Two rules of thumb on getting rich in this country.
Rule number one: you cannot borrow your way to being rich. If you borrow money, you owe money and if you owe money you have no money. Money is like a pregnancy. You’re either pregnant or you’re not pregnant.
Rule number two: you must spend LESS than you earn. It doesn’t matter how much money you earn you simply absolutely must SPEND LESS than you earn or you’ll never have financial freedom and you’ll never be rich.
The more money you owe the less money you have NOW. Thinking or waiting until later will only delay you getting rich and may even keep you from getting rich. It’s called the power of compound interest. The longer you save money the more compound interest you make. The longer you borrow money the longer the compound interest YOU PAY.
Better to earn compound interest than pay compound interest.
There’s an easy way to get rich in country, spend less money than you make.
David…
Friday, April 18, 2008
Thursday, April 17, 2008
If you don't know where you're going any road will get you there
Being in debt is confusing. Generally we’re unorganized and never truly know how much we owe and always guess lower than the actual number.
An easy way to figure how much debt and what your total monthly payments are is to save a copy of each bill as it comes in and summarize the results on a sheet of paper. It will also help with your pay off strategy.
Remember the $15 dollar a day pay off strategy. Take one of the bills you receive each month and make several copies. Use one copy each time you get a money order with $15 to $75 you accumulate each week.
Your alternative is to continue going down the road to nowhere. If you want to go somewhere choose a strategy, a direction, and head toward debt free living.
If you don’t care where you’re going just keep wondering up and down the streets of confusion never really knowing where you’re going because:
If you don’t know where you’re going any road will get you there…
David…
An easy way to figure how much debt and what your total monthly payments are is to save a copy of each bill as it comes in and summarize the results on a sheet of paper. It will also help with your pay off strategy.
Remember the $15 dollar a day pay off strategy. Take one of the bills you receive each month and make several copies. Use one copy each time you get a money order with $15 to $75 you accumulate each week.
Your alternative is to continue going down the road to nowhere. If you want to go somewhere choose a strategy, a direction, and head toward debt free living.
If you don’t care where you’re going just keep wondering up and down the streets of confusion never really knowing where you’re going because:
If you don’t know where you’re going any road will get you there…
David…
Wednesday, April 16, 2008
Be debt free with an easy $15 dollar a day strategy
I’ve posted this before but thought I’d revisit the strategy with a little different twist.
The optimum strategy to pay off your debt is to add the $15 dollar a day strategy. Each day you save $15 a day by doing without something. Replacing Starbucks with your own fresh brewed coffee is a simple $5 to $15 depending on your multiple daily visits.
Take your $15 dollars get a money order and send it to one of your creditors. Each time you get a bill from you creditor make at least four copies (maybe 20 if you’re very undisciplined) and send in your money order with a copy of the bill.
You can pay off credit cards at a quick pace. You’ll pay off an extra $300 dollars a month and will see your debt decline very quickly. Be sure you pay off the lowest balance first than the next lowest.
It is really important to see results quickly. The faster the results the more encouragement you’ll feel, the better your enthusiasm will be to get the job done quicker.
It takes 7 days to develop a new habit. Get 7 money orders over the course of seven days and you’ll have a brand new habit.
There’s your twist. Attack your debt every single day. It beats the heck-out-of-the old once a month strategy. If you wait four weeks you’ll be worried every day waiting. If you attack the debt daily you’ll feel really good knowing you’ve started to get a handle on your credit.
David…
The optimum strategy to pay off your debt is to add the $15 dollar a day strategy. Each day you save $15 a day by doing without something. Replacing Starbucks with your own fresh brewed coffee is a simple $5 to $15 depending on your multiple daily visits.
Take your $15 dollars get a money order and send it to one of your creditors. Each time you get a bill from you creditor make at least four copies (maybe 20 if you’re very undisciplined) and send in your money order with a copy of the bill.
You can pay off credit cards at a quick pace. You’ll pay off an extra $300 dollars a month and will see your debt decline very quickly. Be sure you pay off the lowest balance first than the next lowest.
It is really important to see results quickly. The faster the results the more encouragement you’ll feel, the better your enthusiasm will be to get the job done quicker.
It takes 7 days to develop a new habit. Get 7 money orders over the course of seven days and you’ll have a brand new habit.
There’s your twist. Attack your debt every single day. It beats the heck-out-of-the old once a month strategy. If you wait four weeks you’ll be worried every day waiting. If you attack the debt daily you’ll feel really good knowing you’ve started to get a handle on your credit.
David…
Tuesday, April 15, 2008
3 Myths About Debt
Three myths about debt.
Myth number one, good debt verse bad debt. This notion is a complete myth because it assumes that some debt is good. The good debt argument generally revolves around borrowing money against assets that gain value.
Assets such as a loan on a home is considered good because the value goes up over time. This myth has been revealed recently because housing prices have taken a beating especially in Phoenix, Arizona.
Some folks have watch their homes reposed because they couldn’t afford the payment and the values have been declining. For most consumers a home is about the only asset that fits this so called “good debt” argument.
Myth number two. Some debt is okay. Why in the heck is some debt ok? The argument is because debt allows you to manage your money better and get some things you wouldn’t normally be able to get (basically you don’t have the money so you borrow it).
Myth number three. The feeling that you are richer by having credit cards. The fact is you are not richer by having credit cards. The average credit card purchase is nearly 30% higher than if you pay cash. That 30% more is in the form of debt.
The secret the big banks don’t want you to know about is the myth that debt is some how good. The big banks don’t want you to understand debt because they make a lot of money in interest off your debt. The big bankers have you locked up with heavy chains because you owe them tons of money.
The real truth of the matter is the big banks have figured out a way to loan you endless money and make you feel good about borrowing that money. The truth is you don’t even realize how bad it is until one day you wake up and smell the coffee. The coffee you smell is the realization that you are about to go under and that old saying, “I owe, I owe, so it’s off to work I go”, is about you.
Become one of the minority 20% of your fellow countrymen and pay off your debt so you can do what no one else will do.
David…
Myth number one, good debt verse bad debt. This notion is a complete myth because it assumes that some debt is good. The good debt argument generally revolves around borrowing money against assets that gain value.
Assets such as a loan on a home is considered good because the value goes up over time. This myth has been revealed recently because housing prices have taken a beating especially in Phoenix, Arizona.
Some folks have watch their homes reposed because they couldn’t afford the payment and the values have been declining. For most consumers a home is about the only asset that fits this so called “good debt” argument.
Myth number two. Some debt is okay. Why in the heck is some debt ok? The argument is because debt allows you to manage your money better and get some things you wouldn’t normally be able to get (basically you don’t have the money so you borrow it).
Myth number three. The feeling that you are richer by having credit cards. The fact is you are not richer by having credit cards. The average credit card purchase is nearly 30% higher than if you pay cash. That 30% more is in the form of debt.
The secret the big banks don’t want you to know about is the myth that debt is some how good. The big banks don’t want you to understand debt because they make a lot of money in interest off your debt. The big bankers have you locked up with heavy chains because you owe them tons of money.
The real truth of the matter is the big banks have figured out a way to loan you endless money and make you feel good about borrowing that money. The truth is you don’t even realize how bad it is until one day you wake up and smell the coffee. The coffee you smell is the realization that you are about to go under and that old saying, “I owe, I owe, so it’s off to work I go”, is about you.
Become one of the minority 20% of your fellow countrymen and pay off your debt so you can do what no one else will do.
David…
Monday, April 14, 2008
Can this marriage be save?
I met with a young fellow this past weekend. He was going through the various credit cards, car payments, and house payment he had and how he was about to go under.
The basic problem we had in our discussion had to do with the CORE of his PROBLEM. I’m qualifying my remarks by saying I used to think this way. I don’t now and hence our problem attempting to communicate.
I’ve bee in debt up to my eardrums 3 times in my life. The second time was the worst. My new friend is in that category. He’s about to go under and can’t see anyway out of it.
I shared with him that if he isn’t honest with his wife he’ll end up divorced. I said, “you’ve gotta tell her the truth of your situation than offer your hope of how you’re going to turn it around.”
Debt is very much like a cancer. You can treat the symptoms but it’s the core you need to address. You’ve got to go after what is causing the cancer. In this case, what is causing the debt problem?
My new friend spent every dollar he had and plenty of dollars he doesn’t have. In an effort to keep from going under he’s bled his 401K at work.
There’s nothing left. He’s broke about to file bankruptcy.
I told my friend that I would be imparting “tough love”. I would share with him a solution to his problem. It would be a permanent solution not some temporary thing by borrowing money to get him out of debt.
You can’t borrow your way out of debt. You’ve got to pay off your debt and go From Debt to Cash. The core of the problem is YOUR propensity to borrow money you don’t have. If you don’t got the money you don’t buy it.
And, you must tell your spouse where you’re at. You’ve got to be honest. You’ve got to tell your spouse. If you don’t tell your spouse she’ll/he’ll figure it out and the next question you’ll be asking is:
Can This Marriage be Saved?
David…
The basic problem we had in our discussion had to do with the CORE of his PROBLEM. I’m qualifying my remarks by saying I used to think this way. I don’t now and hence our problem attempting to communicate.
I’ve bee in debt up to my eardrums 3 times in my life. The second time was the worst. My new friend is in that category. He’s about to go under and can’t see anyway out of it.
I shared with him that if he isn’t honest with his wife he’ll end up divorced. I said, “you’ve gotta tell her the truth of your situation than offer your hope of how you’re going to turn it around.”
Debt is very much like a cancer. You can treat the symptoms but it’s the core you need to address. You’ve got to go after what is causing the cancer. In this case, what is causing the debt problem?
My new friend spent every dollar he had and plenty of dollars he doesn’t have. In an effort to keep from going under he’s bled his 401K at work.
There’s nothing left. He’s broke about to file bankruptcy.
I told my friend that I would be imparting “tough love”. I would share with him a solution to his problem. It would be a permanent solution not some temporary thing by borrowing money to get him out of debt.
You can’t borrow your way out of debt. You’ve got to pay off your debt and go From Debt to Cash. The core of the problem is YOUR propensity to borrow money you don’t have. If you don’t got the money you don’t buy it.
And, you must tell your spouse where you’re at. You’ve got to be honest. You’ve got to tell your spouse. If you don’t tell your spouse she’ll/he’ll figure it out and the next question you’ll be asking is:
Can This Marriage be Saved?
David…
Sunday, April 13, 2008
If you can't pay cash for it
You can’t afford it. It’s that simple. If it means selling your new car for a used car, sell it. If it means selling your new home for an old home, sell it. If it means getting a part-time job or working lots and lots of over-time, do it.
The Debt Free Living philosophy is just that. Debt free living is paying cash for everything. Debt free living is a way of life. Debt free living is what 20% of the population does.
If you can’t control your urges to spend money than starve yourself. Carry cash only, leave the credit cards at home. Every time you use a credit card you’re spending money you don’t have. Every time you use a credit card you’re mortgaging your future just to have it now.
In my kit, From Debt to Cash I put you through the necessary drills to change your attitude; to help in the surgery necessary to change your heart and your thinking from that of an attitude of debt to an attitude of cash.
The necessary ingredients are to get MAD. Get real mad! The madder you get the more motivated you are in making the necessary changes in you life to live free of bondage.
You can do it…just do it.
David…
The Debt Free Living philosophy is just that. Debt free living is paying cash for everything. Debt free living is a way of life. Debt free living is what 20% of the population does.
If you can’t control your urges to spend money than starve yourself. Carry cash only, leave the credit cards at home. Every time you use a credit card you’re spending money you don’t have. Every time you use a credit card you’re mortgaging your future just to have it now.
In my kit, From Debt to Cash I put you through the necessary drills to change your attitude; to help in the surgery necessary to change your heart and your thinking from that of an attitude of debt to an attitude of cash.
The necessary ingredients are to get MAD. Get real mad! The madder you get the more motivated you are in making the necessary changes in you life to live free of bondage.
You can do it…just do it.
David…
Do you have a virus?
Living in a world of debt is like a virus on a computer. Recently I had to take my computer into the shop because of a virus. The virus caused my computer to have endless pop-ups in my browser.
After a day of surgery they fixed part of my problem. The computer geek told me they solved the pop-up problem but not the core of the problem.
He described it as a cancer. He cut out the infected parts but could not find the core of the problem. The core of the problem is an infection that will reactivate the pop-ups. He than gave me the special pop-up destroyer software that I needed to run at least once per day.
He told me the software is like cold-medicine that treats the symptoms but doesn’t cure the problem.
When I asked what would cure the problem he said we’d have to reboot the entire system and reinstall everything. More or less we’d have to have major surgery to get to the heart of the matter.
Debt free living is like that. It requires a complete “heart of the matter” surgery to change the way you think. You need to reboot and reinstall the software to get to the heart of the matter.
By the way, I kept running my clean-up software for several months before I had the computer geek redo my computer from scratch.
Living with debt is like having a virus in your system. You can treat the symptoms or you can have surgery done to start over.
When you treat debt like there’s good and bad debt you risk being taken over by boat loads of debt and going under. It’s like being pregnant. You’re either pregnant or you’re not pregnant. You can’t be half-way-pregnant.
Just like you can’t be in partial debt; you’re either in debt or you’re not in debt. There is no in between.
David….
After a day of surgery they fixed part of my problem. The computer geek told me they solved the pop-up problem but not the core of the problem.
He described it as a cancer. He cut out the infected parts but could not find the core of the problem. The core of the problem is an infection that will reactivate the pop-ups. He than gave me the special pop-up destroyer software that I needed to run at least once per day.
He told me the software is like cold-medicine that treats the symptoms but doesn’t cure the problem.
When I asked what would cure the problem he said we’d have to reboot the entire system and reinstall everything. More or less we’d have to have major surgery to get to the heart of the matter.
Debt free living is like that. It requires a complete “heart of the matter” surgery to change the way you think. You need to reboot and reinstall the software to get to the heart of the matter.
By the way, I kept running my clean-up software for several months before I had the computer geek redo my computer from scratch.
Living with debt is like having a virus in your system. You can treat the symptoms or you can have surgery done to start over.
When you treat debt like there’s good and bad debt you risk being taken over by boat loads of debt and going under. It’s like being pregnant. You’re either pregnant or you’re not pregnant. You can’t be half-way-pregnant.
Just like you can’t be in partial debt; you’re either in debt or you’re not in debt. There is no in between.
David….
How a list can save you...
I don’t know about you but I tend to remember to do stuff at the most awkward times. Usually, I’m in the shower, wake up in the middle of the night, in rush hour traffic with no pen or paper, waiting in a line at the grocery store, you get the point.
It took me months to get good at listing my “TO DO’s”. Finally, I got it right and here’s a tip for you to keep up with the stuff you know you gotta do but don’t ever write it down schedule it on your daytimer or other methods you might or might not use.
I’ve found that if I can get one to three things done each and every day I stay current and literally the list “SAVES MY LIFE”. I use that term figuratively but you get the point.
Here’s how I do it. I’ve got a small medal ringed binder with maybe 60 pages that I can tear out each page from the perforation near the medal ring.
Each day I add or cross out my “to do” items.
It’s that simple. BUT, the only caveat is you gotta write down the stuff you gotta do. You don’t need great detail, just a simple one or two words to remind you of what you need to do.
This applies to bills, to work, to personal chores, to anything you’ve gotta do. Carry the notebook with you everywhere. It’ll work even better than those schedulers. Now, I know what you techies are thinking.
Why not put it on my palm device? Well, if it works do it. Paper and pen still work…even in a high-tech world. But whatever works for you do it.
Either way go to the list concept, it’ll save your life.
David…
It took me months to get good at listing my “TO DO’s”. Finally, I got it right and here’s a tip for you to keep up with the stuff you know you gotta do but don’t ever write it down schedule it on your daytimer or other methods you might or might not use.
I’ve found that if I can get one to three things done each and every day I stay current and literally the list “SAVES MY LIFE”. I use that term figuratively but you get the point.
Here’s how I do it. I’ve got a small medal ringed binder with maybe 60 pages that I can tear out each page from the perforation near the medal ring.
Each day I add or cross out my “to do” items.
It’s that simple. BUT, the only caveat is you gotta write down the stuff you gotta do. You don’t need great detail, just a simple one or two words to remind you of what you need to do.
This applies to bills, to work, to personal chores, to anything you’ve gotta do. Carry the notebook with you everywhere. It’ll work even better than those schedulers. Now, I know what you techies are thinking.
Why not put it on my palm device? Well, if it works do it. Paper and pen still work…even in a high-tech world. But whatever works for you do it.
Either way go to the list concept, it’ll save your life.
David…
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