There’s a prevailing belief in America that in order to rent a car you need a credit card.
Well, it’s just not true!
In most cases, you only need a debit card. Most car rental places will accept the use of a debit card.
And there are huge benefits to this, too. The most important being that when you use a debit card, you’re using money that you actually have, instead of money that you don’t.
Using a debit card, you can’t get into debt! How cool is that?
With a credit card you’re paying extra to use money that you don’t even have. And statistics show that about 60% of people don’t pay off their credit cards every month.
You can still rent hotel rooms and cars when you travel with a debit card. Just avoid the places that don’t let you. Simple as that.
And when you’re making multiple six figures a year doing online marketing for local businesses, you can afford the ability to travel the world, both in money and time.
That’s just what the guys who run Properties Property do. They work with local businesses, write the articles teaching others what they’ve learned about local online marketing along the way, and travel the world. All without credit cards.
They use what’s in their bank account! No need to borrow money anymore. They’ve earned their dough.
The truth is that “it’s stupid to guarantee someone else’s loan.” That’s Proverbs 17:18 right there, baby.
As we covered in this post, debt is shoved down our throats and aggressively thrown in our faces in our culture. And yet everyday, all over the country, people are cosigning as the savior for someone they know… that someone whom this aggressive industry already turned down.
The industry turned them down because they know, statistically, that that person most likely wouldn’t be able to pay.
And then you come in (if you’re the cosigner). And now, the statistics are high that that person won’t pay, when you don’t, guess what?
That’s right. You have to pay it.
This can damage your credit, or ruin it.
And why do we make this decision? Is it the logical thing to do?
If you have the money, give it. But don’t lend it. At least not to friends and family.
This is yet another myth busted by Dave Ramsey with the help of yours truly.
The myth is: Loaning money to relatives and friends helps them.
If you give money to someone without expecting anything in return, that’s fine. Any relationship you had with that person you gave to isn’t going to be affected.
But if you lend money to your friend or someone in your family, you’d better be prepared for what can happen. Be prepared for that relationship to be either destroyed or impaired.
What happens when you lend money like this, even if it’s just $50, is that the borrower becomes servant to the lender, just like, as the bible says, the poor is servant to the rich.
Whether it’s $50 or $50,000 loaned amongst friends and family, somehow this changes the relationship dynamic.
“Debt is not a tool.” These words are the subject of Total Money Makeover’s chapter 3.
No matter how much we think it is, or how much we’re programmed to believe it is, it just isn’t.
There a bunch of myths that we believe about debt. Many of these have been with us for years. Here, we’ll cover some of them.
Debt should be used as a tool to create prosperity.
Nope! In actuality, debt is risky and usually doesn’t bring prosperity at all. For some reason, in our society, we believe that wealthy people use debt more than they really do.
What could that reason be? Could be a message that’s been pounded into our brains for so many decades that it’s become a part of our culture? Yeah, probably. I talked about this in the last post.
Other people’s money. Sound familiar? OPM? How many times have you heard, in any of the entrepreneurial or business paths you’ve gone down, that it’s good to use other people’s money. Because if you don’t have any of your own, use other people’s as lever… to lift what we wouldn’t be able to otherwise on our own.
OK, I’ll admit, I’ve bought into this plenty. There were times in my life when I just couldn’t get where I wanted to go without the help of someone else, even if I didn’t know that someone else. I needed cash flow!
Over the years, debt has been perpetuated by the banks and the major media that debt is a tool.
It’s become so effective at getting money out of consumers that it’s become an art, it seems.
Notice how there are no ugly, fat people in any commercials. Attractive, fit people driving the cars or eating the burgers implies that we’ll be fit and attractive, too, when we consume that product.
Specifically about debt, though… Banks use the media to deliver their message.
Now I don’t think that there’s some conspiracy between them! It’s just that banks pay well. And anybody who can pay can have air time. On top of that, corporations tend to be amoral. Meaning, in this case, they’re not going to censor or decline a message because of its content. Rather, “money talks! So let’s air it.”
These messages encourage people to get into debt in order to get what they want… NOW! Now, we have a society of “I must have what I want NOW. I get what I want now,” instead of delayed gratification.
Because of this, millions of people in america and all over the world suffer from severe debt and lack of freedom.
Why is this harmful?? What do we care if we’re in debt? Does it really affect our lives that much? Silly questions, maybe (because the answers are obvious, aren’t they?), but important ones. Of course debt affects our lives.
How much do you really like sitting around the dinner tabe trying to be a responsible adult and pay the bills and have food to eat and clothes for the kids? And instead of being met with success and the natural ways the world works (ease and flow), you’re met with worry, frustration, feelings of lack and insecurity, uncertainty about where the next payments are coming from.
A lot of people talk about saving but few people actually do it. It takes discipline to save for anything you might want or even need. The hardest part about saving is putting off something you might want now for something even better in the future. Our society today has caused this notice of must having what we want now and not putting off until tomorrow.
This has cause many people to get into debt and hurt their financial future and that of their kids as well, because when you fail to save you are putting you and your family at risk. If there were to be an emergency that you didn’t have the money to cover then you will most likely have to put that expense on credit, borrow the money, or do without which can be even worse depending on the emergency. Below we will discuss five strategies for saving for the future.
Planning for the future starts with budgeting. This is a term many people do not like to hear but it necessary when you have something to save for or if you are trying to get out of debt. Budgeting is the beginning of you becoming financially sound and being a good steward over your money.
There are several ways you can begin budgeting and planning for the future and we will discuss 5 ways below:
1. Creating a list of monthly income – It all starts with making a list of all of your monthly guaranteed income. This is the money you make from your job, investments, and/or other residual income opportunities. This is the money that you know you will generate every month. When you create this list you will get a clear idea of what you have coming in monthly and what you have to spend.
Welcome to the Global Information Society blog, or GIS for short. We are your website for up-to-date financial information. Here you will learn about the global financial markets and how they impact you on your home front. Though every area is different we will strive to provide you with information that is pertinent to you. The focus of the financial information will be on the United States, but from time to time we will cover foreign markets as well.
There are always financial disasters, and if you look throughout history you can see one financial debacle after another. The constant in these moments in history is change and adaptation. The people that were financially sound and secure were able to handle the financial downturn and in many instances thrive during the period. If you look throughout history often times the haves were able to grow their net-worth during the economic downfalls. Though there is never a time to profit off of others, during these economic hardships some people grow their finances.