Episode #59 – It’s Easier To Stay Out Of Debt – Than To Get Out Of Debt!


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.

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