- Debt is Normal
- Debt is Dumb
- Normal is Dumb
- Home average of $147,000
- Student average is 29,000
- Car average is 27,000
- Credit Card average off those who use debt is $16,000
Ease of getting into debt:
- 6 billion credit card offers each year
- low introductory rate offer
Cost of Debt:
- interest
- stress and conflict
- 52% marriage end in divorce
- 90 % of divorces are money problems
- prevents you from spending $ on what you want later
Cars:
- New cars are dumb
- lose 20% in first day
- lose 70% in first 4 years
- Leases are most profitable for dealers $1,300 (worst deal for consumer)
- Financing makes $700
- Buy with cash $82
- Drive for free
- save monthly car payment for 1 year (+$5,000)
- buy used car with cash (-$5,000)
- keep saving for another year (+$5,000)
- upgrade to better used car (trade-in old car (-$4,000-$5,000=-$9,000)
- keep saving and invest for 5 more years (+$30,000)
- upgrade to used car that is half of your car fund(-$15,000)
- wait 7 to 8 more years for fund to double to $30,000
- buy another $15,000 used car
- Drive "free" for life
- put additional $5,000 per year in retirement account
- you need credit history
- just show landlord / employer your bank statement to show you're responsible
- you need a house
- homeownership comes with lots of extra costs
- mortgage interest
- homeowner insurance
- private mortgage insurance
- property taxes
- maintenance (time and money)
- I'll pay for it later when I have more money
- what if you don't have more money
- need a new car
- see dumb car info above
- loaning money to family and friends is helping them
- give it to them, instead of loaning it
- get rich playing lottery
- ha ha.
