Sunday, December 4, 2016

Have a stock pile of money all year long, without use of credit card or a loan.

Have a stock pile of money all year long, without use of credit card or a loan. 

If you were given a choice to receive one million dollars in one month or a penny doubled every day for 30 days which one would you choose? 

Most people without thinking take million dollars. First time I saw this it was little obvious it was a trick question. I picked penny doubled. Good thing I did. I just made over $5 million dollars. After doubling a penny for 30 days you're have $5,368,709,12. See for yourself click on the link.   

Have a stock pile of money all year long, without use of credit card or a loan. I’m going to show you the best kept secret in money management. I'm not a finance expert. My expertise was Law Enforcement. My hobby is research. If I need something fixed at home I researched it and make the repair myself. I was in debt since 18 years old and reading anything on showing how to save money. I tried credit repair until I did my research on it. Nothing but a scam.  So yes, I've been there broke.

This is my way how I manage and purchase items using no credit or loans. This is not something from a book. This is something I figured out over a few years shortly after buying my first house age of 23 in 1993. After a couple of years and hundreds of hours reading and researching, trying different ways to save money, I came up with this plan my first year trying it 1995. IT WORKED.

Wake up AMERICA. There is absolutely no reason to have credit card debt.  People say 'Well I need credit card to establish good credit.'  Really!  When was the last time you needed a credit report? A Credit Report is only needed once in life for 98% of America. That one reason is purchase or rent home.  Only five reasons you may need credit report, Investment, Real Estate, Vehicle, buy Business, Employment. If you’re not planning any of those five reasons described, you don’t need a credit card or a good credit rating.

Credit Card RULE #1:   Never purchase item on credit that depreciates in value. (Cars, appliances)     Credit Card RULE #2:   Never use credit card to pay living expenses, utility bills.                                Credit Card RULE #3:   Never get a credit card just to establish credit you not using.                            Credit Card RULE #4:   Never purchase item on credit you can’t show proof for.                                                                                                  
If you carry an average daily balance of $3,000 in credit card debt, your minimum payment will be around $60 a month (assuming a 2% minimum payment requirement.With a $60 minimum payment, $36 goes toward interest each month and $24 goes toward your $3,000 credit card balance. So after you send your first $60 payment to your $3,000 credit card bill, you will still owe $2,976.

If you only pay your minimum balance due each month (2% or $25 minimum), it will take approximately 16 years to pay off your $3,000 debt. During those 16 years of making the minimum payments, you will have paid $3,641 in interest, turning your $3,000 purchase into a $6,641 one. Whatever you purchased for $3,000 will likely be worth only few dollars or broken and forgotten long before you've paid for it in full!

Better option, save monthly payment every month until you have enough money to purchase the product. Save double the amount of the item.

 I lived perfectly fine when owning a home, five kids, and two vehicles, without credit cards. The secret is Want vs. Need.  People want an item now they could do without for few months saving for that item. People ask what about emergency like when something breaks. Easy, you have the money, you just don’t know it.

Ready for the best kept secret having stock pile of money all year?

Every year I receive $8,000 to $10,000 from IRS.  Now my way works with any amount. I think the idea lowest amount should be $2,000. On average tax returns don’t fall under this amount. If your tax return is under $2,000, you have no busy using a credit card in the first place.

First thing I do is during the year any expensive item I needed or want I wrote down. To beat the rush, I did my taxes the first week in February receiving my refund around first week of March. I then used my tax refund to purchase expensive items I needed first not want that’s important.  Money left over from refund check I put in savings account waiting for that one item in house to break. Dish washer, stove, plumbing, refrigerator, or vehicle. One year I had $3,600 last me till end of November.

My Real Life Examples:  Refund was $7,000, purchased three large flat screens, living room furniture set with 9 ft sectional couch with two recliners, one full year vehicle insurance, seven day vacation to San Francisco.  Cost was around $5,200. The rest $1,800 put in savings and lasted till end of August.Refund was low about $5,500. Purchase $2,000 Billiard table, year membership at Costco, lots of kitchen appliances, seven day vacation to Las Vegas. Cost was around $3,550 the rest $1,950 put in savings lasted till end of September  I  remember.

The prior year around March our vehicle was not drivable due to mechanical problem. I really wanted to buy a decent vehicle not some thousand dollar vehicle. So my family lived the entire year without a vehicle. Lucky I lived 10 minutes walking distance from work, my wife took 5 minute bus ride to work couple mile down the street. We used the bus to go shopping.  

Refund was $8,400 End February tax refund came. Purchased complete master bedroom furniture set, three beds for each of my children. First I purchased a used vehicle with half my tax refund $5,000 cash. I found a Black SUV Limited Edition Chev. Suburban 2500, tow package for $6,999  20 in. rims, drop down 6 in. TV. I finance the reminder $2,000 with the car lot. Purchase SUV in six month.  No credit card.  Car lots see $5,000 cash and same job for years, there not worried about credit report. SUV paid for six months, borrowing not one penny, or using a credit card. The rest tax return around $2,200 put in savings account after purchased bedroom furniture which lasted me till September, October I believe.

You get the idea. I see it as a savings account starting with a very large sum of money instead of the usual $100 to start. People get one interest free check every year they just don’t see it as a savings, people see it as a check to spend as fast as they can without thinking. Time and time again people tell me what they received in tax refund.  Months later they talk about in need of money I ask about tax refund gone. I Visit there home to see if anything is new, or added no sign of tax refund. They have spent $3,000 or $4,000 with nothing to show for it unbelievable.

People spend the refund mostly on going out to eat, rent, utilities bills items that should be paid with work income paycheck.  Now yes I do take the family out for a nice expensive dinner. Purchase the children all new clothes. But I also have items in my home to show for the refund.  I knew woman refund check was over $7,000 received refund end of February, refund was gone by end of April. Only thing to show for refund was $600 on children clothes and $400 on two cell phones for children.  Refund $6,000 gone in less than two month with nothing to show for it.

It's not you're salary that makes you rich. It's your spending habits.

People just need to stop living way above their means. I see it every day people bitch about credit debt. I just laugh. By the way I only make $48,000 a year before taxes.  I bring home about $26,000 a year. So AMERICA  get rid of all credit cards today, stop being sheep and stop following everybody  into credit debt with a high chance of bankruptcy HELL.

Tax refund is only two months away.  First check what you received last year refund to get idea what you’re spending. Make a list of high priced items you really need the most. Could be one, two. Estimate the cost to get idea of what you’re going to put away to savings for the year emergency.  Remember you never want to spend it all. Spend only half to start depending how much refund is.  If refund $2,000 spend $1,000. Refund $3,500 spend $1,500. Your goal here is to have that savings last as long as it can though out the year.

Please give my way a try you have nothing to lose but you’re refund itself.  At least my way you’re having something to show for it. I’m not saying it’s the best or right way to money managed but it works for me. If anyone gives it a try please message me or leave comment let me know the outcome at end of spending all the refund. Good luck I hope it works out for everyone.


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