2. Thisisourtoponeasitwilltrulycrippleyourlongtermfinancialplan.Yearsago,weheardofavery
simplefinancialratiocalledtheprimaryobligationratiowhichsaidthatyourmortgagepayment
shouldn’tbemuchmorethan28%to34%ofyourtotalgrossmonthlyincome.Usethatstatisticin
conjunctionwithputting20%downonyourhomepurchaseandyouwilltypicallyavoidthisnumberone
financialdisaster.Itisimpossibletosqueezeintoahomefinanciallylikeyouwouldacarorsomeother
onetimepurchase.Manypeopleforgetthecostoffurnishingthehousewhichcanrun5%to15%ofthe
homevaluedependingonyourtaste.Whilemostpeoplethinkthattheycan‘fill’theirhomeoverthe
restoftheirlives,thetruthispeopleworkhardtofilluptheirunfinishedhomescompoundingtheir
initiallybaddecision.Inaddition,youshouldestimatethatbasicupkeepofyourhomewillbe2%to4%
annually.Thisgoesfromlandscaping,toablownwaterheater,orjustpaintingroomsagain. Many
peopledonotputthesecostsintotheirbudgetwhentheyfiguretheirmortgagepayment.Last,forthe
newlymarriedcouplethathastwoincomes,youshouldconsiderwhatwillhappenwhenyouhaveyour
firstchild.Inmanycases,onespousedecidestostayhomeafterthebirthofafirstchild.Beyondthenew
kidexpenditures,thebudgettakesahugehitwithonelessincome.
Buying More Home Than You Can Afford
1
If you avoid these 5 disaster financial moves, you should have a good chance of
becoming prosperous and hitting your goals. If you have made one of these already, it
may be time to come see us to show you how to get back on track.
If you avoid these 5 disaster financial moves, you should have a good chance of
becoming prosperous and hitting your goals. If you have made one of these already, it
may be time to come see us to show you how to get back on track.
Thisisourtoponeasitwilltrulycrippleyourlongtermfinancialplan.Yearsago,weheardofavery
simplefinancialratiocalledtheprimaryobligationratiowhichsaidthatyourmortgagepayment
shouldn’tbemuchmorethan28%to34%ofyourtotalgrossmonthlyincome.Usethatstatisticin
conjunctionwithputting20%downonyourhomepurchaseandyouwilltypicallyavoidthisnumberone
financialdisaster.Itisimpossibletosqueezeintoahomefinanciallylikeyouwouldacarorsomeother
onetimepurchase.Manypeopleforgetthecostoffurnishingthehousewhichcanrun5%to15%ofthe
homevaluedependingonyourtaste.Whilemostpeoplethinkthattheycan‘fill’theirhomeoverthe
restoftheirlives,thetruthispeopleworkhardtofilluptheirunfinishedhomescompoundingtheir
initiallybaddecision.Inaddition,youshouldestimatethatbasicupkeepofyourhomewillbe2%to4%
annually.Thisgoesfromlandscaping,toablownwaterheater,orjustpaintingroomsagain. Many
peopledonotputthesecostsintotheirbudgetwhentheyfiguretheirmortgagepayment.Last,forthe
newlymarriedcouplethathastwoincomes,youshouldconsiderwhatwillhappenwhenyouhaveyour
firstchild.Inmanycases,onespousedecidestostayhomeafterthebirthofafirstchild.Beyondthenew
kidexpenditures,thebudgettakesahugehitwithonelessincome.
THE CONTENT IS DEVELOPED FROM SOURCES BELIEVED TO BE PROVIDING ACCURATE INFORMATION. THE INFORMATION IN THIS MATERIAL IS NOT INTENDED AS TAX OR
LEGAL ADVICE. IT MAY NOT BE USED FOR THE PURPOSE OF AVOIDING ANY FEDERAL TAX PENALTIES. PLEASE CONSULT LEGAL OR TAX PROFESSIONALS FOR SPECIFIC
INFORMATION REGARDING YOUR INDIVIDUAL SITUATION. THIS MATERIAL WAS DEVELOPED AND PRODUCED BY HELLO MY NAME IS, LLC TO PROVIDE INFORMATION ON A
TOPIC THAT MAY BE ON INTEREST. THE OPINIONS EXPRESSED AND MATERIAL PROVIDED ARE FOR GENERAL INFORMATION, AND SHOULD NOT BE CONSIDERED A
SOLICITATION FOR THE PURCHASE OR SALE OF ANY SECURITY. COPYRIGHT 2014 HELLO MY NAME IS, LLC.
5 Disaster Financial Moves
Buying More Home Than You Can Afford
1
Sureyouwillhearthestoryofsomeguywhoinvestedinastartuptechnologycompany,anewly
developedbuilding,orsomefancynewgadgetwhomadeaboatloadofmoney.However,fortheregular
guysandgalswhoputmoneyintoafriend’sstartuprestaurant,apieceoflandtheyneversaw,orafew
sharesinanewcompanyitgenerallydoesn’tworkoutinthelongrun.Theoddsofcashinginaprivate
equityinvestmentareveryslim.Lessthan5%ofthetimedoesmoneyactuallycomeoutthebackendof
theinvestment,withmoreoftentheresultbeingalossofallofthemoney.Hereisoursimplerule: Ifyou
aren’tgoingtobeactivelyinvolvedinthebusinessasanownerstayaway. Unlessofcourseyouwantto
loseyourmoneyorhaveittake10yearslongerthanyouthoughttotryandgetitback.
Private Equity Investments With Friends
2Sureyouwillhearthestoryofsomeguywhoinvestedinastartuptechnologycompany,anewly
developedbuilding,orsomefancynewgadgetwhomadeaboatloadofmoney.However,fortheregular
guysandgalswhoputmoneyintoafriend’sstartuprestaurant,apieceoflandtheyneversaw,orafew
sharesinanewcompanyitgenerallydoesn’tworkoutinthelongrun.Theoddsofcashinginaprivate
equityinvestmentareveryslim.Lessthan5%ofthetimedoesmoneyactuallycomeoutthebackendof
theinvestment,withmoreoftentheresultbeingalossofallofthemoney.Hereisoursimplerule: Ifyou
aren’tgoingtobeactivelyinvolvedinthebusinessasanownerstayaway. Unlessofcourseyouwantto
loseyourmoneyorhaveittake10yearslongerthanyouthoughttotryandgetitback.
Private Equity Investments With Friends
2
3. THE CONTENT IS DEVELOPED FROM SOURCES BELIEVED TO BE PROVIDING ACCURATE INFORMATION. THE INFORMATION IN THIS MATERIAL IS NOT INTENDED AS TAX OR
LEGAL ADVICE. IT MAY NOT BE USED FOR THE PURPOSE OF AVOIDING ANY FEDERAL TAX PENALTIES. PLEASE CONSULT LEGAL OR TAX PROFESSIONALS FOR SPECIFIC
INFORMATION REGARDING YOUR INDIVIDUAL SITUATION. THIS MATERIAL WAS DEVELOPED AND PRODUCED BY HELLO MY NAME IS, LLC TO PROVIDE INFORMATION ON A
TOPIC THAT MAY BE ON INTEREST. THE OPINIONS EXPRESSED AND MATERIAL PROVIDED ARE FOR GENERAL INFORMATION, AND SHOULD NOT BE CONSIDERED A
SOLICITATION FOR THE PURCHASE OR SALE OF ANY SECURITY. COPYRIGHT 2014 HELLO MY NAME IS, LLC.
THE CONTENT IS DEVELOPED FROM SOURCES BELIEVED TO BE PROVIDING ACCURATE INFORMATION. THE INFORMATION IN THIS MATERIAL IS NOT INTENDED AS TAX OR
LEGAL ADVICE. IT MAY NOT BE USED FOR THE PURPOSE OF AVOIDING ANY FEDERAL TAX PENALTIES. PLEASE CONSULT LEGAL OR TAX PROFESSIONALS FOR SPECIFIC
INFORMATION REGARDING YOUR INDIVIDUAL SITUATION. THIS MATERIAL WAS DEVELOPED AND PRODUCED BY HELLO MY NAME IS, LLC TO PROVIDE INFORMATION ON A
TOPIC THAT MAY BE ON INTEREST. THE OPINIONS EXPRESSED AND MATERIAL PROVIDED ARE FOR GENERAL INFORMATION, AND SHOULD NOT BE CONSIDERED A
SOLICITATION FOR THE PURCHASE OR SALE OF ANY SECURITY. COPYRIGHT 2014 HELLO MY NAME IS, LLC.
Besidesareasonablehomemortgage,mostdebtjustisn’tgoodforyou.Theonekillerinallofthedebts
iscarryingongoingcreditcarddebtonalongtermbasis. Sometimescreditcarddebtoccursbecauseof
someonetimeemergencyorcatastrophe,butmoreoftenthannotitisjustsimplycreatedbyliving
beyondyourfinancialmeans.Youspendmoremoneythanyoumakeanddoitforasustainedperiod
timeandyouendupowingthewrongpeople.GettingtrackeddownbyaloansharkwiththeSoprano’s
won’tendupfeelinggood,andneitherdoeswatchingyourdebtcompoundata18%to24%interest
ratewiththecreditcardcompany.Atan18%interestrate,yourdebtwilldoublealmostevery4years.
Thesooneryougetabudgetandafinancialplan,thesooneryouwillpayoffthedebt.
Carrying Credit Card Debt
3Carrying Credit Card Debt
3
We’vethoughtofsellinganoldcarwithnewcarsmellairfreshenersrightonourwebsitetogetpeople
tostopbuyingnewautomobiles.Makewhateverargumentyoulike;buyinganewcarisjustaboutthe
worstinvestmentyoucanmake.Wedon’tmeantradinginanoldercarforanewer‘used’car,butjust
buyinganewcarperiod.We’vewrittenmanyarticlesonthissubject,andifyourfinancialadvisorhadan
investmentthatyouknewwouldgodowninvalue40%overthefirsttwoyears,youjustsimplywouldn’t
doit.Withbodystyleschanginglessfrequentlyincarstoday,youcansettleforgettingacarwithalmost
allthenewtechnologyfor40%lessprice.Thisfinancialmoveover20yearscansaveyouhugemoney
whichyoucanapplytowardyourfinancialgoals.
New Automobiles
4New Automobiles
Not Saving EnoughNot Saving Enough
4
It’struethatthemarketsandeconomyhavebeenshaky,andcouldbeformanyyearstocome.When
youlookatagoallikeretirement,mostofusdonotwanttoretirelaternordowewanttoliveonless
afterworkingfor30or40years.Ifyoucannotcontrolthemarketsoryouroverallrateofreturn,theone
thingyoucandototiptheoddsinyourfavorissavemore.Useoursimpletipofsaving33%ofevery
raiseyougetandyouwilllearntolivewithinyourmeansvs.spendingyourraisesandbonuses.Over
timethemoneywillbeoutofmindandoutofsightputtingyouinapositionofrefusalcomeretirement
time.
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