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Income Up! Expenses Down!

Financial Education Course #3

Income Up Expenses Down

One fundamental concept to financial success is simple: increase income and decrease expenses. Although this concept is very simple, most people do not apply it. Throughout your life, your focus should be on increasing your personal income and decreasing your personal expenses.

Decreasing Expenses

Most people have misplaced goals when it comes to finances. One misplaced goal is to get the nicest house possible. Another misplaced goal may be to finally save enough money to buy a dream car. The problem is this: most people focus on what they want instead of the best way to get it. This focus – on achieving your financial goal without focusing on the method for achieving it – is doomed to failure.

Increasing Income

Increasing income is kind of a “no-brainer.” We all know the benefits of increased income. However, have you ever really studied diligently how you could run a business or increase your knowledge towards the goal of increasing income? Knowledge is power. Acquiring assets and financial knowledge almost always increases your income. For instance, when was the last time you went to a seminar about marketing or website building? How much time do you spend learning about how to acquire and manage assets? If you constantly “build” yourself up with personal abilities and knowledge, your income will increase. However, an important warning is necessary here. If you do not first apply the principle of decreasing expenses, all of your increased income will be worth absolutely nothing. The tendency of most people is to immediately find ways to spend increased income. A nicer house, better cars, indulging in hobbies and other personal habits – these things have a natural way of immediately exhausting additional income. First make a commitment to decreasing expenses. Make them as low as possible! Then, make a commitment to only use your increased income for new assets and other investments. If you do this, a better overall financial life will naturally follow.


Math Never Lies. We have all found ourselves in the dynamic of wanting nicer things in life. Houses, cars, vacations – we want it all and we want it now. Sometimes the “right- now” desire to live life overcomes our math skills. In order to truly have an easier financial life, we need to always be focusing on increasing our income and decreasing our expenses. The math of this truth never lies.

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Get Dynamic! Get Serious!  – Course #4
Never Take the “Easy” Way – Course #5
Do the Opposite of Everyone Else – Course #6
Action Plan – It’s Game Time!  – Course #7

How to Change your Financial Worldview

Financial Education Course #2

Indianapolis Bankruptcy Attorney John Bymaster explains the importance of changing your financial worldview.

Changing your financial worldview is a much larger task than what you may first anticipate. It requires a tremendous amount of dedication. It requires you to make drastic changes to how you approach life. It usually also requires you to do the exact opposite of what most other people are doing around you. You may feel like a loner, the only person in the crowd with vastly different financial goals.

The best way to explain how to change your financial worldview is to give some examples that will start moving the way you think in the right direction. Remember, changing your financial worldview is something that takes commitment. Massive changes to your life will be required. Below we have explained five examples of how your financial worldview will may need to change.

1. Be Productive and Make “Work” Your New Best Friend

There are no limits to those who choose a good attitude about work and business. The popular personal finance book, “The Richest Man in Babylon” by George Samuel Clason, gives an example of someone who worked from the bottom to the top by making work into a “best friend” instead of a mortal enemy.

If we fear work or make it our enemy, we will never be able to open a business or be successful in our employment. If we drop all our fears and bad attitudes relating to finances, we can start truly be productive and excited about financial things instead of dreading them.

2. Make it your Goal to Learn About Money the Same Amount of Time That You Work for It

How many people do you know that will punch in and out faithfully everyday for work, spending at least 40 hours towards working each week? Out of those people, how many people do you know who spend even 15-30 minutes each week learning about money or how it works? The answer is not too many – almost none at all.

Why is this? Learning about business, financial skills, and how money works – these are all very easy and enjoyable ways of making your financial life much easier. If you spent as much time learning about business, new skills or abilities, and money as you worked each week, your net worth and financial understanding would drastically increase in a short time.

3. The Working Hard and Working Smart Equation

After you have decided to gain financial knowledge, you can start putting that financial knowledge into effect. Two parts exist in the financial equation. In this equation, your hard work is essentially multiplied by the “smartness” of your work. These two factors multiplied together are what determines how financially successful you will be.

How many people have you seen working hard but getting nowhere financially in life? How many easy-going, intelligent people have you seen who have some financial knowledge but are unwilling to work to be successful? These two factors, hard work and smart work, must always be used in conjunction with each other in order to achieve financial success.

4. Decrease Personal Expenses and Increase Income

Many people are thrilled to purchase a beautiful house on mortgage and new financed cars whenever they find themselves able to make such payments. Unfortunately, such thinking usually leads to either financial mediocrity or even financial failure. Instead of such goals, your primary financial goal should be to decrease your personal expenses to as low as possible.

With the goal of decreasing your personal expenses, you can still many times achieve the purchase of such items such as nice accommodations and vehicles. However, the route to these desired items is vastly different. Many financially successful people pay very little (or virtually nothing) for the lifestyles they enjoy. Their corporations or rental income frequently offsets all of their personal expenses.

With your expenses as low as possible, you can use anywhere from 50% to even 80-90% of your income for investing in new sources of income. The process of wealth accumulation never ends in such an equation. However, if you start out with high personal expenses, you will never be able to break free of the monthly bill payment cycle that dominates the entirety of most people’s income.

5. Do Not Care About Appearances. Do not “Keep up with the Jones’s”

Many people purchase automobiles and houses in order to help their self-esteem. They know that they work hard and feel like they “deserve” some nice things in life. However, this way of thinking is very detrimental to gaining financial knowledge and breaking out of the monthly-payment cycle.

The only thing that ultimately matters is the reality to your finances. If you have hundreds of thousands saved but drive a modest car, does it matter what other people think? From now on, judge how much your net worth is gaining each year in order to determine your financial or other “worth” you desire. Remember, financed items are really only “on rent” anyway. You do not own any part of them unless you are taking drastic steps to quickly pay off the debt. Do not let financed items be your self-esteem booster. Make responsible financial choices that will lead to genuine accumulation of wealth.

Assignment: Read or Listen to the Book, “The Richest Man in Babylon” by George Samuel Clason

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To move on to Financial Education Course #3 click here!

Stay tuned for Indianapolis Attorney John Bymaster’s next Financial Education Courses!

Income UP – Expenses DOWN! – Course #3
Get Dynamic! Get Serious!  – Course #4
Never Take the “Easy” Way – Course #5
Do the Opposite of Everyone Else – Course #6
Action Plan – It’s Game Time!  – Course #7

Financial Class After Bankruptcy

Financial Overhaul? Why would I need that? – Course #1

Living with a bad financial history is a pattern. The pattern always repeats itself. Nothing ever seems to go right. Money is always scarce. For many people who have recently filed bankruptcy, this is the reality they have always faced in the past. Finances are always failing.

This is why many people who file for bankruptcy need a complete financial overhaul. The old patterns and ways of doing things simply do not work. A totally new frame of understanding must be achieved for future financial dealings to truly change. With this reality in mind, we have created the 7 courses entitled, The After-Bankruptcy-Financial Overhaul.

Still, why could you need a complete financial overhaul? Let’s consider some of the below scenarios. Scenarios can have a way of showing need that other arguments cannot:

Scenario One: The Automobile Dilemma

Free Financial Classes

You recently encountered a major breakdown with your automobile. The repairs required are costly and uncertain. You have no savings prepared (as usual). You need to get to work or you will lose your job. You call around, but the commitments you can find for rides to work are shaky at best. What do you do?

The Wrong Choice: Out of desperation, you buy a financed vehicle at wherever dealer will offer you financing.

In our experience, the most common choice (poor choice) is to purchase a financed vehicle with whatever place will provide financing. Do you know that if you buy a financed vehicle in such a dilemma you could be guaranteeing that you will need bankruptcy soon again? Such vehicles are frequently coupled with impossible loans to pay. Even if the loan is fair and affordable (which is rare now days), what will you do if the car fails down in the next five years?

In such situations, repossessions are common. The creditor will eventually go after the deficiency which can sometimes be much in excess of $10,000.

Scenario Two: My New House!

You know how much housing costs (or so you believe). You know full well that it always costs over $1000 per month in rent or mortgage payment to get a “nice” place. Your bankruptcy went well, a couple years have passed. It’s time to finally get a nice home! You arrange a house purchase and get financing through a bank. You thought that your payment would only be $1050 per month with the mortgage calculator. You are surprised when you find out the payment is going to $1348 per month with insurance and taxes.

The Wrong Choice: Falling into any type of expensive housing trap like the one described above.

In our experience, the above describes a noble goal that so many of our clients hope to achieve: owning their own home. However, if you purchase a home like the one above you may be guaranteeing that you will need bankruptcy again within the next 8 years. For most people, the above property setup will be impossible to pay over the long term. For those who have the financial resources to do pay it, getting into such a deal is still a waste of your financial time.

This house will probably require almost $2000 to operate each month with utilities and maintenance added. This requires $24,000 of net income to only go towards housing! This amount would take up the vast majority of your precious income, leaving little to pay for the rest of the bills. Any job loss or unexpected expense would spell instant failure. If no unexpected things occur, you will be using every piece of your income to support your home. You will never be able save or retire. Your net worth may be $0 now and stay $0 until retirement age.

Conclusion: You need a Financial Overhaul to Live a Better Life

Many people live paycheck to paycheck. They live in a pattern that goes from crisis to crisis. If you would like to have free financial wisdom to break this cycle, unlimited amounts of materials are available to you. But, why not just start with the commitment to through our financial overhaul course. You can start here and then make a commitment to continue learning. This will result in a refined, much-more-enjoyable financial existence!

This is where the “rubber meets the road.” It’s all about truth. A lot of changes, big changes, will need to be made. If you are willing to commit to drastically changing your financial viewpoint and habits, then a whole new exciting world will soon open for you to enjoy!

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Second Mortgage & Bankruptcy

What Happens to My Second Mortgage If I File for Bankruptcy?

What happens to my second mortgage if I file bankruptcy?

A second mortgage can be a huge burden to a homeowner. Second mortgages and home equity loans are usually sought to pay for unexpected bills that life may bring. What happens to a second mortgage when you file for bankruptcy? A second mortgage usually remains on your property unchanged. But, there are a few exceptions.

Second Mortgages Stay Attached to Your House After Bankruptcy

When you file for bankruptcy, the second mortgage remains attached to your house. This means that the second mortgage holder can still come after your house if you begin to default on payments. Therefore, in most situations, you will need to continue making payments on your second mortgage if you want to keep your house.

Chapter 7 Bankruptcy does, however, usually remove your personal liability for your second mortgage. If you do not sign a reaffirmation agreement during your bankruptcy case, you will no longer likely be personally liable for the repayment of the second mortgage. This means that your mortgage company can only come after your house through a foreclosure. They will not likely be able to come after you personally for collection.

Bankruptcy Can Sometimes Help You Reach a Settlement on Your Second Mortgage

This can sometimes give the bankruptcy filers an advantage in negotiating a settlement for the second mortgage. If your second mortgage is excessive and not secured by actual equity in the house, you may be able to settle for much less of the total amount. You may need to seek an additional attorney for this purpose. Such an endeavor would not be covered during a standard bankruptcy case.

Chapter 13 Can Sometimes Avoid a Second Mortgage Lien

In certain rare circumstances, a second or third mortgage can be avoided during a chapter 13 bankruptcy case. Any such mortgage would need to be not secured by actual equity. Essentially, the total value of your home would have to equal less than just your first mortgage. If your second mortgage is not secured by any actual equity in the house, you may be able to file a lien avoidance lawsuit during the chapter 13 case.
It is important to note that it is also required in most circumstances for the chapter 13 plan to be successfully completed. If you do not complete the chapter 13 plan, your second mortgage holder may challenge the validity of the avoidance order.

Right Time to File Bankruptcy?

When Is the Right Time to File Bankruptcy?

When is the right time to file bankruptcy?

Timing can mean everything in life. Bankruptcy is no exception. When is the right time to file bankruptcy?  A few basic tips about the right time to file bankruptcy can be very helpful.

1. File Before Collection Becomes Too Aggressive

If you were considering Chapter 7 or Chapter 13 bankruptcy, it is better to file your case early. If you wait too long, aggressive collection may follow. If you’re considering chapter 7, a garnishment can make it much more difficult.  The garnishment will take a substantial portion of your paycheck, taking away finds you could otherwise use to pay for your bankruptcy fees.

2.  File After You Have Received and Spent Your Tax Refund

In Indiana, it may be wise to file bankruptcy after you have received and spend your tax refund. In Indiana, only a very low exemption is allotted to protect your tax refund. Therefore, if you were owed a tax refund in the upcoming weeks or months, you may lose a portion or all of that tax refund during the bankruptcy.

3.  File As Soon As You Discover Bankruptcy Is Right For You

Many people put off bankruptcy for years.   If you have determined with an attorney that you need to file for bankruptcy, file your case as soon as possible. If you are carrying a heavy debt load, talk to an attorney right away. People wait for years to file bankruptcy much to their disadvantage.  After you file for bankruptcy, you can get a fresh start to move on with your life.

4.  Always Follow the Advice of Your Attorney

Ultimately, the greatest guidance as to the right time to file for bankruptcy will come from your attorney. A consultation with a bankruptcy attorney is many times free. If you follow the advice of a bankruptcy attorney as to the right time for bankruptcy, you can avoid costly mistakes and unnecessary stress.