ROGER4314
Been Called "Flash" Since I Was A Kid!
The ones that fine tune their 401K investments but rack up tens of thousands in debt, worry me. The era of a 401K providing 7% return so you can live off of the interest is long gone. What WILL help you is staying out of debt!
My rule was credit is only for three things.....home, vehicle or purchases to be paid off when the bill arrives. I admit, I bought a new car/truck every 2 years until excise tax climbed so high that it was impossible to do that any more. I'd buy the vehicle, change oil once or twice then trade it in on a new one. I never bought tires........I'd trade the ride in! You can't do that, now. It was fun while it lasted!
I saved one thousand Dollars, assigned that to a loan for a new TV or whatever I wanted then paid the loan off. I never went into debt, got a bomb proof credit rating and it COST me the difference in what the loan cost and the CD earned that secured the loan. Today, my Harley Sportster is on a loan like that. I secured the money on the loan, borrowed it back and the debt is ZERO! Doing that also bolsters my credit rating.
Got a wife who wants "stuff?" Save a couple of grand, borrow it back and make it clear that nothing gets spent until that balance is paid off. When it's paid for, borrow it again for the next goodie. When you owe $2k but the loan is secured with $2k cash money, your debt is zero. When it's paid off, your savings is still intact!
How do you save the money? I've purchased many motorcycles by savings from change banks!
Back to the OP. How do you get out from behind the 8 ball? Answer....Don't get behind it to begin with.
Flash
My rule was credit is only for three things.....home, vehicle or purchases to be paid off when the bill arrives. I admit, I bought a new car/truck every 2 years until excise tax climbed so high that it was impossible to do that any more. I'd buy the vehicle, change oil once or twice then trade it in on a new one. I never bought tires........I'd trade the ride in! You can't do that, now. It was fun while it lasted!
I saved one thousand Dollars, assigned that to a loan for a new TV or whatever I wanted then paid the loan off. I never went into debt, got a bomb proof credit rating and it COST me the difference in what the loan cost and the CD earned that secured the loan. Today, my Harley Sportster is on a loan like that. I secured the money on the loan, borrowed it back and the debt is ZERO! Doing that also bolsters my credit rating.
Got a wife who wants "stuff?" Save a couple of grand, borrow it back and make it clear that nothing gets spent until that balance is paid off. When it's paid for, borrow it again for the next goodie. When you owe $2k but the loan is secured with $2k cash money, your debt is zero. When it's paid off, your savings is still intact!
How do you save the money? I've purchased many motorcycles by savings from change banks!
Back to the OP. How do you get out from behind the 8 ball? Answer....Don't get behind it to begin with.
Flash
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