Lynnette Khalfani	The Week of November 14th, 2004

Zero Debt

1. What's in your wallet right now?

Besides my corporate American Express card, bank debit card, and about $40 in cash, my wallet is full of receipts from the past week. I'm a bit of a fanatic about keeping receipts — mainly for tax reporting purposes.

2. What do you wish your parents taught you about money?

My parents did the best they could with the information they had. My family certainly wasn't well-off, financially, but my mother especially tried to teach me about the importance of saving and setting aside money for a rainy day. I remember when I was in high school and worked as a dispatcher for AAA, I earned $7.35 an hour. That was a lot of money 20 years ago - especially for a teenager. My mom insisted that I open a passbook savings account and put money into it regularly. The stuff my parents didn't teach me — about how to invest and the importance of using credit wisely - was likely because they didn't have that knowledge at the time.

3. What is your worst habit around finances?

I still have to work on my impulse spending tendency. In my book ZERO DEBT: The Ultimate Guide to Financial Freedom, I talk about how over-spending led me to have more than $100,000 in credit card debt. Thankfully, I was able to pay it all off, in less than three years. And I now have zero debt. But every now and again (more frequently than I'd like), I battle that urge to buy something on a whim or something that's really over-the-top.

4. What makes you happy?

Watching my kids when they're laughing, playing together (without yelling), or sleeping peacefully.

5. Personal philosophy around money?

I think society emphasizes SPENDING money way too much. I think we all need to be constantly reminded that there are FOUR things you can do with money: save it, spend it, invest it, and donate it. I'm fond of telling people about a four-chambered piggy bank from The Money Savvy Generation that I got for my two children. The piggy bank has four slots where you can insert coins. This pig has taught my kids about saving, spending, investing and donating their resources ... It also reminds me of this principle daily.

6. Where does money come from?

Most of us have to earn money ... in its various forms. Some borrow it. Others inherit it. At the end of the day, though, I think true wealth comes from your mind. It may sound kind of corny, but I truly believe that you when you really achieve great wealth, nobody can take it away from you because it's what's derived from your own creative process, an idea or a vision. So the millionaire who loses everything in the stock market or in a business venture, for example, could probably make it all back again (i.e. by using her mind/her vision, her skills, her ability to think of new ways to produce wealth, etc.). h3>7. What would you do with a million dollars?

Save some, spend some, invest some, and donate some.

8. What is your most prized possession?

My collection of books, especially my personal finance/investing and business books. I love to read.

9. Who is your role model?

I've always admired Ida B. Wells. She was an enormously passionate social crusader, as well as a talented journalist. Plus, she broke barriers at a time when it was obviously not popular, or even safe, for African-American women to be writing about controversial topics and engaging in public speaking — especially not railing against atrocities such as lynchings.

10. What is your greatest achievement?

On the personal front, I'd say my greatest achievement to date was having my children — and doing so via natural childbirth! :-) That was a personal goal of mine. Professionally speaking, my greatest accomplishment has probably been publishing ZERO DEBT and establishing a national platform as The Money Coach to talk about the huge problem of consumer debt in this country.

11. What organizations do you support?

My favorite right now is the National Association of Black Journalists.

12. What contributions to society do you want to make?

I'd like to teach people how to better manage their money, and how to leave a proper financial legacy for the next generation. I also especially want to empower women and people of color when it comes to wealth-building techniques and strategies.

13. If you could buy one thing right now what would it be?

Land and property to hold for a few decades for my children.

14. Favorite activity that doesn't cost a dime?

Soaking in my bathtub.

15. How do you indulge yourself?

By taking "Me Days" — going to a hair salon, and then getting a manicure and pedicure.

Lynnette Khalfani currently writes a syndicated newspaper column called "Financially Fit." She is a veteran financial news journalist who frequently appears on NBC’s “Early Today” show. Her latest book is ZERO DEBT: The Ultimate Guide to Financial Freedom (Advantage World Press, 2004).

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