She’s the author for several books, including Money 911 and Make Money, Not Excuses.  Since she’s out there helping others with their finances online, in books, and on television, I thought she was due for a Financial Guru Review.

Jean Chatzky on Getting Out of Debt and Credit Cards

While I don’t think she has Dave Ramsey’s intensity on destroying debt, she keeps addressing the importance of eliminating it. For her, debt consolidation with the bank is a solution for those weighed down by high interest debts.

She also encourages using credit cards responsibly, meaning you don’t use more than 30% of your avaible credit and you pay it off every month.

Jean Chatzky and Building Wealth

I find it funny that Jean Chatzky summarized the 4 steps to building wealth. Seeing them makes it clear that there are no secrets to getting rich.

1. Make a decent living
2. Spend less than you make
3. Invest the money you don’t spend
4. Protect the financial world you build so that a disaster doesn’t take it all away from you

She also points out that even though the steps are simple, following through is the hard part. I think Dave Ramsey pointed out that personal finance is 80% behavior and 20% knowledge.  For readers looking to break the mental barriers they have, Jean’s book Make Money, Not Excuses may be helpful.

My Thoughts On Jean Chatzky

I really appreciate Jean Chatzky’s clear advice on finances. Obviously as an author with books geared to masses, she can’t get into specific nitty gritty advice. She does, however, give good, solid guidelines on addressing major money issues.

If you’re looking at improving your finances, but you’re need something more than just the numbers, you should check out her books.

What are your Thoughts?

Do you listen to financial gurus’ money advice? If so, which one? If not, why? Is there a financial guru you’d like me to review?

All right, I am exaggerating a bit but seriously financial independence has been one of the most popular personal finance topics for many financial gurus. Regardless if you are a fan of Dave Ramsey, Robert Kyosaki or Suze Orman, you are first and foremost a fan of financial freedom.

Why do we want financial freedom so badly?

My take would be that we are looking for financial independence because this is the ultimate definition of freedom in our capitalist society. If you have enough money to pay off your debt, ensure a decent lifestyle and you don’t have to worry about how you will earn your money next week, next month, next year; then you are free to do just about whatever you want.

I look at some of my clients who are retired with a huge pension plan and this is exactly where they live; financial freedom. They are 55-60, working part time on contract at generous rates, receiving their big pension on a monthly basis and doing whatever they like most of the time.

Well this kind of financial freedom won’t happen to you and me!

Big fat pension plan? Government social security? Come on people, stop dreaming and start thinking about your own retirement plan. Major companies are cutting down on their generous pension plans since they are very expensive (just look at how GM is deep in it  because of their employee benefits). Financial freedom was once assured by the government, then by employers, but from now on, financial freedom will have to come from each individual.

How do you reach financial freedom then?

The sooner you open your eyes, the faster you will achieve financial freedom.

Editor’s Choice

I really enjoyed these posts and think that they offer some practical tips for many people.

• Stop Trying to Time the Markets! was a wonderful article submitted by Man Vs. Debt.
• How to Retire Early has some practical tips from Free Money Finance.
• Scary Calculation On Credit Card Debt Elimination was crunched and discussed at Studenomics.
• Quit Worrying About 80% of Your Life was analyzed at Frugally Green.
  

  Like a carnival, we have plenty of great things in store for you!

Banking and Money Management

Planning ahead is a way to have more control over your future.When managing your money, you need a cool head and a strategy.

• How to Get More Out of Your Bank Instead of Them Taking More From You If you’re curious check out the post at Billeater.
• Probate- Why and How to Avoid Probate Fees was a handy posted by Financial Highway.
• Quicken 2010 Review and Quicken WillMaker Free with Purchase of Quicken 2010 was  done at Cash Money Life.
• How Much Life Insurance Do You Need? is answered at Provident Planning.
• Hurricanes and Planning for Financial Disaster has the numbers at Fiscal Fizzle.

Investing

Smart people ask questions and financial geniuses apply the answer. Learn to be proactive and successful with your investing.

• Why You Should Keep Contributing to Your 401k is explained at Good Financial Cents
• Dividend Payout vs. Free Cash Flow Payout was posted at Dividends Value.
• The Scientific Method To Investing In Biotech is looked into by 20s Money.
• Roth 401K vs Regular 401K is compared  at Roth IRA Rules.
• Keep the 3-Month Expense Fund? is discussed by M is for Money.
• 2010 Roth 401k and Roth IRA Limits is covered at My Dollar Plan.
• 5 Ways to Make Your Kids Wealthy takes a long term view over at The Personal Finance Playbook.
• Sexy CD’s: Who Needs ‘Em? was posted at Affine Financial Services.

Getting a Good Deal

Don’t deny the fears, habits,and goals you have with money. Look for ways to get a good deal with what you have.

• Don’t Save for College? is written and discussed at Brain Dead Simple! Financial Organizing.
• Have you check out The Canadian Finance Blog‘s post on Maternity Leave And Parental Benefits?
• PT Money shows you 15 Surprising Places You Can Trim Your Budget.
• 4 Real Estate Lessons For Sellers has helpful information at The Happy Rock.
• My Credit Score – Has It Really Jumped 31 Points? has some thoughts from Out of Debt Again.

Credit Cards

• Credit vs Debit Transactions with Your ATM Card is a great comparisionat Money Ning.
• The 8 Most Important Credit Card Terms posted at Learn Credit Cards.
• Credit Card Offers for Pet Lovers posted at Credit Card Offers IQ.
• 0% Balance Transfer Offers–A Big List of 0 APR Balance Transfers posted at The Dough Roller.

Frugality & Saving Money

Keep more of your cash in your pocket by watching where you spend.Spend on what you love and be thrifty on what doesn’t matter.

• Baker wrote a guest post on  9 Ways You Can Knock the Socks off Your Next Landlord at Get Rich Slowly.
• Ten Things I Learned Moving And Tips has handy tips at Free From Broke.
• Eat Out for Less – Off Peak Dinner Deals caught my attention and whetted my appetite at My Wealth Builder.
• How to Find Affordable Engagement Rings was posted at Propose To My Girlfriend.
• 4 Benefits of Business Travel had a good review from  Buck$ome Boomer’s Journey to Retirement.
• Ten Ways That I Save Money By Being Frugal is a solid post from  Own The Dollar.
• A$k and Re¢eive, Revisited is a good read at Funny about Money.

I hope you enjoy the Carnival today. Next week’s host is Amateur Asset Allocator!

Photo Credit: {meagen}

Thanks to everyone at Life Tuner. Keith was a great host and I was happy that MyLifeROI was on the panel. Thank you to everyone who was a part of the chat. I loved hearing and reading your thoughts and stories.

In case you missed the chat, here are some highlights from the show.

Chatting with others on finances is really helpful.

Pearls of Wisdom

• You are your number one advocate! @MyLifeROI
• Income diversification – blogging, knitting — what do you do?! @MyLifeROI offers up his labor, like painting houses!
• “Don’t get stressed out by money that you’re not enjoying it!”
• Don’t let Gov’t credits affect your decision! @mattjabs
• “Discuss values before you discuss numbers, make sure you’re headed in the same direction” @stephonee
• Online banking double edge sword: makes it easier to balance checkbook, but makes you lazier to check balance!@freefromdebtgy
• “make it about yourself, not about them when talking about personal finances – easier to relate to others” @onemoneydesign
• people who you know for advice. they will be flattered and you’ll get great advice @abudgetformamiask
• “People love to be ‘experts’, so just ask them to be your personal finance mentors” – @Green_Panda
• “There is a light at the end of the tunnel and you CAN change your ways” – @misformoney

Bloggers on the Chat

• My Life ROI
• Debt Free Adventure
• Free From Broke
• Free from Debt Guy
• Man vs Debt
• M is for Money
• Poorer Than You

Financial Mistakes I Made

We opened up the chat with introductions and sharing some of our financial mistakes. I shared some of my difficulties with credit cards in college.

Finding Personal Finance Mentors and Encouraging Others

We talked a bit of having money consciousness and getting mentors to help us with our personal finances. It can be difficult to talk to others about finances. A lot of people want to be the experts, so compliment others on what they do right and ask them how they did it.

The group also bounced ideas on how we could nudge and encourage our loved one to make better financial choices. Leading by example is key because no one likes to feel that they’re being lectured to. If you’ve eliminated debt or lowered your bills, then you can have more of an influence than just talking about it.

Be open and talk about it without becoming judgemental to keep natural and open.  Presenting the personal finance issues as a swap of ideas can really get the ball rolling.

Online Banking and This Generation’s Finances

Keith asked about what has changed with personal finances with this generation. We discussed how older generations focus on frugality and now it’s more about what we want. Access to credit cards and instant gratification has become the norm with many people.

Online banking has been a huge change with finances, both positive and negative. I personally found online banking a lot easier to track my finances. We use online banking to handle our joint bills and to transfer money into our high interest savings account. Bill mention that it can be a double edged sword. Ms. M has never balanced a checkbook, but she does keep a spreadsheet. She likes the instant access and almost real time transactions with online banking.

Financial Mistakes with Real Estate

Bill shared his story with buying  home while paying for the first house. He gotten sound advice from one person, but he ignored it. Others kept telling him it was a smart move since the real estate market was so ‘hot’.

She had bought a house in 2005 and is currently underwater. Her neighbors bought a house 1/3 of what she paid for, so it’s definitely discouraging. I shared how buying a house is such an emotional issue even after knowing from others what to expect. We have been careful with upgrades we’re getting. Basically we’re comparing the costs of getting it now and doing it ourselves down the road.

Keith wondered should someone buy a house to take an advantage of the tax credit. Several bloggers encouraged him to wait it out. Some people believe that home prices are going to be lower with foreclosures due to unemployment happening now. Others point out the costs of home ownership is much more than just renting, so running the numbers is important.

Don’t buy a house you can’t afford seemed to be the consensus. Find out for yourself if it would be better to rent or to buy.

Listen to Chat

If you found these topics interesting, you must check out and listen to the chat. I just highlighted a few bits from the show, but there is a ton of information and stories to learn from.

Photo Credit: glennharper

His mantra for his personal finance is ” do what works for you”. He doesn’t have hard and fast rules. J.D. Roth shares some guidelines, but wants readers to see for themselves whats best for them.

J.D. Roth on Getting Out of Debt and Credit Cards

J.D. sees debt reduction as a step, not just a goal. He points out that being successful involves making incremental changes:

Rather than quit cold turkey, I think the best way to begin a life of frugality is by taking small steps. Small steps eventually become big strides, but only after you’ve developed your frugal muscles.

Like many financial gurus, J.D believes in having an emergency fund before you start reducing you debt. He recommends the following steps:

• Stop acquiring new debt: Hide your credit cards and create a spending plan or a budget, whatever fits your personality. Reduce your expenses to ‘stop the bleeding‘.
• Establish an emergency fund: Look at your expenses and see if you can ake some adjustments to increase the amount you can set aside for your emergency fund.  He has an idea on increasing the barrier to using your emergency fund for frivolus reasons and oening a savings account at a different bank.
• Implement your debt reduction plan: He prefers to let his readers decide which method works for them: either a debt snowball or paying highest interest rate first.

J.D. and Building Wealth

Something fascinating with J.D. is that ,as a reader, you can follow his financial journey step by step through his blog. Now that he is out of debt, J.D. explored what to do with his money. Sharing his personal thoughts, he broke down how he is using his money to build his finances:

Once my consumer debt was repaid, that $1000 a month was available for other uses. The old J.D. would have immediately used it for fun and games. The new J.D. was smarter. I used this money to begin saving and investing, to begin building wealth. Since the end of 2007:

• Increased his emergency fund from $1000 to $12,000
• Opened a Roth IRA and a 401(k) and max the accounts out

Saving money each month is important to J.D. and he shared his views on what to shoot for:

Something that I find fascinating is that J.D.’s blog also explores avenues of personal fulfillment along with personal finances. He talks about home gardening. He has a wonderful series of posts, not just  the frugality of it, but the enjoyment of it. He also has a wonderful post on affordable and great wines by Gary Vaynerchuk.

What J.D. Roth About Buying a Home

J.D. shares his thoughts on how much of a mortgage someone should budget for:

I’m a strong advocate of being conservative here. I believe your housing costs should be less than 28% of your gross income, and your total monthly debt payments should be less than 36%. These numbers provide ample room but prevent borrowers from being trapped by too much debt.

Again, J.D. stress that you should find something you’re comfortable with based on your budget. Being curious, using his thoughts, the price range we’re looking for in a house fits within his guidelines.

My Thoughts On J.D. Roth

I’m a huge fan of J.D. and agree that having a one size fits all approach is not practical. He has a great blog and his site’s forums is a wonderful resource if you have a question.

If you haven’t already, check out J.D’s and Jim’s wonderful radio show Personal Finance Hour. I’m usually in the chat room following the show as it airs. As for bloggers, he’s an extremely nice guy and very helpful to other bloggers.

What are your Thoughts?

Do you listen to financial gurus’ money advice? If so, which one? If not, why? Is there a financial guru you’d like me to review?

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