You’ve seen the movies, read the news, watched Cheaters, heard about it from a friend; it happens all the time, someone finding their other cheating on them. How many times have you watched Maury or the like and the first thought in your head is “I wish my ____ WOULD do that! Because I would (enter whatever you’d do or say here!)” I’m married and my wife and I have a lot invested in our marriage. There is the time element, the kids, the emotions, the good times, the bad times, the hard times, and the in-betweens. With all of these years on under our belts, I’m more than sure that if she did actually catch me in this situation I’d be neutered.
But what is the biggest factor that causes a person to “get caught?” I know some guys that have gone under-the-radar for years doggin’ their women and it takes a long time for the bricks to come loose on the house before it comes tumbling down. There are some women that are down with O.P.P. and galavant with every last homie. But the common denominator boils down to: deception and naivete. Imagine coming home on your lunch break from work because you forgot your lunch. You opt not to use the garage. There are no cars there because he/she was smarter than that, so everything looks normal. You decide to run to the family room in the basement to grab your cell phone charger; only to find your spouse being ridden like a Pewter colored Kawasaki! When you find out the truth, it hurts. It hurts for a long time I’m sure. But after the pain subsides and you are ready to move on something happens…you are more vigilant.
That’s what happened to me when I caught myself in bed with a system that has been methodically put in place that causes the average American to be placed in a certain class. That class is either Rich or Poor. You’re saying “whatever, I’m middle class.” Ok, FINE you’re half-poor. Either way I found myself in bed being ridden by one sexy concept but as crazy as Glen Close’s character in Fatal attraction: CREDIT. I’m not just talking about credit cards; I’m talking about car loans, mortgages, Student Loans, the whole shEbang just makes me lay in front of a palm tree with a hole in the window of my Escalade.
Credit Sucks!
Yes, it is that simple. Have you ever wondered why you need credit to do something as simple as buy a car? To buy a house? To buy a new pair of Air Jordan’s? Why is that? I’m in this frame of mind right now that just because something is what’s considered “THE NORM” doesn’t make it right. I’ve been totally disgusted with the system that is set in place. I also know that the loans and debt help the country project alot of data about the future of the economy at any given time. I get it. There is important data to be had! But it’s a bad idea like gettin’ busy with your spouse’s best friend.
I hear you now saying “who does this guy think he is? How can someone buy a house without a mortgage?” Here’s my theory what if there was a couple that are engaged and they both make about $80K combined annually. What if this couple decided that they want a house in the $135,000 to $170,000 range. Immediately you’re thinking “the only way they can do that is get a mortgage loan. They only make $80,000 combined income!” To this I laugh and wish I had an ice ball to throw at you!
Let’s say that our couple came up with a plan to that they can live beneath their means and save at least $40,000 a year of income. Now let’s say that they took every precaution to do so (like staying out of debt) no new car loans, no credit cards, nor store credit, and staying away from spending unconsciously. What if this happened? Let’s fastforward; if they accomplished this feat for 4 years they will have saved $160,000. Most people lock themselves into a $160,000 mortgage and pay close to 60% more of the original mortgage because there is no plan.
The Golf Club Keeps Swinging
And the glass keeps shattering on this whole loan thing. Back to our example couple. They could purchase their home in four
years and own it outright versus paying extra money over 30 years. I like the first option. But everyone says “get a mortgage!” My thought is WHY? Well, you need to build your credit! Why do I need credit if I can buy it and pay for it in full? Credit is what gets people caught in bad situations with their pants down around their ankles. There is nothing worse than being “caught out there” in any situation but money really stings.
Have you ever been in a situation where you have a car note on that car of yours and then it breaks down? Doesn’t that make your heart skip a million beats? That happened to me. I was paying on my car and my timing chain broke. Yes, on top of the car payment I had to come up with close to $1100 to get my ride back. You know what was irritating to me? The receptionist said to me “Do you want to sign over the title to us? You may as well try to buy a new car.” That’s why people are broke now, why would I try to buy a new dependable car for $5000 and tie up more money in the future when I could just have you fix my car and keep rolling? Needless to say, I’ve had my ride for 8 years now and we’re good and I don’t owe.
Stay out of the bed
Getting in bed with debt is the key to all poverty and I understand why now. The SYSTEM that has been put in place for the “middle class” is one that traps us in a cycle powered by a mentally abusing message that we must go into debt to get the things that we want. NO ONE is talking about putting together a savings plan and getting what you want by using patience. These companies play on the psychology of people. They know that LUST (one of the 7 deadly sins) causes people to make impulsive or bad actions….like getting caught being ridden in the family room in the middle of the day by the other woman/man.
Article by Rance Rob
I write because I'm good at it and if I say it, I'll stand by it! I don't blog, I do JOURNALISM!
Rance has written 12 article(s) for us.
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Nice article Rance.:-) My dad always told me to pay cash for everything,lol. Just delay gratification:-) That's why I have yet to get a credit card:-) But I do have loans that are kicking me in the butt:-)
Keep working to pay it down, you can do it. I've had my CASH KICKED enough to know that debt is BAD. No matter how you slice it. In the world's system it's an enticement tool. Most people don't even know how credit was invented, then regulated, and used as a bondage tool. It keeps the economy going around.
Rance this is a great article!!! I enjoyed the plan of owing no man nothing but to love them by planning on purchasing everything cash. You really opened up my eyes to becoming a money dominator through proper planning!!!
Thanks Chris!
Well done Rance! I personally disagree with the whole "Credit is the devil" philosophy (i.e. "Credit is what gets people caught in bad situations with their pants down around their ankles"). Credit has never been the problem. It's the MISUSE of credit. I’m not in any way denying that lenders/credit card companies haven’t for ages been dicking folks over with excessive interest rates, hidden fees, etc. But I’m also not denying that the average person isn’t willing to do the research required to manage credit responsibly or read the fine print for that matter. Lenders tend to write the important stuff in 4 pt font for a reason—they don’t want you to read it!—and that’s exactly why you should! I’m a firm believer in using credit responsibility and most importantly, knowing your limitations. If you can have a credit card with a $10,000 limit, use it, and not carry a balance over every month (i.e. not incur any interest) than there’s absolutely nothing wrong with that. If you can't, because you know you'll take yourself on a shopping spree and not be able to pay it back before the month is over, than a credit card is not for you my friend. On the low, I used credit cards to pay for all of undergrad. I charged my tuition on my credit card, used scholarship money to pay back the balance (I never charged any more than the scholarship paid) , and pocketed all cash back rewards . And boy, did I clean up on rewards
So, there's definitley ways to use credit and make it work for you, rather than against you.
I’m also a firm believer in keeping some of your assets liquid. While that same couple $80K couple could in fact save and pay for their house in cash, they could also save for a large portion of the house, take out a small loan (less than $50 K) and use what’s left of their savings and disposable income to invest in something that yields a sustainable amount of interest (with moderate risk). Since they’ve minimized their loan amount, they can take that 30 year mortgage (assuming a 6% interest rate or less) and pay it off in 15 years. Meanwhile the money they invested is making money, and that money is making money, and so on and so on…ike the song that never ends
So you see, it’s not credit that’s the issue. The problem, of course, arises when that same $80K couple decides to save nothing, is already bogged down with debt, opts out of shopping around for mortgage interest rates, and takes out a $300K loan just because the bank says they qualify–creating a vicious cycle of middle class poverty.
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Unfortunately I understand credit in a whole different light and I'm coming from a different standpoint. It's like Warren Buffet said in Fortune Magazine in an article in 2008, he said " People ask me all of the time what's the first key to being rich? He says "If you want to be rich GET OUT and STAY OUT of debt." He didn't say Get out of debt and then get back in and save enough for a down payment??? WTHeck?
Anyway… this is showing a plan of what can be done without CREDIT! You're telling me this couple should forego saving for a short amount of years to get something without ANY DEBT to stay liquid and finance $50K ARE YOU INSANE? LOLOL! So tie up your money for 15 years vs have a FULL DEED on a mortgage in 4?
Ok you're not making sense. Also if this couple was able to save $160K in 4 years, if they have a SCOTT FREE no RENT environment in 15 years they could save approx $640,000 and invest that.
Don't mean to go so hard but debt is like adultery to Tiger Woods… one short slip up and you're doomed!
OK BisforBrandy I hate the concept of debt and credit so much I went in. (My inner Ramit Sethi came out) I get where you're coming from but I definitely disagree. A debt free lifestyle is a stress free lifestyle. Truth is, If the couple did what you said, who's to say that their investments tank or they lose their jobs or one of them dies? It's ALWAYS best to have no debt. The idea is to NEVER tie up future money to get things NOW.
Have a great day!
Good article, I was not expecting to read about finances. Well put together, we sometimes don’t want to give up the extras to save money, but in the long run it will actually save money.
Thanks Christina
Great article Mr. CEO! Great info… definitely makes u think! So often people are "saving to buy a house" but not like u broke it down in ur article. They get enough for the down payment and that's it lol…and struggle for LIFE. Keep the articles coming… love it!
Once again Rance you outdid yourself. Very well written, and informative.
Well written article! It's got me thinking and revising some things on this plan to being debt and stress free. The student loans will be a factor in the next year or so, since I'm still in school. But, I am working on paying off the credit card and working towards having cash for things needed in the future.