Friday, November 26, 2004
Building an Empire.
It’s time to stand up and stop this financial bullshit.
I’m building an empire. That means that I’m successful and everyone associated with me is successful.
I’ve picked a guru, Rich Dad/Poor Dad’s Robert T Kiyosaki. I’m going to follow his methods, learn how to play the game and I’m going to have what I want and be what I want. I’m done having the game play me. Who’s in?
I’m in a relationship and I love my lover. We are complementary. We fit. But financially, he’s not onboard, yet.
I’m feeling guilty about dropping this on him. Enlisting him. I thought I was giving him a choice, but he really doesn’t have a choice. It’s all in. Right now.
So, here’s the plan.
I am not going to spend any more money on capitalist, consumerism trappings. I did my black Friday stand out in the cold to get a camcorder thing. I’m done with that. I’m playing to win.
I’m meeting every Tuesday with some like-minded friends. It’s all the rage. Pool our resources. Make our money work.
It starts today.
Here are my long-term goals:
1. Assets first.
I will buy assets [stocks, real estate, businesses] and let those assets buy my toys.
2. Purchases for positive cash flow.
I will purchase properties with positive cash flow. I will research and make decisions based on numbers and facts.
3. Make my money work.
I will become a smart investor. My money will work for me always. I will study and learn from my mistakes. I will not be lulled into submission.
4. Find a mentor.
I will find a mentor who is playing the game at a higher level than I am. Someone who wants to be a mentor and wants to invest time in helping me.
5. Build a team.
I will build a team of financially intelligent people who are practicing what they preach.
Debt Shame
What I learned tonight.
My lover is a great guy. But when we talk about debt, he turns into an asshole. He goes through the whole debt tantrum. Sulking, then yelling. It’s too much work to try to come up with a plan to pay it down. He says he knows about transferring balances, but he just hasn’t done it.
Why not? What is the risk? If you are paying double-digit interest on consumer debt, it’s a no-brainer. PAY IT DOWN.
I think he is ashamed of his debt. He wants to hide it in a closet. Pay as little as tolerable, so it doesn’t look like he owes so much money. Then he pretends that it will go away or it doesn’t matter. This is the trap. This is the credit card siren song. It’s not magic. Debt is real. It strangles your future.
How are you using your card?
Ask yourself, when does this card help me? Does it help you buy toys? Impress people? What do you need it for? If you are not paying your MONTHLY balance off, you are throwing the money you worked for away. The interest the credit card companies are collecting from you is money YOU WORKED FOR.
Pay off your past.
Whatever the reason you have this debt is long gone before you can pay it off. Holding on to shame over debt can make you inactive. Make you avoid the problem of increasing interest rates and late payments. Paying off these balances now will free you to enjoy the money you’re making a year from now.
If you can reclaim 15% of the payment you’re making to the credit card companies, it’s like earning 15% on your money. That’s a better rate then you’ll get putting it in the bank.
Borrow from Peter to pay Paul
Balance transfers can help you pay down some of your credit card debt. If you can transfer your balance on a 17% interest account to a 7% interest account, you save 10% every month you make a payment.
1. This is, in most cases, only a temporary fix.
That transferred balance will expire. Then you can expect the interest rate to climb back up and maybe surpass what you were paying.
2. Pay on time.
Don’t blow your great rate by paying late. If you can, set up an automatic payment for the same amount you were paying before. Commit to setting that money aside FIRST. This will keep your interest rate from reverting after a late payment.
3. Pay down more.
Try to make a larger payment at a lower interest rate. This means you’ll be paying down on more of the principle with each payment.
4. Go Online.
If your bank, or credit card provider offers FREE online payment, use it. Set up your payments to fall at the same time. Log on in one session and pay online. This will guarantee that you don’t miss a payment because you ran out of stamps or misplaced the statement under your cutting board or on your desk.
Threaten Peter with Paul
Everything is negotiable. Credit Card companies would rather offer you a lower interest rate than see you pay that money to someone else. Take your research on balance transfers and call your credit card provider. Tell them that you were offered a balance transfer at a lower rate. Ask them if they have any offers that you can use to do the same thing without having to take your payments to someone else. If the rep on the line has any experience, they will offer you the same rate, or lower, for a longer amount of time or even for the whole balance on your account.
This is probably the worst kept secrete, yet many people are so ashamed of their debt that they don’t attempt it.
There are some reps that will not offer you a better deal.
Thank them for their time. Hang up. And call right back and speak to another rep. You’ll eventually hit a savvy one that will work with you. If you don’t, then take you money elsewhere.
Another alternative is Consumer Credit Counseling.
There are several non-profit agencies that will help you negotiate a lower interest rate on your debt. Because of their relationship with these credit card providers, they can sometimes get you interest rates as low as 4%.
You have to do your homework with these organizations. The real non-profits ask for some small processing fee $15 or so. Each state has an agency that will help with this. Consumer Credit Counseling agencies also ask you to give up your credit cards. Yes, I said it. They ASK you to sign an agreement saying you will not apply for another card until your balance is paid off.
This is an excellent idea for anyone who is carrying a total credit card balance in the double-digit thousands.
If you really want a credit card this is incentive to pay off your debt.
In this age of debt cards and check cards you could probably do without a credit card. What that will also do is make sure your not paying any interest on your new purchases.
These services consolidate your payment so that you are only writing one check a month.
DO YOUR HOMEWORK
There are some shady characters out there. Read their information. Ask them what services they offer and what do they charge? There is a great article that covers what questions to ask and how to report and research these agencies.
Fiscal Fitness: Choosing a Credit Counselor
Well that’s a start.
I’m going to be working on my empire and doing whatever I need to do to make this successful.
I wish you the same.
It’s time to stand up and stop this financial bullshit.
I’m building an empire. That means that I’m successful and everyone associated with me is successful.
I’ve picked a guru, Rich Dad/Poor Dad’s Robert T Kiyosaki. I’m going to follow his methods, learn how to play the game and I’m going to have what I want and be what I want. I’m done having the game play me. Who’s in?
I’m in a relationship and I love my lover. We are complementary. We fit. But financially, he’s not onboard, yet.
I’m feeling guilty about dropping this on him. Enlisting him. I thought I was giving him a choice, but he really doesn’t have a choice. It’s all in. Right now.
So, here’s the plan.
I am not going to spend any more money on capitalist, consumerism trappings. I did my black Friday stand out in the cold to get a camcorder thing. I’m done with that. I’m playing to win.
I’m meeting every Tuesday with some like-minded friends. It’s all the rage. Pool our resources. Make our money work.
It starts today.
Here are my long-term goals:
1. Assets first.
I will buy assets [stocks, real estate, businesses] and let those assets buy my toys.
2. Purchases for positive cash flow.
I will purchase properties with positive cash flow. I will research and make decisions based on numbers and facts.
3. Make my money work.
I will become a smart investor. My money will work for me always. I will study and learn from my mistakes. I will not be lulled into submission.
4. Find a mentor.
I will find a mentor who is playing the game at a higher level than I am. Someone who wants to be a mentor and wants to invest time in helping me.
5. Build a team.
I will build a team of financially intelligent people who are practicing what they preach.
Debt Shame
What I learned tonight.
My lover is a great guy. But when we talk about debt, he turns into an asshole. He goes through the whole debt tantrum. Sulking, then yelling. It’s too much work to try to come up with a plan to pay it down. He says he knows about transferring balances, but he just hasn’t done it.
Why not? What is the risk? If you are paying double-digit interest on consumer debt, it’s a no-brainer. PAY IT DOWN.
I think he is ashamed of his debt. He wants to hide it in a closet. Pay as little as tolerable, so it doesn’t look like he owes so much money. Then he pretends that it will go away or it doesn’t matter. This is the trap. This is the credit card siren song. It’s not magic. Debt is real. It strangles your future.
How are you using your card?
Ask yourself, when does this card help me? Does it help you buy toys? Impress people? What do you need it for? If you are not paying your MONTHLY balance off, you are throwing the money you worked for away. The interest the credit card companies are collecting from you is money YOU WORKED FOR.
Pay off your past.
Whatever the reason you have this debt is long gone before you can pay it off. Holding on to shame over debt can make you inactive. Make you avoid the problem of increasing interest rates and late payments. Paying off these balances now will free you to enjoy the money you’re making a year from now.
If you can reclaim 15% of the payment you’re making to the credit card companies, it’s like earning 15% on your money. That’s a better rate then you’ll get putting it in the bank.
Borrow from Peter to pay Paul
Balance transfers can help you pay down some of your credit card debt. If you can transfer your balance on a 17% interest account to a 7% interest account, you save 10% every month you make a payment.
1. This is, in most cases, only a temporary fix.
That transferred balance will expire. Then you can expect the interest rate to climb back up and maybe surpass what you were paying.
2. Pay on time.
Don’t blow your great rate by paying late. If you can, set up an automatic payment for the same amount you were paying before. Commit to setting that money aside FIRST. This will keep your interest rate from reverting after a late payment.
3. Pay down more.
Try to make a larger payment at a lower interest rate. This means you’ll be paying down on more of the principle with each payment.
4. Go Online.
If your bank, or credit card provider offers FREE online payment, use it. Set up your payments to fall at the same time. Log on in one session and pay online. This will guarantee that you don’t miss a payment because you ran out of stamps or misplaced the statement under your cutting board or on your desk.
Threaten Peter with Paul
Everything is negotiable. Credit Card companies would rather offer you a lower interest rate than see you pay that money to someone else. Take your research on balance transfers and call your credit card provider. Tell them that you were offered a balance transfer at a lower rate. Ask them if they have any offers that you can use to do the same thing without having to take your payments to someone else. If the rep on the line has any experience, they will offer you the same rate, or lower, for a longer amount of time or even for the whole balance on your account.
This is probably the worst kept secrete, yet many people are so ashamed of their debt that they don’t attempt it.
There are some reps that will not offer you a better deal.
Thank them for their time. Hang up. And call right back and speak to another rep. You’ll eventually hit a savvy one that will work with you. If you don’t, then take you money elsewhere.
Another alternative is Consumer Credit Counseling.
There are several non-profit agencies that will help you negotiate a lower interest rate on your debt. Because of their relationship with these credit card providers, they can sometimes get you interest rates as low as 4%.
You have to do your homework with these organizations. The real non-profits ask for some small processing fee $15 or so. Each state has an agency that will help with this. Consumer Credit Counseling agencies also ask you to give up your credit cards. Yes, I said it. They ASK you to sign an agreement saying you will not apply for another card until your balance is paid off.
This is an excellent idea for anyone who is carrying a total credit card balance in the double-digit thousands.
If you really want a credit card this is incentive to pay off your debt.
In this age of debt cards and check cards you could probably do without a credit card. What that will also do is make sure your not paying any interest on your new purchases.
These services consolidate your payment so that you are only writing one check a month.
DO YOUR HOMEWORK
There are some shady characters out there. Read their information. Ask them what services they offer and what do they charge? There is a great article that covers what questions to ask and how to report and research these agencies.
Fiscal Fitness: Choosing a Credit Counselor
Well that’s a start.
I’m going to be working on my empire and doing whatever I need to do to make this successful.
I wish you the same.
