering and protection promised here!

Now I want to take this one step further for you with a couple additional scriptures.

"Jesus asked, “Who is my mother? Who are my brothers?” Then he pointed to his disciples and said, “Look, these are my mother and brothers. Anyone who does the will of my Father in heaven is my brother and sister and mother!” (Matthew 12:48-50)

The church, the body of Christ, fellow believers...this is our family if we are a follower of Christ. Now take a look at the example of the believers in the early church:

"And all the believers met together in one place and shared everything they had. They sold their property and possessions and shared the money with those in need." (Acts 2:44-45)

We are called to take care of our families, and I challenge you to think larger than the four walls of your own home! In these difficult economic times, there are people in YOUR family, whether it's natural or spiritual, who are in need. Recognize that nothing that you have is just for you, God has blessed everyone in different ways for the building up of his body, the church! So ask yourself...what can I do, how can I contribute, where can I make a difference today for my family in these uncertain times?

Deanna Koffler, Nine36 Financial (936 Financial)

Short Sales

noreply@blogger.com (Nine36 Financial) — Mon, 26 Jan 2009 21:33:00 +0000

As financial counselors we often see people who have, among their challenges, a house that they are upside down in. Many times this calls for a short sale. But what exactly is a short sale? This is a question frequently asked in these difficult times. Let me share the definition according to the Northwest Multiple Listing:

"A 'Short Sale' is a sale that does not produce sufficient funds to cover the existing monetary encumbrances against the Property, closing costs, real estate commissions, and other financial requirements of closing. Seller’s creditor(s) are those third parties who have an interest in the Property in the form of a deed of trust, some other security, or a lien (e.g. tax lien). In a short sale, Seller will usually need to get the consent of Seller’s creditor(s) in order for the sale to close. This is because Seller’s creditor(s) may have to agree to accept less than the outstanding amount of Seller’s debt that is owed to the creditor(s)."

Dealing with short sales seems to be the norm these days. As a real estate broker actively representing both buyers and sellers, I would estimate up to 60% of transactions are dealing with some kind of "short sale".

What are the pros and cons of a short sale?

Pros:

as a seller you are in control of the sale of your home, unlike a foreclosure where the bank or lien holder is in the driver's seat. Keep this in mind though - if you are not priced aggressively enough to get an offer on your home, there won't be a short sale!
Typically a short sale is less of a "ding" on your credit score.
Often times the seller will be able to get the lien holder to "forgive" the deficiency. Keep in mind, however, that you will be taxed on this "forgiven" amount, so make sure you consult your tax advisor regarding this.
As a buyer, there's lots of opportunity for deals with short sales, if you have patience to wait!

Cons:

As a seller there is no guarantee of a sale, even if you have an offer. The banks or lien holder(s) have the final say.
As a seller, you will typically need to be in arrears on your payments for the lien holder(s) to consider a short sale.
As a buyer will need to be willing to be patient, and there's no guarantee of a sale.

These are just some of the pros and cons of short sales. For more specific information regarding your personal situation, feel free to give me a call. I'm not only a Certified Financial Counselor, I'm also a Real Estate Broker with a great deal of experience in working with short sales.

Give us call, we would like the opportunity to help you in this difficult time. There is hope, there is a way out!

Joshua Koffler, Nine36 Financial (936 Financial)

December Real Estate Stats for Snohomish County

noreply@blogger.com (Nine36 Financial) — Thu, 01 Jan 2009 17:36:00 +0000

For those of you that live in Snohomish County, here's the December real estate statistics:

Snohomish County
Stat Comparison: December/November/October/September
Residential Home Sales: 288/241/371/437
Residential Homes Pending Sale: 465*/459/470/556
Active Residential Listings : 4,049/5,019/5,305/5,565
*202 went pending in the month of December.

I won’t give any predictions for the 2009 real estate market but I will say that families will always have a need for housing! We are still seeing a very strong buyer’s market with low interest rates, ample inventory and motivated sellers. Keep in mind that real estate is a long term investment! On the listing side I’m seeing an increase of “distressed homes” coming on the market and daily price drops, as more and more people are facing the possibility of losing their home. If you find yourself or someone you know in this situation, understand that you have options. I can help you negotiate with the bank for a loan modification, or facilitate a “short sale” to avoid foreclosure. Don’t hesitate to call me today to get the help you need. I’ll put my knowledge and experience to work for you!

Interest rates have dropped to 5.325% with no points.

Joshua Koffler, Nine36 Financial (936 Financial)

Making Memorials

noreply@blogger.com (Nine36 Financial) — Wed, 10 Dec 2008 23:47:00 +0000

"And you shall remember the Lord your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers, as it is this day." (Deuteronomy 8:18)

There's a well known learning curve that shows that in five minutes, much of the information we have taken in is lost. After an hour - two thirds of it is lost. And after a day has passed - 90% of it is lost. This is the curve of forgetting. UNLESS...we take action to keep from forgetting! With Thanksgiving only recently behind us and Christmas just ahead, these are great days to remember. There's lots of ways to remember things...pictures, video, celebrations, traditions, gifts, telling stories to name a few. How do you remember? Our family has a "blessing book". It's basically a blank journal that we keep on hand to write down special or significant things that we want to remember - like how God blessed us or ways He showed Himself faithful in our lives. Sometimes we're really good at writing in it, other times, not so great. But what I've found is that if I don't write, I don't remember. And if I do write, we find that when we read the book again, we are reminded of things we had long since forgotten!

Why should we remember? Because when we're faced with a situation that seems insurmountable, or we're in need of provision for our family, or we don't know how we're going to get through the next week, we can look back on all those other times that He came through for us in the past...REMEMBER...and that will shore up our confidence, our trust and our faith that He will be faithful this time as well.

I challenge you to take some time this holiday season to remember the faithfulness of God in your life...ideas He gave you, answers He showed you, ways He saved you money, provision that He brought your way in the form of a pay raise, new job, reduced expenses, deals, direction, wisdom, companionship. Find a way to commemorate, memorialize, remember these things so that you can pass them on to the generations behind you.

Deanna Koffler, Nine36 Financial (936 Financial)

A New Name

noreply@blogger.com (Nine36 Financial) — Tue, 02 Dec 2008 04:11:00 +0000

We are excited to announce a new name for our business! Northwest Financial Navigators is now Nine36 Financial. Why a new name? The name "Nine36 Financial" is a reflection of the heart of our organization, and comes from Matthew 9:36 which talks about Jesus looking on the multitudes with compassion, because they were harassed and helpless, like sheep without a shepherd. Simply put, our heart is to help people. More and more, we see people feeling helpless and harassed when it comes to their finances, and just needing someone to guide them! Enter Nine36 Financial...new name, same solid counseling. We're looking forward to working with you!

Deanna Koffler, Nine36 Financial (936 Financial)

Live Your Wage, Not Your Credit Score!

noreply@blogger.com (Nine36 Financial) — Fri, 07 Nov 2008 01:37:00 +0000

"In the house of the wise are stores of choice food and oil, but the foolish man devours all he has." (Proverbs 21:21)

Household savings rates in the United States are at an all time low since 1970. The Bureau of Economic Analysis reports show that savings has been on an overall steady decline, with personal savings rates as a percentage of disposable personal income right around 10% through the 1970's and mid-80's, then dropping to around 6.5% in the early 1990's. By the turn of the century, those rates had fallen a whopping 4% to settle at around 2%, breaking into the negative numbers in mid-2005. Compared to nations around the world, we are by far the worst at the discipline of saving. These are startling statistics, especially given the relative wealth of our nation compared to other countries. Not surprisingly, statistics also show that compared to other nations, we lead the way in overall consumption. All that said - let me go back to the beginning and rephrase the verse above in this way:

"The wise man stores up a reserve of savings, but the foolish man live

paycheck to paycheck." (Deanna's Interpretive Version)

The American culture has become a culture of consumption, a culture of excess, and a culture of debt. We've cultivated an entitlement mentality - we think that someone owes us, that we are entitled to all the same "stuff" that our parents had (except that we want it NOW), that we deserve to live a comfortable and lavish lifestyle. Instead of learning how to be content with what we have, we've become fixated on what we don't have, or fixated on what others have, and do whatever it takes to achieve our hearts desire. We've become accustomed to spending beyond our means, spiraling further and further into debt.

We need to change our thinking! We need to learn the discipline of consistent saving, of holding back a reserve, of exercising self control, of taking personal responsibility and not pointing fingers at everyone else for our own poor choices. Live your wage, not your credit score!

What are you saving for? Well, first you want to make sure you have $1000 saved in the bank as an emergency fund. If you're out of debt, your next savings goal is to turn that $1000 into 3-6 months of living expenses...call it your buffer/opportunity fund. After that, it's for whatever you want! Saving towards a down payment on a house or a new car or a new washer and dryer or a big vacation or college for your kids, or .....you fill in the blank.

The easiest way to cultivate the discipline of saving in your life is to first create a plan and automate it. Figure out what you'd like to save, then plan how you're going to get there. For example, if your goal is to save 5% of your household income, start with 1% for 3-4 months (or 5 or 12, whatever works for you). Then bump that amount up to 2-3%, then 4%, and before you know it, you'll be at your goal of 5%! This is a great way to ease into saving without feeling the pain of the loss of income to your budget quite so dramatically! Second, make your plan automatic. Set it up as if it was a bill you have to pay, with an automatic withdrawal once a month from your account, directly deposited to your savings, money market, or brokerage account. Automatically zapping your account for the amount will help you be consistent. It's the plodders, not the sprinters, who win in the savings race!

Deanna Koffler, Nine36 Financial (936 Financial)

The Importance of Estate Planning

noreply@blogger.com (Nine36 Financial) — Thu, 16 Oct 2008 20:58:00 +0000

The issue of estate planning is one that many would rather not think about - especially the young. The assumption is that estate planning is only for the elderly, or those with large or valuable estates. This couldn't be farther from the truth! Good estate planning is a gift that you leave to those you love who will survive you, whether your estate is large or small. Bad estate planning can be more than just a small headache for those you leave behind. As one currently walking through the probate process personally, here's what I'd recommend your plan include:

1. Durable Power of Attorney
Durable Power of Attorney allows the person you appoint to act on your behalf for any financial decisions that may need to be made if you are incapacitated in any way. Without a durable power of attorney, no one can represent you unless the court appoints a conservator or guardian, which can be a cumbersome process.

2. Medical Directive
The medical directive can include a number of other documents, including a health care proxy, a living will, and medical instructions. A health care proxy allows you to designate someone that you know and trust to make health care decisions for you should you become unable to make them for yourself. A living will instructs your family and your health care providers about your wishes regarding life-prolonging medical treatments. A living will only comes into effect in situations where your condition is terminal or you are in a vegetative state.

3. Last Will and Testament
Your will is the document directing who will receive your non-probate property at death, and allows you to name the individual, or “personal representative”, that you would like to administer your estate and distribute it according to your instructions. A good place to store the original of your last will and testament is with your attorney. The naming of a guardian for your young children is arguably one of the most important components of your will. Without a named guardian, your children become a ward of the state if you and your spouse both die. Consider carefully who you'd like to raise your children, and ask them if they are willing before you document this legally.

4. Designated Beneficiaries
A beneficiary is a person that you have named to receive the proceeds from your life insurance policy, retirement accounts, pension, bank account, or any other financial account with either a death benefit or beneficiary designation attached. Proceeds from accounts with a named beneficiary are considered “non-probate” assets, and are distributed directly to the individuals named outside of the estate. If beneficiaries are not named, distribution of proceeds would be governed by the will.

5. Coordinated Account File
A coordinated account file is simply a plan for storing copies of all financial and legal documents and a listing of all personal assets with their approximate values. Also included in this file should be a spreadsheet listing all financial accounts, including institution name, contact info, account number, asset value, and beneficiary if applicable. Keep this file in a safe place in your home, perhaps a fireproof file cabinet or safe, and make sure your designated personal representative is aware of the location. This will simplify matters significantly for your loved ones and beneficiaries upon your death. Also - have a plan to revisit your file periodically to ensure that your documents are current.

Deanna Koffler, Nine36 Financial (936 Financial)

Changing The Way You Think

noreply@blogger.com (Nine36 Financial) — Thu, 28 Aug 2008 13:14:00 +0000

"For as [a man] thinks in his heart, so is he." - Proverbs 22:7

One of our biggest goals as financial coaches or counselors has always been to teach people how to change the way they think about money. Because here's the thing...we can come in and help someone change their financial situation by working the numbers, or getting a plan together, or helping them get out of debt, but if a person doesn't change the way they think, all that effort will make little difference in their end result. You see, fixing a physical situation is great, but it won't stick if you keep your same old way of thinking...because that same bad thinking will just get you right back where you started!

Take lottery winners, for example. There are myriads of cases of lottery winners divorcing, going bankrupt, and having family feuds. Many of them squander away all their winnings in just a few years! On the flip side of this, take away a millionaire's money, and he'll be a millionaire again in short order. Its all about how you THINK. Financial success is only 20% knowledge, it's 80% behavior. And what you think, you speak. And what you speak becomes what you act upon. and how you act is what will change your life - for better or for worse.

So what should you be thinking about money? Here's some thoughts:

Psalm 24:1 - "The earth is the Lord's, and all it's fullness, the world, and all who dwell therein." (God owns it all, we're just managers)
Proverbs 21:20 - "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has." (Make saving money a priority)
1 Timothy 6:6 - "Godliness with contentment is great gain." (Learn how to live on less than you make)
Proverbs 22:7 - "The rich rules over the poor, and the borrower is slave to the lender." (Don't borrow any more money!)
1 Timothy 5:8 - "But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever." (Take care of your families basic needs first - food, clothing, shelter, transportation)
Luke 14:28-30 - “For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it, lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish.’” (Have a plan - spend on purpose)
Malachi 3:10 - "Bring all the tithes into the storehouse, that there may be food in My house, and try me now in this,” says the Lord of hosts, “If I will not open for you the windows of heaven and pour out for you such a blessing that there will not be room enough to receive it." (Give back to God 10% of your gross income so that the other 90% can be blessed)
Luke 6:38 - "Give, and it will be given to you: good measure, pressed down, shaken together, and running over will be put into your bosom. For with the same measure that you use, it will be measured back to you.” (Don't hold it too tightly! Learn the joy of giving.)

Deanna Koffler, Nine36 Financial (936 Financial)

Financial Self-Evaluation

noreply@blogger.com (Nine36 Financial) — Mon, 04 Aug 2008 21:05:00 +0000

It's the middle of summer, and everyone is out enjoying their last month of vacation before heading off to school again! September really is the start of a new year for most people...I think we tend to think of summer as being the grand finale of good times to top off the year, then it's back to school and another year has begun. It's a time when people often get reflective about their dreams or their goals or the direction their lives took over the past year. Now is a great time to do a little self-evaluation when it comes to your finances. Here's some questions to ask yourself:

1. Where am I financially (income/debts/assets/etc)? Is it where I want to be?
2. What do I need to change in order to get to where I want to be?
3. Am I spending/saving with a plan for my money?
4. Have I set some goals to help me get to where I want to be?
5. Do I have someone holding me accountable to my goals?

If your answer is "no" to most or all of these questions, you could be heading for a financial train wreck. If you're ok with that, then by all means, keep doing what your doing...no sense changing something that's working well for you, right? But if you're not ok with that, now is the time to make a change. Get a grip on your finances once and for all, before the new year begins. If you want to know how, give us a call or read the blog series "Road to Financial Freedom" (July 2008).

Road to Financial Freedom Part 7 - Saving and Investing

noreply@blogger.com (Nine36 Financial) — Mon, 21 Jul 2008 14:12:00 +0000

The fun starts now. You've successfully navigated some of the more difficult territory on this road to financial freedom, and now we are coming out of the woods into the clearing close to the top of the mountain, and the views are beginning to change. It's amazing what a fresh perspective can do for you!

A lot of people get to this point in their journey and get stuck, not because they don't want to continue on, but because they get distracted by other things or more often just don't know what to do next! Can I just interject a thought right her? Now would be a really great time to reevaluate and refine your budget. Take a good hard look at where you're at, what you're spending, and what you have available to you for saving and investing. My personal conviction is that your first two priorities should be your retirement and your children's higher education. To that end, my advice is to start here:

1. First make sure you're regularly putting 15% of your income into Roth IRA's and pre-tax retirement. If you have a 401K at work, contribute up to your company's matching amount, if they have one. Put the balance in Roth IRA's in mutual funds with long standing track records of good growth. If you can't save 15% right away, start where you can, then increase the amount by 1 or 2% each year as the incremental changes will help you get where you want to be without having a huge impact on your finances. The easiest way to keep this up is to make it automatic - have the money deducted from your paycheck or withdrawn monthly from your account automatically to help you resist the temptation to skimp on contributions.

2. If you have kids, begin saving for their college education. You really don't want your kids to start off the way you had to, do you? Here's some websites that will help you identify some different savings vehicles and determine which one is right for you.

Once you've determined which vehicle is the best choice, you'll need to do a realistic evaluation of how much you can save (and how much you want to save!) and create a plan based on the number of kids you have and their ages. Depending on your available resources, this may mean that your kids will have some limitations on where they go to college, what expenses you will cover for them, and what expenses they will be responsible for themselves.

3. Pay your house off early. Can you imagine the freedom you would feel if you were living debt free, including your mortgage? Think of what you could accomplish with NO PAYMENTS!

After you've covered retirement, college, and the house, the possibilities are limitless! When it comes down to it, there's a lot ideas about what you should do first when it comes to saving and investing. But what it really boils down to is this - you have unique goals and priorities for your life and your family, and you're the only one who can make those decisions for yourself. So ask yourself, "What are the things that are most important to me right now and down the road?" Here's some ideas of different priorities:

We'd like to pay for our daughter's wedding (or weddings, for those of you blessed with lots of girls!)
We want to take that vacation we've always dreamed of as a family
We want to give to support a particular ministry
We have a business idea that we'd like to pursue
We want to retire early (50/55/60)
We want to buy a car for our son/daughter
Insert your dream here....

Have fun dreaming! You've reached a place that the majority of Americans (still steeped in debt) will never see. And remember, even though there's a definite order to the process, when you get to this phase, a lot of your saving will be done simultaneously. Don't feel like you have to have college completely paid for before you start saving for the vacation you've dreamed of or launch the business you're envisioning. Just use good judgment and common sense, and most important, make sure you have a plan!

Road to Financial Freedom Part 6 - Completing the Emergency Fund

noreply@blogger.com (Nine36 Financial) — Fri, 18 Jul 2008 11:00:00 +0000

Back in Part 4, we started building an emergency fund. This was your temporary emergency fund - $1000 in the bank - to help keep you from going into more debt as you began your debt snowball. Now that you're out of debt except the mortgage, it's time to complete that emergency fund. What is a complete emergency fund? This fund provides you a buffer for major life events, such as a loss of work due to layoff, illness or injury, major medical expenses, major car accident, fill in the blank. It can also cover you for smaller emergencies, such as a hot water tank going out or replacing the timing belt on your car.

How much cash should you have in your emergency fund? This is something that you'll have to evaluate for yourself. Most experts would advise that you have 3 to 6 months of living expenses set aside in some sort of fairly liquid savings account. Take an objective look at your financial situation. For dual income families, or people with relatively strong job security, three months may be sufficient. On the other hand, if you're the sole bread winner, or if you work on a commission basis, six months is probably a whole lot more realistic!

Where should you put your money? We talked about this on Monday - because you want this money available to you on short notice, you need to keep it fairly liquid. For this reason, your standard checking and savings accounts, money market accounts, or even a money market fund (brokerage account) are usually good options. Just be sure you keep it separate from the rest of your money (ie - in a separate account) to avoid spending it inadvertently.

Reaching this milestone is often one of the more difficult, because now that you're completely out of debt except your mortgage, you're beginning to taste a bit of freedom. The temptation is not to save, but to spend on all those things you've felt deprived of all this time you've been working so hard to get out of debt. The temptation is to loosen up the purse strings and start enjoying life a little! Sometimes you've been on this road so long that you're really getting sick of the journey! You're like a little kid in the back seat of the car saying, "Daddy, are we there yet?" I want to encourage you to stick with it! You're almost there! If you take the whole amount you've been throwing at debt and start putting it towards your emergency fund, it shouldn't take long before you've reached this milestone.

Keep at it, you can do it! And join us next week as we look at the Road to Financial Freedom Part 7 - Saving and Investing.

Road to Financial Freedom Part 5 - Getting Out of Debt

noreply@blogger.com (Nine36 Financial) — Wed, 16 Jul 2008 14:16:00 +0000

So let's recap where we've been in the past couple weeks. First, we figured out where we were financially and created a budget to get us moving in the right direction. Then, with the help of our newly created budget, we got current on all our past due bills. Finally, we've sold a few things and socked away $1000 for our temporary emergency fund. That's quite the list of accomplishments! Do you realize how many people never even get to this place? Now that you're here, it's no time to kick back. Instead, it's time to kick up...the intensity, that is. It's time to go after that debt and get it paid off. But before we do, I want you to imagine for a moment what you would do if you were debt free. Maybe you would save up for that vacation you've always wanted to go on and pay for it WITH CASH. Maybe you'd finally be able to save enough for a down payment on a house. Or maybe there's a ministry that you've always wanted to be able to give to. Whatever it is...get your imagination going and let it fuel your passion, desire and intensity to get yourself out of debt...because this milestone is typically one of the hardest to reach and usually one of the longest milestones to get to.

Here's how to go about tackling the mountain in front of you.
1. Quit borrowing more money! Cut up your credit cards and close any open credit lines to help remove any temptation. Remember, you have your $1000 emergency fund for those unexpected events now!
2. List your debts in order by balance amount, smallest balance to largest balance. Include creditor name, payoff amount, and minimum payment amount.
3. Using your budget, determine how much money you need for your regular monthly expenses, and how much is left over.
4. Using the amount left over, make the minimum payment on all your debts EXCEPT the first on on the list. Take whatever is left after paying the minimum amount on all the others and put it ALL towards the first debt on the list, the one with the smallest balance. Continue doing this each month until the first balance is completely paid off. Don't forget to call the creditor and send a letter to officially close the account - some people mistakenly think that by cutting up their credit card, the account is closed!
5. Cross that debt off your list, take a deep breath and then jump right back in. Continue paying the minimum payment on all but the NEW smallest debt. On this one, you want to pay the minimum (which you've been paying all along), PLUS the full amount you were paying on the debt you just paid off. Continue doing this each month until the balance is completely paid off. Close the account and move on...
6. Continue this process until all your debt is completely paid off.
This technique is called the "debt snowball", simply because the concept allows you to start small and pick up momentum as you go along, much like a snowball picks up snow as it rolls down hill, getting bigger and bigger and bigger. The longer you stick with it, the faster your debts will begin to disappear!

The steps are simple, and actually fairly easy as well. However, the discipline and endurance to finish the job are far from easy. It will take intensity, desire, and commitment to make this happen and to not lose heart and get discouraged! Setting some goals for yourself and celebrating milestones as you reach them is one way to keep yourself motivated. Another way is to find an accountability partner. Find someone you know that will do this with you. Its kind of like getting a workout partner...someone who will go to the gym with you, keep you accountable about what you are eating, celebrate with you when you lose weight...same concept. Having accountability will help you keep the momentum going.

Getting out of debt is an exciting, liberating accomplishment! Savor the victory, but don't get too comfortable, because Friday we're going to continue moving down the Road to Financial Freedom with Part 6 - Finishing Your Emergency Fund!