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Get Smart with MONEY!!!!!!! Before 2018 Passes you buy!

GET SMART WITH MONEY!

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Stop paying interest be it car loan, home loan, credit card, student loan, payday loan or any other form of payment!

People who are smart earn interest.  People who are stupid pay interest.

Are all forms of paying interest bad? NO!

Owning a home paying interest over 30 years not a bad thing, because you are buying something of value that will increase in most cases (proven history) over time.

A student loan maybe 20,000 upfront but over the course of 40 years pays off by earning an income of $10-25K you would not have earned without the degree.


Bad interest:  car loans, credit cards, furniture stores, payday loans, jewelry stores while you are getting a product you need you are paying more money for an item over time that is losing value rahter than gaining value .  Example financed a couch for $1000 with 36 payments of $100 each over 36 months and after 3 years you paid $3,600 for the original $1000 couch now after 3 years it was a $1000 couch and you need to replace it.

Can't spare that extra money to invest in NVDA or IQ?  There was $2,600 above but glad your throw pillows match the couch.

Before you decide to buy one of the stocks we have picked in our portfolio it is very important to pay off your debt and raise your credit score (why I hate credit score a future article) Unless in certain cases you have a proven stock like NVDA going up at 250% and of course interest rate on your credit card 19% then buy NVDA if you intend to use the funds to pay of credit card. (Remember though that investing in the market is not a given so you may not have the funds to pay the credit card off if NVDA doesn't pay off).

I know you ran your credit card up for Grandma's birthday, impressing your neighbors with a new patio and barbecue or whatever but to really be smart with money you save for these expenses in advance.  Formula for this success?  Take 8-10% out of you paycheck for your company 401K and 10% for savings and rainy day fund.  Once your rainy day fund is at least 6 months of your total monthly budget then buy the barbecue.

Now I want you to pull your monthly bills; I don't care if it's a past due Doctor bill, credit card, mortgage, student loan, car payment etc.  What I want you to do is look at the individual anout of interest you are paying on each one and add those up.  Are you shocked?  You have monthly household expenses of $2,000 a month including food utilities and gas but you are paying $800 in interest, money that goes no where for you?

So now stack the bills with lowest to highest on each of the one that pays interest and we are going over two schools of thought.

Dave Ramsey ( Financial Guru highly recommend you listen to his advice):  Pay off minimums on every payment except the littlest one.  Pay double or what you can on that one.  When it is paid off tatke that amount and add it to the next highest until it is paid off then take both payments apply it to the next bill it creates a snowball effect and you see your rewards coming faster as these little goals are achieved.

Susie Ormand (Financial Guru highly recommend you listen to her advice):  Stack your bills highest interest rate first to lowest.  Pay minimum on all of them except the highest interest rate.  When that is paid off apply payment to the next creating your snowball.

Both forms are correct ways to pay of debt.  I prefer Dave Ramsey's way because you achieve a little bit of goals and see progress much quicker.  Susie's method however over time saves you the most money but you don't often get a reward right away so people stop doing it after a while.

I know you are still shocked over how much interest you are paying each month.

Smart People earn interest and buyCD's and Bonds, Stupid people just have to have that new Cadillac Escalade just to make their coworkers jealous.  Which one do you want to be?



Donations: Paypal: williamswallstreet@gmail.com this is meant for entertainment and educational purposes only investments and purchases are your choice and I always recommend speaking with a licensed financial advisor before making any investment decisions.


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