Mike Sorrentino, from MTV’s controversial (is there any other way for MTV?) reality show, Jersey Shore, has made some smart business deals to put him in a pretty secure money situation.

He’ll rake in approximately $5,000,000 by year’s end!

Known as ”The Situation” on the MTV Jersey Shore show, earns $60,000 per episode and also has inked a few endorsement deals!

I must admit, I have never seen this show.  I hadn’t even heard of Sorrentino (I know, I know, I”m so out of the loop!) until a friend forwarded me this article and said I should write about what “The Situation” should do with his money!

So here are 5 dumb money moves The Situation should avoid - and for you to consider too:

Keep It All For Himself!

$5,000,000 is a lot of money.  It’s not much compared to A-list actors or top professional athletes, but it is a ridiculous amount of money to you and me.

The last thing this MTV Jersey Shore actor should do is keep it all for himself.

Why?

Because contrary to popular belief, greed is not good – sorry Gordon Gekko!

We are most happy when we are self-giving, generous and willing to help those in need.

Don’t Do Estate Planning

“I’ve got plenty of time to get my affairs in order!”

Ever think those things?  I’m sure we all do.

The reality is we never know when it’s time to leave this place.

Sorrentino should avoid probate, avoid the mess that is created without an estate plan and avoid putting it off until tomorrow.

Look at Johnny Carson, the guy did a great job with his estate plan, and is still donating money to charity even though he’s been gone for five years!

Don’t be caught dead without these documents, your beneficiaries will thank you!

Spend Like There’s No Tomorrow

Jersey Shore won’t always be the most popular show on MTV – the next edgy reality show will soon take it over, which means the money won’t always be there.

Sorrentino would be smart to put a big chunk of that away for the future and plan for those rainy days!

Spend less than you make isn’t just for us “regular folks”, it’s for everyone!

Don’t Work With Trusted Professionals

One word.  Madoff.

Many of you are DIYers – and that’s great.  Inevitably though, you’ll probably need to consult with an insurance agent, financial advisor, attorney or CPA at some point in the future.

Do your due diligence on these individuals.  Make sure they have your best interest at heart.

Hopefully Sorrentino has some trusted advisors in his court!

Don’t Diversify Income

Again, the cultic MTV Jersey Shore won’t always be around.  Sorrentino would do well with figuring out additional ways to earn some cash.

It sounds like he’s already doing this, which is great!  He’s got a set of workout videos coming out and is also getting endorsements from liquor companies to clothing lines!

Perhaps we need to take a page out of that book and look for ways to diversify our incomes.

Especially in this economic environment, there aren’t too many “recession proof” jobs.

Maybe we need to our hobby into a business or look for additional ways to make some money!

Avoid Those Mistakes – Do the Right Things!

So there you have it! Five of the dumbest things “The Situation” could do with his money (and you too!) – Be sure to avoid these common mistakes!

True Wealth is a topic that’s been on my mind lately.

I think it’s because I have been challenged  over the last couple years by this and have been trying to sort through my own definition of true wealth and its implications for my life.

In 2007 things were going well.  Business was increasing, I was making more money and I had grand plans for taking it to the next level.

Then the 2008 Economic Tsunami hit!

And just like a lot of others, I had to deal with the aftermath.  I had to evaluate our spending, savings, and ultimately what was truly important.

I firmly believe God used the Great Recession to check my priorities.   In a weird sort of way, the recession was good for me!

And that’s when I realized that something needed to change.

I Can’t See, The Wipers Won’t Move Fast Enough!

Have you ever driven through a torrential down pour? 

You know the kind where the rain is coming down so fast and is beating against the windshield so hard that it’s nearly impossible to see?  

A few months back we were coming home from visiting some friends and we drove through a nasty storm on the highway.  It was freaky.  I wanted the wipers to move faster to keep up with the rain, but they couldn’t – I finally had to pull over because I couldn’t see a thing!

I’ll admit, during the worst part of the 2008 market meltdown, it was very tough for me to see beyond each hour of the day. 

As a financial planner, I was feeling the weight of clients’ dreams, goals and investments on my shoulders – there were some days I felt so horrible that I just wanted to pull off the side of the road and wait for the storm to pass.

Every day, I heard story after story from panicked clients looking for answers to things that were so beyond our control and yet affected each one of us.

It was painful. 

I don’t say that looking for sympathy, I simply want to give you an understanding of the journey I’ve been on to realize a huge life lesson that I hope others will learn too.

I Can See Clearly Now…

The rain is gone.  Thank you Jimmy Cliff for summing it up perfectly for me.

Once the markets began to simmer down a bit, I began to think critically about what I had witnessed. 

We weren’t out of the woods yet in terms of the economic crisis, but I started considering what was most important in life and in business.

I started working through a definition of True Wealth.

I started this blog as an extension of what I was thinking through and as a way to help others with personal finance and more importantly, understand the foundation of building your financial house. 

I also reworked the mission and vision statements, revised the goals and reordered the priorities for my business to incorporate my understanding of True Wealth.

And I’d like to share my learning with you.

True Wealth and the 3 P’s

So here’s what I came up with:

True Wealth is not defined by commas or net worth – it is characterized by the quality of relationships; pursuing your passions and living life with a purpose. 

In other words – it’s the pursuit  of People, Passion and Purpose!

Or the 3 P’s as I’m calling it. 

Understanding True Wealth encourages the pursuit of what’s most important, which improves happiness, enlivens the soul and blossoms contentment.

People

At the end of the day, life is about relationships.  Unfortunately, we seem to forget that truth so often just like Sam Walton, the founder of Wal-Mart did as well. 

Sadly, he didn’t realize it until he was on his death bed.

How are you doing with investing into your important relationships?  I know I need to continue to work on this.

Passion

What are you passionate about?  If you could do anything, what would you do? 

Those are the things that enliven the soul. 

Whether it’s helping the poor; giving time to charity; using your personal finance learning to help others understand how to save money; using your passion of capturing memories on film to start a photography business (like my wife did); or using your creative talents for woodworking, cooking, writing or any number of other things.

Use your natural creative talents to live life with passion.

Purpose

Lastly, True Wealth is taking those passions you’ve identified and figuring out what sort of purpose you have with those.

Why are you here?  What were you created to do.  We all have a purpose.   

True Wealth is figuring out what that purpose is and using your passions to build into people!

So that’s my journey.  A long road, but a good one.  And a lesson that I hope I continue to learn and you do too!

What Are Your Thoughts?

What do you think True Wealth means?

Casper was a friendly ghost.

Slimer was green and gooey, but you couldn’t help but love him.

And of course there’s Patrick Swayze in the movie Ghost – that was just, well, weird.

None of them, however, gave away insane amounts of money.

I’ve never heard of a philanthropic ghost until now – the ghost of Johnny Carson.

Tax filings uncovered by The Smoking Gun reveal the late, great Johnny Carson became Hollywood’s biggest philantrhopist last year as he donated $156 million to various charities.

Carson died in 2005!

Philanthropic from the Grave

How did he give away millions from the grave?

Simple – Carson actually did the proper estate planning before he passed away!

The former Tonight Show host set up a charitable trust and the John W. Carson foundation before he passed, which was able to give grants to various organizations while he lived and obviously still after he died.

No one knows for sure how much is left in the Carson estate or what percentage the $156 million represents since there has never been a public accounting of it. 

Where Do Johnny Carson’s Donations Go?

The tax return lists 67 separate donations to various charities.  Johnny Carson routinely gave to AIDS charities, schools, and environmental groups during his lifetime.

Apparently there are future plans to donate to the Children’s Hospital of Los Angeles as well as the Los Angeles free clinic, Planned Parenthood and other organizations.

Of course, part of the money has to go to the gentlemen who oversee the financial management of the foundation who both receive $90,000 a year each for part-time work. 

That’s not a bad part-time gig!

Donating to Charity

Ok, so it wasn’t really a ghost – this was all planned out during Carson’s life time.  He didn’t make a come back to sign the tax return.

Whether you agree with who he gave his money to or not, there’s a few big financial lessons to be learned here:

1. Start planning before your dead
2. Get the proper estate planning documents in place
3. Start giving money away - you’ll find greater joy and happiness in giving and helping others

It’s interesting how celebrities can teach us quite a bit about money!

I came across two stories regarding unique items being sold this week.

The first story was about the Tuttle Family Farm sale.

John Tuttle came to the good ol’ U.S. of A. in 1632 on a land-grant from King Charles I.

He used that grant to purchase land near the Maine/New Hampshire border.

The farm has been passed down from generation to generation making it one of the oldest continuously family-operated farms in America!

But, the 11th Tuttle generation just can’t hack it any longer – and they’ve discouraged their children from taking it over because they’d be “saddled with debt”, according to Lucy Tuttle, 65, who runs the farm with her brother Will.

Looks like this original 20-acre-parcel-turned-134-acre-tract has seen its last days of sweet corn, cucumbers and squash. 

Unless of course, the new buyer would like to keep on farming.  But that doesn’t seem likely.

Farm sales are common in the United States and are gaining in popularity, but this one is unique because of its history.

The other story was about an Alaskan comic book buff who is putting his prized possession on the market. 

Batman No. 1!

This rare comic from 1940 was the first solo spin-off for Batman who originally made his debut in 1939.

Mike Wheat, the owner of this vintage comic said the time was right for someone else to take it over. 

There have been a few Batman No. 1′s that have gone to auction, but this one is unique because it’s in excellent condition. 

I’m no comic book afficionado, but my guess is that a 70-year-old rare comic book can look pretty rough!

I don’t care how well you take care of it, a vintage newsprint comic cannot hold up that well.

Except for this one – apparently the cool temps and low humidity in Alaska make this a perfect area to “raise” comics! 

The condition of this particular Batman No. 1 is “white” and “crisp”. 

I think that’s comic-speak for “Wicked Awesome!”

So, which will fetch more? 

A vintage Batman comic book…..or, a nearly 400 year old family farm?

The comic already has bids pushing it up to $35k and it’s expected to get more than $40,000!

Meanwhile, Lucy and Will have set an asking price on the 134-acre family farm at a cool $3.35 million!

I know one thing is for sure – holding on to farmland for 378 years and a comic book for 70 is definitely not a “Get Rich Quick” Scheme!

What do you think…are either one really worth the money?

I’m constantly struck by how many times the Bible mentions  helping the poor and needy!

What kills me is that I read that and think to myself, why is it that I’m not as concerned as I should be when it comes to helping the poor, weak and marginalized members of society?

If God has such a huge heart for them and cares deeply for their needs, what is it about me that needs to change?

My guess is that you and I are in the same boat.  Sure, we care about the poor, but if we were honest with ourselves and others - we’d have to admit that we aren’t as generous as we should be!

So, as usual, I take the areas that I’m convicted in and try to turn it into a post.

I started brainstorming some reasons why we, as Americans, are not as generous as we should be.  American Christians are the wealthiest Christians to have ever lived (does Solomon count?) and yet we, on average, give a measly 3% to church and I imagine much less to the poor and needy.

So here are five reasons why we are not as generous as we should be:

Pride

“I worked hard to get where I am today!  The poor need to get off their butts and get jobs!  If I did it, they can too!”

Ever think that? 

“You know what their problem is, they’re just too lazy!” 

“They milk the system”

“They want everything for free!”

Ever say those things?

That’s a sure sign you suffer from pride.  You are great and they are not.  Unfortunately, it’s not that simple.  Many poor folks are victims of circumstance.  Not all, but many of them.

Many of them would love to get jobs and work hard, but they lack opportunities - or they lack the education, the transportation, the network, the social skills, the marketing skills etc. etc.

Ask yourself this – if you were born into those same circumstances that many of our poor are born into, what would you be doing today?

Be careful with pride – God hates it, and it kills your generosity!

Sign Up For Redeeming Riches to be Delivered Straight to Your Inbox – FREE! 

Debt

Credit card debt, over-extended mortgages, home equity lines, auto loans – they all have a way of choking out generosity because our additional resources are going towards monthly payments!

So many Christians are paying ridiculous amounts of interest on stuff they thought they needed. Most of those trinkets will end up in a landfill in a few short years.

We are far to easily amused by gadgets and other items that we’ll plunge ourselves into crazy debt in search of joy.

What if we as Christians decided to simplify our lifestyles and live debt free?  Imagine how generous we could be without massive debt looming over our heads.

Greed

Jesus warns people way more often about greed than he does about sex and yet almost no one thinks they’re guilty of greed. 

I think we all need to begin with an attitude of “this could definitely be an issue for me”. 

Because greed hides so deeply, and is so pervasive in our westernized, American Dream culture , we need to take a serious look at our own hearts. 

Are we clamoring for more stuff and squeezing out generosity in the mean time?

Stinginess

Proverbs 23:6-7 says, “Do not eat the bread of a man who is stingy; do not desire his delicacies, for he is like one who is inwardly calculating. “Eat and drink!” he says to you, but his heart is not with you.”

Penny-pinchers do not have generous hearts – they calculate every last cent to ensure no one gets more than they should.  

Busyness

Busyness robs us of true wealth.  We miss opportunities to be generous when we’re overly busy.

We often numb ourselves with self-centered activities, hobbies, and endeavors and give little regard to our neighbors let alone the poor, weak and disenfranchised.

Are we too busy to give freely of our time and money?

What About You?

Any other reasons why you’re not as generous as you should be?

Actually, this should read – Last Week in Personal Finance!

This weekend we’ve been busy with parties and milling around so I didn’t get a chance to write a round-up post.

So, here we are – a rainy Memorial Day – yes, more rain!  I figured I could write a quick post.

At any rate, it’s another week in the books and it’s time for a fly by. 

This Week in Personal Finance takes a look at interesting articles, posts and news from the past week in the personal finance arena. 

So give these articles a click!

• Personal Finance Journey asks if it is unethical to bring snacks into a movie theatre.
• Fickle Finance talks about 25 lessons in entrepreneurship from rappers - this was near and dear to my heart since I am a closet Rap and Hip Hop fan!
• Go Banking Rates ask how much you need to retire!
• Sound Mind Investing takes a look at mortgage-savings programs and figures out if they are a good idea or not.
• Out Of Your Rut has some good thoughts on mistakes that can make your financial life difficult.
• Matt Jabs from Debt Free Adventure is on a mission to be debt free – and he’s got a scooter to prove it.

Carnivals

Yakezie Carnival at College for $10K!

Do you remember the famous words of Gordon Gekko, the fictional character that Michael Douglas played in the 1987 movie Wall Street?

“Greed is good!”

This line has become so famous that even political leaders have used Gordon Gekko’s line in speeches.

Here’s the full quote from Gekko:

Greed, for lack of a better word, is good. Greed is right, greed works.

Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind

But does greed really mark the upward surge of mankind or does it propel us into a downward spiral that eventually destroys us?

What would Jesus say to Gordon Gekko if he met him in his luxurious corner office overlooking the city? 

We get a sense of what he might say in Luke 12, where Jesus is preaching and teaching to a huge crowd when some random guy shouts and asks Jesus  to help him get his Father’s inheritance that is not being shared by his brother.

Jesus uses this as an opportunity to teach about money and greed:

Then someone called from the crowd, “Teacher, please tell my brother to divide our father’s estate with me.” 

Jesus replied, “Friend, who made me a judge over you to decide such things as that?” Then he said, “Beware! Guard against every kind of greed. Life is not measured by how much you own.” Luke 12:13-15 NLT

Greed Is Good?

What is Greed anyway? 

Greed is an overwhelming desire to have more of something than is actually needed! 

How often do we think we need new clothes, more shoes, a bigger TV, a better car, a nicer house – I could go on and on.

Greed is an overwhelming desire to have more of something than is actually needed!

So I imagine Jesus sitting in Gekko’s office chair, looking around his posh corner office and saying,

“Gordon, you know, you think that greed is good – that all this stuff you have is really what you want - but it’s not.  

Greed is not good – in fact, you really need to guard against it – you need to detach yourself from it!  And I say this to you because I love you and I know what’s best for you.“

Maybe he’d say something like this,

“Gordon, you are not defined by your work, your office or your investment portfolio – those things never last.  Pursue things that will last!  Pursue True Wealth!

Or this,

“Gordon, you think your little empire will make you happy, but you are empty – money is acting as your functional savior - you have no lasting fulfillment - true joy doesn’t come from money, but from a right relationship with me.”

So why would Jesus say things like this? 

Why would Jesus say  ”Guard against every kind of  greed”?

I think there are three main reasons – and we’ll save that for tomorrow’s post.

What Do You Think?

Readers, what else do you think Jesus would say to Gordon Gekko?

Rain, rain, go away!  Here in Indiana we’ve been getting drenched with rain.

Normally I wouldn’t mind, we obviously need it – but we are trying to get our landscaping done.

Getting sod down when it’s soaking wet proves to be a difficult challenge.

Hopefully this week will dry up a bit and we’ll be able to keep moving along with the outside work that needs to be done!!

At any rate, it’s another week in the books and it’s time for a fly by. 

This Week in Personal Finance takes a look at interesting articles, posts and news from the past week in the personal finance arena. 

So give these articles a click!

• Fickle Finance brings it with this article called Slavery Didn’t Die – It Just Evolved.
• Bible Money Matters tells us why Dave Ramsey’s Baby Steps Work!  Also, don’t forget to check out my post over there as well called Finding Your Retirement Sweet Spot!
• Parenting Teens gives us 50 Graduation Gift Ideas!
• Kevin Deyoung on The Gospel Coalition Blog has a great post called Are Christians Meant to Feel Guilty All The Time?
• Personal Finance By The Book shares some awesome insights into carrying loads and burdens in Deciding Whom to Help
• Coupon Sherpa brings us The Good and The Bad of Recessionary Wages
• Deliver Away Debt brings his experience in Making a Second Job Work
• Debt Free Adventure talks about 401k Contributions With Outstanding Debt
• Christian PF has How Much Should I Save for Retirement?
• Good Financial Cents talks about Credit Cards and How to Effectively Lower Your Interest Rate
• Financial Samurai offers his opinion on the Emergency Fund Fallacy
• Out of Your Rut shows us 10 Financial Mistakes You Can’t Afford to Make

Carnivals

• Carnival of Money Stories hosted at PF Journey
• Yakezie Carnival hosted at Well Heeled Blog
• Finance Blog Carnival at Maximizing Money
• Rich Money Habits Carnival at Rich Money Habits

I can’t believe it’s been a week since my trip to Knoxville, TN! 

God is doing some amazing things down there with a group of churches that are working across denomination, cultural and racial lines for the good of the kingdom and the good of the city!

I’ve got hope that some good things like that can happen here in my community as well!

I also can’t believe May is half over – seriously, where is this year going?  It’s amazing how quickly time speeds up when you have a couple of rugrats runnin’ around to keep you occupied.

At any rate, it’s another week in the books and it’s time for a fly by of the week. 

This Week in Personal Finance takes a look at interesting articles, posts and news from the past week in the personal finance arena. 

So give these articles a click!

• Debt Free Adventure asks what you should do with car repairs – scrap it, park it or fix it?
• Bible Money Matters has a post on getting by with one income before you need to!
• Christian PF asks why gather money little by little – also check out my post over there called 4 Things the Apostle Paul Teaches Us About Money.
• Len Penzo dot com brings out the 5 Crazy Ideas That Resulted in Million Dollar Paydays
• Cash Money Life offers 8 Tips to Help You Make a Major Financial Decision
• Provident Planning brings it home with Preaching Christ Crucified!
• Fiscal Geek takes a look at money buying happiness!
• Out of Your Rut gives his take on why leasing a car is a bad deal!
• Frugal Dad has some ways to save on the summer electric bill
• Free Money Finance shows how to get rich on an average salary
• Deliver Away Debt says to stop using a credit card and write a budget!!

Carnivals

• Christian Finance Carnival #2 over at Personal Finance Journey
• Christian Family Information Exchange Carnival at OLine Publishing

I’m writing this from sunny, balmy Knoxville, TN!

A group of eight of us from church came down to what’s called the Salt and Light conference.

The conference is put on by the Compassion Coalition , a non-profit org. that desires to see churches live out Matthew 5:14, which calls believers to be salt and light in their cities, communities and centers of influence.

Our church is currently doing a county-wide assessment of the biggest needs, issues and concerns as well as taking a look at the biggest assets and strengths with the goal being more partnership with other believers and organizations in our county to seek the common good of our area.

This conference is about how to do it effectively.

Tim Keller says that the best way to show Christianity to others is to seek the common good of our cities.  Essentially to live out mercy and justice (not at the expense of sharing what the gospel is, but in addition to).

I’m really excited about this trip and I’ll be sure to share some highlights in some future posts!

At any rate, it’s another week in the books and it’s time for a fly by of the week. 

This Week in Personal Finance takes a look at interesting articles, posts and news from the past week in the personal finance arena. 

So give these articles a click! 

• Financial Highway gives us  a list of 10 Unique and Frugal Mother’s Day Gift Ideas!
• Out of Your Rut warns us against the dangers of late-night infomercials and other hazardous get rich quick schemes!
• Here’s a challenge by Debt Free Adventure to start living on one income!
• Here’s 8 Steps You Can Take to Protect Your Identity from Fiscal Geek.
• Wealth Pilgrim answers the age-old question, “Should You Pay Off Your Mortgage or Invest?”
• Fickle Finance asks a question that I love to ask – Where Does Your Happiness Come From?
• If you like satire, you’ll love Personal Finance By the Book’s post on How to Ensure You Will Never Be a Millionairre!

Carnivals

Carnival of Taxes at Don’t Mess With Taxes