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"This is why you're broke" Blog

by BrassKnuckleFinance.com

Category

What Wealthy People Do

Insurance for when you are no longer BROKE

Insurance

We talk a lot about those who are broke, but for those who have done the hard work to pay off their debts and improve their finances, you must now take time to protect them.

You as a non-broke person will now need the following (some are new and some you should alread have):

***Child birth insurance:

Also known as condoms and birth control and keeping it in your pants. This can save you over $240k over a 17 year period.

***Gold digger insurance (male or female):

Also known as prenups, trusts and avoiding legal marriage altogether

***Car Insurance:

Bodily injury- $100k per person/ $300k per accident

Property damage liability: $100k

Uninsured/Underinsured bodily injury: 100k per person/ $300k per accident

***Renters/Homeowner’s Insurance: enough to cover all potential damages to rebuild or replace the covered items.

***Personal Umbrella Policy: $1million dollars in additional/supplemental coverage. Normally used as protection in a lawsuit.

Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies. These may include, but are not limited to:

False arrest

Libel

Slander

Invasion of privacy

***Business Owners: your business entity is a form of insurance. An LLC can shield your personal assets and works best with a personal umbrella policy. For landlords who were smart enough to place their properties inside of an LLC, landlord insurance is a benefit as well. There are three additional insurance policies most businesses should have as part of a a BOP (business owner’s policy) more to be discussed in http://www.BKFBusinessSchool.com

***Life Insurance: Renewable 20-30 year TERM insurance. Stay the unholy hell away from Whole Life or annuities of any type.

The purpose of this insurance is to hold you over until you can become self-insured by your assets.

The renewable clause in a term life insurance policy means that the insuring company will allow you to renew your policy at a set rate without undergoing a medical. This means that if an insured person is diagnosed with a fatal disease just as the term runs out, he or she will be able to renew the policy at a competitive rate despite the fact that the insurance company is certain to have to pay out.

Look to obtain 8-10 times your annual income as an insurance payout.

***Medical Insurance: There are a ton of variables with medical insurance. Main thing to know is that most medical insurance in the U.S. sucks hot lava balls.

With that being said, it still beats being uninsured any day of the week. As well, you need to avoid all of the hoopla on high deductible insurance – it doesn’t work for those who need it the most.

A good rule of thumb is to keep a low deductible ($500 or below) keep atleast 20/80 co-insurance, keep your co-pays for regular doctors visits around $20-$30 and below. You’ll also need a policy with a max out of pocket clause.

Supplemental health insurance (Aflac) and dental insurance are good bets as well.

***Long term care insurance: A nursing home can cost about $74,208 a year per person. If you and your spouse go into an assisted living facility with $300,000 in life savings, you’ll have it used up so fast you won’t believe it.

You can save yourself a good portion of that liability by purchasing a long term car insurance policy though it could run you about $4,000+ a year. If you are approaching 60, start looking at long-term care insurance. Don’t buy it before then (it’s not necessary enough at that point) or after (it can get away too expensive).

Remember, rich people and poor people don’t need long-term-care insurance. Poor people can turn to Medicaid. Rich people can self-insure. So the question comes down to those in the middle.

http://www.kiplinger.com/article/insurance/T036-C000-S002-long-term-care-insurance-for-less.html

***Did I mention child birth insurance?

Also known as condoms and birth control and keeping it in your pants. This can save you over $240k over a 17 year period.

Benefits of Buying a Car in Cash

Car Cash 2

What buying a car in cash does over someone who enslaves themselves to a care note:

1. Affordability: It forces you to ONLY buy what you can afford. Remember, the term “I can afford it” does not mean you can afford the car payment that month. It means that you have the cash in the bank to make the purchase without owing anyone. Otherwise you can’t afford s#%$. You’re just gambling with how long you can make it without a major emergency happening.

2. Discounts: It puts you in place to be highly likely to receive a sizable discount on the overall price of the car. Lenders want to move VOLUME. Making $3k on 5 cars beats $5k on 2 in most businesses across the globe. Your greedy local car dealership is no different. Whipping out cash and buying a car at the end of a sales month will 9 times out of 10 allow you to get the dealer to cover your tax, title and registration.

3. Car insurance: It allows you the CHOICE to pay less in insurance! (Banks and car lease finance companies dictate your insurance coverage)

4. Late fees: The goal for wealthy people is not to be able to make payments on their bills on time. The goal is to have as few as possible in the first place. By reducing the number of payments that go out each month (from canceling cable bills to combining monthly cel phone plans to eliminating credit card payments regardless if you pay in full) you are substantially reducing your potential to pay late fees.

5. No more car than you really want or need: It forces you to think smarter about your purchase! Numerous published studies show that when you spend your own hard earned money you choose better, more reliable, longer lasting products (read: honda, toyota, nissan). When you give a 25 year old a $25k loan they come home with a Giraffe with a motor in its butt.

6. Cha ching! It puts you on path for wealth! If you were to simply reduce your auto expenses by $400 per month and instead you invested that amount over the typical timeframe someone pays a mortgage (30 years), you are $818,435.52 wealthier than the person who doesn’t.

Shout out to driving cars in hopes of impressing people who you’ll be asking to borrow money from in a few years.

Very impressive your plan is my friend.

Continue reading “Benefits of Buying a Car in Cash”

New Slaves

My momma was raised in the era when…

Clean water was only served to the fairer skin..

My parents were focused on civil rights in their era which is understandable. But now, its up to us to awake from being “new slaves”. We have to fight tp stop this cycle of poverty once and for all.

Understand that the *cycle* is the target. Not poverty itself.

Because right now just being born black pretty much guarantees you a life of struggling.That damn-near guarantee is what we’re fighting to tear down.

Some enjoy government handouts, payday loan interest and cash advances. And that is your prerogative to stay in bondage. The rest of us who desire to wake from the Matrix through our own choice will struggle to do so initially, yes, and then prosper for eternity.

A revolution does not require 100% participation.

Continue reading “New Slaves”

You have a low Credit Score? Probably the best thing that’s ever happened to you.

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The last time I knew my credit score, in 2007, I was nearly $550k in credit card , student loan and mortgage debt.

I had a 735 consumer Fico score (remember there are multiple scores- consumer score, auto loan score, mortgage score etc).

I was broke, in debt, had no investments and was tied to my job for survival.

As of 2013, I have no idea what my credit score is as I have not been stupid enough to pay some company or apply for some loan so I could find out.

I have lived for 6 years without once needing a credit score, a loan or any other type of societal bondage.

After renting numerous cars, applying for, being approved and deciding not to rent multiple apartments, being hired to work at the top companies in two separate industries (banking/finance and advertising), after starting two businesses, owning multiple investment accounts, having cel and 4g plans at the most credit sensitive companies ( At&t, verizon) having possibly the worlds most fully covered auto insurance policies at amazingly low rates…I have prospered financially far beyond any other point in my 32 year history.

The Dow Jones has hit an all time high. I have the ability to purchase two of the condos I got rid of 100% in cash. I do only what I desire to do each day.

Basically, I have never seen more money in my life.

And guess why.

BECAUSE I NO LONGER BORROW MONEY I DON’T HAVE TO PAY FOR SH#% I DON’T NEED.

…I, along with the top tier of the over 1800 minorities I work with have lived life better than most around us, accomplished more than most around us and have given back to the community more than those around us.

Yet you “gotta raise your credit score”.

Now remind me how thats been working out for you, champ?

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Natural Hair Road

Welcome to the Debt Free Community

Print

 

Visit www.DebtMovement.com to join us!

 

How I Was Able to Walk Away from the Credit Game

I went through a TON of starts and stops with debt freedom -all the way up until the point where I got completely fed up once and for all.

Once I did get fed up, to get to the decision of not only getting out of debt but staying out of debt, I found myself stuck at a decision on what to do with my credit cards. Contemplating whether I should keep my newly paid off credit cards open, I simply asked myself “is it worth it”?

The possibility of a relapse?

The probability of a war with the credit card company over an unwarranted late fee? The wasted years of my life thinking I could outsmart a half a trillion dollar financial industry at their own game? The high possibility of finding myself in bankruptcy down the road?

And at that point I figured out what risk vs reward was. A very simple ratio/way of looking at things that can provide you more wealth that you can ever imagine.

See, myself along with all of my”reward point” friends were missing the fundamental concept at play here which chronically kept them from being wealthy.

The question has never been “what if I pay my credit cards off each month”.

The question is “what if I DON’T?”

There is no credit card feature ever created in the history of the credit card industry that has ever outweighed the potential negative effects of carrying that credit card. As of now, the $200 in “spending cash back rewards” I’m forfeiting each year has turned into over $161k in 4 years from not paying the interest on the things I was paying on before I made that commitment.

Credit cards are just the gateway drug for more advanced borrowing. How many times have you heard someone say that you have to raise your credit score by placing credit cards on your report and not closing them?

So yes, I stopped cold turkey from the following:

#1 being fed up/unwilling to live life in debt any longer and

#2 weighing what could happen negatively vs what few positives there may be to keep playing the credit game.

But if I had never figured out what a real risk reward ratio was, I would still be selling myself on the “what ifs”, the “credit card emergency fund” propaganda, the “this debt is good debt” mentality that I was accustomed to.

Its.not.worth.it.

Trust me.

Continue reading “How I Was Able to Walk Away from the Credit Game”

Need a Debt Coach? The Debt Movement is Here to Help

Need a Debt Coach? The Debt Movement is Here to Help

debt-coach

Think about this…..

Michael Jordan, one of the great basketball players of all time, had a coach.

Sir Richard Branson, one of the greatest entrepreneurs of all time, has several business and life coaches.

 

Two years ago I even hired a business coach to help improve my business and way of life.

Having a coach is invaluable to help you achieve your goals, desires, and a better way of life.

Most people don’t hire coaches, because they are afraid of the cost. That was something that I fought for a long time. Something my wife still does. Ha ha…:)

 

2 years later I don’t look at my coaching program as “cost” or an “expense”. I now view it as an investment as it’s changed my life in so many ways- business wise, family wise and spiritually wise.

 

In fact, I know that I never would have been able to start The Debt Movement had it not been for my coaching program.

Why Coaching?

Okay, you’re probably wondering what this has to do with you, right?   Watch the video below to find out.

Just in case you don’t have the patience to watch the video (or you’re at work) here’s what I have lined up for you……

Debt Coaches

I’ve lined up 5 (the video says 4 but I just got one more to commit -yeah!) Debt Coaches who have volunteered their time and expertise to help 5 lucky individuals (households) get out of debt.

Once again – it’s free!!!

How Does it Work?

If you are interested, here’s what you need to do:
  1. Apply –  Yes, you need to fill out an application.   We want to make sure that we only consider applicants that are highly motivated to get out of debt.    Click here to apply for a Debt Coach.
  2. Be Willing to Share.   The lucky ones selected will be asked to open up and share their journey with the entire Debt Movement community.  The Debt Coaches will also be sharing their recommendations on the blog.  My goal here is that others that are in a similar situation will benefit by joining you in your debt payoff journey.

That’s it!    I hope you’re excited as I am about this.

Click here to apply and see the original debt movement post.

 

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