Aug 8, 2018
Hi everyone, here we are again with another wealthy and wise
Wednesday, thanks for joining me whether you are on video or
podcast, want to welcome you all. You know I am kind of a water ski
fanatic, I try to go at least two or three times a week and I ski
the course, you might have seen a tournament [00:00:44] course
skiing, there are 6 balls that you got to get around and it is
really fun and they keep shortening the rope every time you get
through and it is really kind of competitive and I just love.
[00:00:58] But you know one thing
that happen every year that you get going is you have the winter,
we have been skiing much at least not around here, we spend more of
our time in the snow on snow bikes in the winter. But here comes a
whole March, April and it is time to get skiing again. And lo and
behold no matter how many times you have worked out in the gym, you
know whether you do [00:01:30] or all the different things you
could do, there is still something about getting up the first few
times of water skiing where you just feel that muscle ache.
[00:01:42] It is muscle that you just don't use very often and it
is hard to workout keeping those muscle strong, so you are always
sore those first few days. And I often think mhen shouldn't it be
nice if I can just stay in shape all year because it takes me two
or three weeks in pain just to get back into somewhat of
waterskiing shape and then now, we are at the last day of July
beginning of August for this podcast and now you are just in great
shape, you might have some aches and pains, I have a tendon giving
me trouble this year but still you just don't get sore from skiing
anymore. [00:02:28] And I think all the time, mhen if I can just
somehow stay in shape all through the years, this would sure be a
lot easier and I wouldn't dred those April water ski days. First it
is pretty cold water and then just ready to get back in shape. And
I compare that sometimes to debt, you know there is nothing worse
than debt hanging over your head all the time, 24/7, never ends,
monthly payments, got to come up with that and it just can be kind
of overwhelming at times especially if you are using debt for
credit card and car payment and house payment, you know maybe
personal loans, it just can be overwhelming. [00:03:15] And debt is
a lot like working out, it is so much easier to stay out of debt
that to get out of debt, it is so much easier to stay in shape than
to get back into shape. And even though you dred those days
sometimes where you are working out maybe 3-4 times a week and
someday you just don't feel like doing it, just stay in shape is so
much easier than getting back into the shape. And again, you know
when all winter long without skiing and I jump into that lake and
getting back into shape is just getting harder and harder every
year as I get a little more grey. And I think about this people who
just constantly go into debt, they may be in debt, they dig this
hole and they finally get out of debt and then what did they do
turn around and now it is time to buy a car or this or that and
they just constantly in debt. [00:04:25] And again I say it is so
much easier, I know not in the beginning just like getting in shape
the first time, it is not all that easy but it is easier to stay
out of debt than to dig yourself out of debt. So let's just use an
example, let's just say I need a car, I got to have a car,
[00:04:47] is falling to pieces, just not going to happen, got to
get a car, what are my choices? Well it will be much better for me
to ink that car along, I mean strap it together with duct tape if I
have to and save all I can and try to build up somewhat of a
capital base so that I can use that for my next purchase.
[00:05:16] obviously we love our banking system for that, where we
are putting away capital and it is getting ready to be used for
those major purchases. Now I have said this over 100 times, major
purchases for the most part are with depreciating assets and they
are big waste of money anyway. But if my choices to just constantly
have the banker in control of my life and debt hanging over my
head, it is much better if I learn to stay out of debt and to
become a saver rather than a debtor. [00:05:56] And just again like
working out, if I start today, if I haven't worked out in years,
maybe I haven't saved in years but I have got to start somewhere
and so I start saving a little then a little bit more, look the
fact is if you can't save then what makes you think you can make
those payments, right? So one of the first thing you should do is
learn to make payments to yourself, prove it you can do it, save
that money and save as much as you need to, to buy the least car
that you possibly have to and then stay out of debt and keep making
those payments to yourself. [00:06:38] you know we don't ever, I
shouldn't say because a lot of people do but most, there is too
many people who don't pay themselves. You know one of the greatest
books ever, "richest man in Babylon" and it talks about taking your
income and first carving off 10% to give to your church, your
charity, some sort of a donation, then carve out another 10% and
pay yourself, right? I mean you are the one doing all the work, you
are doing one putting in 40,50,60 hours a week, you should pay
yourself. Then you can use the rest of it for taxes and lifestyle
and different things in life but it kills me to watch people who
can't even save then go out and get into debt for major purchase,
that makes no sense, they haven't proven to themselves that they
can save some money. [00:07:36] So okay, it is time to work out, I
haven't work out in 5 years, I know it is going to hurt but
sometimes saving hurts but I am going to just suck it up, I am
going to get tough, I am going to carve out 10, 20, 50, 100 dollars
of pay period and I am going to prove to myself that I can save. I
am going to get into saving shape to where I am just built up, I
feel good, now saving is just a natural, easy, bye product of my
hard work at the office. Now I can say to myself, I have proven, I
have got capital, now I can go make that purchase. But to stay in
shape, to keep making payments to yourself, to keep saving is so
much easier than digging yourself a debt hole and having that
banker looking for your payment every single month. [00:08:40] So
that was kind of the message of today, I was thinking about this
when I was talking to some people who called me up and they were
talking about their debt and I was like well you know at 12 and 15%
interest rate it is going to be so much better if you knock out
that debt before you start putting away money. But because there is
just nowhere that you can safely put money that is going to get you
15,18% return to offset the cost of that debt. They will weigh out
of shape and they needed to get in shape and it is going to hurt
and they are going to have to lift a lot of weight and they are
going to have to push and push to get themselves back into
financial shape. [00:09:32] But the moral of the story is it is so
much easier, I will say it as we leave here today, so much easier
to stay out of debt than to get into debt and get out of debt. How
do I want to say that, I didn't say that right? So much easier to
stay out of debt that to get out of debt, sorry, that is what I
meant to say. So much easier to stay out of debt than to get out of
debt. So much easier to stay in shape than to get out of shape and
have to start over again. [00:10:03] Okay, so I hope that was
helpful, I hope that makes you think just a little bit differently
when it comes to managing your money, your finances, and certainly
managing debt. If you have any questions, thoughts, comments, even
the snide remarks I will take them and shoot those to
questions@wisemoneytools.com. Make sure you subscribe always so
that you never miss a podcast or video and finally if you are ready
for a strategy session to see what you can do with your money and
the best way to capitalize on what is going on in this market and
market to come, feel free to shoot us an email, we will set that up
and have a little quick strategy with you. [00:10:48] Other than
that, that is it, stay out of debt, stay in shape, I will talk to
you next week, take care.