096 Beyond Your Wedding Day Podcast-Secrets of the Rich

by mike on October 9, 2012

096 Beyond Your Wedding Day Podcast-Secrets of the Rich

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In this episode of the Beyond Your Wedding Day Podcast, we discuss the Total Money Makeover by Dave Ramsey.  We take a look at Chapter 4: “Money Myths: The (Non)Secrets of the Rich.”

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*Risk denial is something in money that can get you in trouble

*Another major problem is people wanting to get rich quick.  Always looking for the easy way to riches.

*Myth: Everything will be fine when I retire, I know I’m not saving yet, but it will be okay.

-Planning on the government taking care of you in retirement is not a good plan!

*Gold is a good investment and will cover me if the economy collapses

-Long-term track record of gold is not that great: just barely above inflation

-Failed economies do not turn to gold in crisis (think Katrina)

*I can get rich quickly if I join these groups, buy this CD set, and work 3 hours a week

-Think infomercial: “learn the secrets and you too can become wealthy”

-If something sounds too good to be true, it is, RUN!

*Cash value life insurance will help me retire wealthy

-Over 70% of the life insurance policies sold today are cash value policies

-There are just so many things wrong with this type of insurance

*Playing the Lotto and other forms of gambling will make you rich

-The Lotto offers false hope, not a ticket out of poverty

-It’s sad when you see who plays the Lotto

*A mobile home will allow me to own something instead of rent, and that will help me build wealth.

-The main problem here is that much like a vehicle, trailers go down in value quickly

-The only exception may be if you buy a very inexpensive (read: already lost its value) trailer and live in it temporarily while you pay off debt, save for a house, etc.

*Prepaying for your funeral or your kids college is a good way to invest and protect against inflation

-Basically, your return on investment in this case is how much it goes up over time.  College, on average, is 7% and general inflation is around 4%

-You would be much better off investing in a mutual fund for that amount

*I don’t have time to work on a budget, retirement plan, or estate plan

-These three things are essential to a happy future for yourself and your family (or favorite charity!)

*The debt management companies on TV will save me

-First and foremost, when you use one of these companies, your credit report treats it as if you filed a chapter 13 bankruptcy

-They are also incompetent and charge HUGE fees in order to pay your debt down.

*My divorce decree says that I don’t have to pay the debt, so I don’t

-The divorce court does not have the power to take your name off of a debt.  If your name is on it, you are responsible for it: period!

*That collector was so helpful; he really likes me.

-They are not your friends and if they are nice it is a tactic

-NEVER send in money on a deal made over the phone without having it in writing first!

-Also, never give access to your checking account

*I’ll just file bankruptcy and start over; it seems so easy

-It is not a walk in the park and no one wants to go there

-Chapter 7 stays on your report for 10 years, Chapter 13 for 7 years

-Plus, many applications ask if you have EVER filed bankruptcy

*I can’t use cash because it is dangerous, I might get robbed

-Carrying cash does not increase your chances of getting robbed

*I can’t afford insurance

-As cliche as it might be, you can’t afford not to have insurance

-Not having life, disability, or health insurance can make a bad situation worse really fast!

*Doing a will is kind of morbid/creepy

-70% of Americans die without a will

-It is a gift to your loved ones and is another way of taking care of your family, just as getting a job is

Would you like to work with Mandy and Mike one on one?  Check out the Beyond Your Wedding Day Marriage Prep Course.

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