Credit and Money Empowerment: Chapter 3: Get your mind right.

Chapter 3
Get your mind right.

In your lifetime, there should only be 3-4 things you finance.
1. College Tuition if your Blessed to obtain a college education. College Debt is good debt if you achieve after it.
2. A Home
3. Any Emergencies that come by your way that you can’t pay for cash
4. The sky is the limit.

In your lifetime, you should never finance (over 30 days):
1. Clothing/ electronics/ things you want, not need
2. A Car or any other motor vehicle UNLESS it Appreciates. (Wow lets think about that)
3. What ever you can’t afford and you don’t need.

You must decipher what you want and what you need. Don’t fall for the trap. Do NOT buy what you can’t afford. Do not buy what you don’t need if you can’t afford it. If you can’t get that in your head, just give up and fail in life. (Ok you wont fail, that was harsh)

Now I mentioned to never to finance a car. Why would you finance a car?
What is your reason to do it?
I know, I know… It’s what your supposed to do. I know, its what everybody does.
No its really because you don’t have 20g’s to purchase it. So you put 5 g’s down that you saved up and finance the 15g’s over 3-5 years correct?

Your not alone, millions don’t have that money.

So what are you supposed to do?
My suggestion: Don’t buy the car.

I’m very serious. You do not buy the car you can’t afford. If you can’t pay in cash, you don’t buy. BUY WHAT YOU CAN AFFORD.

Reasons why? A car note is a liability. That means you are in DEBT. Your Debt to equity ratio goes up. You credit score goes down. It takes longer to build it.

Now how many people drop 20g’s on a car. It sounds ridiculous. twenty GRAND!

Now here is my explanation:
You buy a 20g car that only cost the company 10G to make.
After financing it over 3 years, you really have paid 25grand.
But when you drive it off the lot, its only worth 17grand.
Why pay 25grand for a 17grand car that cost really 10. Now I know that many people obviously cant afford it, but let me ask you. For those that can plan out their life in a new direction, what is the difference between buying my car now and financing it now, and just holding on to my money and buying it when I have the cash? The only difference is that you don’t have the car now. Then again, do you really need that 20G car, or can you just drive a beeter for a year or 2 longer. The beater is proudly built ford tough and will surely last.
Do what you want, but by the time you finish paying off your car, you spend more then you originally wanted to for a car that is now worth 12Gs Blue book value on a sunny day. And then we go back to the main point of you spending money that you didn’t have. Yes you are. It’s a LOAN. It affects your CREDIT. And to add insult to injury, your not financing 20g’s anymore, your financing 25 because of interest. Which by the way, for your car payments, the first few months to a year will solely be interest. So ask your self, why spend more money when you never did have the money and affect your credit score at the same time.

And Don’t fall for those Zero Percent APR. That’s nonsense. Nothing is free. There is never a free loan that we can get. Of course there are free loans that are taken out from us daily.

Get your mind right. Think out side the box if your privileged to take a new route.
If you can’t do what I stated, get your self a beeter, and work your way up. Don’t fall for the trap.

Next Chapter: Free Loans
Following that: Checking your report and score