How to Make Getting Out of Debt Fun for the Family – Post 410

anchorEpisode 3 – How to Make Getting Out of Debt Fun for the Family

On our last post we looked at the group of excuses called “Cars are the Exception to Debt Excuses.” SO today let’s dive a little deeper into the, “Family Comes First Excuses.” Just to review, here are the 3 most common “Family Comes First Excuses.”

  1. Whatever you want, dear.
  2. I just want my kids to have it better than I did.
  3. But that new RV will help our family bond.

So let’s look at How to Make Getting Out of Debt Fun for the Whole Family

You’ve had it—you’re finally ready to say “hasta la vista” to debt. But how can you get the rest of the family on board? The journey to debt freedom is going to be a long one, and you’ll need all the support you can get.

Every family handles the journey differently. Here are three important steps you can take once you’ve decided to get out of debt. Now schedule a family meeting, hit these three points, and get to work.

1. Communicate the why

You may be surprised how often people skip this part—but it’s the first step! If you cut the cable and unlimited data plans without telling your spouse or your kids what’s happening—and explaining why—you might be in for World War III when you get home. Communicate first.

Hopefully you and your spouse are already on the same page. But if you’re not, sit down and talk about why you want to get out of debt. Dream together about what life will look like when you don’t owe anything to anyone. Will you save for a new car? Go on a dream vacation to Italy? Build a school in an impoverished community?

If your kids are old enough to understand work and money, loop them into the discussion. Don’t let this educational opportunity pass. Use it as a chance to teach them about the power of money—and how to set tangible, long-term goals. You might be surprised by just how much they’re paying attention.

2. Set benchmarks

The only way to eat an elephant is one bite at a time. Getting out of debt may take six months—or six years. The average family that goes through Dave Ramsey’s, Financial Peace University (FPU), is debt-free except for their house in 18 months. But let’s face it: you didn’t get all that debt overnight, so you’re not going to get rid of it overnight either.

Avoid burnout by celebrating small wins throughout the journey. Those little victories help you keep the process rolling. Say you owe $60,000 in student loans. Instead of waiting to celebrate until it’s all paid off, plan small victory laps along the way. Maybe every time you shave off $5,000, you go out to dinner or take the kids to a movie.

Don’t go over the top—this isn’t permission to take a trip to Disney World each time you make another payment. But breaking a big goal into small benchmarks will keep you energized and motivated. Those little wins add up!

3. Work as a team

There’s power in numbers, which means you’ll get more done if you work together—as a team. The Belgian draft horse, one of the largest, strongest horses in the world, can pull a hefty 8,000 pounds on its own. But when you pair it with another horse, they can pull upwards of 24,000 pounds—three times as much as one can pull on its own.

Moral of the story? If you want to get further faster, work as a team. This is especially true if you’re climbing out of debt with your spouse. Keep in mind—the enemy is debt, not your spouse. So schedule monthly budget meetings. Cheer each other on. Offer regular encouragement. You’re in this together!

You won’t get out of debt overnight, but the journey will be easier—and more fun—if you communicate, set benchmarks, and work as a team. Get the kids involved! And let your friends and family know what you’re doing. You never know how your story could change someone else’s family tree.

Now is the best time to start taking control of your money! I’ll be covering many topics to teach and encourage saving and debt freedom. Be sure to subscribe to my blog at ProsperityRx.com or to my podcast ProsperityRx to learn how to save money, make a budget, pay off your debt, reduce your taxes and invest for your future.

Also if you want to learn more about how to create extra income to get out of debt, to create extra income by starting a home business that requires no startup capital, no pyramid that requires a monthly auto shipment that cost you money every month instead of creating money, and no selling of lotions, or potions or pills, or quick magic diet aids that melt away inches in minutes or other such scam promotions visit http://AIMHighForSuccess.com.

Start Today!

 

10 Car Buying Tips – Post 409

anchorEpisode 2 – 10 Car Buying Tips

In our last episode we talked about the, “But I just can’t save excuses.”  SO today let’s take a look at the, “Cars are the Exception for Debt Excuses.” Two of the most common myths about “Cars are the Exception” that folks have include the idea that Old cars just aren’t as safe and buying used is just inheriting someone else’s problems.

Buying a car is a big financial decision, and one you shouldn’t just rush through over the course of a weekend. It has everything to do with where you are in your financial plan. I have been buying used cars now for 20 years now without any problems. The last used car that I bought was in 2013 when I paid cash for a Cadillac CTS. Five years later I now have 200,000 miles on that car and I still absolutely love it. The key is to start your research with these 10 car buying tips to help you find an affordable car that also fits your lifestyle.

1. Figure out your car budget

Let’s start with a bit of a reality check: new cars drop in value like a bag of rocks, losing 60% of their value in the first five years!(1) This isn’t a smart investment. You really should only consider buying new if you have plenty of money to burn.

With that out of the way, your first step is deciding what you can afford to pay for your car. Leasing a car and going into debt to buy one are both bad ideas, so what you can afford is based on the amount of cash you can pay up front.

If you don’t have the funds for a used or certified pre-owned car right away, you’ll have to make room in your budget to set money aside some money each month. Figure out where in your budget you can get by on less, and then how much you can afford to put toward your car fund.

Remember, leasing or financing a car will not help you build wealth. It’s much easier to save around $500 a month (the average car payment) for 10 months and buy a used car with no strings attached. Do you really want to sign up for a payment plan and pay thousands of extra dollars for several years?

In fact I can show you the method that I used to generate more income so I could pay cash for that used Cadillac CTS when we needed to get a better car. We did it by starting a home based business. I can show you how to start your own business with no up-front investment, no pyramid that requires a monthly auto shipment costing you money instead of creating money, and no selling of lotions, or potions or pills, or quick magic diet aids that melt away inches in minutes or other such scam promotions that we see all over Facebook every day. Stay tuned to the end and I will share with you how to learn more.

2. Narrow down your choices

Once you’ve decided on a price, start looking at cars that fit your budget. There are plenty of ways to find used cars in your area. Your local dealership likely has a website for you to view the cars they have in stock. And you can do like I did when I bought that Cadillac. I went to Craigslist. Check sites like Craigslist to see what other cars are on the market.

Narrow down your options to a few cars that fit your price range and needs. Consider factors such as safety, speed, gas mileage, comfort, and how it handles in bad weather. Just because something is a good fit for your wallet doesn’t mean it will work for your lifestyle.

And if a car you love is a little above your budget, go ahead and include it on your list. As a cash buyer, you’ll have the power to negotiate a better price.

3. Do your research before buying a car

When you find a car you like, it’s time to do some research. Look up the Kelley Blue Book value of the vehicle to make sure the price is fair for that year and model.

You should also check each vehicle’s history report. This will tell you the accident history, repair information, potential recalls, and other important information about the car.

Simply request the Vehicle Identification Number (VIN) from the seller and use a website like VehicleHistory.com or Carfax.com to research the car’s history.

Some sites charge for the information they provide. And while paid reports are more comprehensive, free reports will alert you to any major red flags. Some car dealerships or private sellers will also provide a report if you ask. Either way, it’s worth a check. If you get a good deal but end up in the shop every week for maintenance, you’ll spend more money in the long run.

4. Get a car insurance quote

By now, you should have a handful of potential cars that check out history-wise and fit within your budget. But it’s not enough to be able to pay for the car—you’ll also need to make sure you can pay for the insurance that comes with it.

Talk to your current insurance agent about running a few quotes for the cars you have in mind. If the price is too steep, don’t be afraid to consult an independent agent for more options.

Online insurance quote generators can be helpful, but you’ll get a better deal by talking to an insurance agent on the phone or in person. You might even be eligible for discounts you didn’t know existed!

5. Now for the fun part: Take the car for a test drive!

Know exactly what you want before you even step foot in a dealership. And keep an eye out for their upselling tactics! If the dealership doesn’t have the car you want but has a budget-breaking similar model with a new sound system and heated seats, it’s still not the right car for you.

Once you’re ready to get behind the wheel for your test drive, choose a route that allows you to experience different types of driving. The way a car handles on the highway will be different than how it drives in the city. Pay attention to anything that seems odd. Does the car rattle when you go over a bump? Are there any weird noises? These details will help you out in the next step.

6. Get a car inspection

Before you spend a dollar on a used car, take it to a mechanic for a full inspection. Sellers can lie when there’s money on the line. While the car might look and feel fine when you take it around the block, you never know what could be going on under the hood.

Don’t feel awkward about asking for an inspection. This is a routine part of the car-buying process. If the seller is hesitant or gets upset about your request, they probably have something to hide.

7. Wait for the best time to buy a car

According to AutoTrader, the best times to buy a car are at the end of the month, during holiday weekend sales, and at the end of each quarter.(3) So plan for some time around March, June, September, and December. The United Services Automobile Association (USAA) recommends going later in the day and during the week to get an even better deal.

Dealerships are usually hoping to reach their year-end goals, which motivates them to slash prices and move cars before the end of the year.

During the late summer, a lot of dealerships want to sell as many cars as possible to clear space for newer vehicles. Again, you’ll want to go later in the month to ensure you are getting the best price possible.

It may seem like a simple tip for buying a car, but waiting for the right time to buy a car can save you hundreds, if not thousands of dollars, on the final sales price.

8. Always negotiate

You’re at an advantage here for two reasons: You’ve done your research, and you’re paying cash. Give the seller a price you’re willing to pay for the car. This price should be lower than what you’re actually willing to pay so there’s room for you and the seller to meet in the middle.

Negotiation is all about the attitude. You have to act like you’re willing to walk away from this car if the seller doesn’t come down in price. If a dealer senses for even a second that you really want a certain car, you won’t get a good deal.

It also helps to see if another third party or dealership is selling the same car for a better price, and bring that to the table. If you get a deal from one seller and take that dollar amount to another seller, they may come down on the cost. If you pay with cash on top of that, you can get an even better deal!

9. Forget the extras

Don’t pay for things that you don’t really need like a racing stripe, special detailing, and especially extended warranties. A warranty is not a necessary expense if you have your full emergency fund in place. That alone will cover any costs you have if the car breaks or has problems.

If you change your mind and want to purchase extras down the line, you can always contact the dealership to negotiate a price. That gives you time to decide which features you really want and which would just be a luxury.

10. Two are better than one

If you need support when you’re ready to buy a car, take a friend or family member who can help steer you in the right direction. They can also help you remember details about the car that the seller tells you, which can help you make a decision. And bring someone who knows a lot about cars if you don’t have much experience with buying and negotiating a car deal.

Bonus car buying tip: cars don’t equal happiness

Remember, the purpose of a vehicle is to get you from point A to point B, not to prove your social status to the world. As tempting as it is to hit the road in a car you can’t afford, it’s more likely to be a burden than a blessing—especially if it’s not in your budget.

Chances are, your car isn’t the first thing you think about in the morning or when you go to bed at night. The key to happiness is not a new car, so don’t pay for it like it is!

What tips do you have for buying a used car? Leave a comment and let me know your best used car buying tip.

I hope you enjoyed this podcast and you learned some valuable information.

Now is the best time to start taking control of your money! I’ll be covering many topics to teach and encourage saving and debt freedom. Be sure to subscribe to this podcast and to my blog at ProsperityRx.com to learn how to save money, make a budget, pay off your debt, reduce your taxes and invest for your future.

Also if you want to learn more about how to create extra income by starting a home business that requires no startup capital, no pyramid that requires a monthly auto shipment that cost you money every month instead of creating money, and no selling of lotions, or potions or pills, or quick magic diet aids that melt away inches in minutes or other such scam promotions visit http://AIMHighForSuccess.com.

Start Today!

8 Excuses Broke People Believe – Post 408

anchorEpisode 1 – 8 Excuses Broke People Believe

What is the difference in being broke or being poor?

It’s two different ways of looking at the same situation, no money.

Poor is an attitude. 

It says you can’t get ahead and you’ll never win with money. Just stay where you are and sulk in your bad luck forever.

Broke on the other hand is something you’re just passing through. 

We’ve all messed up by believing some of the prevailing money myths in our culture. The turning point comes, however, when you’re willing to own up, claw your way out, and never live in the lie again. My goal is to show you how to change your attitude, to change your life and start on the true path toward financial peace and prosperity. To help folks build a life they don’t need a vacation from.

I want to share with you the 8 most common excuses for debt that folks use who are up to their eyeballs in debt and are unwilling to change their situation. Instead of the temporarily broke mentality they have, the dooms day, woe is me, attitude of I’m poor and it’s out of my control. If you find yourself struggling with any of these 8 excuses, my goal is to show you how to change your attitude, to change your life and start on the true path toward financial peace and prosperity.

SO I’m going to start by sharing with you the 8 excuses for debt and then over the next few posts I’m going to break them down a little bit and dive a bit deeper

  1. But . . . I Just Can’t Save Excuses. These include things like
  2. Cars Are the Exception to Debt Excuses. These folks like to say
  3. Family Comes First Excuses. Some of these include
  4. I’ll Do It Later or the I Promise Excuses. Some of these reasons to procrastinate include
  5. Debt’s Not So Bad, Right? Excuses. This group of folks believe
  6. I Earned This Excuses. Some of these selfish reasons include
  7. Poor, Pitiful Me Excuses. These woe is me reasons include
  8. No Worries or I’m Covered Excuses. These folks think

So let’s start today with the But . . . I Just Can’t Save excuses.

Some of the attitudes toward debt and saving that people hold when they belong to the “I Just Can’t Save” group is first of all, procrastination. They say, “I’ll save next year when I’m making more money.” They may hold that attitude of denial, “At my age, it’s too late anyway.” Or the attitude of desperation or whats the use, “Why save money? You can’t take it with you when you die.”

In Dave Ramsey’s book The Total Money Makeover he breaks the path to financial peace down to seven steps, he calls them baby steps, and these steps are designed to give you little wins along the way that help encourage you and to slowly change the attitude from “what’s the point, I cant save anyway” to slowly change it to maybe this will work, maybe I can do it. As you go through those steps and follow the process those little wins strengthen the “I can attitude” little by little.

The very first step to winning with money and getting out of debt is to establish an emergency fund. Without this first step, you won’t accomplish your money goals. The sense of empowerment, the sense of satisfaction that you have once you have that emergency fund is amazing. Especially when that first emergency comes up and you realize, wow, I can actually take care of this. I don’t have to borrow the money from somewhere. I don’t have to juggle the bills. I can actually get my car fixed, or fix the plumbing issue, or whatever the emergency is. It doesn’t bust your budget and you don’t have the anxiety you used to get when something did go wrong.

Saving for that emergency fund also teaches you to make saving a priority, and it gives you the cushion you need to stop using credit and to start paying off debt.

Depending on how much experience you have saving money, saving for an emergency fund could be a piece of cake—or it could feel downright impossible.

So how do you save money fast?

Well first of all you have to work with what you have. You must develop a good budget and cut back on spending. You may think that ‘This will take forever!’ but within a few weeks of staying at home, eating only at home, and sticking to a budget you can be well on your way. You can’t save any money without creating a budget first. Creating a budget tells you exactly where every penny goes. You’ll see how much money you waste every month. You will realize just how much you spend on those Grande lattes, or those convenient fast food lunches, or those big gulp sodas every month. Once you see just how much you are wasting, you’ll get to $1,000 in no time.

Others tricks to get that emergency fund funded that others have done could include some of the following

Stashing away every $5 bill you received or maybe saving all dollar bills and loose change at the end of the day. That might not add up to $1,000 in one month, but it sure can help you get there.

Avoiding dining out is a very good way of cutting back on expenses.

  • Use cash when you purchase things. It really helps you see and feel the money you’re spending.

Bring in More Money

  • Sell stuff. Garage sale, eBay, CraigsList, Facebook Marketplace. Sell “stuff” to make money and get rid of things you don’t need at the same time! If you’re not up for a garage sale, sell some of your old gold or silver jewelry. That can help you easily make hundreds of dollars fast.
  • If your job allows it then working overtime is another great way to bring in extra money. If that isn’t an option, consider using your skills or talents to earn additional cash by finding a part-time job.
  • You can start your own business. For example you can clean someone’s house for an afternoon, walk dogs, or show someone how to use a computer. Teach someone how to cook or teach them how to organize files. Even if it seems like just pennies now, don’t take it for granted.

There are some great income tax savings you can get that will save you money when starting a business in addition to the additional income that it brings in to you. It all adds up! In fact this is one of the methods that I have used to generate more cash and save taxes.

If you need an idea of a business to start, I can show you how you can start a business with no financial investment, no pyramid that requires a monthly auto shipment that cost you money every month instead of creating money, and no selling of lotions, or potions or pills, or quick magic diet aids that melt away inches in minutes or other such scam promotions.

Save Money by Making a Few Phone Calls

  • Make the wise move of cashing out whole life insurance policies and switch to term.Get whatever cash is available from the policies to apply toward your emergency or your debt snowball. Switching to term life insurance will greatly reduce your monthly premium cost so you can then take the money you are saving in monthly premium charges and apply that toward your emergency fund or debt snowball.
  • Additionally, you might be able to save money each month by shopping around for better deals on life, health, home and auto insurance.
  • A lot of people use their income tax refunds to build their emergency funds. That’s a great use of this year’s refund, but if you’re consistently getting large refunds at tax time, you should change your tax withholding so you bring more money home in your weakly paycheck. That way there’s no waiting and no giving the government a free loan!

No matter what methods you use or how much money you can dig up, you won’t hit a savings goal if you don’t picture yourself reaching it. You have to BELIEVE you can save money fast. Acknowledge you have to do it. And then, get to it!

Now is the best time to start taking control of your money! I’ll be covering many topics to teach and encourage saving and debt freedom. Be sure to subscribe to my blog at ProsperityRx.com or to my podcast ProsperityRx to learn how to save money, make a budget, pay off your debt, reduce your taxes and invest for your future.

Also if you want to learn more about how to create extra income by starting a home business that requires no start up capital, no pyramid that requires a monthly auto shipment that cost you money every month instead of creating money, and no selling of lotions, or potions or pills, or quick magic diet aids that melt away inches in minutes or other such scam promotions visit http://AIMHighForSuccess.com.

Start Today!