2003 was a tough year for me.  Towards the end of 2002 I left a well-paying job in another line of work because I didn't like the direction the company was heading.  The owner / founder had sold the business and I could tell the new owners "didn't get" what made the company special and came in with an attitude that they knew better.  They were following the "Golden Rule" of "He who has the gold makes the rules" so this was their right.  They could (and did) do what they wanted to do and I was left to choose whether to stay or go.

So I left and entered the mortgage business full of optimism and confidence in myself.  Other people were making tons of money in the industry so I figured I could too.  But for some reason, it didn't click right away.  I felt the industry was a good fit for me and I have no complaints about the company I chose to work for because I'm still here, but my income was less than HALF what I was used to and I still had the SAME bills to pay.

As debt started piling up and the income still didn't come, I began to get desperate (not desperate enough to slash my spending to the bone, of course, just desperate to find ways to earn enough money to maintain the lifestyle I had grown accustomed to).  A buddy Chris in the mortgage office suggested that I come do what he was doing to earn some "extra money" - Selling cars on the weekend at those big Parking Lot events.

I had sold cars before and this seemed like a good idea.  Of course, it would be hard and tiring work - working Friday thru Sunday or Monday from early morning to late at night, but my friend was making some decent money most weekends.  So I was willing to do it - whatever it takes - never been afraid of hard work. 

I would need to have Friday's off from my mortgage job and several Monday's too, so I had to ask my mortgage boss's permission before I said "yes".  I was sure he'd be fine with it - people pretty much came and went as they pleased and he was already letting Chris do it - but I needed to ask.

His answer actually surprised me.  I hadn't ever considered him to be a wise-sage by any means, but the advice he gave me really got me thinking about choices, priorities, and direction.  "Did you like selling cars before?" he asked.  (He knew I didn't.)

"Uh, no.  But I was good at it," was my defense.

"Then why would you do something like that when it will take time, energy, and focus away from this job in order to chase a few dollars?  If you want a second job, what's stopping you from working more hours doing this?"

He was absolutely right, and I knew it.  So I passed on the car-selling gig and I began treating my first job as my second job too - working later, working weekends, doing whatever it took to get in front of as many prospects as I could.  And as my career began to click because of the extra effort I was investing in it, my car-selling buddy soon found himself out of the industry and chasing the "next" quick-fix he could find.

It wasn't easy, but I believe that the extra "second-job" effort I put in laid the groundwork for my being in the business today.  And without that effort, I would have likely been one of the thousands of former loan officers out there today looking for something else.

Don't get me wrong.  Second jobs can help you make it sometimes.  But before you automatically conclude that a second job will solve your problems, focus your efforts 100% towards keeping your main thing the main thing. 

For a quick history of the 40 Hour Work Week, check out my earlier blog on the subject.

Juggling Photo by:  Morbuto

Sale Photo by:  Cosmic Kitty

If you recognize the title of this blog as a quote from "Groundhog Day", you are my kind of people.

In 1993, comedian Bill Murray starred in the movie "Groundhog Day" about a TV Weatherman caught in a never ending Groundhog Day celebration in Punxsutawney, PA.  For years, this big shot, big city celebrity has been assigned to cover this annual ritual in this po-dunk, back-woods town, and he dreads it - no, he loathes it - er, well, there is really nothing he hates more than this assignment.

To his horror, the movie plot goes, Murray's character manages to reach the end of this year's  dreaded/loathed/hated day, which features the annual hold-up-a-furry-rodent-to-see-his-shadow ceremony, only to be immediately startled awake by a little clock radio blaring the Sonny & Cher hit song, "I Got You, Babe".  He's in the same bed in the same little motel room and he is forced to start that same Groundhog Day all over again.

Each morning, he sees the same people in the same places having the same conversations.  No matter what he tries (and he tries some pretty outrageous things) he cannot break the cycle.  As each dreaded/loathed/hated day ends, he's once again awakened by, "I Got You, Babe".

Day after repeated day it goes.  He is angry, frustrated, and on the verge of madness.  When he finally realizes that he is powerless to change the situation, he accepts his fate and chooses to make the best of it (actually, he decides to use the situation to make the moves on his co-star Andie McDowell, but that doesn't deter me from making my point here).

So each day, he wakes up and begins learning new skills - taking music lessons, he becomes an accomplished jazz pianist; finding a foreign language course, he learns to speak French fluently - and he gets to know the people in the town.  He even discovers all the tragic events that occur that day in the town and ends up preventing accidents and saving people from harm.

He becomes in that one day the town hero, a celebrity, and a best friend to many.  (And yes, eventually he wins the girl, which breaks the cycle - there, if you haven't seen the movie, I just ruined it for you.)

As I watched the movie, I found myself wishing that I could live a day like that sometime.  A big "time out" where I could just forget about the pressures of tomorrow and work on some little things - the ones I've always wanted to do - just for me.  You know, that book I've been wanting to read, that skill I've wanted to learn, that adventure I never have time for.

Then it hit me:  Life didn't stop for Bill Murray in the movie.  He still had to make it through the day.  But he found time to work on himself - a little bit every day - and become a friend to those around him. 

I realized I can do the same thing - each and every day.  The calendar will change, but each day I can learn a little bit more, grow a little bit more skilled, and become a little bit more friendly to others.  Imagine the successes I can accomplish with a little extra, focused effort.

The great motivational speaker Earl Nightingale once said, "Success is the progressive realization of a worthy ideal".  This Groundhog Day, choose your "worthy ideal" and then every day, choose to do one little thing that will move you closer to its fulfillment.  Before long, you'll find yourself thinking,

"Success - I Got You, Babe!" 

Photo by:  _Sage_

"The Greatest Gift of All" is the story of an honest, hard-working man who dreamed of a brighter tomorrow, but after years of struggle and bad luck, he found himself facing financial ruin, running from the law, and considering suicide - the story of a failure.

Puyallup Date Night Alert:  This Movie is Playing Weds Dec 16th

at the Historic Liberty Theater in Downtown Puyallup.

Full Dinner and This Movie.  Link:  Liberty Theater for details!

Appropriately, the author's attempt to sell the story to every publisher he could find met with rejection after rejection.  Giving up, he eventually just sent it out to 200 friends in a condensed version as his Christmas greeting - realizing that his dream of a big book deal had ended in failure.

By accident, the story came to the attention of the head of one of the biggest Hollywood movie studios.  He decided to make it into a movie starring the biggest star of the day - Cary Grant.  But three different script-writing teams couldn't to come up with a workable script so the project was shelved and Cary Grant moved on to other projects - another failure.

Finally, "The Greatest Gift of All" was purchased by a top-name director, who tweaked and massaged it, and rolled it out to big fanfare where it was met with - indifference.  Even though the director was well-known, the reviews for the movie were excellent, and the studio was thinking "Oscars" - the public stayed away.  A box-office failure. 

Later that year, it was indeed nominated for five Academy Awards, but it failed to win a single one.  But wait!  With the attention that Academy Award nominations bring, surely the public would want to see it now?  The studio re-release was met with (What else?) - failure.

Since the American public wasn't interested in it, it was taken to London in hopes that a foreign audience might embrace it.  Alas, the story was rejected by foreign critics as "too sentimental" and the public stayed away again - failure.

Over the next 25 years, the movie sat collecting dust in storage until, of course, the company that owned the rights to the it went bankrupt - failure.  But amazingly, from this final failure sprang another chance for this movie to win the hearts of the public, and this time it didn't disappoint - soon becoming one of the most cherished movies of all time.

You see, the top-name director who massaged and tweaked the story was Frank Capra, who also changed the name of the story to "It's a Wonderful Life".  Capra had just returned home after fighting in WWII and was looking for a new project.  He had seen great potential in the story and recruited another returning veteran - Colonel James Stewart - to play the lead character.  (Capra had also directed Jimmy Stewart in "Mr. Smith Goes to Washington" and other projects before they both joined the military.)

The movie was completed in 90 days and in time for a pre-Christmas release in 1946, but for Oscar considerations, it was held until mid-January so it would qualify for the 1947 Academy Awards considerations.  But in a war-weary, post-Christmas America, there was little enthusiasm for the sentimental story of struggle and failure.

But in 1974, through the bankrupt copyright-holding production company's failure to renew the copyright properly, the movie fell into the public domain - meaning any and all television stations could play the movie for free.  And play it they did.  It was not uncommon that year to find the movie playing at the same time on competing stations - and there weren't that many stations.  Finally, after so many failures, the public was ready to receive Frank Capra's "Greatest Gift of All".

Out of the failure of this movie about a failure of a man, many would find a renewed hope and inspiration every year and realize, once again, "It's a Wonderful Life".  Feeling like a failure these days?  Remember, "No Man is a Failure who has Friends." - Clarence the Angel.  Hang in there!

photo by: Tony the Misfit

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

Corn Kernel Photo by:  ingridtaylar

Prayer Hand Photo by:  hpebley3

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!

Puppy photo by:  Randy son of Robert 

Jail photo by: JOPHIELsmiles

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.

photos by: David de Groot & Randy Son of Robert

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!

(photo by Laverrue

(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".

(photo by yaybiscuits123's)

(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 5^th 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. 24^th, 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.

(photo by Lunchbox Photography)

(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.

(photo by SMercury98)