PocketCoinage

Last Friday, I attended Dave Ramsey’s EntreLeadership One-Day Event Simulcast out in Collegeville, PA at the Valley Forge Baptist Temple.  EntreLeadership One-Day is an event where Dave teaches the techniques he uses to run his successful small business.  You learn everything from hiring and firing, to being an entrepreneurial  leader.  All the steps are there to help you change the way you run your small business.  Even thought I was watching remotely, he had us to interact with him using twitter and text messaging.

The simulcast was divided into five sections:

1. Entreleadership Defined
   
2. Dreams, Visions, and Goal Setting
3. Financial Peace for the Entreleader
4. Team Math — Adding and Subtracting
5. Making the Call

Entreleadership Defined
Dave had us define the character qualities of a leader and an entrepreneur.  We were able to come up with at least 10 words to describe each one.  We also discussed the basics of leadership and the types of leadership.

Dreams, Visions, and Goal Setting
Dreams, Visions, and Goal Setting discussed how dreams can turn into a reality when they become your vision.  Goals need to be set to reach your vision.  You can reach these goals by establishing priorities by dividing them into quadrants:

1. Urgent/Important
2. Urgent/Not Important
3. Not Urgent/Important
4. Not Urgent/Not Important

Dave also talked about the elements of a business plan.

Financial Peace for the Entreleader
Just like you need financial peace for your own home, a business also needs to be at peace with their finances.  Dave discussed budgeting a small business, busted some common myths about the use of debt, business lifestyle, saving, giving, and applying the financial peace principals within the business.

Team Math — Adding and Subtracting
I feel this is one of the best topics of the event.  Dave discussed working with your team members and how to bring the best people on board.  He uses a unique 12-step hiring process to make sure bad apples do not make it on his team!  He guides you on how to work with them when they fail, the steps to resolve failure, and if they are not the right fit; how to fire them.

Making the Call
An indecisive leader can paralyze any business.  There is one thing that causes indecision: fear.  Here he goes through the steps on how to make the decision and pull the trigger.

I really learned a lot from Dave’s EntreLeadership One-Day Event.  It also helped to reinforce many of the values I learned over the years to make sure that I am on the right track.  More than ever, I feel I can successfully start my own small business.

If you would like to attend one of Dave’s events, please check out his website at DaveRamsey.com.

There are many people out there that say there are two types of debts: good and bad.  Depending on who you listen to, good debt can mean carrying a loan for a home, an auto, or education.  Bad debt can mean carrying a balance on your credit card.

According to this CNN Money Article:

Good debt includes anything you need but can’t afford to pay for up front without wiping out cash reserves or liquidating all your investments. In cases where debt makes sense, only take loans for which you can afford the monthly payments.

Bad debt includes debt you’ve taken on for things you don’t need and can’t afford (that trip to Bora Bora, for instance). The worst form of debt is credit-card debt, since it usually carries the highest interest rates.

Take a step back using common sense and think for a minute:  How can any debt really be good?  You’re slaved to the lender!  Plus, you’re most likely paying interest on the item.  I know, your daily commute back and fourth to work would cease exist without that brand-new Infinity G37 convertible; taken out in a loan of course!  Trust me, that guy riding next to you in his 10+ year old, paid off beater car probably sleeps better at night.  Why you may ask?  He’s not worrying about how he’s going to pay the loan next month!

I had an auto loan once on my sedan and I absolutely hated it!  In fact, I hated it so much that I paid it off in less than two years.  After this, I have never felt the same way about loans again.  According to my final auto statement, I spent wasted over $894.83 in interest over the life of the loan!  That’s $894.83 lost for a vacation, investing, or anything really.  My next car will be used and bought in cash – not a loan!

My next battle with “good” debt is my student loans.  Since 2006, I’ve spent wasted $1,520.48 in interest payments and counting!  I have roughly $14,000 left on them and I’m looking at different avenues to pay it off in less than two years.  As it stands right now, I am on track to pay them off in about 4 years.  It’s going to take some cutting back, but once I send in that final payment, it will be worth all the sacrifices made to get there.

I know we all need a stepping stone and this is where loans can help us out.  Just a word of advice, try not rely on them your whole life.  You’ll never be rich making payments to other people.  Just ask your next door neighbor.