Archives For how to get out of debt fast

The Real Cost of Credit Cards

September 4, 2012 — Leave a comment

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This loan will take 8.3 years to pay the balance. Total interest paid is $7,977.

How does the bank do this? You deposit $8,000 into your CD, checking, or savings account. Your bank pays you a whopping 1 to 2% interest for the use of your money. They turn around and lend it out and charge 19% to their customers.

Those same customers might or might not have $8,000 on deposit with the bank. Your bank is making $8,000 in interest for the use of your money. That’s a 100% return on investment for the bank. And they have the nerve to charge you an overdraft fee of $30.00 if you make a mistake in your checkbook ledger and get overdrawn once in a blue moon.

We are NOT winning this game. It was built so we would lose. Ever wonder why you can never seem to get ahead even if you’re not a spender and are a saver? Inflation is eroding your purchasing power. Inflation is an intentional tax. It’s caused when The Federal Reserve prints more money. And they call is “easing.” Easing what? Easing the pain their profit margin might feel.

The banking system known as The Federal Reserve is the most insidious system of economic slavery the world has ever known. And it’ll be 100 years old on 12/23/2013. I don’t know about you, but I won’t be sending a card or buying a birthday cake.

What to do? Get out of debt as quickly as possible. Learn to barter. Pay cash. That’s a start.

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Money, The Economy , ,
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045 DSR – Blinded by The Benjamins?

September 2, 2012 — Leave a comment

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money blindfold

Are we working just for the sake of money? What’s the real reason we are awakened every morning by an alarm clock? Why do we give the best years of our lives to trading labor for currency?

Are there other ways to live? Yes. Start by reducing your debt load and work hours. You’ll find you don’t need nearly as much to live comfortably than you previously thought.

Become less and less dependent on your paycheck over time. It can be done. The money you spend, make sure part of it is going into things you are passionate about.

Don’t be “Blinded by The Benjamins” or doing things you don’t want to do just to make money. We can’t take it with us. And have you ever seen an armored truck at a funeral? I haven’t.

Questions:
Are we blinded by money?
Why do we work?
Why do we pay what we pay for things?

In Money, Psychology , ,
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044 DSR – Make A Profit. Don’t Just Save.

August 30, 2012 — Leave a comment

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Why is profit so much more important than just saving money on a monthly payment? Saving on a monthly payment is short term thinking. Profit is long term thinking.

Your personal finance plan needs more than just buying at the cheapest price. Don’t fall into the minimum monthly payment trap. You’ll never get out. It’s why people stay in debt forever. If the payment fits their budget, they buy.

You have to look at the bigger picture. Total wealth impact is the big picture. How will this purchase affect my savings, 401k, etc. over the long term? What is the total amount of interest I’ll pay over the life of the loan?

Saving on a monthly payment is fine, if you apply the savings to an investment that will make you a profit. Next time a salesman says they can save you money, tell them you’re only interested in making a profit.

To Your Financial Freedom,
Greg Whitaker

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Education, The Basics , ,
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043 DSR – Fixing The Problem

August 28, 2012 — Leave a comment

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fix

You hear a lot about The Federal Reserve “stimulating” the economy in hopes of fixing it. The boys over at theminimalists.com remind us you can’t fix the problem with more of the problem.

We can, however, fix the way we think about how we spend money and consume and live and act and behave. Too many years of overindulgence have caught up with us. Problem is we don’t want to come off the drugs called cheap credit and hyper consumerism.

I know, I know, it’s tough to swallow. The system tells you it’s patriotic to spend and you’re un-American if you don’t. Financially secure or patriotic, which is more important?

The bottom line is this. The only way we’re going to turn this thing around and keep it turned around is one person at a time. We can’t write more laws and pile them on top of more laws and expect people to change their behavior.

Personal responsibility is where it’s at.

Action:
I challenge you to look at your economy and ask where can I live with less? How about cable TV with 200 channels and you only watch 3? How about those 3 packs of cigarettes a day? How about that trip to the mall twice a month to buy the latest fashion trend? How about that bass boat you never use but bought because your next door neighbor has one? Did you finance that, by the way? Ouch!

Resource:
The Minimalists

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Psychology, The Economy , , ,
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042 DSR – Make Your Money Count: Book Recommendation

August 27, 2012 — Leave a comment

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“In (his book) Make Your Money Count, Jim (Munchbach) notes four types of people he’s identified during his 22 years of experience as a financial services professional:

1) Those who are buried in debt but continue to spend even though they’re consumed with anxiety about money.
2) Those who live barely above water and are always “one paycheck from disaster.”
3) Those who have bucks in the bank but are still worried about their finances.
4) Those whose lives are full of purpose and contentment and who connect their resources to what matters most.”

Which type of person are you? Be sure to check out Jim’s site moneybible.org. He’s got a very cool podcast so audio is on the menu.

Resources:
Buy the book: Make Your Money Count – Connecting Your Resources to What Matters Most

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Education , ,
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Living With Less – Book Trailer

August 23, 2012 — Leave a comment

This idea called minimalism is calling me to a higher level of awareness. It’s challenging me to re-think what it means to be prosperous. Watch the video, take the challenge, live with less in just one area of your life.

Are you dreaming of working for yourself? If so, how much money does it take to live? What if you lived with less stuff to maintain? I’m being challenged in my own life to live with less, subtract first. Then I can truly begin to add to my life in a totally different way.

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Money , , , ,
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041 DSR – Habitat for Humanity Mortgage Victory

August 21, 2012 — Leave a comment

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Habitat

Headline:
Couple just second in Knox to pay off Habitat mortgage
By Morgan Simmons / Posted 02/26/2010 / knoxnews.com

There’s no excuse for you to stay in mortgage debt. A Knoxville, TN couple paid their mortgage off 7 years early with discipline and a plan.

They have two kids, two jobs each, and a history of living in the projects and on welfare. But they did it! So can you.

The $100/month difference. Pre-pay just $100/month on your mortgage and own your home free and clear about 7 years ahead of schedule.

Resource:
Habitat Mortgage

Questions:
Where can I find $100 a month in my budget to pre-pay my mortgage?
What would it feel like to not have a house payment?

Action:
Sit down, write down all your monthly expenses and find $100/month you can pre-pay your mortgage with.

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Money News, Mortgage , ,
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040 DSR – Money Means Food

August 19, 2012 — Leave a comment

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money_food

Questions:
1) Why is there so much fear around money?
Money equals food. Food equals survival.
No different than people getting uncomfortable about God discussions.
God equals life or death, right?

2) Why are we afraid to make money mistakes?
Because subconsciously we fear not having enough money to survive, literally.
Fear of mistakes and embarrassment are just a side issue.
Fear of failing is just a side issue.
Ego will distract us to avoid taking responsibility for past decisions.

Resources:
TheVenusProject.com link
WomenObtainingWealth.com link

Action:
Ask yourself why do I feel fear around money?
What is the true purpose of money?

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email.

In Psychology , ,
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