The Total Money Makeover : A Proven Plan for Financial FitnessDave Ramsey
Myth : I don’t have time to work on a budget, retirement plan, or estate plan.
Truth : You don’t have time not to.
Myth: Debt consolidation saves interest, and y ou have one smaller pay ment.
Truth: Debt consolidation is dangerous because y ou treat only the symptom.
Myth: Play ing the Lotto and other forms of gambling will make y ou rich.
Truth: Lotto and Powerball are a tax on the poor and people who can’t do math.
Myth: Debt is a tool and should be used to create prosperity.
Truth : Debt adds considerable risk, most often doesn’t bring prosperity, and isn’t used by wealthy people nearly as much as we are led to believe.
Myth: If I loan money to friends or relatives, I am helping them.
Truth: If I loan money to a friend or relative, the relationship will be strained or destroyed. The only relationship that would be enhanced is the kind resulting from one party being the master and the other party a servant.
Myth: By cosigning a loan, I am helping a friend or relative.
Truth: Be ready to repay the loan; the bank wants a cosigner for a reason, which is that they don’t ex pect the friend or relative to pay.
Myth: Cash Advance, Payday Loans, Rent-to-Own, Title Pawning, and Tote-the-Note Car Lots are needed to help lower-income people get ahead.
Truth: These rip-off ex amples of predatory lending are designed to take advantage of lower-income people and benefit only the owners of the companies making the loans.
Myth: Car payments are a way of life; you’ll always have one.
Truth: Staying away from car payments by driving reliable used cars is what the average millionaire does; that is how he or she became a millionaire.
Myth: Leasing a car is what sophisticated people do. You should lease things that go down in value and take the tax advantage.
Truth: Consumer advocates, noted ex perts, and a good calculator will confirm that the car lease is the most ex pensive way to operate a vehicle.
Myth: You can get a good deal on a new car at 0 percent interest.
Truth: A new car loses 60 percent of its value in the first four years. that isn’t 0 percent.
Myth: You should get a credit card to build your credit.
Truth: You won’t use credit with your Total Money Makeover, except maybe for a mortgage, and you don’t need a credit card for that.
Myth: You need a credit card to rent a car, check into a hotel, or buy online.
Truth: A debit card will do all that.
Myth: Everything will be fine when I retire. I know I’m not saving yet, but it will be okay.
Truth: The Cavalry isn’t coming.
Myth: Gold is a good investment and will cover me if the economy collapses.
Truth : Gold has a poor track record and isn’t used when an economy collapses.
Myth: I can get rich quickly and easily if I join these groups, buy this DVD set, and work three hours a week.
Truth: No one develops and makes a six -figure income on three hours a week.
Myth: I can’t afford insurance.
Truth: Some insurance you can’t afford to be without.
Myth: I’ll just file bankruptcy and start over; it seems so easy.
Truth : Bankruptcy is a gut-wrenching, life-changing event that causes lifelong damage.
Myth: I can’t use cash because it is dangerous; I might get robbed.
Truth: You are being robbed every day by not using the power of cash.
USING CREDIT CARD IS LIKE PLAYING WITH SNAKES, IT CAN BITE ONE DAY