Pen to paper

Most people actually find money when they put pen to paper and do a real budget. Money always makes a nice gift. Why don’t you give yourself some this Christmas?
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Ghosts of Christmas Past

The Financial Ghosts of Christmas Past, Present and Future.

If you're not learning from the Past how to plan in the Present for a bright Future, your Christmases to come won't be worth looking forward to.

If you don't learn from the mistakes you made in the past you leave your financial future to chance and that's irresponsible, impacting not just you but those depending on you.
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Start a Home Maintenance Fund

Another Christmas Gift to Self Idea: Start a Home Maintenance Fund. Set it up to always total 1% to 3% of your home's value and keep it separate to handle all things related to home maintenance and upkeep.

If your home is older, lean toward 3% as your total. It's yet another shield against life’s happenings.
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Stuff

We all have “stuff.” But do you own your “stuff” or are you just holding it for the store?
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Ask yourself

You might think a new car is a great Christmas gift. But, ask yourself:

Would you rather have a $40,000 car and $5,000 in the bank or a $5,000 car and $40,000 in the bank?

Another thing nice about $5,000 cars is they are PAID-FOR in full, which is how your Christmas should be this year and forever more.
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“PAID-FOR” Christmas

Do away with “yeah but” and “I want” gifts this year. Pledge that every gift you give will be purchased with money that is yours, and that you will have a “PAID-FOR” Christmas from this Christmas forward.
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Christmas Gift Idea

Christmas Gift Idea: Commit today to begin paying off your house.

Yes, you can live in a paid-for house. Our grandparents would shake their heads at us for not understanding this, and our great-grandparents would be shocked and disbelieving we don’t already know this.
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Spread the word

Make some deals. Tell anyone who is buying you a gift to pay down their debt instead. Tell them you'll do the same on your end of the arrangement.

Paid-For Christmas . . . spread the word!
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Money they didn't have

Former smokers will talk of wanting a cigarette and those who have lost weight will admit a longing for chocolate cake.

But you won’t find anyone who dug their way out of debt lamenting no longer having to pay for spending money they didn't have.
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Becoming debt-free

Becoming debt-free is a great gift to your family. Write a letter to them, sign it, and put it under the tree to be opened and read on Christmas morning.
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Service members Civil Relief Act

Service members Civil Relief Act (SCRA).

If you're in the military, active or reserve, know what is available to help you. Check out information on this legislation. I want you focused on your own safety, not debt.

Thank you for your service.
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It has to be

If you're part of a couple, no presents at all for each other until you're out of debt. That's just the way it has to be.
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Presents

Presents under the tree that aren't paid for in full don't belong there. Don't do it, you know better.
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Opting out

Tell friends and family you're opting out of the gift exchange this year because you're addressing your debt.

If you're embarrassed it should be about being in debt, not about opting out of gift giving.

Opting out is a must.
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Think back

Think back. Do you really remember every gift you ever received?

In other words, piling presents on the kids is going to be lost on them in the long run. While the memories of the gifts will fade, the damage to your personal finance can last forever.
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Don't spend what you don't have

The fact Christmas is approaching is no reason to spend money that isn't yours. Don't spend what you don't have. It's really that simple.
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Needs and Wants

Needs and Wants: Needs are paid for with cash. Wants are paid for on credit.

If you "want" something think of the interest you will have to pay. I hope you find you don't "want" it anymore.
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One dollar at a time

As a borrower you are slave to the lender. Refuse to be a slave and start the process one dollar at a time.


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No reason to over-pay for a vehicle

With all the resources available there is absolutely no reason to over-pay for a vehicle. There is Kbb.com or nada.com, just to name a few.

Let your top price be the amount you would get if you tried to re-sell the vehicle immediately after buying. This would be as a private sale, not trade-in. And. yes. this is a used car. Unless you have millions you have no reason to have a brand new car.
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Prospective employers

Prospective employers check your credit report. How does yours look?


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Budgeting

Budgeting an irregular income is harder than budgeting a set amount income. But, it doesn't get you out of having to do it.

Remember, while the income may bounce around your fixed expenses don't. Housing, utilities, food, gas and oil remain pretty constant. Tackle those first and the others will fall into place.
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Sensibility Saturday and Sunday

When you're car shopping scour the private sales in the paper. There are a lot of people selling cars they can't afford. You get a good deal and you're helping them address their debt. Win/Win.

If you're upside down on your car and the payment is killing your chances of success then get rid of the car. Price it for private sale and move on.

Your next car may be a clunker, but it will be yours free and clear.
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Don't spend what you don't have

Sensibility Saturday and Sunday follows Black Friday.

This is when you take back those things you bought on credit on Black Friday.

You’ve had your fun buying them, but it’s time to take them back.

They aren’t yours and you know better.
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Black Friday

"Black Friday” is so named because it is the day retailers make their money. If you are participating it is only with cash and with a set budget on what you are going to spend. The day is full of pitfalls to get you to spend more than you have. So who’s going to win here? You or them?

Don't spend what you don't have!
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Rigged games

You walk by the booths at the carnival because they are rigged games, but yet you use credit cards.

Do you get what I’m trying to tell you here?
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Credit provisions

The Conquer Debt Calendars have been criticized because they lack complicated formulas and spreadsheet equations.

Critics say it's boring, mundane common sense that covers nothing more than the importance of staying out of debt by living on less than you have, working from a budget, saving for emergency funds, and having a financial plan.

To my critics I say . . . “YOU BETCHA!”
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Don't fall for credit card tricks

An 18% credit card is 1.5% interest per month.

If you owe $1,000 your interest will be at least $15 for the month. If your minimum payment is 4% you send in $40, of which $15 is interest. Next month your interest is figured on your new balance which is $975.

Do you see what I’m getting at? Don't be blind to the amount of money you're paying over and above what you actually used. Don't fall for their tricks.
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Forever

How long will you have to budget, maintain an emergency fund, keep car and home maintenance funds, and always be thinking about personal finance?

Answer: Forever

This new way of thinking isn't a one and done type deal. However, changing your mindset to succeed in personal finance only has to be done once.

Change the way you think, get your financial life in order, and keep it there!
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Dig your way out

No matter the size of your debt you can dig your way out. If it's large you just need a bigger shovel. There's no telling how long it will take, but it will never happen if you never start.

Don't let the amount of debt be an excuse for not starting the process. Don't let how you got into debt be a deterrent, and don't let friends or family talk you out of starting the process.

This is yours to fix so get started.
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Conquer Debt Year Round

The only time it's acceptable to borrow money to get out of debt is when you sell that car you can’t afford and take out a loan for the difference between what you got for it and what you owe on it.

Remember to borrow a little more to buy a clunker to get you back and forth from home to your numerous jobs.

You'll hate having to do this, or at least you should.
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Emergency Fund

If you're living on a single income, or have an irregular income (like a sales job), your Emergency Fund must be a minimum of six months of living expenses.

If you are in a dual income living arrangement and both jobs are stable you may lean more toward the minimum of three months of living expenses in your Emergency Fund.

However, make no mistake. You must have an Emergency Fund. No exceptions.


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Do the right thing

Being debt-free allows you to truly enjoy good fortune when it pays a visit. But, if you're in debt and get lucky you know what to do with every cent of good fortune, right?

Let's say you inherit $10,000 and happen to owe $10,000 on a credit card. Do the right thing; pay off the card!
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A house of cards

You can’t live in a house of cards (pun intended) forever. Eventually those living a life fueled by borrowing will crash and burn. Stay focused on getting out and staying out of debt.

You can't get ahead if you are in debt.

You can't borrow your way to prosperity.

You can't keep moving debt around and make it disappear.

You can't ignore your problem and hope it away. Take control, fix YOUR problem.
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Reach out for help

Don’t be afraid to reach out for help.

There may be programs available to help you out of your financial problems provided you didn't just blatantly create them. I am told many hospitals will work out financing for healthcare, but you have to ask for that help first.

Being too proud can hinder your financial freedom. Being proud is different from being stupid. Ask for help.
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You get the idea

If you get paid weekly, budget for a week. If you get paid every two weeks, budget for those two weeks. Monthly? You get the idea.

You can string weeks together if it makes sense to you. Don’t get frustrated and think you have to budget a perfect month, that doesn't exist for most of us.

Budgeting takes months, if not years, to get right. Don't get frustrated and don't think it's a one time and done deal.
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Thank you Veterans

Our Veterans didn't sacrifice their lives so we could live in debt. They sacrificed so we could live in freedom. To do otherwise is to do them a disservice.

Thank you Veterans, past and present.

Read up on The Soldiers' and Sailors' Civil Relief Act (SSCRA) and pass along the information to anyone you think it can help today.


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Credit card companies

Credit card companies make money when you spend. Don’t get all excited or think it’s a sign of responsibility when they give you access to that money. Take more pride in not participating in their scheme at all.

They couldn't care less about the principal being paid. They want the interest, fees, and late charges. That is free money to them.

Don't play this game 'cause you'll lose.
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Paid-for vacations

Paid-for vacations are even sweeter when you get to return home in your paid-for car to your paid-for house and sit on your paid-for furniture and watch your paid- for television and . . . oh you get the idea, don’t you?
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Pay as little as possible

Walk in a store, look at the salesman, hold up your checkbook and say, “The full amount for what I want is right here. Only you can mess this up.”

Oh ok, be nice about it, but remember their game is to get you to pay as much as possible for what you want. You may want to let the salesman know you're playing your own game -- to pay as little as possible for what you want.

Then you can both go from there . . .or not.
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Make more money or reduce your expenses

If the problem is that there isn't enough money to pay your expenses then you either need to make more money or reduce your expenses. It really is that simple.

As you look for income opportunities, remember to be very wary, very afraid of scammers. They just want your money!


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Be up front about debt

Don't let frustrated creditors send you to collections.

Be up front about your money problems with those you owe. More can be solved by engaging them in conversation than can be accomplished ignoring the problem.

Know your rights before the creditors abuse them. The Fair Debt Collection Practices Act is required reading. Know it, study it, use it. You still owe the money but you can control the situation.
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Ask it often

"Will it matter 20 years from now?"

This question pertains to every aspect of your personal finances, to every decision you'll ever make about them. Ask it often.
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Be realistic about expenses

Be realistic when you calculate the amount needed in your emergency fund for monthly living expenses. Don’t factor in the lattes.

Sit down and list what you really need. Dave Ramsey calls them the four walls: Food, Utilities, Housing, and Transportation.

Cable, booze, cigarettes, concert tickets, internet, and clothes shouldn't be on the list.

Get real. If you're in emergency mode, you aren't eating out.
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Finances - simple vs. complicated

$120.00 - That's the minimum amount you agree to pay for putting $100 on a credit card at 20%. If you only pay the 2.5% minimum payment each month it will cost you over $300.

Finances are complicated when you factor in interest, double cycle billing, grace periods, transfer fees, APR's, APY's, amortization, monthly payments, etc.

Finances are simple when you don't spend what you don't have and use cash.
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Romans 13:8

Romans 13:8 explains it this way: “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.”

Love is one debt that's never paid off. No matter how much we have loved, we are obligated to keep loving one another and, more importantly, God for all He has done through His love for us.

However, FINANCIAL debt should not remain outstanding.
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Scary debt

Any and all of these define scary.

Debt. No emergency fund. No home maintenance fund. No car repair fund. No money set aside for Christmas, birthdays, or other known events. Adjustable rate mortgages. House payments totaling more than 25% of your take-home pay.

This is jump-off-a-cliff scary, and sadly too many are living like this. Don't be one of that crowd.
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Making the decision

Making the decision to take control and become debt-free is liberating. Now, can you imagine how it will feel when you achieve it?
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Making do with what you have

Budgeting doesn't mean making do with less. Budgeting means making do with what you have. Big difference.

In personal finance the word budget means planning. You can't plan to have money that isn't there. You can dream, you can aspire, but don't plan until the money is real.

In other words, if you make $50,000 then live a $50,000 life, not one that costs $50,000.01. It really is that simple.
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Tax Credit vs. Tax Deduction

Tax Credit: A $1 credit means you pay $1 less in taxes.

Tax Deduction: A $1 deduction reduces the amount of taxable income by $1. This reduces the amount of tax you pay by the percentage your income is taxed as a result of the deduction. If you're taxed at 20% the $1 deduction saved you $0.20.

Know the difference. Congress plays word games to make you think you're getting something you aren't.
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English 101

Blowing what took a long time to save happens way too often. Have this conversation with your kids before they head to college on your money.

English 101 is the same at a high-cost state school or a community college. If your kids don't have a plan let them be indecisive on someone else's dime. Perhaps their own.

They need to grow up. Don't throw money at them and hope for the best. Especially YOUR money.
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Staying out of debt

Being obsessed with money isn't good.

Being obsessed with getting and staying out of debt is good.

Income minus outgo = YOUR REALITY. Deal with it.


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Risk vs. stupidity

Never confuse risk and stupidity.

You are your own advocate. Don't do anything in your financial life, or any part of your life, without knowing the consequences of the risk you are taking.

If you give this due diligence you will guard against bringing stupidity into the equation.
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New car depreciation

My unofficial study shows a new car depreciates $10,000 during the first 25,000 miles. It depreciates another $10,000 during the subsequent 75,000 miles.

Why would anyone ever buy new?
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Credit card check

Use a credit card at a store and the clerks never check the signature on the back.

Use cash and they hold up the bills to the light to check their authenticity.

There's something wrong with this, don't you think?
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Paying interest

Ever notice how store clerks look at you like you've lost your mind when you don't want another 10% off by getting a store credit card?

Of course, you look at these clerks like they've lost their minds when they act like they've never seen anyone pay cash before. Something about paying interest on my underwear just doesn't seem right.

Be polite, the clerk is just doing a job. But, say no nonetheless.


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Win the lottery and then go bankrupt

You hear about people who win the lottery and then go bankrupt.

If they knew how to dictate where money goes and understood what it means to be financially responsible they wouldn't have this problem.

Knowing how to plan your finances not only gets you out of debt it prepares you to handle good fortune when it comes.
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Enough money

Only you can define what is "enough money." If you have everything YOU need, you're fine. Note "need," not "want."

Some say if you have everything you need and want you're a millionaire.

It's ok to want the finer things in life, but it's only acceptable to have them if you can pay for them in full.

Use your wallet as a guide. If you can't pay for it in full today, you can't have it. Period.
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Debt collection agency

If you settle with a collection agency don't send them a dime unless you get in writing the details of your settlement from the agency.

When you settle make sure the words "with no recourse" are in the documentation. If they aren't, the agency can come back to you for the difference.

And, don’t give them electronic access to your accounts . . . EVER!
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Swimming upstream

When you decided to get out of debt, and never get back into debt, you started swimming upstream.

Stay focused because your financial responsibility will scare some folks. You'll certainly get comments from family, and you may even lose friends along the way.

Smokers all want to quit. Overweight people all want to lose weight. Those in debt all want to be debt-free.

Making it happen is the hard part.
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Get out of debt

Want to be different? Get out of debt. That sets you apart from 70% of the people out there.

Seven of every 10 people live paycheck to paycheck. Average household credit card debt is $9K and the average household has nine credit cards.

These figures change daily. Unfortunately they're rising.

Step out of the line of people jumping off the cliff. Be different. Be with us. We have room for you.
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Opposites attract

Opposites attract. Realize this.

It's likely you both aren't savers, nor are you both spenders. But, both of you can agree to dictate where your money goes so it doesn't disappear.

If fear or shyness keeps you from asking the money questions before you get together you need to hold off getting together. You take on a person as a spouse you take on all the stuff that comes with him or her . . . including debt.
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The Total Money Makeover

"The Total Money Makeover" by Dave Ramsey.

Buy it, read it, and buy a copy for those you really care about.

Dave probably won’t care if you loan your copy out either.

www.daveramsey.com. Check it out.
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Let me talk to your supervisor

“Let me talk to your supervisor.”

Learn those words and you'll get better deals. Ask for lower prices. Be polite, give them a chance to earn your business, but make sure the salesman knows you are very aware that you have options when it comes time to make the purchase.

Don’t be timid. It’s your money, so protect it.
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Financially responsible and prepared

There is no rational reason against being financially responsible and prepared. Enough said.

Life is hard enough. Don't let the one thing you control, your personal finances, control you.

Know your income. Know your expenses. Do the math.

C'mon folks . . . WAKE UP!
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Pay off debt

Live on less than you make and use the extra to pay off debt.

You now owe me $3,500. That's about what the software costs that's supposed to help you pay off your bills and home early. But, you don’t need a computer to tell you if you spend less than you bring home you have some left over to play with.

Also, don't pay to set up a bi-weekly mortgage payment. You can make those extra payments yourself.
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Falling for scams

Would you admit you fell for a scam? That's part of the reason con artists get away with it. Embarrassment keeps people from reporting the crime.

The deposed dictator scam still works today. For a con to work the mark must be desperate and/or greedy. The sane and careful don't fall for these.

If it's too good to be true . . . it's not true. Be careful. You have what the thieves want. Guard it.
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You can't borrow your way out of debt

You can't borrow your way out of debt.

Consolidation loans, HELOC's, moving from card to card to lower your interest rates are all band-aids. Fix the problem; eliminate the debt.

Those 0% credit cards come with 100% debt.

Stop moving the debt around. By the time you pay a transfer fee, move the debt, and life happens you end up gaining nothing.

Want to get out of debt? Pay the debt. It's that simple.

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Don't spend what you don't have

Our grandparents would be mystified at how much debt we have acquired.

We probably would get some sympathy from them until they heard our reasons for being in debt. Then they'd think we were just stupid and deserved what we did to ourselves.

Time honored tip. Don't spend what you don't have.

Try it and see what happens. Go ahead. All you have to lose is more debt.
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Personal finance

In personal finance you can be on offense or defense but don’t be clueless.

Have a budget, have an emergency fund, have a plan for your extra money but don’t go through your financial life surprised when things happen that cost you money.

Personal finance isn't a mystery. Personal finance isn't hard. Personal finance is personal. Get involved in your own finances, you have no other choice.
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Emergency Fund

It’s impossible to think of absolutely everything that could go wrong and cost you money. But, that's no excuse not to plan for these things.

This is called an Emergency Fund and it needs to contain three to six months (minimum) of living expenses. This fund is separate from all your other funds and is not to be touched except in an emergency.

By the way, a vacation is not an emergency.
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Wealth

Making a lot of money doesn't guarantee having wealth.

There are people who make a large amount of money but who are still spending more than they make. Then there are those making a nominal amount of money who have more wealth than you would believe.

Read “The Millionaire Next Door” for a detailed study of this issue.
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Pay your loans smallest to largest

List your debts smallest to largest. Pay them in that order.

Pay as much as possible on the smallest and the minimums on the others. When the smallest is paid off, add that payment to the next largest and repeat until you're completely debt-free.

Include HELOC’s or other loans where you used your home’s equity. Don't include the original home loan; that's saved for last.

This is called the Debt Snowball.
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Paying for college

If you're paying the way I assume you aren't sending little Billy or Susie off to college to learn how to have a good time. You’re having the talk with them, right?

The only person who should be living a life of leisure and being carefree on your money is you. Don't let your kids do that as they head off to college on your dime. You aren't doing them any favors and hurting your own future in the process.
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Warranty registration

Always take time to fill out warranty registration cards or do it online. It may come in handy. Whether you ever use it doesn't matter. The warranty will never work for you if you don't do your part.

Don't buy extended warranties. They're rip offs, high- cost insurance policies pushed at the counter. If the store has no more faith in the product than that you shouldn't have faith in it either.
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Identity theft

Using cash is a pretty good deterrent to identity theft, don’t you think?
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Bank account access

Never give anyone access to your bank account.

Collectors play this game, promising to take only a set amount if you show a good faith effort and allow them access to your account. Then they clean you out.

Giving access and paying on-line are different. You authorize on-line payments. Giving access is opening the door and telling them to take what they want.

Big difference. Know what you're doing.


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Write it down

Keeping track of spending is easy. Looking at and owning up to what you are spending your money on is the hard part.

Start today. Write it down. Don't be scared of the result. Remember, you can change this behavior.

You are going to surprise yourself by how much money you will find just by opening your eyes.
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Getting into debt is the fast and easy

Nobody said getting out of debt would be fast or easy. Getting into debt is the fast and easy part.

Credit card companies couldn't care less about principal being repaid. They're in it for the interest. You would be, too, if you got 30% on money you loaned. They love it, too, if you miss a payment. Then they can load on fees and penalties.

They want to own you. Are you going to let them own you?
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Car maintenance fund

It costs money to drive paid-for vehicles, too, and someday that paid-for vehicle will need to be replaced.

While car payments don’t have to be a fact of life, a car fund in a separate account is. Cars breakdown, tires need to be replaced, oil needs to be changed. These aren't emergencies, be prepared.
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It's time to move

If your house payment (principal, interest, taxes, insurance) exceeds 25% of your household income I'm the bearer of bad news. It's time to move.

Payments more than 25% of your take-home pay create stress. The lawn is no longer as green, the patio no longer as peaceful, and the sound you hear is not just house character creaking, it's something breaking.

Don't turn a dream house into a nightmare. Do it right.


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Fair Debt Collection Practices Act

If you have accounts sent to collection agencies you do know you have rights, correct?

The sole purpose of the Fair Debt Collection Practices Act (FDCPA) is to eliminate abusive practices used by collection agencies. Read up on this and know your rights.

Only you are going to care about you. Don't pay an agency or company to do this for you. Quit the pity party, face your debt, and know your rights.


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Points, rewards, or cash back features

Debt-free people don't talk about the points, rewards, or cash back features of their credit cards, and you sure don’t hear wealthy people extol the virtues of these devices.

No millionaire I know ever used these "tricks" to become financially secure.

Don't fall for the tricks used by credit card companies to get your money. Note, I didn't say to get your business. They want your money, not your business.
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Budget and planning methods

Oh give it a rest. You aren't as mysterious as you would like to think you are, and those time-tested methods apply to you, too. Budgeting, planning, living within your means, not spending what you don't have. Yes, those are the methods I’m talking about.
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Cash flow strategy

Call it a spending plan, a cash flow strategy, or a budget. I don’t care what you call it, but having one is not a nicety it’s a requirement.

If you don't tell your money where to go and dictate each dollar's job it will disappear.

If you don't control your spending you eventually will crash.

If you don't budget, get out of debt, and save for your future you will fail.

Sorry, someone had to tell you this.
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Don't borrow money

Taking on debt is never the solution to a problem. Develop this mindset and you've achieved another behavioral change that will serve you well.

You can't borrow yourself out of debt. This house of cards will catch up with you.

You can't borrow yourself to prosperity. Using borrowed money to invest is akin to gambling.

You can't run your life on borrowed money.

Don't borrow money.
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Get out of debt and save

How can you be planning for the future if you aren't saving in the present?

It’s just not possible...but I bet you already know that.

Get out of debt and save for your retirement. Don't wait and do it later. There are a lot of things in life that can and will happen between now and later. Deal with the reality of now and chart your own course.

Happen to your life. Don't let life just happen to you.


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Want vs. need

Only buy what you need and can afford, not what you want. There, the scary “change your behavior” task is done.

Many people disregard their personal reality and supplement their income with credit to obtain things they think they deserve. You only deserve what you earn, nothing more.

Don't be a fool. It takes only the swipe of a credit card to get you into debt, but it takes forever to get out.
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Annualcreditreport.com

Annualcreditreport.com is the site to use to obtain free credit reports from the three major bureaus. Don’t be fooled by other sites. This one is the real deal.

You are entitled by law to receive a free copy of your credit report from each of the three major credit bureaus.

Once you clean up your report and are satisfied with its status, go to this site every four months and request a report.
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Solicitation phone calls

When you are completely out of debt, solicitation phone calls are actually kind of fun.

I take the call and talk up the poor person on the other end about how I have no debt but have money and don’t need their card. It's fun to make them hang up on you instead of you having to hang up on them.

Get control. Don't be afraid of a ringing phone. Drive those callers crazy instead of the other way around.


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Credit card offers

I don’t have a scientific study to prove this, but it's my opinion that as your debt decreases so does the number of credit card offers you receive.

Wonder if a signal goes out to the credit card companies that says, “Stop sending. They are paying off their debts. They get it. Time to move on to easier targets.”

Refuse to participate in a game that's rigged for you to lose.
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The person in the mirror

I answer to the person who pays my bills.

That's the person in the mirror I have to tell I just loaded up a 20% credit card to take a trip or buy something I'll pay on forever because I couldn't wait until I had the money to pay for it in full.

Are you answering to the person in your mirror? You should be.
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Living paycheck to paycheck

Since seven out of 10 people are living paycheck to paycheck you need to be ultra careful who you ask for financial advice.

In other words don't take advice from broke people.

Do your own homework, take control of your finances and be honest. The only reason you aren't writing down what you spend is because you don't want to face the result.
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Personal finance

Personal finance is not a mystery. If it is you're either over-thinking it or not even trying. Which is it for you?

Don't let finance intimidate you. It's a game of pluses and minuses. It's a game of not spending more than you make. It's a game played with simple rules on the playing field of reality.

Don't show up to the game with the wrong equipment. You'll find the equipment between your ears.
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911 Tragedy

Never forget.

God Bless the victims and their families.
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Can I really afford how I am living?

Only you can answer this question, “Can I really afford how I am living?”

If the answer is "yes," good job. If it's "no," you know what to do. If you were smart enough to ask the question, you're smart enough to fix the problem.

Do the math. I've said it many times and I'll say it again. Calculating income minus expenses is the first step to being honest with yourself and your family.

Start being honest today.
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Financial advisors

If you are interviewing a financial adviser the first question you should ask is, “I have debt, what should I do?” If the answer isn't to develop a plan to rid you of that debt first, you need to interview a new financial advisor.

Advisors worth their salt will have you debt-free before they ever talk to you about investing. Don't fall for advisors who put their own investment product sales ahead of your interests.
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No debt to be acquired again

To review. Cars are to be paid for. Student loans are to be paid for. Emergency funds are to be fully funded. Retirement is to be invested in. Kids' educations are to be planned for. Homes are to be purchased with sensible loans that will be paid off. No debt is ever to be acquired again.

Questions?
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Spend what you don't have

Just think. All that money going out your door to creditors will someday be all yours.

Keep track of exactly how much is going out so that you will be ready when it all stays where it's supposed to stay, with you.

And, when you figure up how much is going out the door to interest and fees you are required to get mad. I mean really mad. So mad you resolve never again to spend what you don't have.
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Debit card vs. credit card

Use your debit card, not your credit card.

This advice is from dear friends who live the life we all hope to live someday. "Beholden to none and focused on fun" best sums up the daily routine they earned through hard work, living within their means and saving along the way.

It works folks and it really is that simple.
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Debt settlement

Don't pay someone to take care of your problems.

You can negotiate your own debt settlement. Not being in control of your finances is what got you here in the first place.

Just because a debt counseling firm has ads on TV, radio or in print doesn't mean it's a legitimate businesses. It just means someone paid for the ads.

Only you are going to care about you. Take control now, it’s never too late.
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Conquer Debt Year Round

If you note a sense of urgency in any deal where you and your money may soon part it may fall into the “too good to be true” category. Keep your wits about you.

Con artists work very hard to separate you from what you have. They look for targets who are greedy and/or desperate. Targets must exhibit one or both of these traits before a con's trick will work.

Be careful.
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Seven Baby Steps

These are Dave Ramsey's Seven Baby Steps:

Step 1: $1000 in an Emergency Fund.
Step 2: Pay off all debt with the Debt Snowball.
Step 3: Three to six months of expenses in savings.
Step 4: Invest 15% of income into Roth IRA's and pre-tax retirement plans.
Step 5: Contribute to college funding.
Step 6: Pay off your home early.
Step 7: Build wealth and give!

Follow the steps. They work.
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YOUR debt

If you marry someone who has debt then it's now your debt.

If you didn't know about the debt prior to saying "I Do" that's your bad.

If you are married there is no such thing as his, hers and your debt. It's is all YOUR debt and the sooner you handle it together the sooner you can move on to the life you both imagined you would have once you became an "us."
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FICO

If you resolve to never borrow money again you can remove at least one item from your list of things to worry about -- your FICO score.

If you are never going to borrow money, then who cares about your score? FICO is a "how am I doing at borrowing money and paying it back" score. There actually are people who owe no one, have a huge net worth and have no FICO score.

Which do you want to be?
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Live like no one else

"Live like no one else today so that tomorrow you can live like no one else."

That's Dave Ramsey's signature line. Say it over and over to yourself as your inspiration.
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Book Value

I once read Warren Buffett of Berkshire Hathaway fame prefers using Book Value to measure the success of his company. Book Value is simply assets minus liabilities. In personal finance this can be characterized as income minus outgo.

One of the richest guys in the world keeps it simple. How about you?

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Living the life

No one else will tell you so I will.

While others are on vacation, you will be working your second job. While others are dining out, you will be waiting the tables. While others are shopping and spending you will be scrimping and saving. But, later on while others are staring at their debts, you will be living the life you thought was unattainable.
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Wait until tomorrow

If you think you can pay for it tomorrow, then wait until tomorrow to buy it.

Too many people buy today on credit and plan to pay for it with money made in the future. Too many people think, I'll just make the payment when I have the money. Change your mindset. Change your behavior. Buy things when you have the money to pay for them on the spot... not later.
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Work it out

Savers like money. Spenders like money. Now you two work it out. You both like the same thing now it’s just a matter of mechanics.
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How money really works

Why hide from the kids how money really works?

You owe it to them to teach them how to handle their money so that when it’s their turn they don’t make the same mistakes you made.
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Income minus outgo

Nobody said you can’t have a glass of wine at your budget meeting.

Being productive doesn't mean it has to be painful. And, unless you're running a small country from your kitchen table it’s a matter of income minus outgo. It’s really that simple.
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I Do

Before you say “I Do” you better talk about money.

If having that conversation is uncomfortable I suggest you put things on hold until you can get this subject out in the open. Money problems are the number one cause of relationship problems and divorce. Nip this one in the bud before it’s a problem.
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Losing interest

Losing interest is only ok when you're watching a bad movie, not in your personal finances.
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Your home’s equity

Never risk your home’s equity. Don't use it as collateral on a loan, on a HELOC, on a business venture, nothing! Your equity is sacred, treat it as such.
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Borrowed money to invest

If you use borrowed money to invest and the market goes down you lose twice -- the market value and your money. I suggest it's time to rethink that strategy.
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Recessions

Recessions come and recessions go. Economies expand and economies contract. The market goes up and the market goes down. Being debt-free is a pretty good anchor while all these things are occurring.
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Payment holiday

Don’t you love it when credit card companies offer to let you skip a payment, calling it a payment holiday, then act like they're doing you a favor?

You do know not to fall for that, right?

The so called "payment holiday" only applies to you sending in the payment. Interest accumulating on your balance never goes on a holiday. Interest steals holidays.
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Read the fine print

If you can read this your excuse for not knowing what was in the credit card terms you agreed to goes out the window.

To be surprised by something you agreed to only leaves you to blame.

Read the fine print, or better yet swear off ever borrowing money again and this problem goes away.
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Why be in the majority

“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?
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Take responsibility

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!
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Living on one income

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.
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Teach your kids

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.
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FICO scores

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.
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Clean credit report

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?
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Pay off the house

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.
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Vacation is over

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.
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Three car rules of thumb

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.
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A mortgage

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.
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Fine print

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.
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Never co-sign a loan

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.
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FICO

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?
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Paycheck to paycheck

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.
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Always be in control

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.
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Dave Ramsey

Dave Ramsey (www.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.
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No brainer

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.
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Live on what you make

Learn to live on what you make. To prosper, learn to live on less than what you make.
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IT’S A BLAST!!

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

“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!
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Does this make sense?

When you use credit you agree to pay more than is being asked.

On what level does this make sense?

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Blather on the news

If there isn't enough of something, but everybody wants it and the price goes up it’s called inflation. If there is too much of something, and not enough customers want it, the price goes down and it’s called deflation. If things are even it’s called stagflation.

If you are debt-free all this is just blather on the news.
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Economies recover

Economies recover. Will you still be in debt?
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Doesn't make sense

This calendar doesn't say anything good about car loans. There is no way anyone can justify using rented money to buy a depreciating asset. Just doesn't make sense.
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Taking control

Taking control of your money instead of letting it control you works wonders to get you out of debt and financially prepared for life. It also works well if you should happen upon a windfall. It gives you the correct mindset and tools not to squander your good fortune.
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The lottery

If you play the lottery 15,890,700 times you are supposed to win at least once. Or, does that mean you need to play it 15,890,700 times per lottery drawing?

Hmmm, maybe that's not the ticket out of your financial problems after all.
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Pile it up

You'll find that once you are debt-free and all your money is yours, you get real conservative real fast when it comes to risking your cash. That's usually when you begin to pile it up. Nothing magic about it. It's just the fact it has nowhere to go but to YOU!
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Stupid risks

The phrase “it takes money to make money” wasn't coined by the guy paying your bills. Don’t use it to justify taking stupid risks.

If you need everything in a deal to work absolutely perfectly for the deal to work out for you I suggest you do one thing. RUN!!
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A financial surprise

If you're wondering what impact having children will have on your finances do some homework. Go to the store, find out what diapers and baby food really cost. The internet can give you a hand, too. Don’t turn what is a wonderful event into a financial surprise.

With so many resources available there is absolutely no reason you should be surprised at the financial impact a child will have on your household.
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Dream home into a nightmare

Don’t turn a dream home into a nightmare. You must be debt-free before purchasing a new home and your total payment (including tax and insurance) shouldn't exceed 25% of your take-home pay.

In addition, never consider anything but a 15-year fixed mortgage.

If you can't follow the above guidelines you need to rethink the kind of home you can afford or save up more money for a down payment.

It's that simple.
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Take care of your problem

Regardless of their political party, politicians in D.C. aren't going to fix your problem. Your debt can only be addressed by you. Think about it. The last "stimulus" check you got from D.C. was what? $300? $600? $1000? Get off your rear-end and take care of your problem.

Nobody but you cares about you. Take control of your finances because no one else will.
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Don’t touch your 401K

Don’t touch your 401K. Don’t borrow from your future to satisfy your present. It's tempting, but let's see what can go wrong:

1. You can't borrow your way out of debt, I don't care if it is borrowing from yourself.

2. Your money stops earning money since you've taken it out of the market.

3. If you lose your job, you'll have to pay the money back or pay taxes and penalties around 40%.
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Learning from mistakes

Learning from mistakes doesn't mean YOU have to be the one making the mistake. Seven out of 10 people live paycheck to paycheck so there's plenty of evidence this is no way to live.

You see the fancy cars, boats, and expensive vacations. But, later pay attention to the unkempt house, overgrown lawn, and frowns. They all frown!

Personal finance simply means NOT spending what you don't have, nothing more.
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Debit and credit cards

You can’t afford what you're buying if you're using a credit card.

The difference between debit and credit cards is that credit cards can only buy you debt.

Never buy anything you don't have the money for right now. If this becomes a habit then a debit card makes perfect sense since you have the money in the bank.

A friend of mine says, "If you plan on paying for it tomorrow, then wait until tomorrow to buy it."
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It's all a game

Manufacturers are all about getting you to spend money. It's all a game so at least know the rules.

You have money. Producers have product. They want to do an exchange. There are many sellers of the same product and they will try to entice you to become a customer using advertising, sales, or special packaging.

There, you know the game, now at least play it with some common sense.
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Put it in writing

Put it in writing. Financial agreements must be clearly defined.

Don't sign anything you haven't read. Even when the person across the table sighs deeply as you tell them you want to read it before signing.

If you know you'll be in a situation where there is a lot to read arrange to get copies in advance.

If there is nothing to worry about what's the harm in you reading before signing?
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Give friends money

Give friends money, don’t loan it to them. Unless you don’t mind losing that friend.

You aren't a banker. Don't get into a habit of loaning friends money. You are going to end up losing the money or the friend. The debtor is slave to the lender.

You want friends, not slaves. Stay out of this one and for those of you in need, don't ask a friend for money either!
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Paid-for vacation

Once you go on a paid-for vacation you will never go any other way.

Would you rather go on a seven-day cruise then come home and pay on it for 12 years at three times the cost or save the money for a year and own that poolside drink?

Do you want to travel to see family and friends knowing you're spending money you don't have then making payments on good times past?

Save up, then go.
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House payment

Once your house is paid for you will never have a house payment again if you do it right.

Doing it right means never again buying a house worth more than the cash you have in your hands. This may seem unrealistic to you if you have a mortgage but I challenge you to pay off your current home and try living in it debt-free for awhile.

You will have a difficult time ever having a mortgage again after this experience.
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Living on one income

Couples should practice living on one income. That practice may come in handy someday.

It also will give you a good idea how much more should be in the Emergency Fund.

Your lifestyle should be no more than your income to get by. Your lifestyle should be less than your income to be prepared. Your lifestyle should be 1/2 of your income to succeed.

Where are you?
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Get your money's worth

Whether you're paying for college on your own or using a student loan (UGH!) remember that the professors work for you. Be sure to get your money's worth.

Every dollar borrowed for that degree needs to be repaid with future earnings. If you impress that upon yourself maybe you won't be so quick to skip class, flunk a test, or blow off studying.

College is fun, but it costs to have fun in or out of the classroom.
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Home Costs

If you have to take a home loan go with a 15-year fixed mortgage where principal, interest, taxes and insurance doesn't exceed 25% of your take-home pay. You shouldn't have any other debt either.

This is stress-free home ownership. It also allows you to easily set aside 1% - 3% of your home's value in a fund for home maintenance, repair, and upkeep.
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Friends or family

Don’t borrow from friends or family. The borrower is slave to the lender.

Here's a story. Mom and Dad offer a loan for a down payment on a home. They offer a fair interest rate and better terms than the couple could get at the bank.

At Thanksgiving the couple mentioned they were going on a cruise. Dad got quiet, Mom shot a sideways glance. The couple paid off the loan the next week.
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Happy Independence Day!

Only you can gain your independence from debt.

Happy Independence Day!
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Options increase as debt decreases

Your options increase as your debt decreases.

If you spend every waking moment worried about debt your eyes aren't open to opportunities that present themselves. You're focused on not losing more ground. However, if you don't have debt and a good thing comes knocking all you have to consider is "yes" or "no" instead of whether or not it will work for you.

There's a big difference between these two mind sets.
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College-bound

Whether or not you have money saved you need to tell your college-bound child they aren't off the hook completely.

Getting every grant or scholarship they qualify for is their new job. Armed with lists of national, state, and local sources of education cash they can start filling out forms and selling themselves.

Your children will learn to work for what they want and appreciate what is gained from their efforts.
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Emergency fund

If you have an emergency fund set aside you will find that most emergencies become mere annoyances.

Instead of worrying about how to pay for something to be fixed, the annoyance is having to replace the item at all or waiting for the repairman.

Be prepared. Have an emergency fund of three to six months of living expenses set aside to turn big problems into little problems.
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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

Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching Off My Parents by Zac Bissonnett.

College students and parents of pre-college students put this on your "must read" list.

Anyone promoting loans to pay for school, or anyone who wants a load of debt that lasts forever needn't buy a copy. There's nothing in it you'll want to read.

Well done, Zac!
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LIBERATING!!

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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Buy a cross-cut shredder

Buy a cross-cut shredder. Shred everything someone could use to steal your identity.

This includes bank statements, credit card offers, utility bills, anything with name, address and account numbers.

Identity thieves are out there waiting for you to slip up.
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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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I’m open-minded

I’m open-minded. Tell me again the good things debt does.

Really ask yourself if debt has any good and long-lasting effects. Paying forever on a seven-day cruise doesn't make sense. Paying for years on depreciating assets like cars doesn't make sense. Agreeing to overpay for credit card purchases doesn't make sense.

The only kinds of debt you should ever consider are education and home loans.
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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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“Abhor”

“Abhor” is a great word. Learn to “abhor” debt and you'll see what I mean.
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You agreed to it

Oh don’t be so surprised the bank raised the rate on your credit card. You agreed to let them do it the day you acquired the card.

The finer the print, the more the risk.

You agreed to it, so don't be mad at anyone but yourself.
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Never being in debt?

Can you imagine never being in debt? Owning everything you have? Always being financially prepared for life? Not only can you imagine it, you can achieve it.

Even better, you can make sure your children imagine it, too. How is that for a good retirement thought? The kids won't not need your help when you're kicked back enjoying the leisure time you worked so hard to get.
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Yes, it really is that simple

Don’t spend what you don’t have. Yes, it really is that simple.

You hear this a lot in the calendar, don't you? Sorry, but I felt the need to reinforce the idea and the publisher wouldn't let me put a volume device in here so I could YELL IT!!

Too many people look for financial cures or get rich quick schemes. While they're looking they should use this bit of advice and see how it works out in the interim.
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It's a game, folks

Next time you're in the grocery store take note of the products stocked at eye level or on the ends of aisles. The product manufacturer pays a premium for those spots. Look for deals above and below eye level.

It's a game, folks. Know the rules.
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Stop it!

Stop it! The blame for your financial situation lies with the person in your mirror. Go have a talk with that person and quit making excuses.
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Don’t ask

Don’t ask a bankruptcy lawyer if you should file. Think about it. What product is he selling? Of course, the answer will be yes.
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Don't spend what you don't have

You can’t afford what you are buying if you are using a credit card.

Don't spend what you don't have.
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It's a rip-off

Don't fall for the 90 days same as cash scheme. It's a rip-off.

Miss one payment, make a late payment, or don't do something right that's in the details you didn't read and you'll find yourself getting socked with interest and fees that will take you back to the beginning balance of the purchase.

Use "cash" as your "same as cash" method.
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Get some new friends

If your friends are with you because of the money you spend on them you better get some new friends.

Deep thought time. Are you doing all the buying for the gang? Any "hangers on" in the crowd?

Run an experiment. Put away your credit card and see who sticks around.

You can't afford your own lifestyle if the credit card is part of it let alone someone else's.
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