Tomorrow

You never hear or see the words “credit cards” in advice from any reputable financial planning source.

You can't borrow your way to prosperity. You can't borrow your way out of debt. You can't prosper on rented money.

Becoming debt-free today is the only way you will ever have a tomorrow.
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Bankruptcy

Bankruptcy sticks with you for life. Don't declare it unless you have exhausted every other possible solution.

Those who have filed admit it never goes away,
and that it carries a stigma. Many forms you'll fill out later in life ask the question, "Have you ever filed bankruptcy?" You'll always have to answer yes no matter what your financial life has become since then.

Bankruptcy is an absolute last resort.
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Plan for them

Insurance is due at least every six months. Homeowner association fees at least quarterly. Christmas comes every December 25th. Birthdays are the same date every year.

Why didn't you save money before these events became expenses? You really have no good excuse, do you?

These are the easy expenses. You know when they're going to happen. Plan for them. Going further into debt isn't an acceptable solution.
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See what you think

If you don’t like being debt-free you can always go back into debt.

But, try being debt-free first and see what you think.
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Congress

Congress doesn't want you to save. They want you to spend.

That right there should tell you being debt-free is the way to go.
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Don’t buy into the lie

Where does it say you have to be up to your ears in debt and that payments are a fact of life?

Nowhere is that written down. Don’t buy into the lie.
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Seven out of 10 people

Some people don’t get it. They're convinced you're depriving yourself of what debt can get for you.

You try to help them understand, but if they won't help themselves there's nothing you can do except set an example.

Remember, seven out of 10 people live paycheck to paycheck. You are the minority. Validation you're doing the right thing comes from financial peace, not from what others think.
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Three to six months

The first three to six months of developing a budget are hard. After that it's LIBERATING!!

Too many people think you can make a budget once and you're done. Wrong. You must pay weekly attention to your budget, it lives and breathes and needs constant attention.

Life is unpredictable. Your budget must accommodate your life. Be flexible and have fun with it. And remember, don't spend what you don't have!
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Budgeting

Budgeting doesn't stop when you are out of debt. In fact, it becomes all the more important. Without it, debt-free folks leak cash!

Dictate or disappear. If you don't dictate where your money goes it disappears.
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Relationship problems

Money issues are the number one cause of relationship problems. Why do that to each other?

Studies have already proven it, don't think you have to validate the studies.

If before the marriage you aren't comfortable discussing money then you aren't ready to be married. Life is hard enough, don't let money make it harder.
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Until you can pay in full

Why pay for years on a cruise (or any vacation) that lasts seven days? Don’t go until you can pay in full.

If you put a vacation on a credit card and make minimum payments month after month that vacation will take years to pay off and cost more than it was worth.

Don't sacrifice your future for short-lived gratification. Long after the memories fade, the debt remains. And that ruins the memories.
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Emergency Fund

Life happens, plan for it with an Emergency Fund.

It can't be stressed enough. Things will occur that will cost you money so plan for them. If you don't plan, these things cost you money you may not have readily available. You may mess up and use a credit card. Now you have more debt.

If you have money at the ready you solve whatever problem comes along without taking on more debt.

Be prepared!
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Choices, not bills

I don’t view utilities as bills, I view them as choices. I choose to purchase water that runs and electricity that reliably turns on lights and appliances. These are choices, not bills I “have” to pay.

Bills are car, credit card, home equity loan, or student loan payments.

Now that we're on the same page I have to agree with you, I hate bills too. I hated them so much I got rid of mine. How about you?
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Spend less than you make

Spend less than you make. You should always be saving something. What part of this “no-brainer” needs repeating?

This formula for wealth, financial preparedness, and peace never goes out of style.
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Get rich quick schemes

Every con requires the mark to be greedy or desperate. Don't fall for get rich quick schemes.

Many con artists are never prosecuted since not all victims come forward out of shame of being so stupid. And, it's not always illegal to separate fools from their money. Some schemes are so blatant that in retrospect the victim's greed or desperation makes them blind to the fact they willingly are giving away their money.
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Use information as your shield

We all got a lot smarter the day the internet was invented.

There is no reason any of us should be clueless going into financial or business dealings, or get taken advantage of with the knowledge available to us with the click of a mouse. If you don't have access, you know someone who does.

Be your own safeguard. Use information as your shield.
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Laws against being stupid

Do we really need a bunch of people in Congress who spend money they don't have to write legislation to protect us from those mean old credit card companies?

How long are we going to rely on someone else to fix our problem? Putting a few restrictions on a credit card company doesn't fix the problem. Being stupid is the problem and they can't write laws against being stupid.

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Home maintenance account

A minimum of 1% - 3% of your home’s value should be saved for home maintenance in a separate account. No one said you need to use it all every month.

If you have a $100,000 house you need $1,000 - $3,000 set aside at all times for home maintenance. It costs to live there, and if you stay on top of things as they need attention you are keeping up your home's value. Plus you have a nice place to live.
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Prove them wrong

Beware of what the federal government calls a credit.

A credit is just that, a credit. If you have to pay the credit back it's called a loan.

The government doesn't think you'll catch on to things like this. Prove them wrong.
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"PF" model cars

Only drive "PF" model cars. PF stands for "Paid For."

Refuse to have a car payment. It can be done.

It makes no sense to pay money on something that decreases in value. Whatever you are driving now pay for it in full. Then put that monthly payment into a separate account. This money can be used to maintain your current car and be the cash to pay for your next car...in full.

PF model cars are in your future.
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In the minority

Be prepared to seem very strange to friends and family when you make your decision to get out of debt.

Yes, you may even be shunned by them. Why? Most likely they don't want to confront their own financial problems.

There are fewer people out of debt than there are people in over their heads. Be prepared to be in the minority.
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Being debt-free

Being debt-free won’t rid you of all life’s problems. But, it eliminates a big chunk of them.

Money, kids, in-laws, and religion are the main problems in relationships. Handle your money wisely and you've taken care of number one.

You or your family may need medical care. Cars and homes require upkeep. Kids need to be fed.

Again, money doesn't solve all problems, but it does remove a lot of worry.
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Once out of debt

Once out of debt you can really build wealth. The more you have the more you want and that's not wrong. Nobody said you can’t give it to charity.

I think the mega-rich start charitable foundations because they have more than enough money to live and want the rest doing some good. They also value money and don't just throw it at problems. They want to see their money work.

I bet they couldn't care less about tax deductions.
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Take heed

Don’t touch it, it’s hot. Trust me on this one.

Kids just have to touch the stove to see if it's hot. You are a grownup so you don't have to. Debt burns your dreams to the ground, kills them. Stay away from it.

Having money problems is the number one cause of divorce. Debt also causes depression, poverty, anger, and frustration.

Others have learned this lesson for you. Take heed.
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Going places

You'll never be someone who is going places if you stay in debt. Financial debt is a drag, an anchor. It's a weight that slows down you and your financial progress.

Though there are some who tout using debt (other people's money) to make money, you only hear about the ones who managed to make it work. I say they're just plain lucky.

Get out of debt, reduce the drag, and welcome the peace it brings.
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Three steps

School doesn't teach us how to stay married, raise kids or manage money. The first two aren't my specialty, but anyone can do the last one with some effort.

Step 1: Write down the amount of your monthly take-home pay.

Step 2: Write down every dime you spend for a month, including the day and place.

Step 3: Subtract number two from number one.

Now, do you have an income problem or a spending problem?
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Terrified of debt, not life

Be terrified of debt, not life.

If you are financially prepared for your known expenses there is no need to be terrified.

If you are financially prepared by having three to six months of living expenses saved should you lose your job there is no need to be terrified.

If you are financially prepared to fix cars, buy food, and pump gas there is no need to be terrified.

Be terrified of debt, not life.
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