Richer Than You Think

 

      We as Americans have become spoiled, now don’t get me wrong I have the house, two cars, the 3.0 kids, the dogs, cat.  A lot of the luxuries most of us want the  pools, spas, big boat, etc. Is because we have to meet or more realistically we have to, “Beat the Jones’s.”  I have known and still know people (some with  3-4 kids) that  have already filed for bankruptcy, three even four times and they still are receiving pre-approved credit cards in the mail.  At the point when I was told I could no longer do  the job I was in, which cut my income by $50,000 a year, then two years later I was informed that I am considered permanently disabled and the job I just moved to two  years ago was now in my rear view mirror is when I realized, “I really need to cut back.”  It came down to having to pay off bills and then only buy things if or when  we  had cash to pay for it.  Right there is what I’m talking about, “THINGS.”  Things is what is putting this country into debt, we need the latest and greatest of everything even  when the toys (fighter jets, ships, vehicles, etc.), we have now are 10x better than anything any other country has, the same as the quad or motorcycle sitting in your  garage.  What are we to do with and what  more do we need than a roof over our heads, food in our bellies, transportation of some sort and a decent education for our  children, okay a few toys would be nice, but do we need to upgrade every time the next generation hits the shelves?  Other countries live with a  third or  less of what we have to start and still make it to being well established  members of their communities,  some even live their entire lives living in the same place and with the same people, family.  My sister in-laws

 

Hint:  To pay off bills several websites suggest (this is what I’m doing and it works) take all you bills and line them up by total due.  “Due to this being an example, I am not including tax, interest,

  etc.”

Month One – Pay all monthly amounts due.  Then take the bill “A” with the lowest balance due (ex. $150.00) and make an extra payment to that bill, let’s say $50.00.

Month Two – Pay all monthly amounts due.  Then take the bill “A” with the lowest balance due now (ex. $90.00, $10 min. due + $50.00 extra), Make another $50.00 pmnt.

Month Three – Pay all monthly amounts due.  Then take the bill “A” with the lowest balance due now (ex. $30.00, $10 min. due + $50.00 extra), Make your last $30.00 pmnt.

Take the bill “B” with the next lowest amount (ex. $200.00) due and with the least due (ex. $20.00) take the rest of the extra $50.00 from bill “A” and send it to bill “B.”  Total pmnt. to

bill “B” will be $40.00.  So in month two you will send bill “A” $30.00 and bill “B” $40.00.  YOU JUST PAID OFF (PO) BILL “A.”

Month Four – Pay all monthly amounts due.  Then take the bill “B” with ($200.00 – $40.00 = $160.00), with the min. pmnt. and the pmnt. you would have sent to bill “A” ($10.00) send this and the

extra $50.00.  So your payment to bill “B” will be $20 minimum payment due + $10.00 PO bill “A” and the $50.00 extra payment = $80.00.

Month Five – Pay all monthly amounts due.  Then take the bill “B” with ($160.00 – $80.00 = $80.00), with the min. pmnt. and the extra $50.00 and send it to “bill “B”.  So your payment to bill “B” will

be “B” $20 minimum payment due + $50.00 extra payment = $70.00.  If you can afford the last $10.00, pay it here to avoid interest and taxes. YOU JUST PAID OFF BILL “B.”

 

In just five months you were able to pay off two of your bills (Kohls, Target, Lowes, Home Depot, etc.).  From here you keep making the extra payment you agree to yourself to do (ex $50.00) and no matter if it goes to the lowest bill or the next one in line you make that total extra payment each month.  When a bill is paid off, now matter the amount you roll that amount into the next lowest bill, along with the minimum payment due and the extra $50.00 until it is paid off and the cycle continues.  So far to date, agreeing to $50.00 extra a month I have paid off five (5) bills and cancelled three of the five, I don’t need them.  My credit score is back up where I feel it should be. We’re doing fine with what we have and I really can not think of anything out there that “I NEED.”  There may be a few “Wants” but it’s only a few.  Think about your life and your kids are you doing the right thing when it comes to your needs and wants?