FINANCIAL TIPS From Mark Pooser

BUYING A NEW CAR

     Buying a new car can be one of the worst decisions you could make. A new car can depreciate about 15% of its value when you sign the contract.  And in the next 4 years will depreciate another 60%. 

     If you tried to sell your new car the very next day you would not get what you paid for it. Now it is considered a used car. If you buy a used car and try to sell it the next day, you will probably get what you paid for it, maybe even more. Always buy used cars and pay cash for them.

STARTING YOUR OWN BUSINESS

     Before you quit your day job and start your own business, you should be debt free and have at least enough money saved, to pay for one year of living expenses.

     The first year, you will probably go without a paycheck, and you do not want to borrow money and go back into debt. Stay with your current job for as long as you can, and start your business on a part time basis. If your business is a flop, you will still have a job and a paycheck. If your business is a success then you are a lot farther ahead by not taking on any debt.

AVOIDING DEBT

     People get into debt because they spend everything that they earn without saving or investing. This is the reason that most people do not become wealthy.

     When rich people get a raise they look for a way to invest. When poor people get a raise they look for a way to spend. Rich people make their money work for them. Poor people work for their money. You will never get rich if you do not learn to control your money.

      Do not invest in something just because a friend said it was a good investment. If you educate yourself, that alone is an investment that will save you money on commissions, brokers fees, and management fees.