Additional Cost’s – The Hidden Factor You must be aware of!

Many people look only at the initial cost of an item and never think twice about the ADDITIONAL costs that WILL be coming down the pike at you. An example would be your car purchase where you not only have the price of the car but also taxes, insurance, tags and title fees. And don't forget the biggie : maintenance and upkeep expenses.... Now, I know full well most people like to stick there head in the ground and not talk about such things, but if your gonna be financial "smart" you would be wise not to be one of those people.                                                                                                                                                                                                                     Being in the automotive aftermarket for many years I have seen many examples people being totally unaware and surprised when normal everyday things happen. On that I recall vividly back years ago was a customer that had recently purchased a cobra mustang performance car. Along with great power and handling it comes with very expense 'special'  tires that allow it to perform at it's best. But as with most things there is a trade-off : They wear out very quickly! ...  and at over $1,000 a set ,they aren't cheap! ....   I still remember my customer saying that he could barely afford the monthly payment and had no money for new tires. I ended up helping him out by finding used tires for him and he ended up replacing one at time as they were completely worn out. He was a classic example of someone not realizing how much money in maintenance and upkeep a performance car was going to be. He would have been way ahead of the game if he bought a car he could easily afford when you factor 'everything' in.
A good used Honda is a great car to consider if your looking for overall low cost of ownership.
A good used Honda is a great car to consider if your looking for overall low cost of ownership.
Educate yourself about the 'ADDITIONAL COSTS' every time you make a purchase before you buy and you won't find yourself surprised at the normal extra expenses that always will come up. Today it is so easy to become knowledgeable on any subject everything is right at your fingertips!... DO IT!                                                                                John
Once your finances are in order you can weather any storm!
Once your finances are in order you can weather any storm!

Why is it Inept and/or corrupt people are put in charge of public money?

Why Is It that people who are put in charge, or have access to taxpayers money are not personally scrutinized and held to the utmost level of responsibility. I've seen story after story of high salaried individuals in charge of money end up (after they pilferer it) admitting that they have severe personal money problems, such as being in debt up to their eyeballs ,owe back taxes etc etc. One of the latest is the Detroit school principals that have been charged with stealing many thousands of dollars ( and saying their own personal money problems made 'em do it)  http://www.redding.com/news/377389971.xhtml                                                                                                                                                                                           DSCN5520                                                                                                                               It's beyond comprehension that these type of crimes continue to happen. Before people are hired and even after they should be able to prove that they are good financial stewards with their own money before they are ever given the opportunity to oversee public funds. As part of the hiring process a very complete background check should be done that includes financial data such as credit reports, proof of taxes filed and paid, etc. etc,  ...  and it should be monitored on a ongoing basis.                                    Just because a person has an advanced college degree does NOT mean that they handle their own finances appropriately and  if they can't demonstrate that they have mastered their own finances, they should not be considered for any position overseeing any money.                                             John                                                                                                                     DSCN5547

#1 Strategy for the average person to be Financially Independent

In keeping with our theme of a handful of basic strategies to learn and incorporate into desires to be financially free, this is a biggie : NO NEW CARS. Yes, i said NO NEW CARS. If you crunch the numbers it is staggering how much a new car will cost you over the course of 40 years or so. A lot of people will buy a new car every 4-5 years or so. A new car depreciates in value so fast it will make your head spin, as soon as you drive it off the lot you have just lost $5,ooo or more. It's like taking 100 $50 dollar bills and throwing them up in the air  and not caring where they go....DSCN5682                                                                                                                              Along with rapid depreciation you also get to contend with much higher insurance premiums on a new car, along with the normal maintenance and wear and tear parts that need to be replaced. Over the course of your working life if you avoid new and only buy a good used car and keep it maintained, and hang on to it for a good long while,  you will save several hundred thousands of dollars. YES, SEVERAL HUNDRED THOUSANDS OF DOLLARS!!                                                    This one habit can change you from a paycheck to paycheck person to someone who controls their own finanacial destiny and the freedom that comes with it....    Like the old commercial use to say - Just do it!
Once your finances are in order you can weather any storm!
Once your finances are in order you can weather any storm as if it was clear sky's and smooth sailing!
If you can incorporate this lesson into your core being and ignore the "keeping up with the Joneses"  mentality, YOU will be on your way!                                                                                                                                             John and                                                                                                                     Debbie     http://debbiemeyers.realtor

The One Principle you Must Learn to be Financially independent

Some of the most important things a young person needs to learn and understand are never taught in school or even at home by their parents. It's really sad that most people never truly understand how money and money management are critical to live a successful, stress free life , where YOU are in control of your future irregardless of your job situation or outside forces you have no control over.  The subject of Personal Finance can be complex and involved the more you get into it, but I think the number one principle you must accept and incorporate into your being is simple : you have to spend less than you earn, and invest the difference in something that goes up in value. DSCN5715                                                                        It doesn't matter if you make 10,000 dollars a year or 10 million,   if you don't live with your "means" you will eventually run into financial trouble,(there have been countless numbers of pro athletes, music and film stars, lottery winners and others that have gone gone broke) this one habit will insure you are financially stable for a lifetime. You have to train yourself to be willing to make sacrifices to become financially independent, It may mean no Starbucks coffee everyday, brown bagging your lunch at work, buying a good used car instead of new, etc.  etc you get the drift. You have to be determined and laser focused at first in your quest to be one of the few people that when life throws you a curve ball you calmly swing and hit it out of the park ... like no big deal!                                                                               DSCN5682  Once you master this principle of personal finance and start saving and investing you'll have plenty of these in your reserves!                                                                                                                                                                                                                                             John