October 29, 2023 • 20 mins
Managing large cost purchase is the basis of this episode. An auto or home the day will come when face with these decisions. What to do and how to approach the challenge. Article Link:
https://www.houselogic.com/remodel/budgeting-contracting/best-time-of-year-to-buy-things-for-your-home/
https://www.nerdwallet.com/article/finance/what-to-buy-every-month
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Unknown (00:04):
Hello, I'm your host, Mr. Chuck, I retired accountant
turn truck driver, I reduce mydebt in a relatively short
period of time, debt reductionto achieve financial freedom
takes commitment, confidence,determination.
(00:24):
Big purchases, managing largecosts purchases the basis of
this episode, and auto or homethe day will come when faced
with these decisions, what to doand how to approach to challenge
but not only in purchasing a newhome or an automobile, less or a
(00:45):
new automobile, but even a usedautomobile comes with big price
tags. Also appliances for yourhome, big screen TV, stereo
systems, all kinds of thingscome with a very large price
tag, and how are you going toafford these items, especially
(01:10):
if you don't want to use credit,if you have a debt problem, you
need to put these largepurchases on hold until you get
your debt problem under control.
That is the first thing we haveto do. If you find yourself
where you absolutely have toreplace a car because yours
broke down. And you can buy agood used car for the same price
(01:33):
it's gonna cost you to fixedone. Well, then you got to bite
the bullet borrow the money andgo forward. But how do you
prepare for these things as whatthis episode is gone to be
about. Or the first thing is yougot to be tracking all your
income and expense, he needs tohave a spending plan. a spending
(01:55):
plan is nothing more thantracking everything you're doing
and put your money to work. Giveyour money a job to do each and
every month. Every time you getpaid. What are you going to use
that money for? Is it going togo or go towards your your
(02:16):
mortgage or your rent may beyour insurance is coming up in a
month or so you want to savesome for your automobile
insurance, your homeownersinsurance, your rentals,
insurance, things like that. Ormaybe you have a
dental need coming up or youknow this be you have to pay
(02:40):
some money to the dentistbecause you need to get your
teeth fixed. Anything like thatwe need to plan ahead for if you
know is gonna happen sometime inthe future, you need to start
planning that sooner, thebetter. So if your car has
100,000 miles on it, and youwant to drive it to has 200,000
(03:04):
miles, now's the time to startplanning. What are you going to
replace it with? How much moneydo you need for a down payment?
How much can you afford for amonthly payment, all those
things you should start thinkingabout way before you need to do
it. Don't wait to the lastminute, you may have appliances
(03:27):
in your home. Right now I'mlooking at remodeling my
kitchen, I know is going to costa bundle of money. I want all
new cabinets, new appliances,the whole nine yards. But I
found out recently that I needto upgrade my electric panel
because if I get a newrefrigerator new electric stove,
(03:49):
it may draw more current than Icurrently have in the house. So
things won't work right and thenthe wear out faster. So I'm in
the process of planning onlooking getting estimates on my
upgraded my electric panel andthen once that's completed then
I'll get estimates on remodelingthe kitchen and then I have been
(04:11):
saving up for it. I have moneyset aside but I don't want to
spend any more I have to thenthere's good time of year to do
things when them not as busy andto try to hit those cycles so I
can buy my appliances whenthey're on sale and a little bit
marked down. I can maybe get acontractor in to do the job when
(04:35):
his not so busy season and get alittle bit better price. All
those things you have to planfor. But if you have a debt
problem, and you have a couplecredit cards that are not paid
off, the first thing you got todo is pay off all your credit
cards. Then if you have two carpayments you may be you want to
(04:58):
pay off one of those carspayments, he had them under
control the last debt you have,when you go out to look for a
new loan to do a major project,or buy a new used automobile, I
say buy a used automobilebecause buying a new one, it's
two things are working againstyou, it's a higher price, it
(05:21):
depreciates really quickly, andyou're going to end up owing
more money on the car than thevalue of it within six months or
a year, I avoid that by buying aused car word the depreciations
already happened, and I'm notpaying for something that's
gonna drop in value is gonnastay somewhat stable for a year
(05:44):
or two, it's gonna stay havesome value to it. So I don't go
negative on my loan, goingnegative on your loan is what
you bought, is worth less thanwhat you owe for it. So you got
to get your credit cards allpaid off to zero, have them paid
(06:04):
off for multiple months, notjust one month or two months,
but three months or six months.
The second thing you need to dois build up your emergency fund,
you need to have three to sixmonths or of your expenses and
(06:25):
your savings account, it doesn'thave to be at your local bank,
you can have a savings accountat a online bank, where you have
a high yield savings or a moneymarket that's paying you a
higher rate of interest. Rightnow I'm getting about five and a
half percent interest per monthon my money market account. So I
(06:50):
kind of hate to take the moneyout of there. But I know I'm
gonna have to cuz I'm making,you know, I'm getting pretty
good return. Not a whole lot butpretty good return based on what
I was getting. It's just put itthat way. So get your debt under
control, have a plan for that.
And then plan for saving upmoney to build up your emergency
(07:14):
fund. And then once you're happywith your emergency fund, three
months to six months rains,depending on your situation,
what industry you're in, thatyou get laid off on a regular
basis, you pretty stable, allthose kinds of things, are you
planning to have a family in thenear future when you before you
(07:35):
make this big purchase, orshortly after you make this big
purchase because we don't wantto over stress our finances. So
we have to make sure whatever webuy is in where we if you have
to borrow money, then the loanpayment is within our budget.
(07:58):
And it's not gonna put a stresson our budget, even including
things that hadn't happened yet,like having children or
retiring. Or whatever the casemay be. everybody's situation is
a little bit different. I havetwo links, and my show notes.
One is the nerd wallet, wallet.
(08:21):
Best things to buy every month,and it goes month to month and
it tells you what is on salethose particular months like
appliances is in January orFebruary. Clothing and bedding
is in January. You got the threeMemorial Day, Fourth of July
Labor Day generally have sales.
The TVs are good after the firstthe year around Superbowl time,
(08:46):
January February. Cars if you'regonna buy a new car at the
October, September, OctoberNovember, because the new models
are starting to come out and thedealer want to get rid of the
older models if they have any.
So that may not apply anymore.
But generally in the fall is thetime to buy a new vehicle or
(09:06):
even look for a used vehiclebecause people will be trading
things in. I tend to look atlease cars, because they usually
lease a car for about threeyears now. They genuinely have a
little bit more miles on them,but they're in fairly good
condition and they're aboutthree years old, and you can get
(09:27):
a reasonable price on them. Ifthere's a good selection
available, you get a pretty goodpick too. And then there's
another article on my show noteshouse logic.com which gives you
when to buy things for your homelike the appliances, hot water
(09:47):
heaters, things like that. It'sjust to give you an idea. When
you plan in the head. You canpick the time when you want to
buy things andJust don't do it on a whim, you
need to plan ahead, save up somemoney, pay off your current
debt, pay down your currentdebt, if you have auto loans in
(10:08):
your mortgage,make sure all your bills are
timely, so you have a goodcredit rating.
Because if you have a goodcredit rating, you get you
better insurance and law at alower price, you can get a loan
at a better rate of interest.
For the terms that you'relooking for. If you're
(10:30):
interested in the software thatI use to pay off my debt, you
can go to my show notes at thevery bottom, shop financial
there have a link in there forthat particular software, you
can copy and paste it upper lefthand corner should say mainland
and Chuck. And you'd be rightthe correct place. I'll be back
(10:54):
in one moment with my finalthoughts.
If you're interested in learningabout an online software that
help myself get out of debt,it does tracking, budgeting, and
keeps track of all your assetsand all your debt. And even
tells you how much and when totransfer money into your savings
(11:17):
account. And how much and whento transfer money to your debt
and which debts to pay off andorder. First. It's not cheap.
It's a one time payment. But itwill definitely be an
investment, something andyourself and an investment in
your personal financial life. Ifyou're interested, send me an
(11:43):
email at reduce that increasewealth@gmail.com. And I'll send
you the information about thisonline software that worked
great for me. For those of youlooking to buy a new home, or
your first home, one of thefirst things you need to do is
(12:04):
pay off as much debt as you can.
So you have no credit card debt.
Don't close those credit cards,because that's good for your
credit rating. Keep a zerobalance, start saving for a down
payment. Thank you, you need tohave at least 5% Down 10% Down.
(12:25):
So once you have 10,000 thatmeans you can borrow 100,000,
that's 10% of 100,000. Once youhave 20,000 Now you can borrow
200,000. What can you afford tobuy for a $200,000 home what's
in your area. Depending on whereyou live that downpayment needs
(12:49):
may be a little bit bigger, evenif you qualify for a VA or
whatever loan and they don'trequire a bigger downpayment.
Save up as much money aspossible. Figure on putting at
least 10% down. And if you don'tuse it, you can use it to buy
appliances, or other things forthe house. When you move in.
(13:14):
Maybe you need to do somepainting and some minor repairs.
You'll need some cash to dothat. Paints not free. He can't
get anything done for freeanymore. But if you ever could,
but you need to have money savedup to cover that. If you gonna
borrow say $150,000? How's thatgonna affect your budget? What's
(13:38):
the monthly payment gonna be?
What's your real estate taxesgonna be? What's your homeowners
check was an insurance agentsaying on a buy a house that
$200,000 home? What will myinsurance run me a year? What's
the real estate taxes? You canask a realtor? What's the
(14:00):
average real estate taxes inthis general area? What's the
and divide those numbers by 12and that's gonna be your monthly
payment. It's gonna be yourmortgage payment, it's gonna be
112 of your insurance and 112 ofyour real estate, you'll
probably have to put a littlebit extra at the beginning.
Because you're gonna havedepending when things are due,
(14:21):
you might have to pay a bunch ofextra, you cannot have enough
money saved up before you gointo this purchase. No matter
how you use it. It will geteaten away by something that's
fair warning. Same thing with anautomobile tried to have a
bigger downpayment then you wantto use maybe you're gonna buy a
(14:42):
$20,000 car but what's the salestax on that? Do you want to
finance the sales tax for fiveyears, maybe have enough for a
5% down and pay the sales tax,whatever that works out to that
way you keep your budgetout the loan amount to smallest
minimum monthly payment aspossible, you're better off
(15:05):
borrowing money for a little bitlonger with a smaller payment
and then making extra paymentson it and pay it off early. In
case something bad would happen.
If something if you would loseyour job, are you gonna have
enough money to pay the monthlypayment for two or three months,
(15:29):
plus your insurance andeverything else you have to
cover? I know unemploymentbenefits don't pay a whole lot.
So you need to have money setaside, do not eat into your
emergency fund for the downpayments, set that aside, and
(15:49):
have I need 15,000 In myemergency fund, that's a fake
number that jets just a number Iput one out there. Now come me
for three months, I spent about5000 a month, covering three
months. Now I need 15,000 I needtotal 30,000. Before I go
shopping for the new automobile,if I go shopping for a new home,
(16:12):
he might need 100,000 emergencyfund plus your down payment plus
closing costs plus whatever elseeither on a nail your whip,
everything adds up. You cannothave too much money set aside
for any of these largepurchases. Same thing if you're
gonna buy a new TV, if it's a$3,000. TV, you don't borrow
(16:37):
money to do it. Wait until youhave enough. If you plan far
enough ahead, you can have theappropriate amount of money
available in your savings whenthose TVs go on sale. So you can
go in, maybe you charge it onyour credit card, but you're
gonna pay that credit card offright away, you're gonna next
(17:00):
Friday, you have the cash,you're gonna pay it off. So
you're not carrying any balanceon a credit card, not even for
30 days. That is pretty much howyou want to handle any large
cost purchase that may come up.
Hopefully, you'll have your debtunder control before that
(17:21):
happens. You know, you want tohave your credit cards paid off,
you wanna be down to no morethan one car payment. He wants
to just have your one mortgagemay be a line of credit, with a
small amount. Got to keep thesethings under control, or you'll
be working paycheck to paycheck.
(17:44):
And the only thing you gotta bedoing is paying off everybody
you owe paying utilities, buyinggroceries and putting gas in the
car so you can go to work. Isthat the type of life you want
to live? If it is fine, goahead. But that's not the type
of life most people want. Theydon't want to be struggling
paycheck to paycheck, whathappens is their paycheck drops
(18:07):
50%. And now you can't coverthese loans that you agreed to
do. It's just a matter ofkeeping your spending under
control. The more control youhave on your own finances, the
better off you're gonna be. Planahead. How's the gun? A big
(18:28):
ticket item? If you borrowmoney? How's it gonna affect
your current budget? And what'sgonna happen? Do you have to cut
back somewhere else do you haveto do away with all your
streaming platforms, maybe youcan't do your NFL ticket or NBA
ticket or whatever it is youenjoy watching. You might have
to do away with something moneydon't grow on trees. I hate to
(18:51):
say that if it did everybody Bhave a lot of money. And then of
course, everything costs so muchmore. That's about it. I mean,
this is a short episode, but Ithink it's very important. If
something is coming up that youknow you're gonna have to buy in
the future, whether it's a nextthree months, six months, a year
(19:14):
or two years, you need to startplanning for it sooner, the
better plan for today. Even ifyou just set aside $5 and pay
$10 of pay and then graduallyincrease that get up so that
you're putting $100 $200 of pay$400 $600 A month aside from now
(19:37):
you know, you can afford thatpayment because you've already
taken out money out of yourbudget and you put it in your
savings and then you use thatmoney as a down payment to get
that more get loan payment downas low as possible. Especially
the higher rate of interest, thebigger your payments gonna be
(20:00):
The bigger down payment you'regonna need to be able to afford
the exact same thing. I wisheverybody good luck. Stay tuned,
keep at it, don't give up. Youcan do it. paying off debt is
not hard. And once you get thatunder control, manage your
(20:22):
finances going forward. That wayyou're not back in the same boat
that you are today. You canavoid those things. You'll have
a much happier life and you'llbe glad you did. So
Hello, I'm your host, Mr. Chuck, I retired accountant
turn truck driver, I reduce mydebt in a relatively short
period of time, debt reductionto achieve financial freedom
takes commitment, confidence,determination.
(00:24):
Big purchases, managing largecosts purchases the basis of
this episode, and auto or homethe day will come when faced
with these decisions, what to doand how to approach to challenge
but not only in purchasing a newhome or an automobile, less or a
(00:45):
new automobile, but even a usedautomobile comes with big price
tags. Also appliances for yourhome, big screen TV, stereo
systems, all kinds of thingscome with a very large price
tag, and how are you going toafford these items, especially
(01:10):
if you don't want to use credit,if you have a debt problem, you
need to put these largepurchases on hold until you get
your debt problem under control.
That is the first thing we haveto do. If you find yourself
where you absolutely have toreplace a car because yours
broke down. And you can buy agood used car for the same price
(01:33):
it's gonna cost you to fixedone. Well, then you got to bite
the bullet borrow the money andgo forward. But how do you
prepare for these things as whatthis episode is gone to be
about. Or the first thing is yougot to be tracking all your
income and expense, he needs tohave a spending plan. a spending
(01:55):
plan is nothing more thantracking everything you're doing
and put your money to work. Giveyour money a job to do each and
every month. Every time you getpaid. What are you going to use
that money for? Is it going togo or go towards your your
(02:16):
mortgage or your rent may beyour insurance is coming up in a
month or so you want to savesome for your automobile
insurance, your homeownersinsurance, your rentals,
insurance, things like that. Ormaybe you have a
dental need coming up or youknow this be you have to pay
(02:40):
some money to the dentistbecause you need to get your
teeth fixed. Anything like thatwe need to plan ahead for if you
know is gonna happen sometime inthe future, you need to start
planning that sooner, thebetter. So if your car has
100,000 miles on it, and youwant to drive it to has 200,000
(03:04):
miles, now's the time to startplanning. What are you going to
replace it with? How much moneydo you need for a down payment?
How much can you afford for amonthly payment, all those
things you should start thinkingabout way before you need to do
it. Don't wait to the lastminute, you may have appliances
(03:27):
in your home. Right now I'mlooking at remodeling my
kitchen, I know is going to costa bundle of money. I want all
new cabinets, new appliances,the whole nine yards. But I
found out recently that I needto upgrade my electric panel
because if I get a newrefrigerator new electric stove,
(03:49):
it may draw more current than Icurrently have in the house. So
things won't work right and thenthe wear out faster. So I'm in
the process of planning onlooking getting estimates on my
upgraded my electric panel andthen once that's completed then
I'll get estimates on remodelingthe kitchen and then I have been
(04:11):
saving up for it. I have moneyset aside but I don't want to
spend any more I have to thenthere's good time of year to do
things when them not as busy andto try to hit those cycles so I
can buy my appliances whenthey're on sale and a little bit
marked down. I can maybe get acontractor in to do the job when
(04:35):
his not so busy season and get alittle bit better price. All
those things you have to planfor. But if you have a debt
problem, and you have a couplecredit cards that are not paid
off, the first thing you got todo is pay off all your credit
cards. Then if you have two carpayments you may be you want to
(04:58):
pay off one of those carspayments, he had them under
control the last debt you have,when you go out to look for a
new loan to do a major project,or buy a new used automobile, I
say buy a used automobilebecause buying a new one, it's
two things are working againstyou, it's a higher price, it
(05:21):
depreciates really quickly, andyou're going to end up owing
more money on the car than thevalue of it within six months or
a year, I avoid that by buying aused car word the depreciations
already happened, and I'm notpaying for something that's
gonna drop in value is gonnastay somewhat stable for a year
(05:44):
or two, it's gonna stay havesome value to it. So I don't go
negative on my loan, goingnegative on your loan is what
you bought, is worth less thanwhat you owe for it. So you got
to get your credit cards allpaid off to zero, have them paid
(06:04):
off for multiple months, notjust one month or two months,
but three months or six months.
The second thing you need to dois build up your emergency fund,
you need to have three to sixmonths or of your expenses and
(06:25):
your savings account, it doesn'thave to be at your local bank,
you can have a savings accountat a online bank, where you have
a high yield savings or a moneymarket that's paying you a
higher rate of interest. Rightnow I'm getting about five and a
half percent interest per monthon my money market account. So I
(06:50):
kind of hate to take the moneyout of there. But I know I'm
gonna have to cuz I'm making,you know, I'm getting pretty
good return. Not a whole lot butpretty good return based on what
I was getting. It's just put itthat way. So get your debt under
control, have a plan for that.
And then plan for saving upmoney to build up your emergency
(07:14):
fund. And then once you're happywith your emergency fund, three
months to six months rains,depending on your situation,
what industry you're in, thatyou get laid off on a regular
basis, you pretty stable, allthose kinds of things, are you
planning to have a family in thenear future when you before you
(07:35):
make this big purchase, orshortly after you make this big
purchase because we don't wantto over stress our finances. So
we have to make sure whatever webuy is in where we if you have
to borrow money, then the loanpayment is within our budget.
(07:58):
And it's not gonna put a stresson our budget, even including
things that hadn't happened yet,like having children or
retiring. Or whatever the casemay be. everybody's situation is
a little bit different. I havetwo links, and my show notes.
One is the nerd wallet, wallet.
(08:21):
Best things to buy every month,and it goes month to month and
it tells you what is on salethose particular months like
appliances is in January orFebruary. Clothing and bedding
is in January. You got the threeMemorial Day, Fourth of July
Labor Day generally have sales.
The TVs are good after the firstthe year around Superbowl time,
(08:46):
January February. Cars if you'regonna buy a new car at the
October, September, OctoberNovember, because the new models
are starting to come out and thedealer want to get rid of the
older models if they have any.
So that may not apply anymore.
But generally in the fall is thetime to buy a new vehicle or
(09:06):
even look for a used vehiclebecause people will be trading
things in. I tend to look atlease cars, because they usually
lease a car for about threeyears now. They genuinely have a
little bit more miles on them,but they're in fairly good
condition and they're aboutthree years old, and you can get
(09:27):
a reasonable price on them. Ifthere's a good selection
available, you get a pretty goodpick too. And then there's
another article on my show noteshouse logic.com which gives you
when to buy things for your homelike the appliances, hot water
(09:47):
heaters, things like that. It'sjust to give you an idea. When
you plan in the head. You canpick the time when you want to
buy things andJust don't do it on a whim, you
need to plan ahead, save up somemoney, pay off your current
debt, pay down your currentdebt, if you have auto loans in
(10:08):
your mortgage,make sure all your bills are
timely, so you have a goodcredit rating.
Because if you have a goodcredit rating, you get you
better insurance and law at alower price, you can get a loan
at a better rate of interest.
For the terms that you'relooking for. If you're
(10:30):
interested in the software thatI use to pay off my debt, you
can go to my show notes at thevery bottom, shop financial
there have a link in there forthat particular software, you
can copy and paste it upper lefthand corner should say mainland
and Chuck. And you'd be rightthe correct place. I'll be back
(10:54):
in one moment with my finalthoughts.
If you're interested in learningabout an online software that
help myself get out of debt,it does tracking, budgeting, and
keeps track of all your assetsand all your debt. And even
tells you how much and when totransfer money into your savings
(11:17):
account. And how much and whento transfer money to your debt
and which debts to pay off andorder. First. It's not cheap.
It's a one time payment. But itwill definitely be an
investment, something andyourself and an investment in
your personal financial life. Ifyou're interested, send me an
(11:43):
email at reduce that increasewealth@gmail.com. And I'll send
you the information about thisonline software that worked
great for me. For those of youlooking to buy a new home, or
your first home, one of thefirst things you need to do is
(12:04):
pay off as much debt as you can.
So you have no credit card debt.
Don't close those credit cards,because that's good for your
credit rating. Keep a zerobalance, start saving for a down
payment. Thank you, you need tohave at least 5% Down 10% Down.
(12:25):
So once you have 10,000 thatmeans you can borrow 100,000,
that's 10% of 100,000. Once youhave 20,000 Now you can borrow
200,000. What can you afford tobuy for a $200,000 home what's
in your area. Depending on whereyou live that downpayment needs
(12:49):
may be a little bit bigger, evenif you qualify for a VA or
whatever loan and they don'trequire a bigger downpayment.
Save up as much money aspossible. Figure on putting at
least 10% down. And if you don'tuse it, you can use it to buy
appliances, or other things forthe house. When you move in.
(13:14):
Maybe you need to do somepainting and some minor repairs.
You'll need some cash to dothat. Paints not free. He can't
get anything done for freeanymore. But if you ever could,
but you need to have money savedup to cover that. If you gonna
borrow say $150,000? How's thatgonna affect your budget? What's
(13:38):
the monthly payment gonna be?
What's your real estate taxesgonna be? What's your homeowners
check was an insurance agentsaying on a buy a house that
$200,000 home? What will myinsurance run me a year? What's
the real estate taxes? You canask a realtor? What's the
(14:00):
average real estate taxes inthis general area? What's the
and divide those numbers by 12and that's gonna be your monthly
payment. It's gonna be yourmortgage payment, it's gonna be
112 of your insurance and 112 ofyour real estate, you'll
probably have to put a littlebit extra at the beginning.
Because you're gonna havedepending when things are due,
(14:21):
you might have to pay a bunch ofextra, you cannot have enough
money saved up before you gointo this purchase. No matter
how you use it. It will geteaten away by something that's
fair warning. Same thing with anautomobile tried to have a
bigger downpayment then you wantto use maybe you're gonna buy a
(14:42):
$20,000 car but what's the salestax on that? Do you want to
finance the sales tax for fiveyears, maybe have enough for a
5% down and pay the sales tax,whatever that works out to that
way you keep your budgetout the loan amount to smallest
minimum monthly payment aspossible, you're better off
(15:05):
borrowing money for a little bitlonger with a smaller payment
and then making extra paymentson it and pay it off early. In
case something bad would happen.
If something if you would loseyour job, are you gonna have
enough money to pay the monthlypayment for two or three months,
(15:29):
plus your insurance andeverything else you have to
cover? I know unemploymentbenefits don't pay a whole lot.
So you need to have money setaside, do not eat into your
emergency fund for the downpayments, set that aside, and
(15:49):
have I need 15,000 In myemergency fund, that's a fake
number that jets just a number Iput one out there. Now come me
for three months, I spent about5000 a month, covering three
months. Now I need 15,000 I needtotal 30,000. Before I go
shopping for the new automobile,if I go shopping for a new home,
(16:12):
he might need 100,000 emergencyfund plus your down payment plus
closing costs plus whatever elseeither on a nail your whip,
everything adds up. You cannothave too much money set aside
for any of these largepurchases. Same thing if you're
gonna buy a new TV, if it's a$3,000. TV, you don't borrow
(16:37):
money to do it. Wait until youhave enough. If you plan far
enough ahead, you can have theappropriate amount of money
available in your savings whenthose TVs go on sale. So you can
go in, maybe you charge it onyour credit card, but you're
gonna pay that credit card offright away, you're gonna next
(17:00):
Friday, you have the cash,you're gonna pay it off. So
you're not carrying any balanceon a credit card, not even for
30 days. That is pretty much howyou want to handle any large
cost purchase that may come up.
Hopefully, you'll have your debtunder control before that
(17:21):
happens. You know, you want tohave your credit cards paid off,
you wanna be down to no morethan one car payment. He wants
to just have your one mortgagemay be a line of credit, with a
small amount. Got to keep thesethings under control, or you'll
be working paycheck to paycheck.
(17:44):
And the only thing you gotta bedoing is paying off everybody
you owe paying utilities, buyinggroceries and putting gas in the
car so you can go to work. Isthat the type of life you want
to live? If it is fine, goahead. But that's not the type
of life most people want. Theydon't want to be struggling
paycheck to paycheck, whathappens is their paycheck drops
(18:07):
50%. And now you can't coverthese loans that you agreed to
do. It's just a matter ofkeeping your spending under
control. The more control youhave on your own finances, the
better off you're gonna be. Planahead. How's the gun? A big
(18:28):
ticket item? If you borrowmoney? How's it gonna affect
your current budget? And what'sgonna happen? Do you have to cut
back somewhere else do you haveto do away with all your
streaming platforms, maybe youcan't do your NFL ticket or NBA
ticket or whatever it is youenjoy watching. You might have
to do away with something moneydon't grow on trees. I hate to
(18:51):
say that if it did everybody Bhave a lot of money. And then of
course, everything costs so muchmore. That's about it. I mean,
this is a short episode, but Ithink it's very important. If
something is coming up that youknow you're gonna have to buy in
the future, whether it's a nextthree months, six months, a year
(19:14):
or two years, you need to startplanning for it sooner, the
better plan for today. Even ifyou just set aside $5 and pay
$10 of pay and then graduallyincrease that get up so that
you're putting $100 $200 of pay$400 $600 A month aside from now
(19:37):
you know, you can afford thatpayment because you've already
taken out money out of yourbudget and you put it in your
savings and then you use thatmoney as a down payment to get
that more get loan payment downas low as possible. Especially
the higher rate of interest, thebigger your payments gonna be
(20:00):
The bigger down payment you'regonna need to be able to afford
the exact same thing. I wisheverybody good luck. Stay tuned,
keep at it, don't give up. Youcan do it. paying off debt is
not hard. And once you get thatunder control, manage your
(20:22):
finances going forward. That wayyou're not back in the same boat
that you are today. You canavoid those things. You'll have
a much happier life and you'llbe glad you did. So
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