Kernels of Korn

I'll bet I've been asked a thousand times: "Rick, what should I invest in?" I love this question because it gives me a chance to ask a question back so I always reply in my lawyer type voice "Do you owe any money to MASTERCARD? VISA? SEARS? DISCOVER? The typical answer is "Yeah, well, we owe a little." This gives me an easy answer that can never be wrong

Note here that most lawyers always answer your question with a question but never give an answer! Well,

The absolute best investment you can make is to pay off the Credit Cards! The interest rates that these companies charge have become so high and crazy that there is absolutely no way you can invest before you pay off these debts. Some credit card companies charge up to 23% interest , frankly, I don’t know of any long range, legal investment with returns that high!

Pay’em off! How? How can you find the money to pay these cards off? Well, start with some simple steps

1. Quit spending money on eating out! Even a few lunches a month, say $30 bucks worth would go along way in saving a ton of interest when it comes to your credit cards. In fact, if you owe about $2,000 and the interest rate is 17%, an additional payment of $30 bucks a month will save you about $800 and pay off the balance in less than 3 ½ years versus 7 years without the extra $30 bucks.

2. $800! Yeah, I’ve seen folks cross town to save $2.00 on a case of soda or something but then use their credit card! So tip number 2—don’t use it! Spend the green. Repeat that one hundred times---SPEND THE GREEN! SPEND THE GREEN!

3. Well, now that I’ve got your attention, if you really want to get out of debt, you must set this as a real goal in your life—We want to be debt free by 33? 43, 53, 63 You pick the age and start on the path toward becoming debt free.Cut'em Up! 

 

 

 

 

 

4. Tithe! If you haven’t been tithing you MUST tithe if you expect God’s help in becoming debt free. Now, don’t ask me how it works or why it works, it just does!! Amazing how even the only real school (the one on Tennessee Street in Tallahassee) in this ole state of Florida never taught me that "financial law" during all those years it took me to get a Master’s Degree! I can flat guarantee you that you will never find financial peace until you learn to give. Usually, in my seminars I say at least once "In order to learn how to live, you must learn how to give!"

5. For some more tips on how to get out of debt check out the Debt Reduction page on my web page www.biblicalstewardship.com

Seniors! Should you pay off your mortgage? I’m asked this question a lot and because so many other factors are involved I don’t’ have a real pat answer. I can tell you that if your interest rate is over 8% and you are investing mainly in CD’s you should most likely pay off your mortgage. I’d start with paying off any credit cards, go to paying off any car loans or other consumer debts and than consider reducing the mortgage. For years, I never had a house mortgage and it may have been an investing mistake but on the other hand, I could sure sleep well! So, if you think you’d feel better with no mortgage in those retirement years, go for it! Pay it off! If on the other hand you’re an astute investor (geez, you must took my class before!) and you are earning rates of returns that are higher than your mortgage interest rates, don’t pay off the mortgage!

Well, let’s assume that you are now in debt, what should you invest in? Assuming I’m happy with your insurance situation and you’ve got some emergency cash available, most likely I’d tell you to invest in Mutual Funds.

Now don’t get scared or nervous.

You can become an extremely competent mutual fund investor!

I guarantee it and next month we’ll start in that direction.

What is a mutual fund? Well, what is a church? One definition might be, a group of believers who meet to worship God in some buildings that they "own" in mutual cooperation with each other. A mutual fund is a group of stockowners who own a lot of different stocks in mutual cooperation with each other.( and hopefully aren’t worshiping these stocks)

So, why should I buy mutual funds! ……….check back with us next month!

In the interim, start adding up your debt and envisioning yourself total debt free by ????

Have any questions? Need some specific help, send us some E-Mails so that we can develop some columns that are suited to the needs of you and your mutual church members! No question is dumb unless it remains unasked!

 

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