Hope for your financial life and beyond

Building Trust With Your Audience: Should a Blogger Care?

July 30, 2014 by 38 Comments

word trust spelled in blocksShould a blogger care about building trust with their audience?

I’ll admit to not thinking about this much when I first started Luke1428. The only care of my infancy involved getting my ideas into print. That was stressful enough. Who had time to think about whether or not my audience would trust me.

The deeper I go into this journey though, the more I’m realizing the importance of this issue. Trust is the basis of all relationships. Without it, relationships disintegrate.

Don’t believe me? Then think about the last time someone you trusted and believed in took a misstep.

Your teen who broke curfew.

Your significant other who cheated on you.

The pastor who became involved in an indiscretion.

A co-worker who threw you under the bus to save their own skin.

How did that make you feel? Betrayed? Cheated? Disappointed? Wary going forward?

Whether we like it or not, we are developing a relationship with our audience, whether that is in a business setting, in a non-profit organization, in our families and yes, right here in a blog. And I would suggest that the more trust we engender from others the more potential for success we will have.

Trust Is Built Over Time

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Filed Under: Blogging, Leadership Tagged With: , ,

Confessing a Really Stupid Money Mistake

July 28, 2014 by 53 Comments
man with head down on desk

What was I thinking?

Longtime readers know I’ve been preaching against debt and the use of credit cards since the early days of this blog. I know some people believe in their use, especially for the reward points they offer. For some reason, we were never able to get credit cards to work in that way. All they created for us was overspending.

Debit cards and cash became our salvation, as we learned to only spend what we earned each month. Taking that step away from credit, coupled with our budgeting efforts were big steps in moving us toward financial freedom. The journey, in the past five years especially, has been a wonderful ride, one that has allowed us to pay off our mortgage earlier than expected.

It would be easy to let my head swell and the buttons on my shirt pop with pride at our financial success. Funny how life has a way of keeping us humble. It did to me this past week when I received a curious and infuriating letter in the mail from Bank of America.

The letter read:

“Your above referenced account is currently past due. If you’ve already scheduled a payment, thank you. If not, your current balance is $299.56.”

Pardon me?

My stupid money mistake

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Filed Under: Debt Tagged With: , , ,

A Sobering Takeaway From the Malaysia Airlines Flight 17 Crash

July 26, 2014 by 12 Comments

Hidden Nuggets Series #49 - “See that you walk circumspectly, not as fools but as wise, redeeming the time, because the days are evil.” - Ephesians 5:15

rocket launcherTragedy always catches our attention.

So my thoughts have been perked this past week as the news outlets have reported the gruesome scene at the crash site of Malaysia Airlines Flight 17. 298 people were gone in an instant, their bodies littered with the airplane debris over the Ukrainian countryside. Their families will be impacted forever, perhaps never finding resolution.

Like you, I’ve flown countless times. The tranquility of cruising at 30,000 ft. sets the mind at ease. We can find relaxing peace there, sipping our drinks and gazing out the window. The sun shines brightly on the clouds below, magnifying the beauty of God’s creation.

To be in that moment and have it be your last is more than I can bear to dwell on. I can’t imagine what those last seconds were like as the surface-to-air missile struck the plane.

Outside of the TV series 24, who does this? It’s shocking. It’s inhuman.

Except that it’s not inhuman because it was accomplished by at least one human. Which brings me back to a sobering conclusion that I’ve known all my life - the world can be a very evil place.

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Filed Under: Current Events, Hidden Nuggets Series Tagged With: , , ,

Emergency Fund Basics: The Step On Which All Other Success Is Built

July 24, 2014 by 22 Comments

red 911 buttonWhat’s that? Oh…I see…you are just getting started with the “getting-my-financial-act-together” bit and don’t know where to begin. Well welcome to Emergency Fund Basics, the first step to success in all other areas of personal finance.

That may seem like a bold statement, saying that an emergency fund is the basis upon which all other financial decisions should be built. I can attest though, from personal experience, having money set aside strictly for emergencies is the #1 strategy that has propelled us forward in paying off debt, saving for retirement and college and investing in the stock market.

Why is that?

Because it’s a fact - emergencies are going to come and we will have to manage through the crisis. Sometimes they will rain in droves.

If cash is not available to take care of the emergency the moment it hits our door, then we are really only faced with one alternative - go into debt to deal with the situation. And the constant accumulation of debt hinders our ability to accumulate great wealth over time. The “going-into-debt-to-solve-the-emergency” cycle MUST be broken.

So today I’d like to outline the basics of the emergency fund process. You’ll learn when to start one, what to use it for, how much to save and the best way(s) to fund it.

What is an emergency fund?

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Filed Under: Debt, Spending Tagged With: , , ,

5 Life Changing Moments That Lead to Lifestyle Inflation

July 22, 2014 by 46 Comments
sonogram of baby in womb

Get ready to spend more now

In simplest terms the concept of “lifestyle inflation” refers to a person’s spending going up as their income goes up. Some lifestyle inflation may be unavoidable but it’s a good thing to keep it in check as much as possible. Otherwise you end up living paycheck to paycheck and having little or no money let over to pay down debt, save for retirement and use for other investments.

When a person is at that point, with no money left to create a cushion, life gets really stressful.

We can be drawn to increase our lifestyle at any point in life. As I see it though, there are five instances when we are most susceptible to increasing our spending. Here’s how it often works.

After college graduation at the first real job

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Filed Under: Career, College, Marriage, Spending Tagged With: , , , ,

A Singular Focus of Paying Off Debt Leads to Peace

July 21, 2014 by 3 Comments

Today I’m guest posting and commenting at the personal finance blog The Frugal Farmer. Click the link below to read about what distracts people from paying off debt.

sunset in HawaiiEarlier this summer, my family and I took a weekend excursion to the Bahamas aboard Royal Caribbean cruise lines. We were fortunate enough to walk into an incredible offer Royal Caribbean was pushing where the third and fourth occupants of a cabin sale free. For a family of six already looking for a short getaway, that’s an offer not to be passed up.

For those who have never been on a cruise I would highly recommend it. And when you go, consider upgrading to a balcony room. Lounging with the calm ocean breezes in your own private zone is one of the most relaxing experiences around.

Balconies are about peace. They produce it because there are no distractions, unless your kids are screaming on the balcony next to you. Perhaps some playful dolphins catch your eye for a moment and there is the occasional enemy cruise ship passing in the distance. Mostly though, there is nothing there to distract you. It’s only water and sky for as far as the eye can see…

Click to Continue Reading at The Frugal Farmer…

Next Post: 5 Life Changing Moments That Lead to Lifestyle Inflation

Prior Post: Rethinking the Definition of Success

Filed Under: Debt Tagged With: , ,

Rethinking the Definition of Success

July 18, 2014 by 17 Comments

Hidden Nuggets Series #48 - “Therefore this joy of mine is fulfilled.” - John 3:29

definition of successWhat is the definition of success?

Such a loaded question and a difficult thing to determine. I would say most measure whether a person has been a success based on a position attained, an amount of wealth accumulated or the level of power they possess. Other views may define success as simply reaching a goal or leaving an impact on others - a legacy that lasts after the person is gone.

Either way, there seems to be a fine dividing line between success and failure in the world’s eyes. To borrow a famous movie line from Trading Places, “One minute you are up half a million in soybeans and the next, boom, your kids don’t go to college and they’ve repossessed your Bentley.” One misstep it would seem can have that big an impact.

Complicating the definition of success even further is that we struggle evaluating ourselves. More often than not it’s the world and other people’s opinions telling us whether we are a success or not. Instead of gauging ourselves and being good with that, we let strangers define our level of success - people who may not have all the facts, who misread our motivation and fail to understand our endgame.

I don’t believe in a magic formula that defines success. There is too much subjectivity involved. For example, as I describe the life of this particular person, would you classify him as a success?

Was He Successful?

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Filed Under: Hidden Nuggets Series, Inspiration Tagged With:

The Tools of Motivation: Getting What You Need to Succeed

July 16, 2014 by 38 Comments

Nike+ GPS SportswatchWhat do you need to succeed?

For my money, nothing beats a good tool. Those who have ever worked on a construction site or have completed a DIY home project know this to be true. The more specific the tool is to the need the better it is able to properly complete the task.

For example, you wouldn’t use a hammer to insert a screw. Well, maybe you could. However, that method is probably going to cause some damage and a ton of frustration. The right tool is needed for the right circumstances to help you achieve maximum results in the most efficient amount of time.

Interesting thing about tools is how they motivate me to succeed. There have been times when I was having difficulty with a particular challenge and a tool pushed me through a mental or physical barrier. In most cases, the tool cost me money to obtain but in the end it proved vital to my success.

So for that I’d say the right tools are worth purchasing to help you win.

Tools come in all shapes and sizes for all aspects of life. Here are a few areas where I’ve seen tools be effective in my life.

Electronics

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Filed Under: Goals, Inspiration Tagged With: , ,

The Lemonade Stand Book Review Plus An iPad Mini Giveaway

July 14, 2014 by 18 Comments

The lemonade stand book reviewToday I have the pleasure of assisting my friend Shannon Ryan from TheHeavyPurse.com as she kicks off the release of her new book The Lemonade Stand. In addition, you can sign up below for the chance to receive a free iPad Mini. How cool is that!

Before you get to the giveaway, I’d like to briefly share my review of The Lemonade Stand, a book geared toward children ages 4-9.

The book follows the adventures of sisters Lauren and Taylor and their friends Ryan and Christopher.

The Storyline

As they shop in preparation for a beach trip the following day, Christopher discovers a toy he wants really bad. Guess what? His brother Ryan also finds something in the toy aisle. Both beg their mother for their desired toy that they must have “right now!”

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Filed Under: Book Review, Kids and Money Tagged With: , , , ,

I’ve Scrapped My DISQUS Commenting System To Run A Blog Experiment

July 12, 2014 by 50 Comments

Hidden Nuggets Series #47 - “The heart of the prudent acquires knowledge…” - Proverbs 18:15

figurine at computer with blank comment cloud

Will you now be more likely to share your thoughts here?

I find it frustrating when people make blanket statements about a topic without proof to back up their claim. They present their argument as the gospel truth when, in reality, it is only based on speculation. At the most they have anecdotal evidence to support their claim, not anything that would validate their position.

Truth is, I also do this more often than I should.

Evidence is the best indicator of truth. That’s why it’s so vital in a court of law. Without sufficient indicators that connect the dots, the accused will more than likely walk free. That’s why the prosecutor works diligently to acquire the necessary knowledge to convince the court his arguments are valid.

The Bible says in Proverbs 18:15 that “The heart of the prudent [wise] acquires knowledge…” Why? I’m convinced it’s how we make better decisions, produce surety and make us prosperous. As Solomon would later right in Ecclesiastes 7:12, “…the excellence of knowledge is that wisdom gives life to those who have it.”

What does this have to do with a blog commenting system?

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Filed Under: Blogging, Hidden Nuggets Series Tagged With: , , ,

Your Best Investment Ever Won’t Be In The Stock Market

July 10, 2014 by 22 Comments

Invest in yourself quoteHistorical analysis suggests an investor in the U.S. stock market can reasonably count on an average annual return of 8-10%. I’d certainly like that return on my money. To get that, I’ll have to weather down periods in the market. It’s worth it however, knowing the good years will balance out the lean years to achieve that return.

While the stock market is a great creator of wealth, it’s not the best investment we can ever make. Nor is it land, rental properties, CDs, bonds, or commodities. None of those will bring the level of return needed to really succeed in our life, in our career and with our finances.

There is one investment that outshines them all in terms of total lifetime return. That’s the investment you make in yourself. Nothing will move you forward quicker, push you farther and have more lasting impact than the time and money spent on oneself.

Why Invest In Yourself

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Filed Under: Career, Investing, Lifestyle Tagged With: , ,
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