Go West Coaching
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August 4th 2013
Money lies that we believe
Article Headline
Money and lies
They say if you tell a lie long enough that people tend to believe it. That is certainly true in the political world and in the world of personal finance.  We will try to shed some light on some of those lies we have believed.   
Money and Lies
There are a lot of lies we are told to get our money.  They try to make them sound like they are giving us a service we desperately need and they will be saving us money.  I have fallen for them and so have a lot of other people.  My job is to help us to not fall for the lie again.  Here go a few of the lies we tend to believe;

1. If I co-sign a loan for a friend or relative I will help them out. This lie has hurt a lot of relationships.  It may have helped a few by getting someone out of your life that made it better! For most it has required the cosigner to pay the loan and there was a lot of damage done to the relationship.  Remember the bank requires a cosigner because they do not think that person will pay it back.  Don't cosign! Prov. 17:18

2. If I cannot afford something I will rent to own/ do a payday advance/ or title pawn my car, to get the money for what I "NEED".  Most of the time what we think we "need" could be a want. These methods of borrowing are a terrible way to get money. They charge huge interest rates and you stay in bondage to them and pay back sometimes triple as much as you borrowed. These are greedy rip-offs. Avoid them at all costs.

3. Playing the lottery can make you rich, and I am helping students. Besides someone will win why not me.   I once helped a friend clean out a foreclosure house that had 5 years left on the mortgage, with three working adults living there.  Your guessed it, they got hooked on the lottery and lost their home!  I will agree with Dave Ramsey about the lottery.  It is a tax on the poor and people who are not good at math.  Even when people do win it most of them go broke a few years later because they have not developed the character to handle it. Poor people are sending rich and middle class kids to college with their lottery money. I will agree with the commercial that you are more likely to get attacked by a grizzly bear and a polar bear in the same day than winning the lottery.

4.You are always going to have a car payment!  If you buy a used car you are just taking over someones old problems.  This is usually just a reason to justify buying a new car.  We get all hyped up on the car lot. Just remember the new car is not nearly as impressive after about six payments!  Guess what there are good used cars out there. A new car looses 50-70% of its value in the first 4 years and most people owe another year on it.  Take your time and buy a good used car, that's what most millionaires do. The average car payment is around 400.00 a month. Pay it to yourself. In stead of the bank!

 I will cover more of the money lies we have bought into in next week.  Its always better for us as consumers to save up and pay cash for things we want.  I know we have to wait longer sometimes but it builds the muscle of discipline and keeps us from wasting as much money than when we borrow. I am not saying dont by things and just come out of the house on triple coupon Thursday. Be wise and a good steward.   Think about this- we deposit 1000.00 in the bank in a savings account and earn less that 1% interest.  We get a credit card from the same bank with our $1000.00 in it and they loan it back to us in the form of a credit card at 14-20%.  Not bad, for them!  Thank you for reading and let me know if you have any questions I can help you with.

Quotes to think about:

A man in debt is so far a slave.
Ralph Waldo Emerson

The rich rules over the poor, and borrower is slave to the lender.  Proverbs 22:7

A church debt is the devil's salary.
Henry Ward Beecher

"It's only too late if you don't start now" -- Barbara Sher
 


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