comparing and contrasting good debt and bad debt
Posted by Betty on Thursday, August 19, 2010 at 10:03pm
desert with no money
Good Debt: I have shared a great deal about my struggle with finances. On second thought, most of my debts were good debts used for college education, buying a house, and starting different small businesses. Education created future investment for me even when business is slow or fails; it is something I can always fall back on. College education is something that will always stay with me no matter how the economy is. If, for example you are taking a home equity loan because you have 23 percent credit card, and you go with a 6.5 percent loan that is tax-deductible, that is good debt. Good debt is investment debt that creates value; like, student loans, real estate loans, home mortgages and business loans. Bad Debt: The concept of bad debt comes in when discussing the purchase of disposable items or durable goods using high-interest credit cards and not paying the balance in full. Every month that I made a partial payment on my credit account, I was charged interest. Bad debt for example would be using credit card to do shopping-clothing and food which depreciates and no return. Auto loan can be either bad or good debt. For many people, life without a car can be miserable. The concept of bad debt comes in when discussing the purchase of disposable items or durable goods using high-interest credit cards and not paying the balance in full. I used to enjoy buying clothes; some were probably not needed at the time and were worth forty five percent what I paid for them when I walked out of the door. It is not wise to use credit card to buy clothing or entertainment. I shared about paying just the minimum for my credit cards and the charges kept on going higher and higher. The disposable or durable item I purchased continued to lose value, and the amount I paid for it continued to increase. Read more here www.ccaafp.org/index.php/about-betty-odak/bankruptcy-book/
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Attitude and challenges in life
Posted by Betty on Saturday, August 7, 2010 at 7:31am
positive attitude
Many successful people do not have fewer challenges than unsuccessful people, they just have different mindset. Having money or no money may also depend on our attitude and how we use it.
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can money buy happiness?
Posted by Betty on Friday, July 16, 2010 at 4:11pm
expensive after meal
The Reuters did a survey and found that workers who get paid 50,000 pounds ($75,840) a year were the happiest bunch among those in the 10,000 to 70,000 pounds wage bracket, with one in five people saying that they had never felt more content with their lives. The wealthier, the more miserable, with people who earn above 70,000 pounds admitting that they felt less happy than those who take home 50,000 a year, a survey by money management website lovemoney.com found. "With a salary of 50,000 you've got the combination of perhaps a personality where you're more easily content with your lot but also at a salary which is very much above the national average," Ed Bowsher, head of consumer finance at lovemoney.com said. "Perhaps it's also partly driven by your kind of personality. The kind of people who have the ambition to get a job that is earning 70,000 or more may be the kind people who are never going to be satisfied." Challenging the belief that that money cannot buy happiness, 72 percent of respondents confessed that having more cash would make them happier, with 40 per cent of people earning 20,000 pounds or less saying that they hardly ever felt truly happy. The topic of money was also a major cause for distress, with 37 percent saying that they feel gloomy when they look at their bank balance. Read more on lovemoney.com. Jesus taught that the love of money is the root of all evil, but not having too much money.
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Debt & Spirituality - Chaper 11
Posted by Betty on Saturday, June 26, 2010 at 1:06pm
Debt
"Not being able to attend any church for almost two years meant my tithe of 10 percent to God was not going anyplace. I again felt like Haggai the Prophet (Haggai 6:1)—my pockets and purses had more holes in them than at any time in my entire adult life".p.57 www.ccaafp.org/index.php/about-betty-odak/bankruptcy-book/
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Chapter 4 - Finance and Marriage
Posted by Betty on Tuesday, June 22, 2010 at 10:37pm
ties that binds us together
Communicate—Be Open and Honest Many people believe that discussing finances is inappropriate, and therefore it turns into an uncomfortable issue. We bring this discomfort with finances into our marriages. Many times, wives leave everything for their husbands to do. This can be dangerous, especially when there is a divorce or death, or a husband who cannot handle finances well. My sister-in-law struggled with finances after my brother died in September, 1994. It is important to discuss several financial issues with your soon-to-be bride or groom to ensure you are on the same page as your future partner. You should discuss things such as your money management habits (Do you balance your checkbook? Are you a cash carrier or do you use credit cards?), your spending habits (impulse buyer vs. saver), your financial goals, and your income and debts. Read or buy the book for more information
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