Financial Overhaul? Why would I need that? – Course #1
Living with a bad financial history is a pattern. The pattern always repeats itself. Nothing ever seems to go right. Money is always scarce. For many people who have recently filed bankruptcy, this is the reality they have always faced in the past. Finances are always failing.
This is why many people who file for bankruptcy need a complete financial overhaul. The old patterns and ways of doing things simply do not work. A totally new frame of understanding must be achieved for future financial dealings to truly change. With this reality in mind, we have created the 7 courses entitled, The After-Bankruptcy-Financial Overhaul.
Still, why could you need a complete financial overhaul? Let’s consider some of the below scenarios. Scenarios can have a way of showing need that other arguments cannot:
Scenario One: The Automobile Dilemma
You recently encountered a major breakdown with your automobile. The repairs required are costly and uncertain. You have no savings prepared (as usual). You need to get to work or you will lose your job. You call around, but the commitments you can find for rides to work are shaky at best. What do you do?
The Wrong Choice: Out of desperation, you buy a financed vehicle at wherever dealer will offer you financing.
In our experience, the most common choice (poor choice) is to purchase a financed vehicle with whatever place will provide financing. Do you know that if you buy a financed vehicle in such a dilemma you could be guaranteeing that you will need bankruptcy soon again? Such vehicles are frequently coupled with impossible loans to pay. Even if the loan is fair and affordable (which is rare now days), what will you do if the car fails down in the next five years?
In such situations, repossessions are common. The creditor will eventually go after the deficiency which can sometimes be much in excess of $10,000.
Scenario Two: My New House!
You know how much housing costs (or so you believe). You know full well that it always costs over $1000 per month in rent or mortgage payment to get a “nice” place. Your bankruptcy went well, a couple years have passed. It’s time to finally get a nice home! You arrange a house purchase and get financing through a bank. You thought that your payment would only be $1050 per month with the mortgage calculator. You are surprised when you find out the payment is going to $1348 per month with insurance and taxes.
The Wrong Choice: Falling into any type of expensive housing trap like the one described above.
In our experience, the above describes a noble goal that so many of our clients hope to achieve: owning their own home. However, if you purchase a home like the one above you may be guaranteeing that you will need bankruptcy again within the next 8 years. For most people, the above property setup will be impossible to pay over the long term. For those who have the financial resources to do pay it, getting into such a deal is still a waste of your financial time.
This house will probably require almost $2000 to operate each month with utilities and maintenance added. This requires $24,000 of net income to only go towards housing! This amount would take up the vast majority of your precious income, leaving little to pay for the rest of the bills. Any job loss or unexpected expense would spell instant failure. If no unexpected things occur, you will be using every piece of your income to support your home. You will never be able save or retire. Your net worth may be $0 now and stay $0 until retirement age.
Conclusion: You need a Financial Overhaul to Live a Better Life
Many people live paycheck to paycheck. They live in a pattern that goes from crisis to crisis. If you would like to have free financial wisdom to break this cycle, unlimited amounts of materials are available to you. But, why not just start with the commitment to through our financial overhaul course. You can start here and then make a commitment to continue learning. This will result in a refined, much-more-enjoyable financial existence!
This is where the “rubber meets the road.” It’s all about truth. A lot of changes, big changes, will need to be made. If you are willing to commit to drastically changing your financial viewpoint and habits, then a whole new exciting world will soon open for you to enjoy!
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To move on to Financial Education Course #2 click here!