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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