the provision group

Life Without a Mortgage

Congratulations go out to my in-laws who made their last payment this week on their dream home that they built in 1999!  And they are still in their 50’s! How did they do it?  Some came from the sale of their previous home; but a good portion was the result of my father-in-law taking a part-time job and making one extra payment each month.  What would you be able to do without a mortgage payment?  Do you even have plans in place to pay off your home early?  Imagine being able to save all of the money that you send out to your lender each and every month and putting it towards your children’s education, your retirement, or donating it to a church or a family in need.  Society today expects everyone to have two things: a car payment and a house payment.  One look around our country and you can see where that has gotten us!  I say we need to get “weird” and begin to set some new expectations for ourselves and our families.  A life without car payments AND house payments!  Remember, one of the greatest freedoms we can experience in this country is financial freedom!

Make Tomorrow Better than Today!

Ed

Your “Gift” from the Government

With tax season in full swing, I thought I would touch on the subject of the tax refund. If you get out of the house at all, you know that people are already talking about how they are going to spend their tax refunds. These people drive me crazy! Let me make this very plain and simple: A refund means that you overpaid your taxes throughout the year. It’s not a gift! You just paid the government too much money. You basically lent the government money (interest free); they invested it, made some profit, and then returned to you whatever you overpaid throughout the year. If you are getting a large amount of money back this year, you need to take a serious look at your deductions with your employer and make the changes to pay only the amount of taxes you owe throughout the year. When you do this your amount of take-home pay will increase and you can use this money throughout the year to pay down debt and get an emergency fund in place. Remember, a tax return is not a gift; it is your hard-earned money. Don’t spend it foolishly!

Make Tomorrow Better Than Today!

Live Like a Billionaire

Warren Buffet is one of the richest men in the world; his net worth is in the billions, yes with a “B”. This man can buy anything and still pretty much have enough money left over to support a small third-world country for many years to come. Did you know that Mr. Buffet lives in the same five-bedroom house he purchased in 1958 for $31,000? He also drives very common cars. Recently, he auctioned off his 2001 Lincoln Towncar for charity and purchased a new Cadillac (for $45,000). In a recent article, Mr. Buffet lists his dislikes as: boats, mansions, fancy cars, and pretense in general. Isn’t that interesting? One of the richest men in the world doesn’t enjoy wasting his money on material things. Look around your neighborhood; do you see boats and other toys lining the driveways around you? Take a tip from one of the richest men in the world: start living below your means and stop trying to keep up with the Jones’!

Make Tomorrow Better Than Today!

At Least it’s Paid For!

I can remember as a kid riding in the back of my parents car with my sister and my dad commenting on a very ugly car stopped in front of us with a bumper sticker that read “Don’t laugh, it’s paid for!” Do you remember those bumper stickers? It’s funny how you don’t see many of those anymore. Then again, maybe it isn’t funny, maybe it’s sad. The paid off car, for the most part, is a thing of the past. As I was going to work this morning, a very nice Lexus SUV pulled in behind me at a stop light. As he was looking at my “Debt Free and Loving it!” window sticker, I wondered to myself how many days or weeks (for that matter), that guy had to work in order to pay for that nice ride. My guess is that it would take the average person a good couple of weeks to make enough money for that car payment. I would much rather work to invest in my children’s future education, pay off my house early, or save for my retirement. How about you? If you’re in the market for a new car, please think again before signing the paperwork and putting yourself in debt for a “nice ride”. Now, I’m not against owning a nice used car when you can pay for it in cash. If you’re still in debt though, maybe all you need is a nice beater to get you from point A to point B. One with a bumper sticker that says “Don’t laugh, it’s paid for!”

Make Tomorrow Better Than Today!

Ed