Conquer Debt Year Round

[ProfMoneyWise]

Conquer Debt Year Round
Thursday December 29

Use your debIt card, not your debt card.

You just have to change one letter. Coincidence? I don't think so. Go look in the mirror, add "I" to the equation and never use a "debt" card again.

Not a bad resolution to make in a couple of days now is it?

 

[ProfMoneyWise]

Conquer Debt Year Round
Friday December 30

Resolve to make decisions based on reality.

It's a simple concept not often followed. People make X but live on Y. Instant gratification comes with a price tag that has to be financed with other people's money.

You know your income. Not what you want it to be, but what it is. You know your expenses. Not what you wish they were, but what they are. Write it all down.

Do the math, welcome reality.

 

[ProfMoneyWise]

Conquer Debt Year Round
Saturday December 31

In the coming year you have absolutely no other choice but to rid yourself of your debts. Just beginning is liberating. You have to do this; you have no other choice if you want a real life.

 

[ProfMoneyWise]

Conquer Debt Year Round
Sunday January 1

New Year resolutions come and go but being debt-free lasts forever.

Your journey begins today. List all monthly income for your household. Next list all monthly expenses. Do the math. Are you in the red or the green? This is the first step to taking control.

 

[ProfMoneyWise]

Conquer Debt Year Round
Monday January 2

Income minus outgo equals a red number or green number. It’s that simple. In order to get out of debt the number MUST be green.

Many people have no real idea how much they spend. If you spend more than you bring home you are headed for financial disaster. If you are in the green, then you need to ask yourself, "What am I doing with that extra money?"

 

[ProfMoneyWise]

Conquer Debt Year Round
Tuesday January 3

If you aren't sure about a financial concept say it out loud to yourself or try to explain it to someone. If it doesn't sound right or you can’t explain it you probably want to avoid it.

Personal finance is about the basics. Some advisors try to convolute the basics with fancy account names or tactics, but what it really comes down to is whether you have a clue about what you are making and what are you spending.

 

[ProfMoneyWise]

Conquer Debt Year Round
Wednesday January 4

Want to be rich? You need to be debt-free first.

Some people tout what they are worth "on paper." They add up the value of personal property and real estate in their name and what they would be worth if they sold these items. What they don't get is that most of the money made on the sale has to go to creditors to pay off debt.

Having real money that is yours and yours alone defines being rich.

 

[ProfMoneyWise]

Conquer Debt Year Round
Thursday January 5

If you can’t buy it outright, you can’t afford it.

Too many people get into trouble using the amount of the monthly payment as a guide to whether or not a purchase fits into their personal budget. Use the total cost of the item as your guide and you will never be beholden to anyone again. Plus, you won't be paying ridiculous interest over and above the purchase price.

 

[ProfMoneyWise]

Conquer Debt Year Round
Friday January 6

Careful. Don’t judge people by appearances. The brand-new-car-all-the-time guy is probably up to his ears in debt while the modest-reliable-car guy is the one who wins when bank accounts are compared. Which one are you going to be?

I once heard that Wal-Mart founder Sam Walton drove around in an older model pickup truck even after he was worth millions. Do you think there's a lesson to be learned here?

 

[ProfMoneyWise]

Conquer Debt Year Round
Saturday January 7

If there is no work where you live, move!

You may have to sacrifice where you WANT to be for where you NEED to be. Auto Body specialists may follow hail storms to fix dented vehicles, construction workers may follow hurricanes to repair damaged homes, while others have to relocate due to corporate decisions.

Who knows, a change of scenery and people might be a good thing.

 

[ProfMoneyWise]

Conquer Debt Year Round
Sunday January 8

Worry about the “ME-conomy” not the economy. Create a ME-conomy for yourself and place your worries there. You can’t control what others do but you can control what YOU do.

So often people judge where they should be in life based on what others have. Personal finance is not about perceptions or show but about you and your calculator. It's about not having debt. It's about owning what you have, not what others have.

 

[ProfMoneyWise]

Conquer Debt Year Round
Monday January 9

When you get out of personal debt (credit cards, cars, student loans), the next step is building a fully funded emergency account that maintains three to six months of living expenses. This is a requirement for true financial peace.

Next, put a plan in place for your retirement. Then remember your kids' education. Now what? Pay off that house. All that done? Welcome to building real wealth.

 

[ProfMoneyWise]

Conquer Debt Year Round
Tuesday January 10

If you are in debt and still investing you are working against yourself. Get out of debt and then you will skyrocket financially.

To invest one minute, then pay interest the next is like spinning your wheels. You are investing in hopes of 10% plus gains but paying more than that in interest on debt. Does this make sense?

Get out of debt, then invest.

 

[ProfMoneyWise]

Conquer Debt Year Round
Wednesday January 11

Start teaching your kids early about the value of money. Teach them to always save part of what they earn doing chores or receive in gifts. Open a savings account for them and teach them about interest. Above all else, teach them not to spend what they don’t have!

Don't give the kids money. Make them work for it. Point out that without effort on their part there is no money. This teaches the lesson of value.

 

[ProfMoneyWise]

Conquer Debt Year Round
Thursday January 12

Don't buy the extended warranty. If you have that little faith in the product maybe you shouldn't buy it to begin with.

Having said that, homes need maintenance, cars break down, appliances wear out. These are facts of life. If you need a warranty for added comfort, instead put the money in an account and "self insure." If you never use the money it is still yours. Win/Win.

 

[ProfMoneyWise]

Conquer Debt Year Round
Friday January 13

When cigarettes were $1 a pack (yes, they once were) it was hard to make the case that quitting would save a lot of money. That argument is pretty easy to make now.

If you are able to buy cigarettes at $6 a pack you are able to pay your bills. Stop saying otherwise. You look ridiculous.

Author's note: I am a former smoker, so no sympathy here.

 

[ProfMoneyWise]

Conquer Debt Year Round
Saturday January 14

All you need is Term Life Insurance worth 10 times your income. Avoid high-priced insurance with investment features that aren't that good anyway. You can do better on your own.

Do your own research. Don't ask the salesman. If you do it right, by the time your 20-year term policy runs out you will have enough tucked away to be self insured. You don't need a policy to last your "Whole Life."

 

[ProfMoneyWise]

Conquer Debt Year Round
Sunday January 15

I understand a home loan. But I will highly doubt any student loan, rant and rave about any car loan and won't even consider any other debt, especially credit card debt.

As for that home loan don't get sloppy. Home loans should be no more than a 15-year fixed mortgage where the principal, interest, tax and insurance payment is no more than 25% of your take-home pay.

 

[ProfMoneyWise]

Conquer Debt Year Round
Monday January 16

Always ask for the “cash discount.” If they say there is none, look at them quizzically and say . . . “really?”

If you have cash you have power. You have what the salesman wants. Use this to your advantage. Rarely is the price as shown final.

Learning to negotiate. It is all about paying a fair price for a fair product. At least do your part.

 

[ProfMoneyWise]

Conquer Debt Year Round
Tuesday January 17

Complain about Congress but don’t act like them.

Most Americans believe those in office are representative of us. I agree since 70% of us are living paycheck to paycheck and practicing out-of-control debt-ladened spending. We (you and me) are the 30%. We don't spend what we don't have and we think those who do are STUPID.

Do you want Congress to be the role model for your kids? You need to be the role model.