As we approach our annual turkey fest, it is worth taking note of the real lesson the Pilgrims taught us. We're going through some tough times economically all across our land, but NOTHING like the earliest Americans experienced during their first two years on American soil.
To finance the cost of trip to this new land, the Pilgrims had to make a "deal with the devil". A group of investors advanced them the funding, but the cost was incredibly high. HALF of everything the Pilgrims owned and produced in this land for the first SEVEN YEARS belonged to these investors. Think 50% income tax, 50% shared appreciation of all improvements, 50% confiscation of anything produced that had value. Half - right off the top.
"Where were the predatory lending laws then, huh?"
And to control the situation even more, the investors put another caveat into the deal: No one would be allowed to own personal property until the terms of the contract were fulfilled. All food and goods produced would be shared equally amongst the group. Each family would be assigned plots of earth to plant and the harvest would be put into a public storehouse for redistribution according to need. And private structures would not be allowed.
"Redistribution of Wealth? How'd that work out for ya?"
Share and share alike. Everyone work hard for the good of the group. "Unite, and there will be plenty for all" was the message being preached. Did it work out that way? Not a chance. Records show that many of the inhabitants simply refused to work and relied on the group to take care of them. Resentment, bickering, and open hostility grew far faster than the crops.
The result of this redistribution of wealth idea? HALF OF THE PILGRIMS DIED DURING THE FIRST 2 YEARS - starvation, disease (mostly scurvy - an affliction caused by malnutrition and lack of vitamin C), and exposure to the elements due to inadequate shelters were the main causes. During the second winter - after they should have had storehouses overflowing with the summer's harvest - a typical daily ration of food was 3 KERNELS OF CORN PER DAY PER PERSON. You see, even faced with death, people would NOT put out maximum work effort (or any effort at all) in such a system. The Pilgrim experiment was about to fail.
"You produce it - You keep it."
William Bradford made a decision that second winter to change things. He had taken over leadership of the group after the original leader got sick and died the first year. Bradford announce before that winter was over a new system: Each family would now OWN a plot of earth to farm, build a home on, do with what they pleased. Investors be damned - the system of share and share alike was over. You produce it - You keep it. If you have extra - you are free to sell or barter or give it to other members of the group.
This new system motivated families to prepare their fields early and tend the fields properly knowing this was an opportunity to get ahead. The result was a HUGE early harvest - and a HUGE harvest feast celebration - the one the Pilgrims invited the Indians to and the one we model our own Thanksgiving celebration after. And no one in the group went hungry that winter. Read that last sentence again!
In our current environment of bailouts and financial market meltdowns, let us learn the lesson the Pilgrims taught us. The key to economic survival and prosperity is Land & Home Ownership and Individual Economic Freedom. Allow people the ability to choose their economic path and use the fruits of their labor the way they want to, and our country will survive this and continue to be the shining light on the hill for the world to see. Go back to redistribution of wealth and central control - like what the Pilgrims faced - and our country will be in for a long hard winter.
"God helps them that help themselves." Benjamin Franklin
Okay, I think I get it now and I'm ready to give you the scoop on the new law. I know this news has been circulating around for awhile now, with many industry professionals trying to be the first to tell you the new rules, but up until now - I still had questions that I couldn't find answers to and much of the information I was getting didn't jive with other information I was getting. So, this may not be the first you've heard about this stuff, but I believe it is accurate.
No big changes to the First Time Homebuyer tax credit, except now you can claim it if you're in a higher income bracket. (Questions on this? Easy to find income limits on-line or call me.) Extension applies to homes under contract by April 30th, 2010 and the deal closed by June 30th, 2010. (For a refresher on the First Time Homebuyer tax credit, visit http://www.credittothewise.com/mortgages/free-irs-money-for-home-buyers )
For existing homeowners, you can get up to $6,500 if you buy a new primary residence (same contract and close dates). You don't HAVE to sell the current primary residence, but you do need to live in the new primary residence. (And don't think you can cheat on this - they'll be checking! With the many fraudulent claims the IRS received for the current programs - which was claimed by toddlers and pets and people who didn't even buy a home - don't expect the IRS to let you skirt by on this requirement. There are MANY places they can find out, the most obvious ones being the mailing address you put on your tax filings in the next few years and your documentation of rental home income - Oh, and there's a census coming up next year too!)
In order to qualify, you MUST have owned and lived in your old or soon to be old home for at least 5 years and sold it in the past 3 years. This is the one really confusing part of the bill - but I think I have it now, and I hope I can explain it to you.
Example A: Owned a home for 5 years and sold it in 2008 and have rented since. You qualify for the tax credit because you satisfy the 5 year rule and sold in the past 3 years and didn't own another primary residence since then.
Example B: Owned a home for 5 years, sold it in 2008 and bought another one right away. Now you want to sell this home and buy another one. You do NOT qualify for the tax credit because you've owned your current home less than 5 years. The tax credit is based on the most recent home you've owned.
Example C: Owned current home for 5 years, want to buy a new home and turn the old one into a rental home. You qualify for the tax credit. But if you do not live in the new home as your primary residence for at least 3 years, you will be obligated to pay back the tax credit. And if you are found to be claiming the tax credit fraudulently, you'll also have severe tax penalties to deal with too.
Example D: Owned a home for 5 years and sold it in June 2006 and have rented since. You don't qualify for the existing homeowner tax credit because you qualify for the $8,000 first time homebuyer tax credit. Anyone who hasn't had homeownership interest in a home in the past 3 years qualifies as a first time homebuyer.
So, that's the basics. (Ask me about joint ownership, community property rules, parents co-signing for kids, etc - too lengthy to get into here). I hope that helps you make sense of the new law and if you need help taking advantage of this great incentive - let me know. I do mortgage lending, ya know. Always happy to help!
Mortgages can be confusing, but sometimes there are simple answers to tough questions like this one:
"Should I pick an adjustable rate mortgage, like a 3/1 or 5/1 ARM, or go with a 30 year Fixed Rate?" How many times has a buyer or borrower asked you that question? How do you help them choose in a way that makes sense to them?
I've found that "Pizza" is the best illustration to use to help them understand this question. If I give this illustration, it all of the sudden makes sense to a borrower and allows them to make an informed and confident decision. Here's what I'm talking about:
When you go in to a pizza parlor to order a pizza, you have to decide "What Size" to choose. Some places have only a couple of sizes to choose from, other places have as many as 6 sizes to pick from. How do you choose?
"If you're looking to get maximum value for your money..."
Well, if you're looking to get maximum value for your money, you can start calculating the cost per square inch of each size. Since pizzas are round, you'll have to pull out your handy geometry cheat sheets (I can still see mine faintly etched on my forearm - where I wrote down the formulas to help me get through those high school math tests) to get through the diameter, radius, pi-r-squared issues.
You'll soon discover that in most pizza places, the larger sizes cost you less per square inch than the smaller sizes. (This is why, when buying for large groups, you avoid buying individual personal-sized pizzas for each person and instead go for the largest sizes for everyone to share.)
"Why would you EVER buy a smaller size?"
After you've figured out that you get more value per square inch out of the largest sizes, why would you EVER buy a smaller size? The answer, when buying pizza, is obvious to you. If you're by yourself, for example, and buy an extra large pizza because it's the best per-square-inch value, but eat only a few slices and throw the rest away - you've wasted your money. Yes, you bought the best "total" pizza value, but by NOT USING the entire pizza - you wasted your money.
The answer to your pizza buying size question, therefore, comes down to "How much pizza will I use?" To get the most for your money, you should always buy the largest size you will actually use. And so it is with choosing a mortgage ARM or Fixed Rate product. Huh?
The assumption I will ALWAYS use when comparing an ARM with a Fixed Rate mortgage is that over the entire 30 year term, the 30 year Fixed Rate loan will cost you less than an ARM - which tends to start out with a lower interest rate for a few years and then will eventually adjust higher. So if you're going to keep the loan for the entire 30 year period, a 30 year Fixed Rate loan is - just like the extra large pizza - the best value per year (per square inch).
BUT, if you take out a 30 year Fixed Rate loan and only keep it for a few years, it is just like buying that extra large pizza, eating a few slices, and throwing the rest away. If you ABSOLUTELY KNOW that you are only going to keep that mortgage for a few years, then you need to give serious consideration to choosing an ARM if the rate you can get is less than the 30 year Fixed Rate.
A final word of caution: Be sure to buy ENOUGH pizza to start with. It is not good to find out you don't have enough to feed everyone because it is a hassle and expensive to go back and order some more after people have already started eating. Likewise, be sure to get ENOUGH term on your ARM to start out with. If you think you'll stay in the home for 3 years, but aren't 100% sure, you may want to get a 5/1 ARM to start with - just to be sure you'll have enough.
Don't get caught short - almost EVERYONE expects rates to rise significantly in the future, so don't get stuck with a house payment you can't afford.
The following stories are from my new database email "marketing" series called "99 Ways to Get Out of Debt and Build Wealth". I'm tired of all the past clients who are calling looking for foreclosure avoidance, loan modifications, and short sales advice, so I thought I'd put together a series dealing with financial management lessons to help these folks BEFORE things go bad.
When I offered this series to my database and made them "opt in" by emailing me back and requesting it - I had over HALF my list ask for it. That was a much larger response than I expected - validation that people are hurting and searching for answers - and they are sending my stories to people they know, increasing my reach and influence in my market.
I've posted the first few lessons in the series here. These first stories set the stage and later lessons will offer real, specific, how-to ideas and advice on reducing debt, earning more money, saving and investing, and protecting wealth.
The response so far has been fantastic - with the list growing every day and new loans coming my way too. The real joy is I feel like I'm helping people who may not have ever heard these ideas before or who just need a good reminder of sound economic strategies. Maybe I can keep a few people off the foreclosure notice rolls and help a few families avoid financial collapse or enjoy financial peace of mind.
Lesson #1: The National Biscuit Company
In 1898, during a time of significant economic upheaval and world political turmoil, 114 independent bakeries - mostly mom-n-pop shops - all across the US joined forces and formed "The National Biscuit Company". Just how bad was the business climate then? Let's see...
The US had just declared war on Spain (the beginning of the Spanish/American War), and any conflict between these two world superpowers would surely upset trade, supplies, and manpower around the globe. The US monetary system was facing great uncertainty as politicians debated our "gold standard", threatening the very value of the dollar itself and economists feared the worst in terms of inflation and wealth erosion. China was unstable with a new authoritarian leader, a peasant uprising, and violent opposition towards anything "Western". And a great Bubonic Plague was rapidly spreading death and fear throughout Asia and beyond, and it would eventually kill over 3 million people worldwide. (Sound familiar? US at war, dollar under attack, problems in China, a potential plague - Swine Flu? Hmm...)
In the midst of this turmoil, these 114 bakeries consolidated, pooled their resources, agreed to cooperate, and determined to face an uncertain future together. Streamlining distribution channels, combining production capacities, and using vastly increased buying power to negotiate better pricing with suppliers, the new entity was able to significantly reduce costs and increase production. (Ooh, was that too obvious so early in our lessons on how to get out of debt and build wealth? Reduce costs? Increase production? Sorry about that.)
The next three articles in the series will share some specific strategies that helped propel The National Biscuit Company to greatness. (Oh, in case you don't recognize the name, they later shortened the name to something you may recognize easier: Nabisco.) But the first lesson in our "99 Ways to Get Out of Debt and Build Wealth" has to do with the formation of the company itself. Don't miss this lesson - it may be the most important one in the whole series!
Just like these individual bakeries, you may be facing an uncertain future. The key to their survival was to join forces and slash costs, increase production, and work towards a common goal. Do you have people in your life whom you need to involve in your debt-reducing / wealth-building journey? Your spouse? Your kids? Your support network? Benjamin Franklin admonished his fellow Founding Fathers and patriots with "We must all hang together, or assuredly we shall all hang separately." Who in your life do you need to "hang together" with?
Lesson #1: If you're ready to make positive changes to your financial situation, start by having a frank money conversation with your significant other(s). Realistically assess where you are currently at and where you'd like to go. Understand that there may be sacrifices to make. Promise to support each other. Be excited about the future these changes will help you create. Dare to dream big and pledge to enjoy the journey, come what may. Together, the burden will be lighter and the rewards will be greater!
(From my series "99 Ways to Get Out of Debt and Build Wealth")
Lesson #2: Of Course Uneeda Biscuit - Certainly!!!
As we learned in lesson one, The National Biscuit Company was up and running in 1898, reducing costs and increasing productivity for the 114 formerly independent bakeries. But to take full advantage of the new business arrangement, "Nabisco" needed to move towards producing uniform nationally-distributed products rather than relying on specialty-type local or regional offerings. What was needed was a new, exciting flagship product to introduce the company to the nation and get all the bakeries on-board. After much consideration, a surprising choice was made.
At this time, a common item in any grocery store was a large, typically round, wooden container filled with loose crackers. Patrons, especially children, would come in and help themselves to one or two - maybe a handful - to munch on while they shopped. Catching up on the latest gossip or political news while gathered around the "cracker barrel" was a common social event.
You could buy these crackers by scooping them out and filling a paper bag, but most shoppers thought of "crackers" much the same way that today's Costco shoppers think of the free samples available up and down the aisles there: Something to entertain your taste buds or stuff in your kids' mouths to keep them quiet while shopping and a small price for the grocer to pay to keep you happy and shopping there.
So was it smart that the first nationwide product from The National Biscuit Company was set to compete against something you could grab for free most places? Probably not, but that was the plan, and the "Uneeda Biscuit" was born. Nothing more than a common-tasting cracker, it was called a "biscuit" because that sounded "more elegant" and the name would appeal to an adult consumer.
Visually, instead of the irregular round or square shapes of common crackers, the Uneeda Biscuit was introduced in a precise octagon shape - noticeably "uncommon" in appearance. And instead of having to scoop out handfuls of loose and broken pieces from the "who touched this before me" cracker barrel, the Uneeda Biscuit was the first product ever sold in the new "In-Er Seal" box - an air-tight waxed-paper & cardboard carton to "seal in the freshness".
And the Uneeda name itself demanded attention, especially when presented in this carefully sequenced campaign slogan:
"Do you know Uneeda Biscuit?
Do YOU know Uneeda Biscuit?
Do you KNOW Uneeda Biscuit?
Of Course Uneeda Biscuit!!!
Of Course Uneeda Biscuit - Certainly!!!"
Ahh... Advertising magic! The Uneeda Biscuit, the first product to carry The National Biscuit Company name nationwide, was a huge success. And its success laid the groundwork for many more successes to come (like those in our next two lessons). Sadly, the Uneeda Biscuit was discontinued in 2009 after 110 years of production, but it definitely served its purpose of getting Nabisco off to a good start.
What's Lesson #2 in our "99 Ways..." series? This story highlights that you don't have to accept "joint wisdom" as being absolute truth. Even though the "joint wisdom" in 1898 dictated that crackers should be sold from cracker barrels, Nabisco went a different way and enjoyed tremendous success because of it. Many of the lessons in this series will also question the absolute truth of some common "joint wisdom" concepts. I hope the lessons will help you change or improve the financial decisions you are currently making and get you thinking in new directions. If nothing else, the stories will give you something to talk about with friends and family around your "cracker barrel".
(From my series "99 Ways to Get Out of Debt and Build Wealth")
Lesson #3: Your "Little White String" Could Make ALL the Difference
In 1840, Albert - son of the Duke of Saxe-Coburg-Gotha (Germany) - married his English cousin, Queen Victoria, beginning one of the greatest stories of love, romance, power, and political intrigue in history - one that captivated the world and influenced generations across the globe. This "lesson" begins with an old German tradition that Prince Albert introduced to Windsor Castle in 1841 - the Christmas Tree - with such smashing success that within a few years, most English homes included a decorated Christmas tree in their holiday decors.
In 1843, English writer Charles Dickens, capitalizing on the building enthusiasm for the Christmas season and needing quick cash to pay for his wife's 5th pregnancy, hurriedly wrote A Christmas Carol and introduced the phrases "Bah, Humbug" and "Merry Christmas" to the English language. A few years later, he revisited the Christmas theme with a series of some Christmas stories titled, surprisingly, Some Christmas Stories.
In a story from this series titled, A Christmas Tree, Dickens offered a glimpse of how English Christmas Trees were properly decorated. He described a tree covered with dolls and dollhouse furniture, miniature musical instruments, watches, costume jewelry, toy guns and swords, fruit, candy, sugar plums, nuts, toys, games, and, as one astonished child in the story exclaimed, "everything, and more". You've sung it - "presents ON the tree".
Dickens and his books were wildly popular in America. His stories, along with other influences from England, increased America's interest in Christmas and helped shape our holiday traditions. In the 1890's, Christmas trees became common place in American homes, albeit we preferred large floor-to-ceiling versions rather than the 4' or less tabletop models the English preferred.
This background brings us back to Nabisco. In the Spring of 1902, Nabisco rolled out a new offering - Barnum's Animals. Named after P.T. Barnum's traveling circus (The Greatest Show On Earth), these animal shaped cookies were modeled after animal shaped English Tea Biscuits - all the rage in England at the time. Selling for 5 cents, each bright red "In-Er Seal" box was made to look like a circus train car with a collection of 18 assorted animal shapes inside.
A quality product, sealed for freshness, fun looking, based on an already successful idea (English Tea Biscuits), named after the most famous showman in the world (P.T. Barnum), it enjoyed moderate success when it was introduced that Spring. But then Nabisco decided to add something extra to the product offering - with a completely unexpected result.
Inspired by Prince Albert's and Charles Dickens's example, American families would put up their trees on Dec. 24th, and children would awake Christmas morning to find the tree decorated with lit candles, brightly colored toys, treats, and decorations. And that year, 1902, somebody at Nabisco came up with the idea (Inspired by Dickens?) that Barnum's Animals would make an excellent "surprise" for children to find on the tree Christmas morning.
For easy hanging a "little white string" was attached to each box of Barnum's Animals and a promotional campaign spread the message - and it was a HUGE success. Children enjoyed the cookies, but the unexpected result was that the "little white string" turned each cookie box itself into a play toy. Girls used them for little purses. Boys used them to carry their jacks and marbles and tiddlywinks. When Nabisco removed the string from boxes after the holiday, customers threw tizzy fits and grocers had to "fix" the defective boxes themselves until Nabisco could send new shipments with strings attached. And over a hundred years later, that "little white string" is still there.
The lesson to learn from this very successful product is that many of the ideas I'll be sharing with you can and do work - but until you put your own "little white string" on them - your own personality, ideas, experiences - they may not produce the results you desire. So as you read, I hope the lessons will inspire you to find ways to solve your debt problems. And adding your own "little white string" could make all the difference.
(From my series "99 Ways to Get Out of Debt and Build Wealth")
Lesson #4: Got Milk?
Spurred by earlier successes (Uneeda Biscuits, Barnum's Animals, Fig Newtons, Nabisco Wafers - still sold under the name "Bisco's" in parts of the country - to name a few), Nabisco was anxious to introduce even more products to the national market. These national products provided the 114 Nabisco bakeries with a steady stream of consistent income and a huge competitive advantage as they continued to compete for less-consistent local production business.
Four noteworthy national introductions were made in 1912. First was a simple square shortbread cookie - good taste, but nothing spectacular about it. Adolphus Green, Founder and President of Nabisco, knew the importance of having the right name for a product (Think back to Barnum's Animals and naming a simple cracker product Uneeda Biscuits), so the shortbread cookies needed a good name too.
Earlier in his life, Adolphus Green made his living as a teacher, a high school principal, and a librarian, so it's no surprise that many of his business ideas had roots in classic literature. Hmmm... Shortbread was associated with Scotland, so the name should be something Scottish, right? What to do?
In 1869, R.D. Blackmore published a hugely successful novel based in Scotland- a tale of love, murder, revenge, with a cliff-hanger ending. A favorite romance novel of women everywhere, this book enjoyed surprising "cross-over" success with men, even being voted "Book of the Year" in 1906 by male students at Yale. Scottish? Popular? Perfect! If you recognize the name "Lorna Doone Shortbread Cookies"? (The title and lead character of the novel), now you know where the name came from. And it's still a big seller for Nabisco.
"Spectacular results" were expected from the next two 1912 offerings:
1) "Veronese Biscuits" were a "deliciously hard, sweet cookie of beautiful design and high quality" based on the Italian cookie concept. Although this Italian cookie concept has been recently revived in the U.S. as an espresso accompaniment (think "Biscotti Biscuit"), in 1912 it was a huge flop and was quickly dropped.
2) "Mother Goose Biscuits" were based on the most popular children's books of the day and featured various story book character designs. Parents, who found it delightful to watch their children systematically devour a Barnum's Animal (Studies show rear legs first, then the front legs, then the body, and finally the head), were horrified as they watched their children do the same thing to Little Bo Peep and Jack & Jill cookies. Somehow, seeing their children eating other children just seemed wrong. After a stream of complaints poured in, this cookie was dropped too - another unexpected failure from a "can't miss" idea.
Another new cookie was put on store shelves that year. With no record of who came up with the idea or how it was named, this simple cookie of "two embossed chocolate flavored wafers with a cream filling between" hit the shelves. The "Oreo Cookie" has outsold every other cookie on the market for almost 100 years. Almost 500 BILLION have been sold since they were introduced - launched with no fanfare, no big marketing campaign, no high expectations - but they found the right audience at the right time because Nabisco gave it a try.
What's the lesson? If you want to change your life, kill off your debt, improve your earning power, grow your wealth - then take ACTION! Keep reading. Try some new things. Take some chances. Don't expect everything to work - failures will happen - but without ACTION, you'll NEVER find YOUR version of the Oreo Cookie - a huge, unexpected success - that could completely change your life.
One of the biggest casualties of the current tightening of mortgage guidelines has been Self-Employed Borrowers. This month, I've had two applications that I've had to turn down for lack of income even though each of these applicants was generating thousands of dollars in "revenue" each month. The reason the applications were turned down was because too much of their income was written off on their tax returns.
Even though the write-off's were a legitimate and legal way to reduce their tax liabilities, they also left too little bottom-line income to qualify for a mortgage loan. In the past, these applicants' loans would have been approved using one of the less-stringent loan programs. But today those "less-stringent" programs no longer exist - so these folks can't qualify for a mortgage anymore.
You may insert your own personal value judgment here about whether this is good or bad for our economy or the housing markets and whether it is fair or unfair. I mention it because it is a major change in lending and self-employed borrowers need to be aware that if they are trying to buy a home in the future, they will need to prove 2 years' worth of satisfactory "bottom-line" income to qualify.
But rumors circulating around right now also raise another concern for self-employed borrowers:
With the government buying up massive amounts of mortgage loans through Fannie Mae & Freddie Mac purchases - funded by the recent "Stimulus" packages - word is that the IRS (another arm of the government) is starting to compare the loan applicant information with tax return information. Until recently, Fannie & Freddie were not government-run organizations, but now that they ARE, will they be freely sharing data with the IRS?
"How can you afford to pay a mortgage payment that is higher than your income?"
Let's say your loan was purchased by Fannie Mae and your mortgage payment is $3,000 a month. What happens if the IRS cross-references your tax return info with your loan application info and discovers that, after all your write off's, you are claiming less than $3,000 a month in income? The logical question is then, "How can you afford to pay a mortgage payment that is higher than your income?" Will this trigger an Audit? Many insiders are suggesting that soon it will.
Is this a bad thing for the IRS to do? Probably not. This could be an effective way for them to root out tax cheats, under-the-table earners who aren't paying their fair share of taxes, and even possibly find terrorists and drug dealers. But it will also cause extra hardship on individuals who have lost their jobs or their businesses are down and they have been making their payments from savings.
In reality, if this policy does go into affect, it'll probably be like them red light runner ticket cameras: If you're not running red lights, you have nothing to worry about, but I can't help feeling like my privacy is being invaded every time I drive through those intersections.
Monday, Sept 7th, is your chance to hit the streets and join your fellow workers to demand a 58 hour work week! Labor Day is here again, so don't be afraid to rally for your rights!
The Toronto Typographical Union had been on strike since early March 1872. On April 14th a parade was organized to support the workers' fight for a 58 hour work week. 27 other unions showed up to support the Typographical Union's cause and a large - mostly peaceful - parade and rally ensued.
Canadian politician George Brown (who was also the editor of the Toronto Globe, whom the workers were striking against) ordered police in to break up the rally and 24 union leaders were arrested. But the strike continued and the situation was becoming increasingly tense. (Not to mention that the Toronto Globe newspaper was probably unreadable and full of typo's without the services of the Toronto Typographical Union workers.)
On September 3rd of that year, another rally was planned to protest the arrests of those 24 union leaders, and the result was a promise from Canadian Prime Minister John A. McDonald to repeal the current Canadian anti-union laws, leading eventually to workers having the right to a 58 hour work week! Woo Hoo! As annual rallies commemorating this first rally continued, the work week was further slashed to a standard 54 hour week.
American labor leaders followed the Canadian lead, and on Sept 5th, 1882, the first annual Labor Day parade was organized by the Knights of Labor in New York City. 12 years later, in 1894, US President Grover Cleveland signed Labor Day into law as an official National Holiday (Shortly before this, he had ordered the US Military to crush a railroad workers strike in Pullman, Illinois, resulting in 13 dead and 57 wounded strikers - so let's have a holiday!).
The purpose of Labor Day was outlined in that first proposal: A street parade to exhibit to the public "the strength and esprit de corps of the trade and labor organizations," followed by a festival for the workers and their families. And this became the pattern for future celebrations (speeches by politicians looking for votes were added later).
Today, most people simply view the day as the last vacation day of summer or the day to get a really good financing deal on a refrigerator, and have little understanding of the origin of the day. But before these rallies began, the typical work week consisted of 12 hour days, 7 days a week - 90 to 100 hours a week (Now only wives and mothers have to work that kind of inhumane schedule - right Honey?). Getting down to only a 58 hour work week - eventually leading to our standard 40 week - was a long and difficult process.
As you prepare for your end of summer Labor Day celebration, remember how we got here. And if you are struggling to make ends meet these days, but are thinking it's not possible to work more than 40 hours a week - think again. It wasn't that long ago that 40 hours was less than half a work week. If you have success and financial security working 40 hours a week - count your blessings. If you aren't quite making it - consider rolling back the clock to 1872 and trying, for now, a 58 hour work week as a temporary solution to your money woes.
Need ideas on how to earn more money? Check out my website www.credittothewise.com. Although I'm early in my process, I've been searching out ideas on how to make more money at your current job, and how to earn extra money on the side and I've started posting these articles here. If you have ideas that you think I should share with others, please email add them to comments. I want to encourage people to work and fight themselves out of their tough times rather than waiting for bail-outs or government help, and many people I talk to just don't know how to start doing that.
I'm so excited about being asked to speak at this year's Washington Women Veterans Summit, being held Sept 12, 2009 at the Greater Tacoma Convention & Trade Center. This is a huge FREE all-day event offering workshops, networking, and hundreds of exhibitors offering services and information for Women Veterans.
When I first entered the mortgage business after a successful stint as a sales training manager under Sunny Kobe Cook of Sleep Country USA fame, I was very nervous about working in such a volatile industry and scared about whether or not I could attract enough clients on my own. Sunny had a way of making sure we always had a steady stream of customers to serve. Like her ads or hate her ads, people came in to buy her products.
"I was right to be nervous..."
Turns out I was right to be nervous about the mortgage biz. I would have months where I had too many customers to serve properly, followed by months where I couldn't find a customer to save my life. I would embark on month's long campaigns focusing on a certain type of borrower or lending program, start reaping the rewards from the effort, only to wake up one morning to news that guidelines had changed, programs or products had been eliminated, and I no longer had anything to offer these potential clients I had spent so much time and effort attracting.
"I've Learned So Much About Myself..."
This roller coaster ride was exciting and challenging, filled with extremes of exhilaration and frustration. I'd start each day believing I could do it and then face and almost constant bombardment of roadblocks and doubt. Yet I continued on because each client that I successfully helped brought joy and satisfaction and hope for tomorrow. Through it all, I've learned so much about myself, about risk vs. reward, about money, success, perseverance, and security.
As I've dealt with clients who are struggling - hit hard by the economy, being affected negatively by the changes in lending, living under the assumption that home values always go up, that jobs last forever, that disaster cannot happen to them, and that credit will always be available to those who need it - I've been working on solutions and strategies to help people succeed, regardless of outside forces. I'm driven by the desire to help my folks get from "Here" to "There", regardless of where their "Here" is right now.
"Help for those struggling with credit, debt, spending, earning..."
That is why I am so excited about being asked to present at this Summit. It has given me a deadline to gather and organize and compile these ideas I have. I've created a website where I've loaded a bunch of my articles http://www.credittothewise.com/ and set it up in such a way that I can continue to add to it. It'll offer help to those struggling with credit, debt, spending, earning - with specific ideas and strategies.
It shares creative ideas about home buying and selling strategies, how to manage your home's equity wisely and safely, and how to grow wealth. The "There" I'm shooting for, for all my clients and readers, is the "Peace of Mind" that can only come through "Financial Security". I'll create my Legacy by helping others create their own Legacies.
"Deadline Registration Sept 7th"
If you're a Women Veteran who wants to register for the Summit, here's the link: http://www.dva.wa.gov/women_vets.html. Deadline for registration is Sept 7th. Again, it's free, but you have to register! There should be well over 1,000 other attendees there too so don't be surprised to see old friends! And you'll come out of the day with loads of information and resources you didn't know before, better prepared to face an uncertain future.
"Need help with your First Time Homebuyers or credit-challenged clients? Direct them to the website: www.CreditToTheWise.com.
Filled with articles to help explain and take the mystery out of credit and the mortgage process, it offers real help and real answers."
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
As we approach our annual turkey fest, it is worth taking note of the real lesson the Pilgrims taught us. We're going through some tough times economically all across our land, but NOTHING like the earliest Americans experienced during their first two years on American soil.
In our current environment of bailouts and financial market meltdowns, let us learn the lesson the Pilgrims taught us. The key to economic survival and prosperity is Land & Home Ownership and Individual Economic Freedom. Allow people the ability to choose their economic path and use the fruits of their labor the way they want to, and our country will survive this and continue to be the shining light on the hill for the world to see. Go back to redistribution of wealth and central control - like what the Pilgrims faced - and our country will be in for a long hard winter. 
Okay, I think I get it now and I'm ready to give you the scoop on the new law. I know this news has been circulating around for awhile now, with many industry professionals trying to be the first to tell you the new rules, but up until now - I still had questions that I couldn't find answers to and much of the information I was getting didn't jive with other information I was getting. So, this may not be the first you've heard about this stuff, but I believe it is accurate. 
For existing homeowners, you can get up to $6,500 if you buy a new primary residence (same contract and close dates). You don't HAVE to sell the current primary residence, but you do need to live in the new primary residence. (And don't think you can cheat on this - they'll be checking! With the many fraudulent claims the IRS received for the current programs - which was claimed by toddlers and pets and people who didn't even buy a home - don't expect the IRS to let you skirt by on this requirement. There are MANY places they can find out, the most obvious ones being the mailing address you put on your tax filings in the next few years and your documentation of rental home income - Oh, and there's a census coming up next year too!)
Mortgages can be confusing, but sometimes there are simple answers to tough questions like this one:
After you've figured out that you get more value per square inch out of the largest sizes, why would you EVER buy a smaller size? The answer, when buying pizza, is obvious to you. If you're by yourself, for example, and buy an extra large pizza because it's the best per-square-inch value, but eat only a few slices and throw the rest away - you've wasted your money. Yes, you bought the best "total" pizza value, but by NOT USING the entire pizza - you wasted your money. 
Lesson #1: The National Biscuit Company
Lesson #2: Of Course Uneeda Biscuit - Certainly!!!
A quality product, sealed for freshness, fun looking, based on an already successful idea (English Tea Biscuits), named after the most famous showman in the world (P.T. Barnum), it enjoyed moderate success when it was introduced that Spring. But then Nabisco decided to add something extra to the product offering - with a completely unexpected result.
Another new cookie was put on store shelves that year. With no record of who came up with the idea or how it was named, this simple cookie of "two embossed chocolate flavored wafers with a cream filling between" hit the shelves. The "Oreo Cookie" has outsold every other cookie on the market for almost 100 years. Almost 500 BILLION have been sold since they were introduced - launched with no fanfare, no big marketing campaign, no high expectations - but they found the right audience at the right time because Nabisco gave it a try.
One of the biggest casualties of the current tightening of mortgage guidelines has been Self-Employed Borrowers. This month, I've had two applications that I've had to turn down for lack of income even though each of these applicants was generating thousands of dollars in "revenue" each month. The reason the applications were turned down was because too much of their income was written off on their tax returns.
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Monday, Sept 7th, is your chance to hit the streets and join your fellow workers to demand a 58 hour work week! Labor Day is here again, so don't be afraid to rally for your rights!
American labor leaders followed the Canadian lead, and on Sept 5th, 1882, the first annual Labor Day parade was organized by the Knights of Labor in New York City. 12 years later, in 1894, US President Grover Cleveland signed Labor Day into law as an official National Holiday (Shortly before this, he had ordered the US Military to crush a railroad workers strike in Pullman, Illinois, resulting in 13 dead and 57 wounded strikers - so let's have a holiday!).
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