No One Wants To Live Below, But It’s The Way To The Top

No one wants to live “below.” Right? We all know that status is the thing. The car. The house. The big screen or the new electronic device or even cell phone. I don’t know what your vice is. Mine is books. I’ve had to “check that.” We all want to be rich and live like the rich, right?

Who has to pay when we live like the rich? We do. If you’re not rich and you live like the rich, you have to do it on credit. Credit is expensive. It is the rich man’s way to make EXTRA money off of you.

In 1989 you probably didn’t have a cell phone. The average size of homes since that time has increased (while the number of people living in those houses has decreased in the U.S.) – did you know this? How does that make sense? Status. Of course.

Can you purchase a car for cash? Of course you can. Can you purchase a used car instead of a new car? Of course. Can you purchase a car on credit? Of course. They make it easy. Well, it’s easy up front. The longer you stretch out the payments, the more you will pay. That’s why car dealers always want to talk about how much you can pay per month. They want to make EXTRA money from you. Will a used car get you to the same locations as a new car? Yes. Will your payments be lower? A lot. Or no payments at all. What if you bought a used car for cash and no additional payments? Seriously, what could you save with five years in a used vehicle?

How can much can you save? Seriously.

If you are willing to dedicate your life to living BELOW YOUR MEANS FOR NOW you will be able to secure your future and actually grow wealth. I promise you THIS IS THE ACTUAL SECRET. That’s how the rich do it. They wait. They wait until they have very significant savings before purchasing something they really love and want. They take care of the liabilities first. They focus on building things that generate money for them. Why? Because that is how you become rich over time.

This country (U.S.A.) is filled with people who want to be famous now and rich now. Wealth can be created instantly, but that is like being struck by lightning. What we are talking about in today’s blog is the best way to secure real wealth-building that is guaranteed.

Less spending and more savings will make you happier later in life. It will help you build actual wealth. All these people keeping up with the neighbors will be POOR when they are older. And it won’t take that long.

But what about you?

Are you saving enough? You should have an EMERGENCY SAVINGS FUND of 15 to 18 months of expenses. If you don’t, let’s get you started on the path starting today.

If it can be done, you can do it. I don’t care who you are. And it can be done.

Start by saving 1% of your next paycheck and increase your savings automatically by 1% every time you get paid.

Stop using credit cards. Yes, seriously. Credit cards are the same as financial death. A promise to spend now and pay later is nothing but trouble. Get it out of your life.

Split your credit cards and rate them by the interest to be paid upon paying for your credit (you can’t own credit cards – credit cards OWN YOU). Pay the minimum on each card EXCEPT the one with the highest interest rate. Pay MORE than the minimum amount on that one until you pay it off. Put that credit card in your safe (you can get one for cheap at Walmart).

Go to the next highest interest credit card. Pay extra on it only. Repeat with each card until you have 0 credit card debt.

Then, congratulate yourself and move on to other debt.

Call everyone who sends you a monthly bill. Tell them this recession is terrible and you need to find a way to reduce your bill by 10%. Seriously. If they won’t help you, ask for a supervisor. Tell them you really want to be able to keep paying them and to continue to be their customer. But tell them you need help.

Don’t be afraid to ask.

Same with your credit card company (or companies). Ask for them to reduce your interest. Tell them that you will work to pay off your debt and you will stop using the credit cards until you have paid them off. Tell them you are focused on trying to survive and you need their help.

Don’t be afraid to ask.

It’s a simple case of assets vs liabilities.

Let’s focus on assets. Your home is an asset, right? Wrong. So, you should think about how you are going to get the liability out from around your neck. You have to have a place to live, right? Look at your monthly payments. Focus on the percentage of your payment each month goes to principle. Work to pay more than your monthly house note. Pay your house note and work to send another amount to the mortgage company each month. Call this a principle payment. Yes, it can be a very small amount. It adds up quickly.

Start by figuring out the percentage of your monthly house note actually goes to pay the principle. Then, write a letter to your mortgage company. Tell them that you are making an extra principle payment this month. Put a blank where you fill in the amount you will pay. Make copies. Each time you make an “extra” payment write that the amount of the extra payment and include your check. Make it a goal to make an extra smaller principle payment only each month. It really adds up – it really can take YEARS off of your mortgage.

Spend an hour each evening working for yourself. After all, YOU are the best asset you have. You can build your personal financial situation by:

1. Saving with coupons.
2. Saving with negotiation on every purchase.
3. Save your income tax return.
4. Save with automatic savings each time you get paid.
5. Pay down your mortgage.
6. Consider asking each business you deal with to take a 10% reduction in your bill. Ask.
7. Call the credit card companies – ask them to reduce your interest.

Remember: You are in a much better position to save when you have a job. Can you guarantee you will have a job in 12 to 16 months?

Nope. Can you improve your situation then by saving now? Yep.

Let’s get busy and put the rich man on the ropes. You and your family are what matters now. Get to work and develop your own action plan.

Check out our main blog, too (

Thank you!

Loyd Ford


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