{"id":610,"date":"2017-04-14T23:28:48","date_gmt":"2017-04-14T23:28:48","guid":{"rendered":"http:\/\/www.mikeclover.com\/blog\/?p=610"},"modified":"2017-04-14T23:28:48","modified_gmt":"2017-04-14T23:28:48","slug":"money-myths-that-can-keep-you-broke","status":"publish","type":"post","link":"https:\/\/www.mikeclover.com\/blog\/2017\/04\/14\/money-myths-that-can-keep-you-broke\/","title":{"rendered":"Money Myths that can keep you broke"},"content":{"rendered":"

\"cheerful<\/a><\/p>\n

Myth #1: I don\u2019t need to budget because I keep track of what I\u2019m spending. <\/strong><\/p>\n

Keeping track of what you\u2019ve spent is looking backwards. Making a budget is looking forward \u2013 it\u2019s planning ahead so you\u2019ll have money later for things you want to do or have.<\/p>\n

Looking back at how you\u2019ve spent your money is a good first step in preparing a budget. You can see where you spend the most and where you might exert a little control over your spending in order to save for a vacation, a down payment on a house \u2013 or retirement.<\/p>\n

Myth #2: I\u2019m too young to be concerned about retirement.<\/strong><\/p>\n

No, if you\u2019re out in the world, working for a living, you are not too young. The truth is, the younger you are when you start, the easier it will be.<\/p>\n

Step one: Get out of debt.<\/p>\n

Step two: Create an emergency fund of three to six months\u2019 worth of living expenses.<\/p>\n

Step three: Look into retirement plans, putting money into IRA\u2019s, etc.<\/p>\n

Myth #3: Unless you have extremely wealthy parents who will pay your way, student loans are necessary to go to college. <\/strong><\/p>\n

The truth is, you absolutely can get a college education without going into debt. It\u2019s not easy, but it will be worth the effort to begin your working life without that burden.<\/p>\n

Look into college-specific aids and grants or federal and state grants. Work hard and earn scholarships. Get a part-time job during the school year and work full-time during the summer.<\/p>\n

Myth #4: Car payments are simply a way of life.<\/strong><\/p>\n

No, they\u2019re not. Driving a new car is a luxury and a status symbol \u2013 not a necessity. According to Experian Automotive, the average car payment today is $500 per month \u2013 which means $6,000 per year to own an \u201casset\u201d that loses value each and every month.<\/p>\n

For $6,000 you can buy a nice used car \u2013 one that will get you where you want to go just as easily as a $40,000 SUV.<\/p>\n

A friend of mine told about wanting to trade-in her car that still had a year or two left on the payments. Even though she\u2019d gotten a low interest rate, the car dealers all told her the car would \u201cnever be worth what you owe.\u201d She decided to prove them wrong, and kept driving it for a couple of years after it was paid off. It was still worth several thousand dollars.<\/p>\n

Myth #5: Debt is a tool.<\/strong><\/p>\n

This is a truth for some people, but a myth for most. Entrepreneurs who use debt to acquire assets that appreciate in value and generate a cash flow do use it as a tool. This is only after doing all the calculations \u2013 and sometimes even then they make a mistake.<\/p>\n

Myth #6: Credit Cards are always evil.<\/strong><\/p>\n

No, not at all. Credit cards CAN be a tool and can even save you money, IF you use them correctly.<\/p>\n

Credit cards can be a tool for bookkeeping, as they keep track of all your expenditures. Some even send you a year-end report categorizing all those expenditures. As long as they are paid in full each month,<\/u> they\u2019re a good tool.<\/p>\n

Get a credit card with a good cash rewards program; use it for everyday expenses such as groceries and gasoline \u2013 then pay the bill in full each month<\/u>. In a few months\u2019 time you\u2019ll have substantial cash coming back \u2013 which you can deposit directly into a savings or retirement account.<\/p>\n

They can also be a safety net for times when an unexpected but necessary expense comes along \u2013 say when the furnace blows up and the temperature outside is ten degrees.<\/p>\n

Credit cards are<\/u> evil when mis-used.<\/strong><\/p>\n

When used for non-necessary expenses and you carry a balance from month to month, they\u2019re a tool of destruction, eroding your income through interest charges.<\/p>\n

Thousands of people overspend each Christmas, then make payments throughout the year on the gifts they gave. Go back to Myth #1 and make a budget. Put away enough each month to pay for those gifts as you buy them and you\u2019ll save hundreds of dollars in interest charges each year.<\/p>\n

Myth #7: Loaning money to family members is a duty or an obligation \u2013 and it shows you care.<\/strong><\/p>\n

The truth is \u2013 lending money to family members is a terrible idea. Quite often it doesn\u2019t get paid back, and it does nothing but cause hard feelings.<\/p>\n

A friend of mine told about lending her brother-in-law $1,200, which he never repaid. Did she and her husband feel resentful when the brother bought a new car, took an expensive vacation, or wined and dined his girlfriends every Saturday night? You bet they did. That loan caused a permanent rift between the brothers. They haven\u2019t even spoken to each other in twenty years.<\/p>\n

If a family member needs help and you can afford to provide it, make the money a gift.<\/p>\n

Avoid the money myths and manage your money wisely \u2013 your future will thank you! <\/strong><\/p>\n

\"mike-clover-group-email-signature-muy-grande\"<\/a><\/p>\n

Mortgage Banker<\/p>\n

Homewood Mortgage,LLC<\/p>\n

O: 469.621.8484<\/p>\n

C: 469.438.5587<\/p>\n

F: 972.767.4370<\/p>\n

18170 Dallas Parkway<\/p>\n

Ste. 304<\/p>\n

Dallas, TX 75287<\/p>\n

NMLS# 234770<\/p>\n","protected":false},"excerpt":{"rendered":"

Myth #1: I don\u2019t need to budget because I keep track of what I\u2019m spending. Keeping track of what you\u2019ve spent is looking backwards. Making a budget is looking forward \u2013 it\u2019s planning ahead so you\u2019ll have money later for … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/610"}],"collection":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/comments?post=610"}],"version-history":[{"count":1,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/610\/revisions"}],"predecessor-version":[{"id":612,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/610\/revisions\/612"}],"wp:attachment":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/media?parent=610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/categories?post=610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/tags?post=610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}