The Total Money Makeover: Classic Edition
Page 24
thirty-year vs. fifteen-year, 172–174
Mortgage Bankers Association, 174
mortgage industry, xxii
underwriting, 36
mortgage payoff, 165–180
vs. tax deductions, 169
motivator, fear as, 133
mutual funds, 170
for college savings, 160
emergency fund and, 127
for retirement investing, 145–146
myths. See also Debt myths; Money myths
about college degrees, 152–154
N
National Auto Dealers Association, 33
National Guard, 163
National Underwriter, 55
negativity, xii
nest egg, living off, 147
net worth, form for, 222
new car
loss of value, 34–35
warranty for, 35
Nightingale, Earl, 59
“Ninety days same as cash,” 28–30
“No Credit Score,” 36
“Non-Traditional Credit” process, 36
“normal” American family, 1–2
average earnings, 75
debt, 105
O
obstacles, acknowledging, 74
online purchases, 38
origination fees, on refinanced mortgage, 173–174
overdraft protection, 101
overseas funds, 146
overspending, xxvi
P
“par” quote, 174
payday loans, 26–28
paying it forward, 192–193
peace of mind, 134
emergency fund and, 131
peer pressure, 78, 80
Penney (J.C.), 22
personal finance, behavior in, ix–x
personal stories
bankruptcy, L. & S. Hickman, 65–67
budget
W. & S. Frick, 77–78
T. & T. Kiger, 91
S. & J. Marsh, 92–93
B. & T. McKinley, 84–85
J. Morgan, 94–95
D. & K. Schmidt, 81–82
challenge winners, K. & C. Morrow, 201–203
college funding, C. & K. Seymour, 157–158
credit cards
S. & A. Bledsoe, 99–100
A. & L. Cluff, 40–41
J. & T. Eller, 116–117
D. & T. Jarrett, 42–43
M. & K. Stolworthy, 6–7
debt
J. & T. Atwood, 129–130
S. Hogenhout, 162–163
M. & K. Reep, 10
T. & M. Skinner, 69–70
A. & M. Wessner, 20–21
debt-free living
S. & D. Howerton, 178–179
K. & K. McGinty, 186–187
M. & K. Stolworthy, 6–7
Debt Snowball
D. Dangerfield, 113–114
S. & A. Farrar, 107–108
J. & A. Hopkins, 110–111
C. & J. Schubeck, 166–167
gambling, T. Newman, 13
giving to others
R. & T. Brewer, 191
L. & L. Lokietek, 195–196
health issues, C. & K. Rhoads, 72
investing
A. & K. Ivey, 150–151
L. & L. Lokietek, 195–196
retirement, J. & K. Robinson, 142–143
savings, V. & J. Smith, 160–161
single mom
R. Gonzalez, 125–127
A. Key, 138–139
student loans, M. & K. Stolworthy, 6–7
Pinnacle Point, 187–189
points, on refinanced mortgage, 173–174
potential, 150
prayer, 127
prepaying college expenses, 57–58, 157
pride, xxv
principles, 139
priority, 89
emergency fund as, 136–137
retirement fund vs. mortgage payment, 144
Pro Rata Debt List, 227–228
problem, recognizing, 9–15
propaganda, 17
prosperity, debt and, 19–22
Pukke, Andris, 61
Q
quitclaim deed, 63
R
rate of return, xv–xvi
on gold, 52
real estate. See also home purchase
investment, 53
Recommended Percentages worksheet, 225
recovery, xxiii–xxiv
refinancing mortgage, 121–122, 173–174
relationships, 153–154
impact of loans, 22–24
relatives, loans to, 22–24
rent-to-own, 26–28
rental properties, mortgages on, 122
repeating mistakes, 87
respect, need for, 83
responsibility, 7–8
for money management, 185
of wealth, 198
retirement
defining, 141–143
with dignity, 142
expectation for standard of living, 142–143
funds needed, 147–151
insurance policy savings for, 55
investing, 140–151
in mutual funds, 145–146
outlook, 50–51
personal stories, J. & K. Robinson, 142–143
saving for, 120–121
time for planning, 58–59
return on investment, on prepayment, 58
rip-offs, lending examples, 26–28
risk
of debit vs. credit cards, 38–39
debt and, 19–22, 171
denial, 49–50
and emergency fund size, 129
Rivaroli, Antoine, 197
robbery, risk of, 67–68
Roth IRAs, 146
S
sacrifice, 177
sales quota, and discounts, 29
SallieMae, 156
savings
for college, 156–158
for down payment, 137
form for breakdown of, 221
insurance policy for retirement, 55
mission for, 8
personal stories, V. & J. Smith, 160–161
for retirement, 120–121
using to accelerate Debt Snowball, 132–133
savings account, for emergencies, 125
savings bonds, college savings and, 157
scams, 53
scholarships, 164
Sears, 22
second mortgage, 46, 121–122
Secret Santa, 192–193
security, 141
false sense of, 196–198
women and, 133–134
Seeds of Kindness, 192
self-employment
emergency fund for, 129
Irregular-Income Planning sheet for, 94, 217–218
SEPPs for, 146
selling possessions, 115–116, 202
SEPPs, 146
The Seven Habits of Highly Effective People
(Covey), 59
short-term investing, vs. long-term, 145
Sills, Beverly, 20
simplicity of plan, xiv
single mom
with debt, 102–103, 120
personal stories
R. Gonzalez, 125–127
A. Key, 138–139
sinking funds
form for, 221
Lump Sum Payment form, 223
small business
debt of owner, 122
ideas as scams, 53
small cap funds, 146
Smart Money, 32, 33
Social Security benefits, 145
Social Security number, getting new, 62
spending, practical, 40
The Spirit of the Disciplines (Willard), 198
spiritual behavior, 199
spiritual maturity, 197
spouse
agreement on financial plan with, 132–133
budget agreement with, 95
trust in, 119
Standard & Poor’s 500 index, xv–xv
i
standard of living, expectation for
retirement, 142–143
Stanley, Tom, The Millionaire Next Door, 78–79
state college (529) plan, 159–160
Stewart, Larry, 192–193
stock market, 53–54, 145, 185
straight-line depreciation, 34
stress, health issues from, 66
stress-tested theories, xxiv
student loans, 43–44, 155–156
personal stories, 6
M. & K. Stolworthy, 6–7
“underserved areas” programs for
repayment, 163–164
subprime loans, xxii
success
factors impacting, 153
life principles and, xxv
requirements for, 93
summer sales jobs, 163
T
tax deductions
vs. mortgage payoff, 169
unneeded business expense for, 34
tax on poor, lottery as, 56
teenagers, credit cards for, 41–44
term life insurance, 69, 71
Thatcher, Margaret, 190
thirty-year mortgage, vs. fifteen-year, 172–174
time, for budget planning, 58–59
timing for home ownership, 137–138
Total Money Makeover. See also Baby Steps
mentality, 49
motto, 5–7
winners of challenge, 201–203
Tote-the-note car lots, 26–28
Tracy, Brian, 93
trailers (mobile homes), 56–57
trust, in spouse, 119
truth-in-lending statement, 32
U
“underserved areas” programs, for student
loan repayment, 163–164
underwriting, 36
universal life insurance, 55
UPS, 161–162
USA Today, 143, 156, 158
used cars, or car payments, 30–32
V
Visa, 38
Zero Liability policy, 39
vision, 119
W
Wall Street Journal, 11
warranty, for new car, 35
wealth
building, 3–4, 138–139
for retirement, 143–145
fun from, 182–184
giving to others, 189–191
impact of, 182
for investing, 184–189
quest for easy, 50
quick acquisition programs, 52–54
reaction to, 196–198
uses for, 182
Wealth Builder, 142
wealth team, characteristics of members, 186
Whole Life for babies, 157
whole life insurance, 55, 70, 73
will, 73
Willard, Dallas, The Spirit of the
Disciplines, 198
women, security and, 133–134
work
extra hours, 118
joy from, 141
work-study programs, 161
worksheets
Allocated Spending Plan, 212–216
Breakdown of Savings, 221
Consumer Equity Sheet, 222
Debt Snowball, 219–220
Income Sources Recap, 226
Irregular-Income Planning worksheet, 217–218
Lump Sum Payment form, 223
Major Components form, 224
Monthly Cash Flow Plan, 209–211
Pro Rata Debt List, 227–228
Recommended Percentages, 225
Z
zero-based budget, 94
0 (zero) percent interest, on car loans, 34–35
Ziglar, Zig, 12, 92