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 Six
In last week’s article we talked about monthly payment con artists. I was going to move on this week. However, I really feel that it is necessary to expand on these con artists before we go forward. It is important that we devote the time needed to discuss this.
CAR PAYMENT CON ARTISTS.
It bears repeating here, also, that you should not buy a new car. I recommend in most cases that clients buy a car that is two or three years old. That way, if you are concerned about the warranty, in most cases, you will still have one. So, when you purchase the car, you should still have another two or three years remaining on the warranty, depending on the manufacturer’s policy.
What if you car is dying? Then it is time to get new transportation. Transportation should get you from point (A) to point (B). Now, I have to admit that air conditioning was made for the State of Florida. So, be sure you get transportation with air conditioning, if you live in Florida!
People who are up to their ears in debt do not need to add to the problems by adding on a car payment. So, what should you do if you are in that position; your car is dying and you do not that have the financial ability to buy that two year old vehicle? I recommend that you find a means of transportation that will cost between two and three thousand dollars. If you can borrow the money from a family member, it saves the interest expense. If you can borrow from a cash value life insurance policy, that is a better alternative than the “no credit needed” car lots. These dealers charge an exorbitant amount of interest.
Whatever you do, you should not finance a car on an ongoing basis. You need to break the “Car Payment Curse!” As I say, “Live your life without a car payment.”
In closing on the subject of cars, DO NOT lease a car. Some leasing companies have written into their contracts in black and white, “Zero Interest.” They are bound by that contract not to charge you interest. However, you should not be fooled. They will make it up in other with other charges, such as charges for dents and dings, buyout clauses, charges for mileage put on the vehicle over their mileage limits, etc. Logic dictates that leasing companies are not going to buy a million dollars worth of inventory on credit, pay interest, and then lease the vehicle to you interest free.
MORTGAGE PAYMENT CON ARTISTS.
Let me ask you a question. Is it worth a little work (in the area of budgeting) to not have a monthly mortgage payment? What could you do with that money every month? I would venture to guess that you could do A LOT! Many clients who I have consulted with over the years have eliminated their mortgages and are much happier because they did.
The mortgage is probably the single most significant debt that people have. This debt is sometimes a discouragement to people who are making an effort to eliminate the debt in their lives. People develop “quitter” attitudes and continue to live in debt and in some cases, even increase the debt because of the size of their mortgage.
Now for the good news! YOU CAN live without a mortgage payment. I will be showing you how to do that in the coming weeks.
As you can see it is important for us to devote sufficient time to these subjects. In doing so, you become acquainted with your enemies!
Next week we will cover the details of the last two con artists out there, and then move on.
Until next time, Beloved, above all else, I wish that you prosper and be in health, even as your 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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