Considering an electric vehicle? Here are some things to figure out first…

Considering driving electric?

Congratulations! You’re about to save yourself a ton of money and positively impact the environment.

So… now how does one go about GETTING an electric car?

To be able to answer this, you have to figure out WHICH electric car.

But even before that, you have to understand your lifestyle. You need to essentially know who and where you are in life.

Are you someone who’s worked hard to pay off their consumer debt and you’ve centrally located yourself to most things you do within a 100 mile radius? Then you are free to lease any new EV using our tutorial here* –> https://thisiswhyubroke.wordpress.com/2015/07/31/how-to-lease-a-car-without-worrying-about-a-credit-score-negotiating-a-car-lease-like-a-tiger/

Are you someone who’s worked hard to pay off their consumer debt but live greater than 100 miles away? First consider moving closer (long commuting sucks and will kill you) and if not, go for the new Chevy Volt (which has a gasoline generator built in to recharge the battery when it runs out. This is different from a prius that switches constantly between the two and is not an electric vehicle). If not the Volt, go for the BMW i3 with generator similar to the volt. And if you can wait, you can hold off for the completely electric 238 mile Chevy Bolt coming in December.

Are you someone who’s still in debt but working to get out? Understand that once the next generation of EVs (200plus mile range lower priced EVs) are released shortly, the price of gen 1 EVs will be even more rock bottom than they currently are. This means you can consider driving a used Leaf for less than $10grand–>https://www.cars.com/vehicledeta…/detail/673792585/overview/
If you get a high mileage/out of battery warranty leaf for even cheaper, set aside a small buffer for any battery maintenance you may have to do.

Also, some other great inexpensive used EVs are:
Chevy spark –>https://www.cars.com/vehicledeta…/detail/676812620/overview/
Kia Soul EV –>https://www.cars.com/vehicledeta…/detail/670316748/overview/
Fiat 500 E–> https://www.cars.com/vehicledeta…/detail/675201600/overview/

A full list of electric car recommends are here (for leasing): https://thisiswhyubroke.wordpress.com/2015/05/14/electric-car-recommends/ 

Note: most of the above car makes (outside of Nissan) are generally not recommended for used cars. However, EVs aren’t exactly cars with the same number of moving parts that can break like internal combustion engines do. There’s generally only a few moving parts and are generally fool proof if you maintain your battery.

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*Excluding any available Teslas currently on the market

Life insurance is NOT the answer for a funeral.

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“Can you donate to my baby daddy MC Louis V’s go fund me campaign? We’re in a bad position with his death after he fell off his motorcycle.”

SMH

Ok, so how do you get your image not to end up on a Gofundme page after you die?

*Stop buying stupid sh*t and re-direct at least some of that money to helping your family.*

ESPECIALLY if you are leaving behind a significant other and kids – both who were dependent on your income. Here’s what to do and what not to do:

1. Life insurance is NOT the answer for funerals. Most funerals take place within 3-7 days after death. Even most quicker life insurance payouts will take 10 days (most states life insurance companies have 30 days legally. If you died within 2 years of getting your policy, insurance companies could legally postpone payout to 6 months)

Buy life insurance to replace income for your dependents AFTER the funeral. NOT for funeral costs.

2. Burial insurance is NOT the answer. These are expensive policies they created to hustle black people out of their hard earned money since the early 20th century. When compared side by side, the premium on burial insurance can be 10 times the comparable premium on a term policy. Affluent people know the truth –>> http://www.bankrate.com/finance/insurance/pass-burial-insurance.aspx

Burial insurance doesn’t even pay out in time to do what it’s supposed to do anyway.

3. Assuming your “loved ones” will just put it on credit cards is NOT the answer.  Using credit cards to pay for funeral expenses and hoping you receive a life insurance payout before the grace period – this is the quickest way to turn the 2nd most tumultuous time in your life into the 1st. Same thing for promising to pay funeral homes later or on credit. Most funeral homes won’t let you defer payment because they don’t want to have to try to collect later

You thought you were sad now. Just you wait until the insurance company starts playing games with that policy payout and you find out the only one who doesn’t play games is your credit card company.

4. What you SHOULD do:

-Use savings accounts earmarked for every short term situation that could/will come up in your life. General emergency fund, car repair buffer fund, vacation buffer fund etc AND A FUNERAL EXPENSE FUND.

This can be done in two ways:

A. create a savings account that has a Payable on Death feature, name a beneficiary and upon your death that money held in savings will go straight to them bypassing probate. But you have to be smart about your overall estate plan (another reason why you shouldn’t have debt ever in life)—>> http://www.forbes.com/sites/ashleaebeling/2013/08/09/when-payable-on-death-accounts-backfire/

B. Keep that same savings account but add a family member or you task with managing the funeral directly on the account and communicate this with them. Refer to the “Relationship and Family Finance section in Brass Knuckle Finance to apply these potential costs to the correct bank account. Here you will learn how to structure your joint checking/savings accounts within a marriage or MWS.

-OR use a Trotten trust, which is payable to a beneficiary without going through probate. –>> https://www.everplans.com/articles/how-to-pre-pay-for-funeral-arrangements-with-a-totten-trust

-OR use a prepaid funeral plan, known as an irrevocable funeral trust, which you generally buy from a particular funeral home.

We need to not shy away from this taboo subject any longer. Figure it out now so you wont have to scramble and figure it out later. Always keep important information in a place where everyone in your family can access it.

But please stop responding to funeral fundraiser posts with “why didn’t you get life insurance” when most everyone reading this would leave their family in a precarious position in the event of their untimely death. Life insurance or not.

And for the love of claud, please stop showing your wealth in public and keeping single digit bank account balances and no succession plans in private.

www.BKFUniversity.com

You “need” to stop it.

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You will fail at life time and time again when you use the term “need” right before making financial decisions.

There’s an army of black folks cussing at me as we speak saying “but what if I do need it!”

Answer: You don’t.

And that NEEDs to be what you tell yourself before every single time you decide to open your purse or wallet.

Consumer behavior is about psychology. Math isnt even a blip on the radar until AFTER your psychology has already done its damage.

How you verbally position your purchases is how you financially position your wealth.

“I need a new phone”

“I need a bigger house” Continue reading “You “need” to stop it.”

Be smart. Don’t go further into debt for a wedding.

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I made a post online one day that sums up what this post is about: “plan your marriage, f*ck the wedding.”

Harsh? Perhaps.

But after you’ve spent a fortune paying for a wedding, reality sets in and the food is no longer catered, your best man and maid of honor are nowhere to be found during intense arguments and you could find yourself deep in debt after wining and dining 250 of your “closest” family and friends.

Remember, the average cost U.S. couples spend on a wedding today is $26,444. This doesn’t even take into consideration the engagement ring, prenuptial agreement or honeymoon costs. (In many locations like Los Angeles, the average for a wedding can be as high as $40k.) Continue reading “Be smart. Don’t go further into debt for a wedding.”

Sharing the Prosperity

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It amazes me how so many of us refrain from DOING the things we talk about. It amazes me how many of us avoid the topic of teamwork.

And no I’m not simply talking about blacks buying from black owned businesses. That has been rhetoric we’ve been pushing for 5 decades and it has gone nowhere.

What I’m talking about is the actual nuts and bolts of the group economics concept.

Group economics is the sustained economic progress of a group fueled by internal members OF that group. The group in this case is the African American community in the United States.

But the problem is you can’t just jump out the bushes and yell at everyone into buying things from black owned businesses. There has to BE black owned businesses created as we hope to increase the demand for these products and services.

Wonder why there really arent any black owned businesses selling the things we actually use on a daily basis? Those businesses have no CAPITAL to be formed. Those who have been formed have no capital to GROW.

Why don’t they have capital to grow?

Well outside of us only want to buy Jordans, video games, red bottoms, gucci purses and pop bottles at the club?

Because Blacks are fundamentally against coming together and investing into these companies for startup and growth.
A LOAN WILL NOT HELP YOU START A BUSINESS. INVESTMENT is how you start a business. Try the former and you will become a statistic.

I’m talking about the actual “group investment” portion of “group economics.”in addition to your OWN investment.

If you want to start a rental income property business, and your company’s first multi unit property costs $60k in Detroit, but you have neither the full $60k in cash nor all of the skills necessary to engage in the rental income industry, you will simply let years go by as you talk about what you want to do.

OR as a BKF student, you will instead think about how many people that you know you need to bring together TO make it happen. It takes 10 people with $6k each to run that business, 6 people with $10k each or 3 people with $20k each.

The average negro will say “well I don’t trust anyone” or “I don’t know anyone with $6k” and thats IF they have $6k to contribute themselves.
The BKF student on the other hand has already stopped reading this post and set their plan in motion sans excuses.

If it takes $20k to start a box of the week delivery service where you curate other’s products for people you buy from wholesale, who are you going to partner with for the other $10k half of those costs and their business know how? Oh someone only wants to invest and not be a partner? Who are you going to partner with for their $5k portion to match your $5k portion which apparently also has $10k in angel investment already pledged? You NEED partners with complimenting skill sets, even if its one partner in the beginning.

Or you could still be side hustling incense and umbrellas on crenshaw by yourself 10 years from now.

If you want to start a business that sells a specific tech related product that you know will take $50k just to develop the protoype, then another $150k to produce and distribute, then I have an idea… Figure out how to bring your plans in front of Nas’ Queenbridge capital, The Winner’s Circle Group, Google Ventures and a mixture of other sources of funding described in http://www.BKFBusinesSchool.com.

We are only limited by the excuses we tell ourselves, our brotherly distrust and lack of teamwork.

Our people are currently here:
Individually consume everything produced by others –> maybe think about individually producing one day if we get inspiration between watching basketball games.

We need to be here:
Invest –> produce –> consume –> Invest –> produce –> consume
..as a group.

We are the only ones not participating in ‘the’ sharing economy as well as not even sharing in our ‘own’ economy.

Yes, a small percentage of us will ever be business owners.

But we won’t get anywhere unless each of us become investors.

Finally – how do you become an investor?

Stop consuming every other race & nationality’s products so d$%m much so you can reduce your liabilities. (monthly expenses)

Once you’ve reduced your own liabilities, this will in turn increase your cashflow.

Your job is to invest that cashflow.

Buying products from Black owned business – while important – is NOT the same as investing in Black owned businesses.

There will be no products worth buying unless we invest to have those products developed in the first place.

And there will be no businesses to invest in unless we team up and partner with those who have complimenting skill sets. (read: different from our own)

We will team up to make babies but not team up to give these babies the economic conditions in which to grow and thrive.

Poor people don’t need credit, they need TEAMWORK.

Continue reading “Sharing the Prosperity”

The Difference Between Credit Scores & Credit Reports

When people talk about “fixing credit” you must understand that they’re actually speaking of two different things at once.

Your credit REPORT is not the same as a credit SCORE.

The latter is only useful in struggling. Its what we call a “broke masker”. You may think you’re getting wealthy but you’re just shuffling other people’s money around until you realize you’ve become other people’s property.

Your credit REPORT on the other hand (read: not your score) along with the cash you save because you refuse to pay interest to scam a$$ banks is useful in what youre trying to do.

Trying to get an apartment? A clean credit report with no entries (positive or negative) plus your cash deposit.

Trying to get car insurance? A clean driving record, credit report and if you’re smart, paying the year in advance and in full (its refundable).

Trying to get a car? If you can not afford to pay cash for a car, you can not afford that car. Period. But when you stop playing around with debt, you’d be surprised at how powerful your cash flow becomes allowing you to save for these things.

Trying to get a job? There is no employer in America who A. checks “your credit score” and B. has the legal authority to check or use that credit score in hiring decisions. By law, only your credit REPORT can be used.

How do you get a credit report that will allow you to get hired anywhere? STOP PLAYING AROUND WITH DEBT AND FINDING YOURSELF IN DEBT WITH PAST DUE BALANCES AND DELINQUENCIES.

Its the largest source of misinformation on credit scores and reports there is in America. You are not applying for a loan, no one cares about a credit score in hiring. They’re looking (mistakenly) at whether or not you’re ALREADY in financial trouble which will put you at risk of doing illegal or immoral things at work. (according to some employers)

The cycle is all tied together yet you keep letting these internet credit repair clowns convince you that you need to pay them $500-$5,000 to “fix your credit” (boost your credit score). They do this by temporarily clogged the dispute process  system until one or more of your negative accounts are removed for a small amount of time. Then your credit score will go up temporarily allowing you to sign up for some more debt bullsh*t you shouldn’t have been signing up for in the first place. However, since the method is fraudulent, in about 60 days, those negative items pop back up on your credit report and now you owe twice as much – the old debt and the new debt.

Now if you’re trying to “fix your credit report” more specifically, you need to understand that there is no legal way to do what you are speaking. By law only time (7 years) can remove accurate items that are negative from your credit report. You can not “pay-for-delete” to any company, debt collector or otherwise and think your argument will stand in court once you find they’ve taken your money.

ITS ILLEGAL TO TRY TO REMOVE ACCURATE NEGATIVE INFORMATION FROM YOUR CREDIT REPORT THAT ACTUALLY HAPPENED.

The only thing you can do is change the designation from “unpaid charge off” to “paid charge off”.

Its still delinquent. Its STILL a charge off whether you paid it or not.

Your credit can only repair itself. There is nothing you can physically do to change that. It takes 7 years from the date of initial default for most negative items to fall off your credit report.

If you are not paying these items for mental relief, there is nothing that will come of it for you.

The only thing you can do is change the designation from “unpaid charge off” to “paid charge off”.

Its still delinquent. Its STILL a charge off whether you paid it or not.

Focus on building wealth not credit and you won’t even realize the time passing.

But if you keep playing credit score tricks and signing up for new debt, that 7 year time frame will keep resetting and resetting and…

(all of this is assuming you are already past the statute of limitations to be SUED which is also different from credit reporting negative items – something that doesnt have legal consequence)

Don’t be dumb. Keep cash, investments and a clean credit report and you can do anything on earth.

You only use credit SCOREs to fall further into debt.

https://thisiswhyubroke.wordpress.com/whyyoudontneedcredit/

 

Difference between credit report credit score

 

 

Is Leasing a Car Better than Buying a Car?

“So leasing a car is better than buying a car?” was a question asked to me on Twitter.

The answer is that, just as with houses, it depends on who you are and what you’re doing.

So we’ve made this handy dandy guide to figure out where you fit.

Who am I

If you have consumer debt:

A. Are you trying to get out of debt and build wealth? Buy a Honda, Toyota or Nissan that costs no more than $12k, IN CASH, and with no more than 15k miles for every year that car is old.

Ie. A 5 year old car shouldn’t have more than 75k miles on the odometer.

Oh you don’t have $12k in cash? How much do you have, $4k? Now you know what you can afford.

Oh you have nothing? Sacrifice until you get something. Do not buy things you can not afford. We use double negative sentences when referencing double negative net worths.

B. Are you trying to stay in debt and look rich vs actually be rich? Then keep doin what you’re doin playa. What do you need us for? Buy/lease/go into debt for whatever you want and make sure to have those interest payments each month. You’ll learn. I take that back – you should really aim to go in debt for a $75k Tesla. I own stock in that company – feel free to help me to help me.

(B*tch better have my… interest payments.)

If you’re OUT of consumer debt, but you have other debt to pay (ie. student loans/mortgage left):

A. Do you drive unreliable cars for 10-15 years and want to stop spending a fortune? Lease by using the “single pay lease” method we discuss here.

B. Do you drive RELIABLE cars for 10-15 years? Buy new or used using the money you have in the bank. Oh you don’t have enough money for a new car? Then now you know what you can afford. Do not add new debt while trying to get out of debt. Yes student loans and mortgages are still “bad debt”.

If you’re out of ALL debt:

**You can do whatever the hell it is you want as long as its part of your own individual financial strategy and it doesn’t get you BACK into debt.**

A. Do you want a higher cash flow each month to use for investing? Lease (by paying the whole term in full) and invest the huge difference.

B. Do you want cars owned outright because you like to work on cars etc? Buy whatever car and understand because your cash is tied up in that $45k car, you’ll be able to invest less.

But understand, – if you have monthly payments on any contract – lease, finance or otherwise; that becomes debt owed.

*Note 1: The best transportation for those in urban areas is to centrally locate yourself near work and school then use a combination of public transportation, personal transportation (bikes/shoes) while keeping a paid for reliable clunker parked outside for emergencies (or if you really know how to work the system, Uber is great in an emergency as well). You will pay more in rent but not be stuck on freeways, be healthier and you’ll also not pay hardly ANY of the $832/month most people pay on maintaining recent model automobiles.

*Note 2: The word “Better” in terms of the BKF program depends on what phase you’re in. Are you paying off debt? “Better” is in reference to what costs less. If you’re trying to build wealth, “Better” is in reference to whatever the hell your overall plan is. Do you want cashflow? No worries? You like working on cars? Remember, your better is not everyone’s better.

I hope that settles that.

Don’t worry, you can start again back at the top. 
Continue reading “Is Leasing a Car Better than Buying a Car?”

What do you have time for?

Your Car

Between allll of the things I’m doing right now, time is extremely limited.

Yet everywhere I go in my electric vehicle people ask me why I don’t drive the typical L.A. car with the type of money and assets I have obtained over the last 6 years.

My answer yet again: I do not have the time.

But not in the “I do not have enough time to go to a dealership to pick one out” type of “I don’t have time”. The truth is I run a business that provides multiple services – one of which is to help buy clients cars and make sure they don’t get financially raped in doing so. So I’m constantly in and out all types of dealerships – from Ford to European luxury car dealerships fighting with horribly slimy sales people and the people that manage them.

And in doing so, even though I could easily afford to do the same financially for myself, here’s a few things I’ve realized I am not able to allocate my precious time for in regard to expensive cars:

#1. Making sure large amounts of money are in my checking account – instead of my investment account- at specific times during the month so I can make sure ridiculous all-interest car notes and leases are properly paid to banks when they want them – like the bottom hoe I would become.

#2. Taking my european luxury car to full service car washes every 5 days, spending the time waiting, being expected to tip like an NBA player and then doing the same when I have to get it detailed every 30 days as well.

#3. Driving around retail store parking lots trying to find a specific spot for my 13 coat, $3k pearl white paint job. Trying to find parking spots near cars who’s doors aren’t long enough or close enough to mine as to ding my car when they are opened.

#4. Having to put hands on and end up in jail over the person that chipped my 13 coat, couple thousand dollar paint job on my luxury whip.

#5. Worrying about where I park late night or over night near a residence and if that $55k car will still be there in the morning.

#6. Taking my horribly inefficient luxury car to the gas station every few days. More money spent at high fee convenience stores connected to these gas stations and increased risk for card fraud as well.

#7. Constantly going to the ATM every few days to pull out and keep on me -in a money clip- hundreds of dollars for gas stations so I DON’T have to use my debit card and hopefully decrease my chance of fraud activity at a gas station.

#8. Taking in my luxury car for random maintenance after random maintenance after random maintenance – and then expensive scheduled maintenance not even covered by my lease or purchase.

#9. Paying inflated luxury car insurance costs.

#10. Paying inflated luxury car registration fees (luxury car tax) in the state of California ever year.

#11. Worrying about police targeting me everywhere I go because it financially appears I can single handedly fund their weekly traffic ticket quota.

#12. Worrying about where to purchase concealed weapon on the underground market to combat #5

#13. Taking the long way around certain neighborhoods because I along with my new luxury whip can’t get caught slippin at certain stop lights in your neighborhood.

#14. Purchasing bullets for #5, #12 & #13

#15. Bail

Just for shits and giggles though, here’s just a few of other things I DO have time for:

NOT being car poor in this short life on earth.

Remember, part of wealth is the ability to control your time while you’re here. When I say I do not have time to do these things, I’m saying I don’t have time ALLOCATED out of the limited amount I have to service something that does not add any value to my life.

Many times -the things we “own” end up owning us.

www.ThisIsWhyYoureBroke.com
Reason #2: Your Car is Ruining Your Life

Learn more on how to defeat the 12 most dangerous areas in your financial budget by reading my new book:

TIWYB Cover