Doug Stephens, MBA

Doug Stephens, Dave Ramsey Coach in Dallas, has many clients that can no longer pay minimums on credit cards. He helps them survive using Dave Ramsey’s 7 Baby Steps. 

The economy is weak and credit card interest rates have skyrocketed. Does that seem right?  Well, no, it does not make sense, but it has to do with large banks being bailed out and then squeezing consumers. The government is loaning money to banks at less than 1% and the banks in turn are jacking up rates on credit cards. This will allow them to “earn”  back some of the money that they have lost due to poor management and personal greed. 

OK, so much for the soapbox. Let’s focus on how this is impacting families. With incomes down and monthly payments on the rise, it is easy to see how families are getting into trouble. Many coaching clients contact me when they realize that they can no longer make minimum monthly payments. For people that have always paid their bills on time this can be very frightening. One minute they are living the American Dream and the next minute they fear not being able to feed their children.

It is perfectly natural to be “frozen” into inaction when confronted by this situation. That is why it is important to seek help. Telling family members and your minister or other spiritual counselor is a good first step. This helps overcome the feelings of shame and helplessness that might accompany serious financial stresses. Remember that these people are there to help you, not judge you. They want more than anything else to see you succeed.

The coach’s job is to come up with a plan and to give you specific steps to improve your finances. Effective financial coaches evaluate the client’s unique situation and give SPECIFIC ADVICE. Suggesting that someone follow Dave Ramsey’s 7 Baby Steps or any other financial regimen is not what good coaches do.  Our role is to make sure that our clients have reasonable goals and understand exactly how to reach them. Lastly, and perhaps most importantly, successful financial plans must achieve results quickly. Forget 10 year “plans”. The aim is to resolve financial stresses NOW.

A financial coach is not concerned with “how you got here”. The focus is on how we can improve your life. Coaches also provide a knowledgeable shoulder to lean on during times of  financial stress and uncertainty. Believe me, having an expert plan in place can change your life. You need to know that even if you are without hope, no situation is hopeless. A good financial coach can help anyone avoid a crash landing.

Doug Stephens, MBA, is a Dave Ramsey Financial Coach serving Dallas and Ft. Worth. He has over 30 years experience in personal and small business finance. He specializes in helping clients get out of debt and then to build wealth. His career as a successful real estate investor is especially useful in dealing with real estate issues.

Doug Stephens, MBA, Investment Coach in Dallas, Texas offers serious answer to a playful question posed by an investment client. “Should Tiger Woods Buy Gold?”

The question of whether or not to buy gold as an investment is posed to me quite often. Whenever headlines suggest a new phase of the banking crisis or the stock market falls everyone seems interested. The truth is that many of the pros and cons of owning gold apply to all of us, including mega-rich Tiger Woods.

First of all, gold is a commodity, and as such, does not earn interest or dividends during the holding period. With this said, there is an inherent earnings opportunity cost from owning gold. All of your gains as an investor will have to come from buying low and selling high. There will be no stream of earnings to bolster your holding period returns. This is not a reason to avoid gold, but investors need to understand the implications when considering the compounding effect on their portfolio.

Secondly, like most commodities, gold is a correlated investment. When the stock and bond markets move it is likely to affect the price of gold. The point is that even though it is considered by many to be money, in truth, they probably won’t take your bullion at the corner burger joint. So if you need funds you may have to sell your gold when prices are lower than you like. In this sense, gold is like every other investment. It is probably not the ultimate form of liquidity.

Thirdly, gold has an historic mystique unlike no other commodity. Everyday people tend to covet and hold it when economic conditions are poor. Paradoxically, It is less attractive to these people when times are good. There is also a greater opportunity cost in holding gold when the economy is strong and interest rates may be higher. It is important to realize that gold’s price trend may run counter to your other investments.

Gold can have a role in any portfolio when the facts are known. It just needs be a reasonable fit in terms of asset allocation. Investment timeline, liqudity, and investment objectives must fit as well. As far as buying gold coins as insurance against a monetary collapse, I agree with Nouriel Roubini. I adhere to his recommendation that you buy Spam instead. At least, as he says, “You would have something to eat.”

Hey, I almost forgot the original question. Should Tiger Woods Buy Gold ? In my opinion I don’t think so. From an advisory point of view it looks like he will soon be writing some large settlement checks. Tiger probably needs to keep his funds more liquid.

Doug Stephens is a Financial and Net Worth Coach in Dallas. He has over 30 years experience in real estate, business finance and investments. His clients are offered practical solutions to the challenges of capital growth and preservation. Alternative investments are one of his specialties.

Doug Stephens is a Dave Ramsey Coach in Dallas, Texas. With the current economic outlook, many of his high net worth clients ask, “How can I build net worth?”

The first step is protect what you have. Many of my clients have been successful in earning significant incomes and amassing wealth. The key point for these people is to consider is that the current economy is weak and uncertain. This means that many of the income or wealth building strategies that worked in the past may not work now. It is important to consider risk reduction or capital preservation strategies. This applies to income production such a small business as well as money already invested.

The second step is to consider new strategies. This might be as simple as paying off certain debts and restructuring your personal balance sheet.  If you own a small business you may want to consider planning how to make cut backs just in case it may be necessary. On the investment front it might mean considering alternative investments.

The third step is to take action. There are no reported cases of people becoming wealthy sitting on the sidelines. Make any changes necessary to protect what you have already accumulated. Then get out there and continue to build wealth. Even in a poor economy many people are making money and increasing their personal wealth. Bigger bargains and bigger risks are available whens times are tough. With reasonable precautions and some fresh thinking ,it is possible to build your net worth even as others falter.

If you are a high net worth individual, working with the right financial coach can make all the difference! Try it.

Doug Stephens is a Dave Ramsey Financial Coach serving Dallas and Ft. Worth. He has over 30 years experience in Finance, Real Estate Investment and Other Investments. He specializes in investments for small businesses and accredited investors.

Doug Stephens, Dallas Financial Counselor, helps beat credit card debt. Some of his clients are deeply in debt and discouraged, yet he insists, “Don’t give up!”

Many new clients come to me so deeply in debt that they feel their situation is hopeless. Some of these people are frozen into inaction, others may be glumly considering bankruptcy. The truth is that no matter how bad your financial picture is, you must never  just give up. It is absolutely imperative that you actively attempt to improve your own finances. If you throw in the towel, your future will be dictated by strangers.

Let me give you an example. Quite often people come to me and say that they do not have money for food or rent.  When I ask if they are current on credit card payments they answer yes. Does this strike you as a little odd? Shouldn’t food and shelter for your children be a higher priority than paying back unsecured debt? The answer is that of course it is. Taking action to improve your situation involves setting spending priorities. You are not much good to your creditors if you and your children are on the street or without food. This process is known as building a fortress around your living expenses.

Another situation that I frequently encounter involves college loans. Some clients come to me with credit card debt and gigantic balances on school loans. In certain instances the amount owed on educational loans is equal to three or more years of this person’s take home pay. What do we do? Do we give up? No. No. No. For this client it is extremely important that they pay down school loans. This is a particularly toxic form of debt that usually is not forgiven even in bankruptcy. Paying down school loans can be even more important than paying off credit cards. Yes, Yes, I realize that college loans sometimes carry fairly low interest rates. My point here is that paying these loans off must be a priority or you may have them forever.

Sometimes I counsel small businesses that are in trouble or even failing. My advice to these clients is just the same. That is, get out there and take steps to improve your own finances. Many times even if a business fails, an owner can reach settlements with creditors or reduce the adverse impact on the owner’s personal financial situation. This won’t happen if these business owners quit trying.

In my experience, every one’s finances can be improved with a little planning and effort. Don’t let others decide your fate because you feel it is hopeless. You may be surprised at how much progress you can make with just a little effort. Everyone can take actions that will improve their lives.

Doug Stephens, MBA, is a Dave Ramsey Financial Counselor specializing in personal and small business finance. He helps clients pay down debt and become debt free in Dallas and Ft. Worth. Doug has over 30 years experience in finance, investments and real estate investment.

Doug Stephens, MBA, helps clients of all ages. He often counsels young people crushed by college loans. He begs, “Grandparents, please help your grandkids!”

If you are an older Baby Boomer or are from the WWII generation I am talking to YOU. Your grandchildren need you. You can take a few steps that may free your children’s kids from a lifetime of debt. If you can give them a little help it may allow them to one day to retire like you. Without your assistance it may be out of their reach.

Every day in my practice I meet young people that are deeply in debt due to school loans. We are talking $50K, $100K or even more. At the very time when many of these new grads are just starting a career, they are hamstrung with debts that may take decades to pay off. The reason for this is, as newcomers to a career field, most of these graduates earn modest salaries. They typically do not own any assets and have to buy household goods, cars and so forth as they start from scratch.

In the early years after college it is difficult for young people to pay off debt. Sometimes they make minimum payments and decide to work on it later. Educational loans tend to have very long maturities and favorable interest rates that encourage this approach. It is easy to make small monthly payments over long periods of time. The problem is that over time it can become increasingly difficult to retire these loans. Paying down educational debt begins to take a back seat to all of life’s other responsibilities. These may include getting married, raising children and buying a home. Meanwhile those school loan balances just seem to hang around and never get paid off.

Several factors have made the preceding scenario common-place. First of all, higher educational institutions have raised tuitions faster than the rate of inflation for years. Schools and lenders have encouraged students to go deeply into debt to pay these bloated fees. Secondly, parents have turned a blind eye to the amount of borrowing done by their children. They rationalize that education is “worth it” and that their kids can pay back these monstrous sums “later”. A third factor is that modern day college students tend to lead lifestyles that are heavy on consumption and long on borrowing.

This is where you grandparents come in. I suggest that you set aside funds to help pay off your grandkids’ college loans. This can be done while you are living or can be done via your will. The number 1 rule is don’t sabotage your own retirement. Don’t give away money that you need to ensure a comfortable lifestyle. Helping your grandchildren in this manner is probably best done by leaving them money in your will anyway.

Here is the tricky part of my plan. If you inform your children that you are leaving money to their children (ie. your grandchildren) it may cause some family turmoil. It might also encourage your grandchildren to run up more debt to get a “bigger piece of the pie”.  Maybe the solution is to just quietly specify in your will that X dollars are available to pay off school debt for grandkids if needed. If not needed, the funds can go to others.

It really doesn’t matter how you do it. But if you can, please help your grandkids with their school loans. I see people every day that are 40, 50, even 60 years old that have large school loan balances. A lot of these people may never pay off those loans. I don’t want your family members to get stuck in that situation.

Doug Stephens, MBA, is a Dave Ramsey Counselor for Dallas and Ft. Worth. He is a specialist in personal and small business finance. Doug is a successful real estate investor and frequently advises clients on purchases and sales.

Doug Stephens, MBA, Dave Ramsey Coach in Dallas helps clients at all stages of The 7 Baby Steps. They often demand, “Why don’t we ever talk about Baby Step 7?”

Well, that is a very good question. You may recall that Dave Ramsey’s Baby Step 7 is Build Wealth and Give. Often it is easy to overlook this ultimate goal when a client is in serious debt. Many times my clients are concentrating on just making the minimum payments on credit cards. For those just starting out, Baby Step 2 (paying off unsecured debt) takes a lot of energy and determination.  Wealth building (Baby Steps 4-7) seems a far off dream when your creditors are dictating your every move.

Let’s look at Baby Step 7. At that point you are debt free. You have finished saving for college and retirement and you own your home. Everything is done; your investments are producing income and you can generously give to those in need. Sounds pretty good doesn’t? For those at Baby Step 7 life can be rewarding. What most people fail to realize is that they do not have to wait. They can experience a lot of the joy that comes with Baby Step 7 while working on the other six Steps.

The goal of the 7 Baby Steps is to provide a framework by which to manage your finances over a lifetime. This includes helping others and giving all along the way. The goal is not just to amass wealth. The goal is to organize your finances and help you build wealth while you take care of what’s really important. I am referring to such things as raising your kids, caring for a sick parent or volunteering to help strangers in need. Many of these things do not require that you spend any money. What is required is that you have the time and energy to do them. That is probably not going to happen if you are stressed out full time about being in debt.

Remember, Baby Step 7 is the final destination in a journey. You can and will experience Financial Peace during every Step of that journey. Once you have control of your personal finances you can stop worrying and start living. There is plenty of time to reach Baby Step 7. Handle your money using Dave Ramsey’s techniques and you will get there. To sum it up, we don’t talk about Baby Step 7 because it is our destination. We want to focus on the journey.

Doug Stephens, MBA, is a Dave Ramsey Coach for Dallas and Ft. Worth. He has over 30 years of experience in personal and small business consulting. Doug frequently counsels client facing bankruptcy or forclosure. He has been personally  and certified by Dave Ramsey and his staff.

Doug Stephens, Dallas Financial Counselor, offers financial advice to help clients get out of debt. He is often asked, “How can I live without credit cards?”

My answer to that question is that we must find a way for you to live without credit cards. For many people, credit cards provide an easy way to live beyond their means. They just bounce along spending more than they earn and let credit cards take up the slack. Others with no savings or scant net worth use credit cards as a substitute for an Emergency Fund. I explain to new clients that this behavior has to end immediately.

Common sense tells us that paying interest on credit card balances will destroy our ability to build wealth. Our goal is to earn interest on our savings. This can be money set aside for retirement, college or any other purpose. We can’t expect to build net worth if we are paying interest; instead we must earn interest. This an extremely important point for younger clients. For them, becoming net savers early on has a dramatic impact on the amount of wealth that they will accumulate during their lives.

The most compelling reason to begin living without credit cards is that you may be forced to do so.  Banks are experiencing record loan losses on mortgages, home equity loans, and credit cards. In response, credit card issuers have had to reduce credit lines and in some cases outright cancel credit cards. Many of my clients are finding that their credit limits are being reduced to just above the current balance. They are also receiving notices that unused Home Equity Lines of Credit (HELOC) are being cancelled. Oops! There goes that substitute Emergency Fund.

In this economic era it is more important than ever to live on less than you earn. This is not just about reducing debt and building wealth. We are talking about financial survival. Assuming that your credit cards will always be there to bail you out may not be realistic. We are probably entering a time of tighter limits on how much unsecured debt (credit cards) lenders will grant. We are already seeing these limits tightened on some people at the first little sign of financial trouble.

My message for you is to take control of your own life. Pay down your credit cards and other debts. Stop living in fear of what lenders may do.  If have no credit card debt, and an Emergency Fund in place, it will greatly simplify your life. You will be able to weather the current economic storm and find your path to Financial Peace.

Doug Stephens, MBA. is a Certified Counselor for Dave Ramsey in Dallas, Texas. He has over 30 years experience in personal finance, investments and small business finance. He is a successful real estate investor and often advises on buy/sell decisions. Doug specializes in finding realistic solutions that simplify and improve the lives of his clients.

Dave Ramsey Counselor Doug Stephens, MBA, in Dallas, Texas finds that many clients share a common fear. He asks, “Why does that “B” word frighten everyone?”

The word that we are are talking about, of course, is budget. The word budget evokes in most individuals the feelings of fear and dread.  In general, many people feel that preparing and living by a budget may be a painful process. They feel that it will be tedious and interfere with their lifestyle. Some even fear that  it will be used by a spouse to control them or monitor their activities.

A budget used in conjunction with Dave Ramsey’s 7 Baby Steps can be a powerful tool. For new clients, the budget helps them understand where their money is going today. The vast majority of people that I meet do not know how much money they spend each month or exactly what they spend it on. The first budget for most people is a real eye opener.  Just the process of preparing a first budget can be extremely helpful for two income families. Many times it is the first time that both spouses have talked about everything that they earn and spend.

A better way to view a budget might be as a spending plan.  Using a budget helps ensure that you spend your money on the things that are important to you. You set the goals. You set the priorities. In contrast, many people just bump along financially. They work, get paid, pay the bills and so on and so on. Without the ability to monitor and direct their spending, these people will probably never achieve their financial dreams. This cycle is a prime reason why many people earn fine incomes for an entire career and still retire broke.

Typically, people discover that there are a number of other benefits that come from using a budget. Remember that the budget is a spending plan.  If the money is in the budget you do not have to worry about each little expenditure. When you are at the grocery you don’t have to wonder, “am I spending the money I am going to need to pay the electric bill?” Using a budget just helps simplify your life. Instead of saying no every time your kids ask for something, you may say,” yes,” or “we will have the money for it on a given date.” Many find that the peace of mind that comes with having a budget is well worth the effort.

Some people fear budgets because they fear the truth. They know that they are living beyond their means and are afraid to confront it. I try to encourage people like this to go through the budgeting process and take a look at the total financial picture. It may not be as bad as they think. In any event, understanding the problems is a good first step in solving them.

A budget is a tool and nothing more. Using a budget will help you spend your hard earned dollars on the things that matter to you. Managing a budget becomes almost second nature with a little practice. It will simplify your life and start you down that road to Financial Peace.

Dave Ramsey Counselor Doug Stephens, MBA, in Dallas, Texas is a Dave Ramsey Certified Counselor. He has over 30 years of experience in personal finance, investments, and small business finance. He specializes in developing practical, real world solutions for his clients. Doug is a successful real estate investor and frequently advises clients on home or investment property buy/sell decisions.

Dave Ramsey Dallas Counselor Doug Stephens, MBA, is shocked at the number of new clients that are considering bankruptcy. It prompts him to ask,”why is everyone filing bankruptcy?”

Of course, not every new client expresses the desire to file bankruptcy. But the fact is that many newcomers to financial coaching honestly believe that bankruptcy is their best option. Astonishingly, these same people tell me this before we even look at their financial data. Somehow they have come to believe that bankruptcy is a cure-all that will solve all their problems.

Bankruptcy is certainly not a magic bullet and it does not work for everyone. I suggest to all new clients that we first review the facts. Successful coaching is based reviewing all the facts and making informed decisions. The tendency of people to make life changing decisions after little or no homework speaks volumes doesn’t it?  I think we can begin to see why people all over the country are being crushed by gigantic mortgage, auto and credit card debts.

It is easy to assume that people are lazy and want to take the quick way out through bankruptcy. The truth of the matter is much more complex. Many of these folks are just like you and me. They take pride in paying what they owe and want to do the right thing. Stress and fear are two factors that enter their lives and turn everything upside down. Understandably, people behave differently when they feel that they are cornered and fighting for their financial lives.

The mental anguish that comes with a large debt load causes many to look for the nearest exit. No wonder. Ringing phones with threats and abuse from debt collectors is highly stressful. That is purposeful. Let’s face it, collectors are trying to evoke an emotional response from you. Each one knows that if he is the biggest nuisance that you might send him the money that you do have. In a way, collectors are in a competition to be the biggest pain. Hence, the antics and outrageous threats that we often see.

My point is that there are variety of factors that cause people to consider to consider bankruptcy. In certain, specific circumstances it may be a good option. My advice is to take a long, well thought out look at your financial situation. Get counseling help if you need it. Don’t let fear dictate your actions. Most of my clients that initially ask about bankruptcy end up improving their lives using Dave’s 7 Baby Steps. You can probably do the same!

Dave Ramsey Dallas Counselor Doug Stephens, MBA, serves the DFW metroplex.  He is a Dave Ramsey Certified Counselor. Doug has over 30 years experience with investments, personal finance and small business finance. He specializes in using practical experience to arrive at realistic solutions for his clients. In addition, Doug is a real estate investor and frequently advises clients on purchases and sales.