Appreciation over the long haul or consistent cash every month

by | Apr 20, 2015 | Financial Articles for Adults/Couples

Often times when we get ourselves into a financial rut, and I’m talking about the entire country, it’s because things change but we don’t. I’m finding that the information we have been exposed to in terms of saving and investing strategies isn’t necessarily the information that is going to serve us TODAY.

One distinct difference between classic financial literacy programs and our Camp Millionaire program is that we teach kids two different investing strategies.

The first is the classic ACCUMULATION model of investing, which I call the “invest and hope method”. You invest and invest and INVEST over a long period of time and HOPE that there’s enough to retire on.

The second, and perhaps more palatable, model is to create consistent monthly cash flow by utilizing the money you have, learning some easy-to-learn stock investment strategies and gradually increasing your cash flow to the point where you can live on it sooner than “hope” pans out! I first learned this model as ‘Utilization’ but I’ve coined the word ‘Creativization’ which refers to the UTILIZATION of our natural born CREATIVITY to create the lives we want to live now, not in 40 years.

There’s nothing wrong with the first model, and it is important to continue to save and invest as long as you’re able to do so. The question is (and stick with me here), “How will you do the investing and how quickly can you use the cash flow from those investing strategies to live on and use so you can increase your cash flow for now and for your future?”

There are many answers to that question and what it really comes down to is this: you’re going to have to learn to DO IT YOURSELF.

I know what you’re thinking, “But I don’t have time to learn and it’s complicated.” No, it doesn’t take much time and no, it’s not complicated. Seriously. In one 30-minute coaching session with Tyrone Jackson (see above), I learned all about Covered Calls and will be able to make my first little bit of cash flow tomorrow morning. I’m so excited about learning this that I can’t even tell you.

Many of us have given over our financial futures to trusted financial advisors, planners or stock brokers but the only person who REALLY cares about your future is you. YOU need to be in charge of your OWN financial matters which is likely to include learning about investing in real estate, the stock market, and business.

There is nothing worse than feeling like someone else is in charge of your future. There is nothing more empowering than knowing you are in control of your future. Bottom line, to be 100% in control of your life, you must be willing to be 100% responsible for it.

What percentage of control are you willing to be responsible for?

Just something to think about…

Elisabeth Donati is the founder of Creative Wealth International and an expert in teaching kids of all ages (including adults) about money and wealth creation in a fun and entertaining way!

If you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars above.

Let Financial Freedom Ring

by | Apr 16, 2015 | Financial Literacy Articles for Parents

For most Americans, the month of July conjures up images of fireworks sizzling in the sky, back yard BBQs and the thrilling sound of patriotic songs; “Our country ’tis of thee, sweet land of liberty, of thee I sing.” America was built on a solid foundation of freedom for all, with the additional caveat that all men and women were created equal. At least that seemed to be the original idea.

The word liberty refers to the state of being free from other’s restrictions on how one chooses to live life. If we apply this definition to what we actually have today, we can see that there are millions of Americans who aren’t free at all.

Being truly free generally requires that we have the information and tools necessary to create that freedom. And in order to create that freedom, it’s helpful to have at least a basic understanding of how money works in society and the primary investment principles that are required to become free. In addition, a strong entrepreneurial spirit is almost mandatory these days if you really want freedom in your life.

Learning this critical information currently doesn’t come as a natural right of being born an American, or a Canadian, or a Mexican or a Frenchman, etc. Financial intelligence, for some strange reason, is usually relegated to ‘elective’ status when it is as necessary as reading, writing and arithmetic. And often when it is taught, it’s about budgeting and balancing checkbooks, not investing in passive income producing assets or thinking like a wealthy person. Heaven forbid, we teach kids how to become financially free when they’re young instead of expecting them to spend 40-plus years in a job where they will hopefully ‘accumulate’ enough money to ‘retire’ at some point in their future. What if we teach kids the concept of financial ‘utilization’ instead; using their natural born entrepreneurial talents to create businesses that allow them to live amazing lives while helping others along the way? Gone are the days of a good, stable, secure job; here are the days of creating your own way.

At present, most of America’s youth are not learning about money in school and the vast majority of children never learn about money at home. This is because most parents don’t understand money either and those that do, for whatever reason, don’t talk to their kids about it. The fact that such a small percentage of people actually understand the ‘language of money’ explains why the consumer debt number in America in 2007 reached an astronomical $2.5 trillion dollars, not including real estate mortgages. According to the Federal Reserve, $2,500,000,000,000 represents $8,200 for every man, woman and child that lives in the US.

Something happens when the numbers get this big. There’s a shift in our ability to conceive it as real. It is one thing to owe someone $1000 but quite another when that debt reaches $100,000. The idea of adding another $100 to a $1000 debt causes most people to consider what they are doing. Adding $100 to $100,000 worth of debt often doesn’t raise an eyebrow.

It’s a matter of contrast; the bigger the contrast, the smaller the perceived reality. This is exactly what’s happening when Americans view our national debt: the numbers are SO big that you just can’t wrap your head around them. It’s kind of like thinking about the Universe; our brains short-circuit and shut off.

So what do we do? Well, in my opinion we must start educating our youth about money. I believe the more we educate, the less we must legislate. How do we do this? I have three simple things that, if done, will yield amazing results for our nation’s financial future.

First and foremost, we must set a better example for our youth, from mom and dad all the way up to the highest branches of our government. Children learn first by example and they learn by example in three primary ways: by what they SEE; by what they HEAR; and by what they EXPERIENCE. Bottom line: start watching what you and others are teaching your children about money by what they see you doing with it, what they hear you saying about it and by the experiences your kids are having with it.

Second, talk to your kids about money.  Just like sex and drugs, if you don’t talk about it, you have no idea what they are learning, or from whom. We all have to get over the idea that money makes us who we are. Money is simply a tool to reach our dreams, help others and do good in the world. Money doesn’t make you happy, pretty, sexy or cool. Money generally just makes you more of what you already are. If you were greedy when you were poor, chances are you’ll be more greedy if you become rich. If you were generous when you were poor, chances are you’ll be more generous when you’re rich.

How do you bring your kids into the ‘family money conversation?’ Simple… just start  talking. Let them help you pay bills online and write checks, balance the checkbook, work on the family budget. Let them tag along when you visit your financial planner.  Invite them to work with you or give them a job in your business. Talk to them about your paycheck and taxes, your investments, your debt. Yes, I said your debt. What better way to help them learn about debt than to experience the pain around it. Don’t shelter them. Show them. Let them see that money is just another tool we all have to learn to use wisely. Make learning about money a family affair. Show them what it takes to be an adult who is working towards self-reliance and financial freedom.

Third, give your kids practice with money before they move out and their mistakes cost them dearly. College students are dropping out with huge amounts of debt. Some are even committing suicide over the debt they accumulate. For the most part, teens don’t have the maturity or necessary knowledge to handle their own finances. This includes all the credit card offers they are tempted with, the high cost of living and competing with their peers in terms of clothes, entertainment, vacations, phones and more.

Financial practice must start early and you must have a system.  The Ultimate Allowance is one such system. This book is the result of teaching thousands of kids and their parents about money for the past seven years. It shows you, the parent or guardian, how to run the money that you’re spending ON your kids, THROUGH them instead.

Consider this example: If your son or daughter came to you wanting to grow up and become a major league baseball player but you never gave him or her a ball, a glove, a bat, time to practice, a place to practice or heaven forbid, THE RULES, what’s the chances of him or her accomplishing the dream? Slim to none. This is exactly what we’re doing with our children. We MUST start teaching them how to think like, and make decisions like, people who value financial freedom over Piddlycrap.

What’s Piddlycrap? Just look around your house and you’ll see it everywhere. It’s the stuff we waste our valuable financial resources on every day; the stuff that goes down in value instead of up. The stuff you sell at a garage sale for pennies on the dollar. It’s the stuff that takes money out of our pockets instead of putting money into them.

Parents, your number one job is to prepare those beautiful kids of yours to be self-reliant ~ and loving them is not enough. This means you have to:

  1. set the best example you can;
  2. talk to them about everything money; and
  3. give them plenty of practice while they’re young.

Doing these three things will dramatically increase your chances of successfully turning America’s children into resourceful, financially free leaders who will make this country’s economy strong again. And isn’t this what all parents want?

In 2002, I dedicated my life to teaching our youth, and their parents, the basic financial principles I never learned in school or at home. I have taught many different races and cultures, genders and ages and, everywhere I go, I find people want to learn the same thing. They crave the knowledge they need to know how to make informed choices and decisions that will help them create a sense of freedom for themselves.

Isn’t that what this country is all about? Isn’t that where we started; a desire to be free? Isn’t that what Martin Luther King, Jr. was willing to give his life for? Isn’t that what this nation stands for?

Let’s make financial literacy mandatory in our schools and financial intelligence a sought after value. It’s time everyone had access to the information and tools they need to create real freedom in their lives. Join me in this mission, won’t you?

Why Allowances Do Work

by | Apr 9, 2015 | Financial Literacy Articles for Parents, Uncategorized

You may be thinking to yourself, “Is there something I can do to make sure my kids don’t move home after they move out?” In other words, you want a way to make sure they grow up to be financially self-reliant.

I’m here to say, ‘Yes, there are some relatively simple steps you can take to ensure that your kids leave home knowing what to do with that green stuff they will be in charge of making, managing and multiplying in the future.

More young adults are not only leaving college these days because of financial problems (student loan and credit card debt) but they are also moving back home after they graduate because they simply don’t make enough money to go it on their own.

The primary cause is simply that kids don’t have a clue what to do with their money, or anyone else’s for that matter. Most of them are very good at spending money, but it’s a rare 20-something that understands the dangers of credit card abuse or the power of saving and investing. Heck, for that matter, most adults don’t understand these concepts either.

Imagine this scenario…

Your son (or daughter) comes to you one day and says, “Mom, I have decided I really want to grow up and become a major league ball player.” You say, “Wow, that’s cool. Good for you.” And you go back to doing what you were doing.

Your child looks at you and asks, “So, would you get me a ball so I can learn how to throw it?” You say, “Maybe later.” He says, “What about a glove and a bat?” You respond, “Nah, I don’t think so.” He’s a frustrated at this point and asks, “OK, but will you at least teach me the rules?” You say, “Oh, you can learn the rules later.”

Now he is really angry; he’s fuming inside and feels stuck.

Finally he gets really mad and yells, “But MOM, how am I ever going to become a great ball player if I don’t have a ball, bat or glove to practice with and I don’t know the rules?”

This is what parents do, most unknowingly, to their children everyday in regard to money. We grow them into adults but rarely give them the equipment or rules to practice, and get good at, The Money Game!

Let’s look at three simple steps you can take to empower your children with the tools, knowledge and practice they need to grow up financially free.

FIRST, you must set the best example you can for your child. Since human beings learn best by example, it is critical that you first examine what you’re teaching your children through your actions because they really do speak louder than words. How can you expect your child to save and invest if you don’t? How can you expect your child to grow up with a healthy understanding of money if you don’t have a healthy understanding of money? How can you expect your children not to use credit cards if the only way they see you buy things is with a credit card?

The important thing to remember is that children learn from us three ways: by what they see us do, by what they hear us say and through the experiences they have with money. J know that they are always watching and learning from you in ways you probably aren’t even aware of.

If you’re like many adults who don’t understand money, you’re not alone. You weren’t taught when you were young either, however, now’s the time to make a commitment to educate yourself. There are books and seminars everywhere. A great place to start is a program called the Millionaire Mind Intensive. For more information, visit http://www.peakpotentials.com/a/tofreedomandbeyond.

If you’re doing well financially, good job. Keep asking yourself how you might ‘show’ your kids about money with your daily routine and include your kid’s friends. Kids often learn better from people other than their parents so look for opportunities to influence all the kids in your circle.

SECONDLY, talk to your kids about money. Take every opportunity you can to open up a line of conversation about family expenses, credit cards, debt, interest, investing, business, real estate, the stock market, financial beliefs, etc. Some examples of when to talk to your kids about money are:

  • When you take money out of the ATM, talk about where the money comes from, why you can only take out so much, etc.
  • When you pay for the groceries with a credit card to get points so the whole family can go on vacation, make sure they understand the importance of paying the bill off EVERY SINGLE MONTH!
  • When you pay bills, let them help you write checks or pay the bills online. Teach them how to check the accuracy of each bill.
  • When you deposit money into your bank, visit your investment advisor or accountant, take your child along.

The worst thing you can do is assume that someone else is teaching your child about money. What children learn from parents who don’t talk about money is that talking about money isn’t OK. A healthier way to look at money is simply as a tool to reach your dreams (a Creative Wealth Principle); it doesn’t mean we’re better or thinner or smarter than others. It’s simply a tool.

THIRDLY, consider giving your child an allowance, but not the kind you may be thinking of. In my book, The Ultimate Allowance, I teach you how to take the money you already spend ON your child and run the money THROUGH them instead. I’ve read that it takes an average of $275,000 to raise a child through age 17. If you run even a portion of that money through your child, imagine the practice he or she is going to get. By making plenty of financial choices—good and bad— they learn the ins and outs of money management before the consequences aren’t so damaging.

In summary, remember that human beings learn best by example. Your children are watching everything you do with your money, listening to everything you say about money and internalizing all the experiences they are having with money, so pay attention to the example you are setting.

And finally, please talk to them about everything financial. It’s the best investment you can make in your child’s financial future and we promise it will ‘pay off’ in the end!

For more information on all of our unique financial literacy products and programs, please visit The Ultimate Allowance and Creative Wealth International or give us a call at 805-957-1024.

An Effective 12-Step Program for Healing Our Educational System

by | Mar 29, 2015 | Latest News, Uncategorized, What you can do

What’s Wrong With Our Schools

The longer I am in the financial education arena here in the United States, the deeper into trouble I see our education system getting in terms of truly educating our younger generation to be able to grow up and live the purposeful, happy lives they can dream up for themselves.

According to Wikipedia, the definition of education is…

“Education in its general sense is a form of learning in which the knowledge, skills, values, beliefs and habits of a group of people are transferred from one generation to the next through storytelling, discussion, teaching, training, and or research. Education may also include informal transmission of such information from one human being to another.“

From what I have personally witnessed, most of what our children are learning in school is rote knowledge. Our system is inherently lacking in the ability to teach skills, values, beliefs and habits that will help our kids lead those purposeful, happy lives as adults. It’s also lacking in its ability to teach leadership skills and produce our nation’s next general of leaders.

There are plenty of reasons why our education system is failing our children. Most of it stems from the Johnson Era’s initial Elementary and Secondary Education Act of 1965 (ESEA). The ESEA was a major federal law authorizing federal spending on programs to support K-12 schooling. ESEA is the largest source of federal spending on elementary and secondary education. It was actually part of the Johnson Administration’s War on Poverty.

We now know the law by its last iteration, No Child Left Behind (NCLB) which, by all accounts and standards, has LEFT all of our children behind in a big way. I’d like to encourage you to read more about the ESEA and NCLB so you understand what’s driving the bus our education system into the ground, and taking our youth with it.

The initial law didn’t actually support schooling. It supported the ‘opportunity’ for schooling of low income children. Although NCLB covers numerous federal education programs, the law’s requirements for testing, accountability, and school improvement receive the most attention. But the thing that really gets me is that while the law that was put in affect required states, school districts, and schools to ensure all students are proficient in grade-level math and reading by 2014, Wisconsin, and 42 other states have applied for waivers because they can’t meet this requirement!

Hello…does that mean only seven of our proud United States of America have actually succeeded in some level of education of its youth? Who knows but what it does mean is that something has gone terribly wrong.

What’s Basically Wrong with the USA’s School Systems

Our education system in the United States (for the most part I’m referring to public schools in general), is suffering because of the following basic issues:

  • We’re not preparing our youth for real life. We don’t teach them a trade or skills in order to make a living. We don’t teach them how to parent. They receive no information on how to grow up and have healthy, happy families. They don’t learn how to have healthy, long term relationships. They are taught to follow instead of encouraged to be leaders. They aren’t able to communicate and think their Facebook followers are their friend. They aren’t taught about money and investing. They have no idea how to be healthy for a long period of time. And that’s just a short list of the skills, habits, principles and concepts they need to be productive, happy human beings.
  • The next issue is the WAY we teach. Most education is boring, tightly controlled by testing and administrations that don’t really know HOW to teach except to stand up and lecture. Human beings learn better through visually learning and experiencing. And putting boys behind desks for hours at a time to take notes and memorize information is sheer torture for them. I consider this child abuse in a huge way.
  • Testing too much and too often. It is well known that testing stresses students out and doesn’t provide for or create a favorable learning environment.
  • Forcing the students to memorize and learn too much basic boring information that just isn’t relevant to them. Children will tell you flat out they have no idea why they are learning what they are learning in schools and parents and adults quickly admit that they learned most of what they really needed to be able to live their lives AFTER they left school.
  • Our children are being drugged to death and the culprit is mostly what we are feeding them. For a great book on how to fix most ADD and ADHD problems, do yourself a favor and read, Grain Brain by Dr. Perlmutter.
  • Technology has taken over. Everyone thinks that the computer is the best way to teach. IT ISN’T. The old fashioned way works better. And there are tomes of material on how inadequate learning from monitors actually is. And the sitting required to do so is incredibly unhealthy on top of it all. Note: I am regularly asked by kids and teens who take my financial education programs why all teachers don’t teach like I do. I tell them I really don’t know the answer to that question but to suggest to their teachers that they look up and learn how to use accelerated learning methodologies. They are really quick simple to learn and master!
  • Cell phones in the schools are causing problems right and left. Just talk to any administration who hasn’t banned them from their schools yet and you’ll find out what all the fuss is about.
  • There is little to no music used or taught, little to no physical education, rarely a shop class or home economics class, not enough physical activity in their days to get the kids brains and bodies moving so they are stimulated and excited about learning.
  • And lastly on this short list of what’s a very long list in reality, is our school’s and teacher’s inability to provide EFFECTIVE discipline.

The 12 Steps Needed to (Start to) Fix Our Nation’s School Systems

I, and a whole lot of other folks, could fix the nation’s school systems in a year if given the opportunity. Here are just SOME of the very simple steps I would take to fix our nation’s education system and make sure they were helping to inspire and create a whole lot more of what this country really needs…hundreds of thousands of profoundly bright, motivated leaders who want to see this country thrive again.

First and foremost, we have to figure out how to get the government out of the education process. Because everything comes back to the all-mighty dollar, schools will have to be funded equally in some other way. Our government doesn’t a clue how to run a country or keep its citizens safe and well fed, let alone know how to educate our children.

Then, I would do the following (all at once):

  1. Change the way teachers teach…make them all experts in accelerated learning techniques, remove the desks, add chairs and tables and outside areas to learn in as well as build gardens at every school. Ever schools with little to no room can use creative PVC gardens to grow healthy foods for the students and teach the students how to be self-sufficient.
  2. Remove most of the testing or better yet, make all testing open book so everyone learns together and learning is fun again.
  3. Put the kids in uniforms so they stopped judging each other based on what they were wearing.
  4. Ban cell phones from classrooms and schools to keep the kids from being constantly distracted and keep them from using photos and videos against their peers.
  5. Get their minds out of the computers and back into the real world.
  6. Let the teachers TEACH the way they feel is best for the kids they have in their current classrooms. Every classroom of students is different because you have different groups of kids.
  7. Make the kids clean up their own classrooms and school facilities so they learn not to mess up their own homes.
  8. Teach them information that’s relevant to their lives (as opposed to what they are learning now)
  9. Teach them all a trade or skill so they can leave school and support themselves and their families. If only 69.5% of our high school students go on to college (doesn’t mean they graduate), doesn’t it make more sense to make sure the other 30.5% learn how to support themselves?  You’d think the government would realize that the more kids who leave school with a valuable skill, the less adults end up on government assistance programs.
  10. Add physical education back into every day. We are fat and unhealthy and movement habits start young!
  11. Require kids to study music. It’s proven that it helps in every other area of their lives.
  12. Require entrepreneurship in high school for all students. It’s only through teaching and helping people to start successful new businesses that we provide our nation with a growing pool of great new jobs.

And those are just the things I would do to get the ball rolling! This is not rocket science as they say.

Share if you agree.

Personal Information Safety Tips

by | Mar 26, 2015 | Financial Articles for Adults/Couples

Attorney Advice…No Charge

NOTE: This is GREAT information!

A corporate attorney sent the following out to the employees in his company.

1. The next time you order checks have only your initials (instead of first name) and last name put on them. If someone takes your checkbook, they will not know if you sign your checks with just your initials or your first name, but your bank will know how you sign your checks.

2. Do not sign the back of your credit cards. Instead, put “PHOTO ID REQUIRED.”

3. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the “For” line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check-processing channels will not have access to it.

4. Put your work phone # on your checks instead of your home phone. If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks, (DUH!). You can add it if it is necessary. However, if you have it printed, anyone can get it.

5. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. Also carry a photocopy of your passport when traveling either here or abroad. We have all heard horror stories about fraud that is committed on us in stealing a name, address, Social Security number, credit cards.

6. When you check out of a hotel that uses cards for keys (and they all seem to do that now), do not turn the “keys” in! . Take them with you and destroy them. Those little cards have on them all of the information you gave the hotel, including address and credit card numbers and expiration dates. Someone with a card reader, or employee of the hotel, can access all that information with no problem whatsoever. Good one!!!!!

Unfortunately, as an attorney, I have first hand knowledge because my wallet was stolen last month. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer and received a PIN number from DMV to change my driving record information online. Here is some critical information to limit the damage in case this happens to you or someone you know:

1. We have been told we should cancel our credit cards immediately. The key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you c an find them.

2. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one). However, here is what is perhaps most important of all (I never even thought to do this.)

3. Call the three national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit. By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves’ purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks.

Now, here are the numbers you always need to contact about your wallet and contents being stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) TransUnion: 1-800-680-7289
4.) Social Security Administration (fraud line): 1-800-269-0271

If someone sent you this article and you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars at UltimateAllowanceBook.com.