The Good Steward
Nick Simonic, CPA, MACC
Nick Simonic is a CPA who specializes in Non-Profit, 501C3 Corporations as well as serving on the board of Wilbur Ministries. Ever since moving to
Jacksonville nearly ten years ago, Nick and his staff have watched over our
financial accountability and ministry affairs. His wisdom with regards to
financial matters as well as his passion for the Lord have made him a highly
sought after counselor in the Kingdom. You will not only gain understanding
with the words he offers each week, but I believe you will find wise counsel
and wisdom imparted here as well. I truly pray you are blessed and edified
by this special offering from us to you!
Paul Wilbur
Living Debt Free By The Word
By Nicholas T. Simonic, CPA, MACC
Part Five
Last time we talked about knowing your enemy in order to win the war on debt. We discussed the internal enemies. Now, let’s uncover the external enemies, The Monthly Payment Con Artists.
These are traps and landmines that are out there in the financial world to cause you to trip and fall and possibly fail in your finances.
The first is car payments. Most people think that they need a car payment because that is how everyone else lives. The truth of the matter is you can live without car payments. I do! Several years ago, I did a radio program entitled “Winning The Lottery With Your Car Payment”. I did the math and showed the audience that if you are disciplined and get your car paid off, start putting the $375 car payment into an investment account. Keep the car for 10 years. Then you can take $35,000 out of the investment account and pay cash for a CAR. After the next ten years, you take another $45,000 out of the account and pay cash for a car. Then at the end of the third ten years you take $55,000 out of the account to buy a car; you would still have over $1 million in the account after the car purchases. That is what Pat Robertson calls “the miracle of compound interest”.
The second con artist is mortgage payments. It is not necessary to pay a mortgage payment for the rest of your life if you plan properly. The banks and mortgage companies would have you believe that mortgage payments are a fact of life. In reality, they don’t have to be. As I said before, now only 2% of the population has their homes paid off. The rest have mortgages. The banks and mortgage companies want you to have a mortgage. But you do not have to. Trust me. Some financial “gurus” will tell you that if you have your other debts paid off and only have a mortgage, you are effectively “debt free”. Let’s face it. Debt IS DEBT. The borrower is servant to the lender, PERIOD!
The third monthly payment con artist is the insurance companies. There is a lot that can be done to reduce the amount of insurance payments you are currently making if you focus. Insurance companies do not lose. They are going to make sure that they make money. With life insurance, they hire actuaries to estimate 1) How long you are expected to keep the policy, 2) How long you are expected to live based on your age, health, living habits, etc. 3) What you need to pay in premiums based on those and other factors, to ensure that they will make money. You have heard about a number of home insurance companies stopping their coverage of homes in Florida because of the hurricanes. That’s because they are going to make money or go somewhere else. Insurance companies do not lose. When it comes to life insurance, they are betting that you live, while you are betting that you die. Let’s face it, insurance is a necessary evil. I think that it was started by the mafia. “You pay me. I’ll take care of you. Remember, you and I never had this conversation.”
Finally, there are credit cards. This is the most devious financial system ever established. This con artist continues to keep Christians in slavery. Remember that the borrower is servant to the lender. Even well respected financial advisors are recommending that people get their children credit cards to “establish” them in the financial world. I am appalled at the number of people who are succumbing to this scam. A credit card is only a piece of plastic that allows you to buy stuff you don’t need with money you don’t have to impress people you don’t know. Credit Card companies now charge as high as 32% per year.
There is much more to be said about these four con artists. However, time and space do not permit us to expand on them here. Again, in combat they say that knowing your enemy is 50% of the battle. I have just given you 50% of the battle!
Until next time, Beloved I Pray That You Prosper And Be In Health, Even As You Soul Prospers!
Blessings,
Nick
The Good Steward Archive
Living Debt Free By The Word: Part 1
Living Debt Free By The Word: Part 2
Living Debt Free By The Word: Part 3
Living Debt Free By The Word: Part 4
Living Debt Free By The Word: Part 5
Living Debt Free By The Word: Part 6
Living Debt Free By The Word: Part 7
Living Debt Free By The Word: Part 8
Living Debt Free By The Word: Part 9
Living Debt Free By The Word: Part 10
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