Conquer Debt Year Round

[ProfMoneyWise]

Conquer Debt Year Round
Friday July 29

“The rich rules over the poor, and the borrower is the slave of the lender.”

Whether you agree or disagree with the source you can’t argue the validity of the point.

Look it up for yourself to see where this comes from. I'm not about to argue with this source!

 

[ProfMoneyWise]

Conquer Debt Year Round
Saturday July 30

You'll pile up cash when you are debt-free. And in case you were wondering . . . IT’S A BLAST!!

 

[ProfMoneyWise]

Conquer Debt Year Round
Sunday July 31

Learn to live on what you make. To prosper, learn to live on less than what you make.

 

[ProfMoneyWise]

Conquer Debt Year Round
Monday August 1

It wasn't that long ago that paying off a house before retiring was common practice. We can bring back this practice if we put our minds to it.

Not paying off your house before retirement brings a huge amount of risk to your retirement peace of mind. If the home is paid for your largest monthly expense is eliminated and your retirement income needs are less.

It's a no brainer, pay off the home, then retire.

 

[ProfMoneyWise]

Conquer Debt Year Round
Tuesday August 2

Dave Ramsey (Dave Ramsey Homepage - daveramsey.com) has written "The Total Money Makeover," "Financial Peace," "More Than Enough" and many more articles, columns, and books.

Everything you need to know is in his teachings. I love The Baby Steps, they are brilliant. Buy the books and I suspect you will buy more copies for those you care about.

 

[ProfMoneyWise]

Conquer Debt Year Round
Wednesday August 3

Budgeting is a weekly exercise. Look at where you are and always be in control.

Too many work up a quick budget, often incomplete, and never look at it as the months progress. Then when they still have no idea where they stand financially and are spending more than they have they blame the budget they "tried" way back when.

The budget is a living thing. It needs to be attended to EVERY week.

 

[ProfMoneyWise]

Conquer Debt Year Round
Thursday August 4

Don’t take financial advice from people who are broke.

These would be the people in the cubicle next to you at work, people related to you, people you went to school with, people on the internet, people on TV, you get the idea.

Seven out of 10 households live paycheck to paycheck and the average household has $9,000 to $10,000 in credit card debt.

Why ask them for advice? Do your own work. You are smart enough.

 

[ProfMoneyWise]

Conquer Debt Year Round
Friday August 5

FICO is nothing more than a “how am I doing at borrowing and paying money back” score.

If you are debt-free your score eventually will go to zero.

Let me say that again. If you owe no one at all, you eventually will have a score of zero.

If you are a millionaire, owe no one, you will have a zero FICO score. To have a FICO score you must owe money. How crazy is this?

 

[ProfMoneyWise]

Conquer Debt Year Round
Saturday August 6

Never co-sign a loan. If a bank that's in the loan business turned them down what makes you think they can pay it back?

Never ever mix friends or family with your money.

Do your own research on this. The dynamic it creates (or disintegrates) between you and friends and family isn't worth participating in this simple act.

Don't co-sign. There. Class dismissed.

 

[ProfMoneyWise]

Conquer Debt Year Round
Sunday August 7

Read the fine print. The smaller the print the higher the price to you personally.

Yes, I'm serious. If you are putting your name on it you better read it. If you don't want to read it then don't put your name on it.

Don't let laziness, or coaxing by the person trying to get your signature, cause you nothing but heartache (and money) later. Invest now in the small amount of time it takes to be prepared.

 

[ProfMoneyWise]

Conquer Debt Year Round
Monday August 8

I don’t know the exact amount but I do know my next house will cost less than the amount of cash I have to spend on it.

You don't have to have a mortgage. They aren't a fact of life.

Too many people enter retirement still paying on a house. This is crazy. It isn't an investment, it's a place to live. If you happen to make money on it someday, great, but don't rely on where you live to always appreciate in value.

 

[ProfMoneyWise]

Conquer Debt Year Round
Tuesday August 9

Three rules of thumb to remember about cars:

1. Unless you're completely debt-free and have a net worth of $1,000,000 don't buy new cars.

2. The first 25,000 miles equals $10,000 in depreciation. The next 75,000 equals another $10,000.

3. When deciding whether to repair a car add the cost of the repair to the amount you'd get for the car (even if salvaged). If you can't sell it for that amount, don't repair.

 

[ProfMoneyWise]

Conquer Debt Year Round
Wednesday August 10

Vacation is over. Now the bills are arriving. Was it worth it? If yes, how about next month, and the month after that, and the next . . . plus interest.

Once you go on a paid-for vacation you will never use credit for one again. Folks, you can't rent fun. Save up or don't go.

And if you have debt other than your mortgage you should not be on vacation in the first place.

 

[ProfMoneyWise]

Conquer Debt Year Round
Thursday August 11

If you can't fathom paying off the house you are living in you are living in too big of a house.

Pay off the house. No mortgage. It can be done, but not enough people do it.

Be weird with us. Don't have debt at all. Think about it and come on over. We have room in our club.

 

[ProfMoneyWise]

Conquer Debt Year Round
Friday August 12

You need a clean credit report, not a high FICO score.

Some people freakout and think if they have a low score they will never get to borrow money again.

Walk in with a clean credit report, no debt, money in the bank and say, "Do you want my business or not?"

If they say no, go somewhere else. Besides, with your new debt-free mindset why on earth are you borrowing money anyway?

 

[ProfMoneyWise]

Conquer Debt Year Round
Saturday August 13

Insurance companies use FICO scores to help them determine rates. This is absurd. This basically says those who have more debt are better drivers.

There has been little backlash against the practice because seven out of 10 people live paycheck to paycheck and have an average of $9,000 in credit card debt spread over nine separate loans/cards. I gladly will pay a little more for insurance before I go into debt.

 

[ProfMoneyWise]

Conquer Debt Year Round
Sunday August 14

Don’t let your kids make your money mistakes. Talk to them about money. It's one of the major facts of life.

Friend of mine once told me, "They don't teach us how to stay married, how to raise kids, or how to take care of our money." I had to agree, but I can only help my child with the money part. I know my limitations.

 

[ProfMoneyWise]

Conquer Debt Year Round
Monday August 15

If you're in a dual income family try living on one income and saving the other. Just evaluate your lifestyle.

I once told someone to try this. Months went by and finally we ran into each other. They were hoping they wouldn't see me and I asked why. They said, "Because we failed. We had to use some of the other income and have been only able to save about 80% of it."

I assured them they passed the test.

 

[ProfMoneyWise]

Conquer Debt Year Round
Tuesday August 16

Remember all those bailouts?

The only bailout I'm for is the one you do for yourself. Start the process to get yourself out of debt. Take responsibility for your actions and take control of your life today.

And one more thing . . . don't spend what you don't have!

 

[ProfMoneyWise]

Conquer Debt Year Round
Wednesday August 17

“If everybody else jumped off a cliff would you, too?” Where was Mom when we ran up those credit cards because everybody else was doing it?

Don't let what the majority does lead you to believe it's the right thing. Seven out of 10 are living paycheck to paycheck and have an average credit card balance of $9,000 to $10,000. The average household has nine credit cards.

Why be in the majority on this one?