January 3, 2024 • 11 mins
Remember the first time you wanted something so badly, but had to settle for less because of the money?
In this episode I dive deep into my experiences, the lessons I learned growing up, and how they shaped my understanding of money today. There are layers to credit history and an art to mortgage applications. By the end of this episode, you’ll have learned the key strategies to cultivating a healthy credit profile, understand the mortgage application process, and know how to get through money struggles and still win.
We'll also discuss the hidden costs of our everyday habits like the apps we download and the impact they have on our money health.
Managing money is a life skill we all need to master!
Thank you for listening to The Millionaire Mindset Podcast with George Dines.
To connect with George visit www.georgedines.com
To Schedule a call with George visit: https://georgedines.com/contact/
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to the Common Sense Millionaire, where we
work to promote your financialadvancement in knowledge process
and education so that you andyour family become financially
secure.
This is the place I shareCommon Sense Action Steps that
you can take today to assistyour financial advancement.
So sit back, grab a drink andlet's get started.
(00:23):
Common Sense Millionaire here,welcome back.
We're going to talk aboutsomething today that I think is
extremely important, that istotally missing from all of our
school experiences, and thathappens to be financial literacy
.
We have no clue.
We have no clue how financialinformation is collected.
(00:45):
We don't have a clue aboutwhere money comes from.
We don't have a clue about howdo we save money, how do we do
budgets.
We just are at a complete lossabout financial literacy.
We don't ask for it, ourparents don't ask for it and
(01:09):
there's no faculty allocated todo that.
Some schools have teachersallocated to teach something
called industrial arts.
Maybe you learn typing or someother clerical aspects of work,
but you never learn anythingabout financial literacy and how
(01:31):
that can help you advance.
I remember I wanted to go outfor the basketball team, and so
I think it was junior high.
I don't think they call itjunior high anymore.
But I'm older now and I went totry out.
What I wanted to wear were someconverse sneakers.
I wanted those sneakers withthe star on it, the Chuck Taylor
(01:54):
converse sneakers.
Right now those are like lookback items, but back then, my
God, if you were getting closeto that teenage thing and you
could afford it, you wanted towear Chuck Taylor's.
That was the thing.
There was no Adidas or any ofthis other stuff that's out
there.
So I asked my parents.
(02:15):
I said, can I get the ChuckTaylor's Back?
In that time they were like$7.50, if I'm correct, and I
just remember my parents saying,no, you can't have that, but
you can have these other ones.
Then they were like $2 fromwhat I called one of the Z
stores I think the name of thestore is there.
(02:36):
It doesn't exist anymore.
Somebody listening to thisknows there and so I had to take
the $2 one if I wanted to geton the wood floor to try out for
the team.
And I never forget how, when Iwalked on there, everyone was
laughing and they were laughingat me because I had the $2 shoes
(02:58):
on and I didn't have the ChuckTaylor's on and I was like, oh
damn, this is embarrassing, butI didn't understand the reason
for that decision.
It was because my parents werefinancially literate and
understood the differencebetween spending $7 to $10 on a
(03:19):
pair of shoes versus $2 on apair of shoes, which makes
absolute sense today, but itdidn't make sense back then,
when I was in junior high schooland trying out for the junior
high team.
So what I figured out from thiswhich is what parents really
wanted me to understand is thatyou can have things, but you got
to work for them.
(03:39):
So I started a lawn business.
I only had three customers.
I didn't have a car, so I hadto push the lawnmower or use the
lawnmower that they had ontheir property because they had
some weird grass growing.
I had a couple of clients likethat and that was my extra work.
(04:00):
So I worked on Saturdays, gotthe lawns cut and collected my
money and learned that, hey, Iearned money and now if I want
to buy the $7.50 Chuck Tail orConverse, I could.
But later on I learned itreally wasn't worth it, because
(04:20):
if you were really athletic Ialso played tennis at the time
and you had to have the tennisshoes, so you couldn't wear
Chuck Tailors on the tenniscourt and it just didn't work
out.
That's kind of the story of mostpeople's financial life that
you're caught in a bind as towhat are you going to spend your
(04:42):
money on and how are you goingto spend it, and at the end of
the day, either you had to makemore money in order to spend
more money on items that reallyyou know were they really that
necessary?
And that's the problem going onright now in our schools.
Kids have no clue about money.
They don't understand it.
(05:02):
They don't understand theimpact of all of these apps that
they have on their phones andnot understanding that the
incremental cost for adding anapp is equal to X.
And they could have hundreds ofapps.
Maybe they're not all charging1099, but they're charging some
type of money and we're notteaching that to the kids at all
(05:28):
and for the most part, we'renot teaching it to adults.
That's fairly evident if youlook at the foreclosure rates on
homes, if you look at theescalating foreclosure activity
related to car purchases in theUnited States, how can somebody
sign a note for a car where thecar payment is $1,200 a month?
(05:53):
That just doesn't make anylogical sense and what happens
is people do that realize theycan't afford it foreclose on the
car, they may drive it back tothe dealership they were they
brought it from, or they juststop making payments and the
truck comes out and picks it up.
So not only do you not have acar, you just screwed your
(06:18):
credit history and you're goingto be flagged because you
screwed your credit history on acar.
So that means that your ratefor the next car that you're
going to try to purchase isgoing to be even higher and your
overall credit profile willdecrease.
(06:38):
I don't know how that workswith most people, but it's
rather annoying.
But once a month I get an emailfrom my bank telling me that my
score either went up a point orwent down a point.
Okay, you know what up a point,down a point, whatever.
But imagine your credit scoredeclines precipitously to a
(06:58):
number that is not known as good.
You're screwed.
Now someone needs to understandand teach folk how to use credit
to their advantage.
I have credit.
I use it to my advantage.
I use it to my advantage to geta ridiculously high credit
score, and when I first saw howhigh it had gotten, I actually
(07:21):
kind of laughed.
Okay, but you can do that.
There are strategies you canuse okay In terms of how to
support your financial healthwithin the cluster I call it the
cluster of financial agenciesthroughout the country and
actually all over the planet.
So we need to learn how tomanipulate credit so you can get
(07:49):
a high score, so you can get anormal loan rate for whatever
you're trying to purchase A car,a new roof or whatever.
We'd be glad to work with youon that.
You can get in contact with usand I think we can probably help
you out.
There's so many mistakes we make, for instance, having too much
(08:13):
credit use on one card versusthe other.
So the credit agencies arelooking at what's the percentage
of the credit that you haveavailable that you've used.
So that's one big number andthen they look at how much have
you used on a particular card.
So if you've used 70 or 80% ofthe available credit on a card,
your credit rating is gonna takea dip, okay, because you're
(08:38):
entering the danger zone wherethose entities get worried that
at some point you may not beable to make payment.
So there's a game to be playedwith this to maximize your
opportunities when you'reshopping for a new home, when
you're shopping for a new car orany other thing like this.
(09:01):
Also, what do you do when youput together applications for
credit for a mortgage?
Okay, who's telling you howmuch you need to put down, or do
you need to put anything down?
How do you know?
Most people don't understandthe components of that mortgage
and what happens if you can'tmake the payments.
No one's teaching you that.
(09:23):
I have to talk to people aboutthis all the time.
Also, how do you start buildinga credit history?
That's really important becausethe longer you've had credit,
the better your profile is goingto look.
That caused initial issues forme, because for a long time I
was totally out of the creditworld.
I was just cash.
(09:43):
I was done with it.
And the thing that made me donewith it when I saw that, when
people saw you were havingissues, they would, in essence,
refinance the outstanding creditthat you had, but it was at a
higher rate.
I was like this is ridiculous.
(10:04):
So for me, the issue was I hadnot had long-term credit
exposure, but that we can workwith.
We can come up with strategiesfor you so that things can come
out better and you have a muchbetter outcome.
So if you wanna call us, justgive me a buzz, be glad to help.
(10:27):
And the other thing you can dois, if you have kids, you can
talk to your school district orthe school that your kids go to
and ask them when are they gonnaimplement a financial literacy
curriculum?
Thanks a lot.
You've been listening to theCommon Sense Millionaire, where
you can learn how to go fromzero to a million using Common
(10:49):
Sense solutions to everydayfinancial issues.
Make sure and subscribe to stayconnected for more content,
tools and help so you canadvance towards your financial
goals.
If you need assistance or havequestions, leave a comment or
you can email me at George atcommonsensemillionairecom.
Welcome to the Common Sense Millionaire, where we
work to promote your financialadvancement in knowledge process
and education so that you andyour family become financially
secure.
This is the place I shareCommon Sense Action Steps that
you can take today to assistyour financial advancement.
So sit back, grab a drink andlet's get started.
(00:23):
Common Sense Millionaire here,welcome back.
We're going to talk aboutsomething today that I think is
extremely important, that istotally missing from all of our
school experiences, and thathappens to be financial literacy
.
We have no clue.
We have no clue how financialinformation is collected.
(00:45):
We don't have a clue aboutwhere money comes from.
We don't have a clue about howdo we save money, how do we do
budgets.
We just are at a complete lossabout financial literacy.
We don't ask for it, ourparents don't ask for it and
(01:09):
there's no faculty allocated todo that.
Some schools have teachersallocated to teach something
called industrial arts.
Maybe you learn typing or someother clerical aspects of work,
but you never learn anythingabout financial literacy and how
(01:31):
that can help you advance.
I remember I wanted to go outfor the basketball team, and so
I think it was junior high.
I don't think they call itjunior high anymore.
But I'm older now and I went totry out.
What I wanted to wear were someconverse sneakers.
I wanted those sneakers withthe star on it, the Chuck Taylor
(01:54):
converse sneakers.
Right now those are like lookback items, but back then, my
God, if you were getting closeto that teenage thing and you
could afford it, you wanted towear Chuck Taylor's.
That was the thing.
There was no Adidas or any ofthis other stuff that's out
there.
So I asked my parents.
(02:15):
I said, can I get the ChuckTaylor's Back?
In that time they were like$7.50, if I'm correct, and I
just remember my parents saying,no, you can't have that, but
you can have these other ones.
Then they were like $2 fromwhat I called one of the Z
stores I think the name of thestore is there.
(02:36):
It doesn't exist anymore.
Somebody listening to thisknows there and so I had to take
the $2 one if I wanted to geton the wood floor to try out for
the team.
And I never forget how, when Iwalked on there, everyone was
laughing and they were laughingat me because I had the $2 shoes
(02:58):
on and I didn't have the ChuckTaylor's on and I was like, oh
damn, this is embarrassing, butI didn't understand the reason
for that decision.
It was because my parents werefinancially literate and
understood the differencebetween spending $7 to $10 on a
(03:19):
pair of shoes versus $2 on apair of shoes, which makes
absolute sense today, but itdidn't make sense back then,
when I was in junior high schooland trying out for the junior
high team.
So what I figured out from thiswhich is what parents really
wanted me to understand is thatyou can have things, but you got
to work for them.
(03:39):
So I started a lawn business.
I only had three customers.
I didn't have a car, so I hadto push the lawnmower or use the
lawnmower that they had ontheir property because they had
some weird grass growing.
I had a couple of clients likethat and that was my extra work.
(04:00):
So I worked on Saturdays, gotthe lawns cut and collected my
money and learned that, hey, Iearned money and now if I want
to buy the $7.50 Chuck Tail orConverse, I could.
But later on I learned itreally wasn't worth it, because
(04:20):
if you were really athletic Ialso played tennis at the time
and you had to have the tennisshoes, so you couldn't wear
Chuck Tailors on the tenniscourt and it just didn't work
out.
That's kind of the story of mostpeople's financial life that
you're caught in a bind as towhat are you going to spend your
(04:42):
money on and how are you goingto spend it, and at the end of
the day, either you had to makemore money in order to spend
more money on items that reallyyou know were they really that
necessary?
And that's the problem going onright now in our schools.
Kids have no clue about money.
They don't understand it.
(05:02):
They don't understand theimpact of all of these apps that
they have on their phones andnot understanding that the
incremental cost for adding anapp is equal to X.
And they could have hundreds ofapps.
Maybe they're not all charging1099, but they're charging some
type of money and we're notteaching that to the kids at all
(05:28):
and for the most part, we'renot teaching it to adults.
That's fairly evident if youlook at the foreclosure rates on
homes, if you look at theescalating foreclosure activity
related to car purchases in theUnited States, how can somebody
sign a note for a car where thecar payment is $1,200 a month?
(05:53):
That just doesn't make anylogical sense and what happens
is people do that realize theycan't afford it foreclose on the
car, they may drive it back tothe dealership they were they
brought it from, or they juststop making payments and the
truck comes out and picks it up.
So not only do you not have acar, you just screwed your
(06:18):
credit history and you're goingto be flagged because you
screwed your credit history on acar.
So that means that your ratefor the next car that you're
going to try to purchase isgoing to be even higher and your
overall credit profile willdecrease.
(06:38):
I don't know how that workswith most people, but it's
rather annoying.
But once a month I get an emailfrom my bank telling me that my
score either went up a point orwent down a point.
Okay, you know what up a point,down a point, whatever.
But imagine your credit scoredeclines precipitously to a
(06:58):
number that is not known as good.
You're screwed.
Now someone needs to understandand teach folk how to use credit
to their advantage.
I have credit.
I use it to my advantage.
I use it to my advantage to geta ridiculously high credit
score, and when I first saw howhigh it had gotten, I actually
(07:21):
kind of laughed.
Okay, but you can do that.
There are strategies you canuse okay In terms of how to
support your financial healthwithin the cluster I call it the
cluster of financial agenciesthroughout the country and
actually all over the planet.
So we need to learn how tomanipulate credit so you can get
(07:49):
a high score, so you can get anormal loan rate for whatever
you're trying to purchase A car,a new roof or whatever.
We'd be glad to work with youon that.
You can get in contact with usand I think we can probably help
you out.
There's so many mistakes we make, for instance, having too much
(08:13):
credit use on one card versusthe other.
So the credit agencies arelooking at what's the percentage
of the credit that you haveavailable that you've used.
So that's one big number andthen they look at how much have
you used on a particular card.
So if you've used 70 or 80% ofthe available credit on a card,
your credit rating is gonna takea dip, okay, because you're
(08:38):
entering the danger zone wherethose entities get worried that
at some point you may not beable to make payment.
So there's a game to be playedwith this to maximize your
opportunities when you'reshopping for a new home, when
you're shopping for a new car orany other thing like this.
(09:01):
Also, what do you do when youput together applications for
credit for a mortgage?
Okay, who's telling you howmuch you need to put down, or do
you need to put anything down?
How do you know?
Most people don't understandthe components of that mortgage
and what happens if you can'tmake the payments.
No one's teaching you that.
(09:23):
I have to talk to people aboutthis all the time.
Also, how do you start buildinga credit history?
That's really important becausethe longer you've had credit,
the better your profile is goingto look.
That caused initial issues forme, because for a long time I
was totally out of the creditworld.
I was just cash.
(09:43):
I was done with it.
And the thing that made me donewith it when I saw that, when
people saw you were havingissues, they would, in essence,
refinance the outstanding creditthat you had, but it was at a
higher rate.
I was like this is ridiculous.
(10:04):
So for me, the issue was I hadnot had long-term credit
exposure, but that we can workwith.
We can come up with strategiesfor you so that things can come
out better and you have a muchbetter outcome.
So if you wanna call us, justgive me a buzz, be glad to help.
(10:27):
And the other thing you can dois, if you have kids, you can
talk to your school district orthe school that your kids go to
and ask them when are they gonnaimplement a financial literacy
curriculum?
Thanks a lot.
You've been listening to theCommon Sense Millionaire, where
you can learn how to go fromzero to a million using Common
(10:49):
Sense solutions to everydayfinancial issues.
Make sure and subscribe to stayconnected for more content,
tools and help so you canadvance towards your financial
goals.
If you need assistance or havequestions, leave a comment or
you can email me at George atcommonsensemillionairecom.
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