Money Does Matter

\”… You choose\”

I hit the search button in my car a few days ago and stopped at \”The Dave Ramsey Show\”.
This is what the caller had to say:

\”I own two different houses in Florida; one of them is worth $250,000, and the other one is worth $350,000. Both of these houses are paid for.\”

\”I own a transmission shop, the whole is worth $400,000 but we only owe $70,000 dollars on it.

\”I also own our current home which has a value of $350,000 and I owe $120,000 on it.

\”Both me and my wife work, she makes $90,000 after taxes, but for the last 6 months I have not been able to bring anything home because of the economic downturn.\”

\”Due to the economic downturn, I have been trying to float expenses at the shop, and I have incurred $90,000\”

\”My wife does not want to sell either of our properties in Florida because we would lose over 45% by the time we pay listing and seller fees.\”

\”What is there, that we can do?\”

After ranting and raving about the wife being unrealistic in a crisis situation, Dave advised this poor fellow to sell one of his homes in Florida and get out of debt! This advice is tragic for various reasons. Here are just a few:

It assumes he values money over his relationship with his wife by mocking her concern and advice.

It assumes he can sell his property(s) in a very depressed market.

It also assumes that if he pays of his debt he will not incur any further debt in his business.

Besides it assumes that his financial disaster is over.

It goes against common sense by assuming that getting out of debt produces financial freedom.

But let us only examine the facts:

Suppose this gentleman could sell his house for 55% of what he has in it. He will receive the utmost ($190,000) on the $350,000 home, and ($137,000) which is even less, on his $250,000 home. He can then pay off his debt and then he will have $47,500 left over. If he keeps spending money at the same rate, in his business, this money will last him about 3 months. He will then find himself at the same place he started only this time worse. He will have no equity that he can liquidate, to save himself, therefore he will go back into debt. Strike one Dave!

Secondly, to be debt free is just an allusion in society as we know it today. I only know a few debt free individuals and those are the people holding signs at intersections or parking lot corners. In our society you cannot be debt free unless you own nothing. Whenever you own something you face taxes, services fees, utilities etc. So guess what? This means that to live you have to have debt. Strike two Dave. Nobody wants to be a homeless beggar.

Thirdly, Dave, you ignored the fact that this caller obviously has some financial acumen. Just consider his entrepreneurial endeavors. Your hack attack was totally uncalled for and totally off base. The old attorney trick, if you cannot find fault with the deed attack the person behind the deed was employed here by you Dave. So, strike three Dave, you are out!

If you will consider this fellows situation it will become apparent that he has made some very sound financial decisions, otherwise where would the asset accumulation come from? And I would seriously doubt that his wife was just an onlooker in this financial expansion. For Dave to insult her, and mock her was totally wrong. But what can you expect if you call a group entertainer for financial council?

So besides prolonging his bankruptcy by selling his personal property what is out there that could help this caller?

We will start with a true but little known fact. There is no rate of return associated with real estate equity. The wealthy have known this for centuries and acted accordingly. This is why the Infinite Banking Concept can become increasingly beneficial to you. You can keep your money in a very liquid and secure place, and still use the asset(s) which your money purchased (or purchases) and not be penalized for using your money which made the purchase in the first place. By Becoming Your Own Banker In fact if you use your money for financing current need and capital ventures… you will end up with more money and assets with only one little caveat… you will not have to work any harder or any longer to make that extra money because your money will be working for you.

So even though Ramsey rants and raves against it, participating whole life insurance is powerful tool available for anybody who is spending money today. Do not be fooled by the entertaining gurus who tell you otherwise. Who pays those entertainers? Bingo! It is the ones who are currently making money off you by using your money instead of you getting to use your own money to make money for you.

Tom McFie PhDis a professional financial coach and is nationaly known for helping people recover the money they currentley spend. Don\’t Make another payment until you have viewed his Infinite Banking Video Then Contact him he can help you