How to make your old car last forever.

This will be a post about your ‘old’ car to make it go lots and lots of miles before it breaks. Or to make sure your new car will break the record of miles for that model. This way we can proof to you that you don’t need a freaking car payment .

My current daily driver.

Currently I drive a BMW E46 build in 2004. powered by a 2.0 liter diesel engine. It has around 165.000 Miles or 264.000 Kilometers on the dash. I’m doing my best to make it last forever, until they ban Diesel or when it costs too much in repairs. The car is currently worth around $1.000 – $2.000 or so, so driving it into the ground is the next best idea. Maintenance is not bad at the moment, I will be recording what the costs are to keep the car running.

I bought the car last year on July 2017 and driven it now for more than 1,5 year. We’ve been to Hungary and back. Next month we’ll be going to Luxembourg and back. Probably next year to Croatia and back through Italy. We will see how the car holds up and what the maintenance costs will be.

The things I changed on the car because it needed it:

  • One new coil spring because 1 was broken the moment I bought it. (So I knew this).
  • Serpentine belt, Got it changed because it was making ‘slippery’ noises, Didnt need to but I didn’t want to risk breaking it.
  • I changed the oil now 2 times in 40.000km. I plan to change it every 20.000km full synthetic.
  • Tires just got changed in December 2017. Got them at a good price, €70 each. So €280 for 4 new ones. All season, no changing tires until they are finished.
  • I’ll keep it updated how the maintenance will continue. Next year in March there will be the yearly check we have in the Netherlands: the APK. We’ll see how the car will hold up.

So what is the beamer doing on diesel consumption? It aint eating fuel as much as I thought, but I also drive as an old guy.

My average is around 1 liter on 19 KM. Factory consumption is 1 liter on 17 km, so I get a win there.

Average 44.7 Mpgs.

I probably can get it even better to 1 on 20 kms. But no highway and city driving then, only 80 – 100 km roads.

So you are going to ask when am I gonna cut to the chase and tell you how to keep your car lasting forever.

We’ll this is one of the biggest ways to keep your car in good condition. Driving it ‘easily’. Don’t go hard on it.

Especially when you cold start it and aint driving it warm. Depending on the car’s engine size, your car will at least need around 10 miles to warm up your oil. For most people in the Netherlands that will most likely be 15 to 30 minutes drive. Be sure to wait 1 minute before driving away. Once you start your car, all the oil will be inside the oil container and before it is at all the right places to smear, you need to have some patience. Don’t start the engine and directly put your pedal on the metal like all other 99% of the people complaining about oil leaking out of their car.

The oil system is the most important thing in your idea for letting the car run forever. Always let your oil get warm! Don’t drive your car for like 2 miles and stop it. It will get sloughed up and your metal bearings wont get the accurate oil smearing.

If your job aint that far away go on a bicycle or get a car with a small engine. The smaller the engine, the less time it needs to warm.

I use to drive a Volkswagen polo 1.2 liter diesel for more than 1 year. It took around 5 – 10 minutes to get warm, my 2 liter  BMW really needs 20 to 30 minutes to warm up. Depending on weather conditions. These minutes are driving minutes at around 2.000 rpms, idling for more then 5 minutes is only wasting fuel. 

Keep in mind that in the winter, once the temperature goes under 0 celsius, you will need to drive more to warm up the engine. When I drive to work in winter my car doesn’t even warm up to normal operating temperatures.

Anyway, lets talk about some key systems we have in our cars.

How about the oil system?

You can say the oil system is one of the key factors in keeping your car in mint condition. It’s the heart of your engine, pumping the blood through the engine parts.

Lubrita_HowTheLubricationSystemWorksInAnEngine

picture by Lubrita.com.

Changing your oil is an important key to keep it running well. Experts used to change it every 5.000 – 10.000 km. But with the new synthetic oil, I would suggest 10.000 to 20.000 km. Also depends on weather and driving conditions. If you always drive your engine warm and don’t drive in Siberian like weather conditions then 20.000 km will do fine. If you live in cold weather conditions and you don’t drive long to work/groceries then I suggest changing it every 10.000 km.

Do you drive even lower than that? Then I wouldn’t really focus on the kilometers/miles that you drive, but change it just every year. Oil contains ‘shitty’ chemicals that decompose in time, so the time length is very important too.

Be sure to keep a check on the oil level, it may be that your car uses oil. If your car isn’t using oil then be happy, you got yourself a great engine! Does it burn or use oil? Then be sure to keep a checklist on how much oil it uses.

Keep a journal with the date, how much miles and how much you filled the engine up. And check if you are within the responsible limits of oil use for your car.

I check my engine oil level every 2.500 kms to make sure the engine doesn’t use oil.

Oil consumption depends highly on the age and wear of the car. The older the car, the more its ‘normal’ that a car can use some oil. If you just got yourself a brand new car and it uses about the same as your old one, then the car has an issue that can take a lot of work to repair.

If your ‘old’ car burns oil, say around 1 liter in 2.500 – 4.000 km that would be normal. If your ‘new’ car burns the same kind of oil, you will be pissed of because of such a shitty ass car.

When your old car begins to use more than 1 liter in 1.000 km the car will begin to show some serious issues. If you don’t get it repaired or checked then the chance will be that you’ll get a serieus repair bill underway. My suggestion will be to check how much the repair will costs. If it’s over the value of your car then I would suggest trading it in for a different car.

My own car has around 165.000 miles on it and doesn’t use any oil whatsoever. So I’m Lucky I have a very good engine and i’m planning on keeping it that way.

What happens if you forget or save on oil changes?

We’ll the engine will clog up on oil sludge, the oil will become thicker and stick to engine parts. Meaning the smearing it suppose to do, wont happen and circulation will get harder. Lack of oil pressure and flow will appear. meaning oil circulation will stop and the parts will continue moving metal on metal. The metal will get very hot and melt itself stuck, melting the engine like the terminator did in terminator 2.

So get your oil and filter changed on time.

The filter is there to filter out the ‘shit’ from your oil, so get the filter changed too. Don’t save on it, it’s not worth the money.

How about the cooling system?

The cooling systems that cars have are : Liquid cooled engine or air cooled engine. 

We will be talking about a liquid cooled engine, because that’s what most of the engines use today.

how-the-coolant-circulates

Picture by howacarworks.com.

The cooling system is also a very important key in your car’s engine. The cooling system is responsible for keeping the engine ‘cool’ enough to prevent severe engine damage. So it’s highly important to keep the cooling system in mint condition.

Meaning that you keep your eyes open on your cooling liquid. All cars have a reservoir that you can open, it contains an indicator on how much is in the reservoir and how much is min/max. If the indicator is low, then you will need to fill it up until the indicator in around mid/max. Be sure to check your cars manual what kind of coolant is required in your car, there are different ones. my car uses a blue one.

Be sure your engine is cool enough before you open the reservoir! the water is very hot after driving and steam will blow out if you open it when it’s too hot. The best time to check it is before you start your ‘driving’ day when the engine is cold.

Also be sure the liquid is clean, no ‘bubbles’, fatty or oily look. If the liquid is dirty or bubbly. There is definitely something wrong.

Bubbling means there is false air going in the cooling system. The reason there is false air going into the coolant is that a leakage is present in the system. If the liquid is dirty then the most common reason is that an other liquid is leaking into the coolant. What is on the other side of the coolant? Well that most likely is your great black gold called oil.

Believe me you don’t want that beautiful oil into your coolant. Once you have that issue, you better of just trading in that car for a different (better) one. Because the repair will be very expensive and there is a chance that it doesn’t even fix the problem.

Other systems that are important are :

  • Cleaning system for your windows.
  • Brake system and the fluid it uses.
  • The Gas that you pump into your tank.
  • Other miscellaneous

These systems are part of the normal maintenance that you do every year or every 15.000 miles or so. You check them or let them get checked by a mechanic and then your good to go. A different part is of course the gas you put in the car.

You should find out which gas pump gives you high quality gas or diesel. This is very important. The cheap one may save you 10 cents a liter but if its dirty as fuck, it will create extra carbon build up inside the engine.

Unless you drive like a gazillion miles a day, it won’t save you that much money. So find out if there is a gas pump that has good quality: Shell, Exxon or total can most likely bring you some good quality fuel to pump into your car.

You should see it as a long term investment.

If you keep eating pizza and hamburgers your health will fail over the duration of your life. But eating healthy can give you a lot of benefits along the way.

You ain’t gonna be dumping pizza’s in your car everyday and expect it to last forever.

One of the key factors in driving a car very long is also of course, choosing a good car. The reviews I have read about my Bmw where very good. It’s also a diesel, so I’m sure the engine can achieve a lot of miles. I believe one of the best cars are Toyota Camry’s, Honda accords or Mitsubishis. You should check out everything about the car you want to drive and buy. Check out what the common issues are with that car and how much these repairs can cost. If there are little repairs that are caused by wear then you should not worry about it too much unless you are searching for a new car.

If the car has real issues, like oil dripping, engine failure, electrical failure, over heating, things that just keep failing inside the car. Then I would suggest looking at a different one.

Even if you get the best car and go to check it out. If the car runs like shit and the engine under the hood looks like shit, the owner probably sucked the life out of that car and you don’t want to be the one fixing that bullshit. I would suggest bring somebody with you that has some knowledge about car engines. so he can give you some advise on how the car has been taking care of.

If there are some hefty issues it will most probably come up in a test run. Be sure to take that before you buy!

If what you want is reliability and good gas mileage I would still suggest taking a diesel over a gasoline car.

You can say whatever you want that diesel sucks and hybrid/electric is gonna take over the world. But they havent found a car that can achieve as many miles, that is as reliable, not having to charge your batteries and not having a lot of problems as a diesel engine. Why do you think the diesel engine is considerd the ‘work’ engine. Its the engine that drives the load. That puts the power for work. Not speed. But loads and loads of heavy stuff.

Until there is a reliable replacement for that kind of utility in the world, I will never replace diesel if you drive a lot and need a ‘good’ car. But it varies in what kind of country you live in. America doesn’t have a big eye for diesels and after the Volkswagen group fucked up the entire ‘good’ idea. I don’t think it will be making a come back in the states.

Lets say you don’t drive a lot or diesel costs way to much in your country, then I can understand you will get a gasoline engine. There are certain advantages in having a gasoline engine. Small engines today have likely the same gas consumption as modern diesel engine.

But where I live it’s still a good idea to own diesel, so ill be enjoying it for a while as long as it drives good and its cheap.

Anyway,

Keep on driving your car clean and mean.

Let it run forever by driving in a slow pace, saving some money on car repairs and speeding tickets.

Until later,

Uuldriks Financial.

 

 

Is saving the way to wealth?

Saving your money and putting it in a sock or letting it grow in your bank account, is that really a way to find wealth and freedom?

We’ll lets find out.

What is saving?

Saving money is conserving a percentage of money or ‘income’ for a date in the future. You don’t spend it now, so you can use it at a later time.

The most common reason why people save money is to spend on something like a car or a house. Maybe a vacation or 2. And that’s fine.

But what a lot of people forget is that the money we currently or used to have are all currency’s used to trade for something you want.

Before we had money we used the barter system to trade things with Each other, but its proven that this way was way harder than accepting 1 currency that we all can use to trade things with. So a smart person, Lydia’s king Alyattes minted the first coins and later the chinese people created paper money. Because they started using ‘currency’ and left the barter system behind, trading began to easily grow around their country’s.

The problem with currency is that the value it contains is created by the trust it has given by the people. Example: If everybody trades their dollars for Yen because China takes over the entire world, your dollars will lose all their value. Bye Bye to your pile of cash under your matres. You saved your entire life for that money and now its all useless, That’s a fucked up situation.

So the reason we save our money is to exchange it for something, specifically something that ‘grows’ in value or provides an income.

They call them Assets. Meaning Stocks, Real estate, flipping cars, buying old cars and keeping them to increase the value. Other assets are businesses or royalties from creating books & video’s.

A huge Asset is your time and the value you bring with your time for other people. You can get paid sincerely for it.

If you don’t invest your money it will get worthless like the example above. There is a silent destroyer of your hard earned money and that is ‘Inflation’. Inflation is the rising costs of goods and services that you buy because the value your money is going down. Take a look at your monthly bills every year, there will be a steady increase because the companies that offer their services want to keep their profits at a good rate. The inflation Rate means how much inflation increases in percentage per year.

Most times your boss ain’t as nice for your salary to increase at the correct inflation rate and you are than getting behind on everything. Keep building up inflation over 50 years and most people who didn’t focus on this problem will begin to lack funds to even buy cheap things in life. People will complain about gas for their car, driving to other ‘states’ or here in Europe to different country’s because it’s just a few cents cheaper there. This is a shit show on wheels man, be carefull about inflation.

You don’t want to be worrying about gas becoming $10 cents more expensive next year.

The average inflation rate for the United States from 1913 untill 2018 is 3.15 % per year. So this means that the average savings balance  $33,766,49 is losing $1.063,64 of value every year. Poef, just gone. You could spend it on something nice right? Sure you do.

Well lets say you get that money that’s stashed under your matres and put it safely in a bank savings account. One of the best interest rates we can find is the Ally bank savings account wich provides 1,85% annually. This interest rate would give you $624,68 year, meaning with that kind of inflation rate you are netting -$438,96.

Inflation rate from 1910 untill 2010: (Source wikimedia).

1200px-US_Historical_Inflation.svg

That’s not a great way to grow your money. You will never get rich saving your way to a million bucks. Banks are in the business of making money and not losing it, so the interest rate you will receive will never exceed the rate your bank will ‘loan’ you money.

You will have to find an other way to grow your money to the status of wealth.

Should you have some money in your bank and in your wallet? Sure, you always need some money incase shit hits the fan. Your car could break down or you can experience a layoff or 2 in the future and you will need to be prepared for these nasty situations.

I would say to at least save 6 months of your monthly expenses and if you’re a 1 income family or you can’t find a job easily increase that amount to 12 months of savings.

If you spend $2.000 a month on your ‘recurring’ expenses, things like food and housing that would be like $12.000 – $24.000 in your savings account. Maybe you can save some money on things like car gas and spending in the personal area if you are out of a job, meaning you can use your saved money for a longer time.

Once you have reached your savings goal to de-stressing your family’s financial situation you can focus on the bigger goal and that means creating financial independence for yourself. Meaning you can do whatever the fuck you want and never having to stress about finances again.

Be sure to pay any ‘bad’ debt off before you start your journey to saving 6 – 12 months of expenses, because you sure ain’t gonna get more of a return then your credit card rate of 18%. Pay that shit off before you start anything else.

You want to save and pay off debt? That’s useless man, when you pay off a credit card and an emergency comes your way without a savings account, you can still get money from your credit card to pay for the emergency. The chance that it will happen is also very slim. Paying off car payments or personal loans is in a different category as these loans usually don’t let you take money from it if you need the money. So be sure to at least get $1.000 in your bank account for nasty situations like a flat tire on your car.

Once you pay off your bad debt and achieved your savings goal. You can focus the rest of the money on investing to grow that money.

Most people invest in :

  • The stock market, be it 1 stock or multiple stocks like an index fund. The index fund is one of the best and safest ways to grow your money over a long time. Long term vision is required for this. You won’t get rich fast this way. The index fund will follow the DOW or S&P500 and give you an average 9,7% rate per year. Beating inflation easily. These returns will vary every year. From -5% to 13% a year.
  • The real estate market, investing in a single family home or multiple appartement building. The most common way is putting a down payment of 20% and borrowing the rest from a bank. Using that money to buy a home and renting it out for more than the costs of the mortgage and maintenance per month. Netting you a profit and a cashflow. Cash flow is one of the best things you can get from investing. The average profits a year are around the 10%.
  • Building a business, investing in a business or building your own from scratch. Takes a lot of balls, patience and time for you to build a succesful business. So it’s not for everybody but you can make a lot of money once you achieve success. But you can also fail, if you quit…. If you are a hard worker and have good ideas why not go your own way? Working at a job is not rewarding for a person that works hard, you will never get richly rewarded for your actions. Because the boss man will always need to earn more than you to profit, remember that.

 

These are some great ways to grow your money, but you will first need to learn to save your money. That’s the first step to financial greatness. If you are still living paycheck to paycheck or deeply in debt you will first need to get out of that mindset and situation. The current savings rate for the US is a meager 4% a month. That’s just to little, no wonder the average person can’t get ahead. it will take you more than 45 years to just save 1 year of living expenses. By the time you will retire, you can be really proud of yourself that you finally achieved your savings goal of 12 months expenses. And now you can live 1 year from savings in retirement and then you will have to get a new job.

That’s a no go, don’t you agree?

My personal savings rate is currently 20 – 40% depending on how much I earn each month. But I used to save 0% like everybody else and it is very stressing that you ain’t got no money to pay bills once you are in a dire situation. What I did is cut all the unnecessary bullshit like a big house, car payments and useless junk. Sold it all and got my expenses as low as I could. Housing payment under 20%, no car payments and no new iPhones.

It’s all about priority. Some people want the latest stuff and if you still do then get rid of that shit, because it’s costing you a lot of money and your future. Do you really want to be stressing about every financial decision and eating dog food in your 70s? Not me, I rather live a time without and enjoy 10x more later, than living like trash later on.

When you can save a lot of money monthly you can also use it for different things. Like buying a nice car to enjoy and driving it for a long time. Taking your family on a vacation without worrying about the cost. Saving for a nice house and paying for it in cash.

Be sure to remember this:

”Cash flow that brings you money right into your bank, without being constrained by monthly expenses, is what brings inner peace and financial enjoyment”

Once you have money that is free from recurring expenses like car payments or other debt payments you can feel freedom.

Freedom from working untill you die because you can’t retire.

Freedom from stressing about how to pay your bills every month.

Freedom to do whatever the fuck you want.

How would you feel if you don’t have to pay your housing payment anymore? Taking the average payment of around $1.033 a month, you will have an extra $1.033 every month for yourself to spend or to invest.

This is the difference between the poor mindset and the wealthy mindset. Focus on creating ‘net’ cashflow right into you bank account. So you can create more cash flow, untill you have enough to live off, then you can live life wealthy and free. No more Job, No more stress and no more working for the ‘man’.

So is saving the way to wealth?

Sure, in a way it is.

Savings rate is very linked to having wealth in the long term.  If you don’t save your money, you will always be poor. Once you saved your money, invest it like the rich or get killed by inflation. Be sure to out perform inflation rate, keep your eyes on it every year so you can decide what goals you need to create in your investing strategy. The most common way is the stock market, netting you ‘after’ inflation, around 4 – 6 %.

This is the way to wealth, by saving and investing.

Be sure to check out the book: The Richest Man In Babylon, writing by George S.  Clason. Where the most idea’s for building wealth come from and this book will teach you how to make money, keep your money and investing it to grow a wealthy future everybody desires.

Keep stacking that paper, watering it and letting it grow until your nice money tree arrives.

Until later,

Uuldriks Financial.

 

 

 

What is Minimalism?

Man,

Lets talk a little about minimalism shall we?

We all like stuff. We love our iPhones… we like our nice cars… and the houses o man it is al beautiful.

The problem is, that we get to attached to them.

There are people called hoarders. They take all that stuff and put it at a place they don’t even know where. And it all stockpiles up like nuclear weapons were stockpiled during the cold war.

how-to-find-preppers-in-your-area-fb

I tell you what, I rather be hoarding cash then have 10 stocks off iPad or 100 cans of dried food incase my house get bombed.

At least I can do something with my cash. You can invest that shit.

Anyway, the problem with carrying too much stuff is, it’s always there… You are thinking about it, it costs money and stressing about where to put it. Ah damn, I need another garage for this pile of shit I just bought, you say to yourself. Once you have another garage, you need to pay for that aswell. Another $100 bucks away every month just to hoard your stuff.

Well quit it, what the hell do you need with 2938 cds or 33 pants anyway? Sell it, give it or trash it. And then enjoy your freedom from all this ‘stuff’.

There is a group or cult people talk about and it is called old fashioned Minimalism.

I really love minimalism, all though some people take it way far. Living just with a mattress in a tent is not the idea I have regarding minimalism.

Hell, if you want to do that. Be my guest I don’t give a fuck.

But personally I also love the finer things in life. The idea is minimize to maximize. I understand that you want a nice house or be driving a BMW, and that is cool.

But learn to save on stuff or things you don’t like. If you can save yourself $50 every month because you change from a 5mb/sec to a 1mb/sec internet, then do it.

Just keep your old cell Phone that is just working fine for $40 and save yourself $1.000 for not changing to a ‘new’ Phone. Crazy how expensive these things are nowadays. By saving that kind of money, you can save yourself half a month time at work. So would you rather work or don’t spend that money for junk and save yourself time?

How much is your time worth to you?

You need to over think every purchase of trading that money for work. Work is not bad, there are parts of it everyone enjoys. But you ain’t wanna be trading that time meaningless to pay for your shit every month.

Lets say you make $20/Hour , you work 8 hours so you’ll be getting $160 a day. Then the Tax man is gonna get hes share, that is around $40 bucks in my country. So that means your netting an average of $15/Hour.

After a long week of working hard and hustling with your boss man, you get $600 on your account. Gotta pay them bills and car payments right! But your o so tired from working and don’t wanna be cooking all day, so you go to a restaurant with your partner.  After paying $100 for eating out, you think to yourself now we are here in town, we can walk a little bit and check out the stores.

So you and your girl go the electronic store and she says what a nice Iphone. I would buy it if I was you! And you are over thinking because its $1.033 this time. But what the hell man, she said it wasnt a bad idea. So you get a conformation to buy it and your heart is saying buy it. Gotta enjoy life you say!

Later that night you realized that you only had $300 after paying the bills. And you still went out to pay $1.133, netting you -$833 that week.

For only that week you have to work 3 more weeks to finally pay it off. You also believe that is dumb? Sure it is, if you want to go eating out with your girlfriend and enjoy that. Getting value out of a meal together once a week. Then sure!

It’s all about trade offs and what you really love to pay for. Personally I would take the dining out experience over a new IPhone everyday. Especially with prices like nowadays. Once you have a lot of money and you want to buy that IPhone without hurting your finances, you can buy it way easier and without stress.

Once your out of the zoo that is materialism, you can really set yourself up to be a unique ‘you’. Your friends are stilling buying all that shit what the marketing monster sells, but you are as free as a bird. When you cut your attachment to stuff, you have created freedom.

The money that you save from all these things the world has the offer, you can use it for what really fuels your fire on this planet. What do you really like? Don’t forget that what you really like can change in time, with the seasons. Summer & Winter. Night & Day. Hot & Cold. Up & Down.

  • If you are in your 20’s saving and buying experiences like traveling can be high on the list. (Personally we are in this stage).
  • Once you reach the end of the 20’s and going in your 30’s maybe you want to buy a house and settle down for a family.
  • After that you will be busy getting your legacy up and going, this going forward until your retirement age.
  • When you enter the age where your legs are too sloppy to move, then traveling we’ll get harder. Sure you have all the time in the world in retirement, but most likely your health won’t agree with your choices of Climbing mountains.

 

No disregard to elderly people, some of them have body’s and health a lot of young people can be jalouse of.

It’s all about freedom of choice. That is what money is for, fueling what you really want in life.

At this current moment my girlfriend and I really want to travel more, learn more from different kind of country’s, cultures and seeing nature at its finest. The second goal is building an income/business outside of our day jobs so we can have more freedom to do so. Saving a lot of money on our expenses and not buying crap every time we are in town.

On the other side we are also saving to buy a small house so we can save on rent, rent is very high here and we are off the believe that we are just throwing that money away every month. Renting is good, if you want to stay on a very short time frame. But we are staying here for a little while.

This is the reason we like Minimalism, we want to use our Money for things we really value.

We don’t value ‘stuff’ like a new Phone, new car or a new house. That doesn’t mean we don’t like it. A new car is very nice to drive and the features they provide are great! But I just can imagine paying so much money for something and a year later the value of that drops like a rock. It makes me ‘Uncomfortable’, that is what important. If you feel Uncomfortable once you want to buy something or you already bought it and you keep thinking about it, stressing you out. Then that’s your gut saying you made a wrong decision. You need to love the decision and have thought it over if it would bring you long-term happiness.

Do you save a lot of money on a House and you think one yearly vacation is enough? Hell, then that dream car you just bought is fine man. Enjoy it !

Like Apple and you ain’t paying that much in rent every month so you can stack money? Sure buy the new Phone every year.

Love a nice house where your family can comfortable live life and got a beater old car just for getting to work? Sure enjoy the nice house where you can rest and enjoy your family after work.

It’s all about choice in your life, that’s where the money is for.

Remember that.

Until next time.

Uuldriks Financial.

 

 

 

 

 

 

 

Are you in debt?

Are you in debt ?

A lot of people today are in debt, around 80% of people are in debt to somebody.

A big percentage of that debt is of course mortgage debt.

Mortgage debt is one of the debts I can understand, if you take a small mortgage and don’t spend more than 20% of your gross pay on housing than you got yourself some reasonable housing. Other than most people who are drowning in housing debt.

Our own housing payment is currently under the 20% I recommend, more like 11%, you can believe me when I say I have no stress regarding housing.

I once had a rental that cost around 30% of my monthly NET income, and even then I was stressedI just don’t like giving other people my fucking money.

Our article on housing debt Do you live for your house?

The rest of debt is student loans, credit cards, car payments and medical debt which I believe is one of the worst. People get sick and get debt to pay those bills, but every month you have to repay those bills you get a reminder of that terrible time again, again and again. Then you go to work to pay those medical bills, while there is a great chance the work itself created the sickness or accident.

Thats a nasty situation you got yourself in.

Debt is never good and you should get out as quickly, debt will hold any man stuck in his situation. I know the feeling myself.

Been there, Done that.

I thought it was so easy to get a ‘new’ car and got myself a beautiful thing called a Car payment. And what a mistake that was. Check out the idiocy that are Car payments

The feeling of having debt is the feeling of walking around with an iron ball stuck on your foot, you know what kind of one…. they also use it at work camps to keep you from escaping. Well that says enough.

The debt that nice banker got for you looks like a nice present to give. So you can easily afford everything, looks like they know how to sell it at a great rate, ‘you don’t have to pay 5.000 now, just 66,45 every month for 88 years’ .

Once you write down at the dotted line, you sold your soul to the devil, the ‘Slave master’ and now you are his Slave. And work 50 years for that shit called debt.

Well fuck that, doesn’t really sound like a great deal after all right?

Being a slave is the biggest misery some one can have, because it is sneaking into your life. The problem with debt today the day is that it is accepted in our culture. You keep paying it every month and you are thinking to yourself where the hell is all my money going.

You are making some banker rich. Because you keep paying those suckers, well I must say, if you keep yourself in debt… then you are the sucker. The banker is laughing all the way to his bank account, counting the 19% return he gets every month from your credit card. The average credit card debt is now $9.333 , that’s gonna be $147,77 every month of interest. That money is just gone man, gone forever out of your pocket.

And you keep slaving away your time away at some shit job. Just because you can pay them every, single, month.

You need to get rid of that shit man, you need yourself some freedom to do whatever you like. You gotta be going your own way. And your debt is getting in the way to make that even possible. Every time you want to make a decision for yourself or your family, you will always be thinking about that debt. And that’s why its holding you back like a prisoner in a jail cell.

Want to go on a cruise? No, daddy gotta work because them bills ain’t paying themselves.

Want to chill out and spend more hours with your family? Nope, you gotta make them hours count with your nice people at work because the boss need them hours too you know.

Just want to sit on a bench and sleep al day? No can do, because you are a damn debt fool.

PrisonersOfDebt_Logo

Anyway, the debt game is what the current system is all about. Civilization, The machine, The matrix, The empire or whatever the fuck you call it. They are making the system like this so you get stuck into it.

Once you start going to school they get you with credit card and student loans, because you need to be as hip as the other kids. You want that new flashy Phone, go out of state, live in your own place without ever going to work after school. But you know what? Those bills are stacking upon each other and once you get to work you start with a negative net worth.

Costing 1 – 3 years of your life, depending on how much debt you have. Don’t even get me started if you have more then $100.000 debt and your annual income is under $50.000. Then take out half a decade just to pay school back. Holy shit you really want that?

Once you get out of school, you still need to impress other people right? So you want a nice car and house, bringing your monthly expenses up to or over your income. Then you’re in a situation that stops you from paying back debt, working untill you are death.

If you keep going further in that situation you will become Bankrupt, you don’t want that, that will be going after you your entire life and sets you back at least 10 years of you life if it ain’t more.

Now that you know in what kind of situation you are, how are you gonna get out of that hole?

Fill it up with cold hard cash.

 

How to get out of debt

 

  • First: check what kind of debt you have and to whom you own it, then write it all on a paper. No, not on the computer you are watching this with, write it with Pen and Paper. There is something about pen and paper that gets you more going, like you are feeling that pain going off on that paper. So DO IT.
  • Second: write Lowest amount up and go down as the amount of money grows. Don’t mind the interest rate, just the amount of $.
  • Third: start looking where you can save some money, Gas & Electric, Groceries, Biking more, Sell your stupid house and move closer to work, in a cheaper house. Sell your expensive car and get a cheap, good gas mileage car (Beater Toyota or Nissan).  Everytime you save money use it to pay off that debt.
  • Fourth: once you saved as much as possible, start working more on your job if that is possible. Aint it possible or are you working 60 hours a week? Then try to start a side business, create an idea where you can make some money without a huge investment cause you ain’t got no dough to go.
  • Fifth: you are making more money then your expenses and using that cashflow to repay debt. Your now getting out of the ‘hole’ great, congrats on your first steps to a bright future.
  • Six: Once you pay 1 debt off, you use that money that you pay on the next debt. This is the snowballing way of paying off debt. Also known as the Ramsey way, he is a real hero regarding getting out of debt. Check out his site Dave Ramsey

 

After doing these 6 things you are on your way to getting out of debt. You’re a real hero that you are going to change your family’s future. Stay believing in yourself and you will get there, whatever you think with action added, you will attract.

Getting out of debt is mostly psychological, its biting you and you we’ll be thinking that all the money you use to pay of the debt is going nowhere, it’s just gone. And that is what is making it hard. But remember that the money you use to pay off debt, is saving you money. Saving you from paying ‘bills’ every month and not to forget all that interest you are saving.

Once you are out of debt, you can use your income to create a big legacy for yourself. You have the freedom to do whatever you want.

Start a business ?

Go on holiday a few times a year?

Save for your dream house?

Save for your dream car?

You can all do that ,

Once you are out of Debt.

 

Until next time,

Uuldriks Financial.