Franklin Frederick

The Path Toward Enlightenment

This is not actually about enlightenment in the Buddhist sense. I don't know enough about Buddhism to profess enlightenment of that sort. The enlightenment I'm speaking of has to do with current economic and life circumstances from both a consumer and industry standpoint.

A personal anecdote to get this started. My thoughts got going on the laws of compound interest. I recalled tough times nearly eight years ago living in Northern San Diego County and merely surviving so I could do what I wanted to do which is surf. I recall barely having enough money to pay my rent and even cashing in all the change I had saved to get simple stuff, like food. The compound interest in this case has nothing to do with the change and has everything to do with doing what it took to do what I loved. I woke up every morning with my coffee and could walk out on a patio and watch the ocean. That is compound interest of a different sort.

What does this have to do with you? It has everything to do with you and with all of us. It is about enlightening ourselves to do what it takes to live our passion. If you are a consumer and you want to buy a house, times are tough but it's still possible. You have to do what it takes to make it happen. If that means fixing your credit, working harder, putting away a few Starbucks bucks into the bank instead of your stomach, then that's what it takes. If you're struggling with your house payment and want to keep your house, then if that's what is important to you, you will find a way.

Likewise, for those in the industry, if you have a passion for what you do, you will also do what it takes. Sometimes, doing what it takes isn't what we'd prefer to do, but having the end goal in mind is what gets us through. I didn't exactly do what I wanted employment wise in San Diego. I told myself I couldn't afford going to college and work. I found a way. Eventually, I came home to Northern Cal, started on my marketing degree and worked full-time. Guess what? I still surf.

If you aren't willing to do what it takes, then, as one of my favorite authors, Larry Winget puts it, "You are either stupid, lazy or you don't give a damn." So you should ask yourself if you're willing to do what it takes, recession be damned. Ask yourself and be enlightened.

Crediting the source of the quote, Larry Winget is author of a book I highly recommend, entitled, "Shut Up! Stop Whining! And Get A Life!"

Fear. One simple word evokes many emotions. Looking at news reports each day it is easy to see why there is much fear in our world today. Most of this fear surrounds money. Fear might not be the word for most of us; it's maybe a deep concern. However, with the multitude of bad news, such as high unemployment, a sinking stock market, recession and a rash of foreclosures, fear just might be creeping in.

Let us take a look at the acronym F.E.A.R. Not the word "fear." Most of us have probably heard that fear stands for False Evidence Against Reality. It is a true acronym and let me tell you why.

There will be many people who will read this and say; ‘Reality is speaking to me through the news, the fear for my job, my savings, my 401K and so on.'

Let me address those issues in an all-encompassing explanation.

Money is still out there. It didn't disappear; it didn't dry up or float away. I worried myself sick about money once. My friend responded to my fear with, ‘you can always make more money, but you have to take action.' He was right. Another friend in the Financial Industry said, ‘Have faith, because it will come back, and if it doesn't everyone's money won't be worth anything anyway.'

Are you worried about your job? Take action! Do the best you can 100% of the time, every single day. ‘It doesn't matter, I'm going to lose my job.' you say? Then in the mean time, learn everything you possibly can about your business. How does it work? How does the product work? How is it advertised? If you sit and complain about it, that is time you could be spending on a solution.

Empower yourself! Go back to school. Get certified. Update your resume. Learn everything you can about a trade that is doing well in this economy, or does well in any economic climate. Get creative and think outside the box.

Talk to your CPA and Investment Advisors about taxes and preserving your capital. Know what they know.

Hold a garage sale, cut back on cable TV and Starbucks and put money into your savings.

An author once wrote that we have two circles, a circle of influence and a circle of concern. One circle, you can do something about, another that just breeds fear and we cannot do anything about it. Which circle are you going to work on?

**This writer advocates using your common sense and discipline. If you cut back too much, life is no fun. Find your own balance. This author also spent a week in Cabo San Lucas when he was displaced from his Banking job, goes to Starbucks only twice a week now and drinks cheaper wine, but also studies his rear off every day.

The Secrets Behind Being Successful In Your Mortgage

Did you know that the word mortgage means something akin to pledge of death? Looking at a thirty-year mortgage can make it feel that way. However, it does not have to be. There are a few basic secrets to use a mortgage successfully for future benefit. It takes patience and discipline and even savvy homeowners and investors refresh their knowledge of these secrets from periodically.

Secret #1: If you already have a mortgage or are planning to take on a mortgage loan, create an accurate budget. Estimate items like groceries, electricity and water on the high end rather than the low end. Even if you think you can cut some expenses, estimate high. You can always consolidate it down later, once the final figures are worked out.

Secret #2: Find out and include in your budget, the actual or proposed full principle and interest (P&I) payment plus all applicable fees and taxes. If you are buying a house and cannot include the full P&I payment along with groceries and all other items within your budget comfortably, focus on a house you can afford. The P&I secret applies no matter what type of loan you get. This will help enable your future success.

Secret #3: If you already have a mortgage loan, accurately budget again. If you are hesitant to do so, the dose of reality combined with taking action can help enable future success. Start that action and contact your mortgage professional and/or CPA to discuss your options.

Secret #4: Have safe accessible side money in the case something catastrophic happens such as job loss or major medical expenses. Six months of savings is what most experts recommend.

Secret #5: Educate yourself. Spend a few minutes each night learning about mortgage loans, taxes, your local market and how money works. The more you know about how they all work together, the more these tools will allow you to be successful with your mortgage. Remember, knowledge is power, but what you do with that knowledge is the real power.

Here are two websites that will help you get started:

www.howstuffworks.com

www.bankrate.com

These are just a few of the secrets that can make possible, success with your mortgage and financial life.

Sincerely,

Frankie Frederick

The Silver Lining In The Credit Crisis

Watching the stocks plummet and the housing market sink is not exactly heartening news to most of us. However, there may be a silver lining to the economic downturn we are currently experiencing.

Some economic and investing experts in the media tout that the silver lining is that we are able to buy houses and stocks for bargain prices. While that may be the case, most of us probably do not know when the bottom will be, much less when stocks and housing will recover and start moving on an extended upward trend. I don't know about you, but I'm no Warren Buffet.

The silver lining I am talking about is education; the type of education that takes us deeper into understanding how our finances, credit and overall economics work. When things are good, it is easy to look past our budgets. It's easy to see ourselves continuing on the same path toward the "American Dream." Our jobs appear stable, we continue to pay our bills, get our gas (possibly grumble about the price a little) and have nice, restaurant dinners with our families.

The current credit crisis is our wake-up call. Even if we can watch the turmoil on television or read it in a newspaper and say, ‘that's not me'; it does not take much for it to become us. If we take a little more in depth look at our finances and educate ourselves more about our taxes, our mortgage, our credit and our budgets and really learn how they work, we can be one cog in the wheel of developing financial awareness that will help us through nearly any economic downturn.