Why do we need help?

It's hard to live a happy, peaceful life while we are sitting under the Sword of Damocles, financially speaking. According to Dave Ramsey, money fights are the second leading cause of divorce, a statistic echoed by Jimenez Law Firm. It is well known that for some time families have been in dangerous financial conditions, and that it is getting worse every year. Over 86% of American families cannot afford to miss even one paycheck including families with higher incomes. The 2023 Survey of Household Economics and Decision making (SHED) conducted by the Board of Governors of the Federal Reserve System indicate a decline in peoples' financial well-being over the previous year. The survey, which was fielded in October 2023, found that self-reported financial well-being fell sharply and was among the lowest observed since 2016. 37% can not cover a $400.00 unexpected expense (55% of Black families, 51% of Hispanic families, 30% of white families, 21% of Asian families). 13% of all adults said they would be unable to pay the expense by any means. Eighteen percent of adults said the largest emergency expense they could handle right now using only savings was under $100. (Economic Well-Being of U.S. Households in 2023 - May 2024, page 36-37) They do not have a cash "Safety Net" or " Emergency Fund" so that they can deal with even small unexpected expenses without borrowing. 65% of adults said that changes in the prices they paid compared with the prior year had made their financial situation worse, including 19 percent who said price changes had made their financial situation much worse. The median monthly amount that parents using paid care paid for childcare was $800. For those who paid for 20 or more hours of childcare each week, the median cost was $1,100. There is more summary data on the Economic Well-Being of U.S. Households in 2023 - Fact Sheet. The SHED Appendix with consumer response data is available for public review.

According to a Pew Research article published in December 2022, one-in-four U.S. parents say they’ve struggled to afford food or housing in the past year. Debt sucks up almost all of the money that we work hard to earn, we face a retirement eating dog food on social security at best, and if any little thing goes wrong we're likely to be homeless. Does that sound like the American Dream to you? I think it is more of an American Nightmare! Yet that is the reality for four out of five American families. It should not be so, and here at Adult Life Training, Inc. we are changing that, family by family, across America right now. We will help you, too: The morning cometh, and also the night: if ye will enquire, enquire ye: return, come. (Isa 21:12)

I grant that most of us can be dumb sometimes, but nobody is that dumb! How did all this happen on such a massive scale?

How can we become financially healthy?

Awareness is the first step, then adjusting our behavior so that we get free of debt and can begin to prosper. Add up all of your payments to lenders: credit cards, car loans, student loans, mortages, and any other required payments. Then ask yourself what you could do with that money if you could use it any way you wished instead of being forced to give it to creditors. A well known and very effective program for building awareness and making needed changes is Dave Ramsey Financial Peace University, which can be purchased in the Ramsey Solutions web store and is available free through our site license.

If you have not already completed Dave Ramsey Financial Peace University, do that first. There are details on how to take this program for free on our Free Dave Ramsey Financial Peace Classes web page. Many millions of families across America (and in fact the world) have used the basic "Baby Steps" that anyone can do in the Dave Ramsey Financial Peace University classes. So the first step, if you have not already been through the FPU training or had it several years ago, is to take FPU, for free, using our site license. All the information that you need, for free, is on our Free Dave Ramsey Financial Peace Classes page. The cost has already be paid in full by local businesses in the Fort Wayne, Allen County area: it is free.

As an overview there are basically three parts: one, we ascertain what is actually happening with our financial matters, two we assert personal control over our financial matters, and then three we maintain.

The way we apply this for financial management is:

• Collect the last several month's financial papers - bank statements, bills, notices - everything
• Select the documents that involved any money movement, in or out, over the last three (3) months
• Do a Cash Flow (budget) on what actually happened -- not what you wish happened -- the last few months
• Compose a best effort budget for the coming month. Craft it to get what you want to happen this month instead of what has been happening.
• Spouses meet together, go over the budget, and make any needed changes using all available information
• Use that budget as your road map, updating as needed to reflect unexpected things that happened, refusing to spend anything outside of what is on that budget, and spouses meeting together each week to review what actually happened and fix the budget as needed to work the rest of the month

In the Dave Ramsey Financial Peace University training we learn "Baby Steps" to get and keep control of our finances, and by extension, our lives, and the above is a component spread across these steps. The Dave Ramsey "Baby Steps" are:

1. Save $1,000 for your starter emergency fund
2. Pay off all debt (except the house) using the debt snowball
3. Increase your Emergency Fund to cover three (3) to six (6) months of actual living expenses
4. Invest 15% of your household income in retirement
5. Save for your children’s college fund
6. Pay off your home early
7. Build wealth and give

The "Baby Steps" are taught in Financial Peace University. The biggest part of transitioning to a better life financially is changing habits, and that is why everyone needs a financial coach.

How do coaches decide if they are willing to work with me?

That is a very perceptive question: coaches cannot afford to work with everyone, so they must invest their time in people who will benefit the most. In the Ramsey Financial Coach Master Training that we use to train our coaches we are taught to look for three traits:

• Are they Faithful? - will they follow through on the tasks you give them to improve
• Are they Available? - will they be at their appointments on time, as agreed
• Are they Teachable? - will they take direction and improve, or make excuses

When you are making your initial calls with coaches they are going to try to understand where you are with respect to these three traits. Not everyone is ready for coaching now, but they may be next year. Financial Coaching is not like Gym Membership - you don't just buy it and then never go or get around to exercising. Financial coaching comes with the expectation that you are committed to improving yourself: the coach is there as your guide, but your coach can not fix your life for you: you are the hero in your story, and you are the only one who can fix your life.

The coach will want to know that you are genuinely committed to make this work.

What will you get?

These things are typical for every family or individual to achieve during coaching: they are primary in eliminating financial stress and getting you some peace in your life now, and a future that you want and love. The coach will provide experience so that you can actually achieve these things.

With your coach's help:

• You will identify your real financial situation, your desired outcomes, and your goals
• You will develop a monthly plan, a budget, and take control of your financial situation by establishing and enforcing your own policies on how you will transact business with creditors. By way of example, and not by way of limitation, these policies will include:
  • Appropriate allocation of all your income so that you can eat, stay sheltered, and have transportation to and from work, while still paying off all debts
  • Communications expectations and requirements for all creditors who wish to contact you
  • Priorities and importance of each of your goals so that you know which choices you want to make
• You will store up cash as a safety net, typically $1,000, so that unexpected expenses become an inconvenience and not a crisis
• You will itemize a list of all your debts, and begin aggressively eliminating them
• You will get proper protection using the right kind and amounts of insurance
• You will better understand how to control the effects marketing has on you, and you will learn how to bargain more effectively
• When you have paid off your last debt you will increase your safety net so that you can easily continue life as usual should you loose all income for at least three (3) and up to six (6) months
• When you have paid off your last debt you will begin investing for your families' future needs and your own retirement
• Finally, you will learn how to prepare yourself for a retirement that you will enjoy instead of fear

Families usually complete the first six (6) items in the first three months. After the third month you may not be happy with your financial situation but you should feel more confident that you know what is going on and feel more in control.