So, the market has just recently showed some weaknesses, which again has happened over and over again. Life is that way. We have our ups and our downs. What matters most is what we learn from our down times. Do we make the exact same mistakes we did last time we were at our highest and the market or job loss related to the market made us realize some big and regretful decisions.
I have learned alot from the last market crash. First of all I have learned to ask for help. Like I have written in the past, one thing that I learned through my research it doesn't matter what life you had before the crash, all and I mean ALL income levels have asked for help. Now I do wish my church would teach more financial instructions to those members who are asking for a mortgage payment for a more than 300k house here in Utah, or members who don't realize that 500 dollar car payment could of went to food they got at the bishops storehouse. My argument at one time was I didn't buy a 2000 dollar car so I could support you with fast offering payments while you drive your 30k car. 28k would buy ALOT of food.
Second, I learned to protect my cars. I have never been at risk of being repoed but I have seen my fair share of repos. You do a search on Facebook, somebody somewhere either just got their car repoed or witnessed someone's car being repoed. When the market is down, repos are on the rise in all income levels as well. Which is crazy to me! Why are the wealthy not paying off their cars?? I'll let you know. They are actually not wealthy! They have become artificially wealthy through loans and a balooned stock market.
This YouTube is a great example of that.
When it crashes they crash too. To protect your cars either A have it paid off. B. Have a manageable loan at around 5k or c. When you feel the market is tanking or your soon to lose your job, put your car loan on a credit card. Can't repo a car on a credit card.
3rd I learned I need to chose a side. Do I chose to hand out or to receive the handout. Am I on the wealthy side or the poor side. Last time I thought I was alright. I donated to food banks/charities all the while I struggled with rent medical bills food. I even donated plasma to cover formula. There were people in million dollar homes getting food and mortgage help while I was struggling. I was obviously in need but didn't get it because of my pride. This time I'm choosing a side! Here is a quick questionair on what side you should be on in case you are confused like I was.
Do you own your house meaning no mortgage payment?
Do you have things in value over an average years salary including bank accounts cash real estate?
Are you struggling to make your mortgage payment?
Is your mortgage more than 300k?
Are you married WITHOUT children?
If you answered no to all four. You might be poor
Chose help to help your independence. Stop donating to people who don't need help instead they need a lifestyle change.
Number 4. Not to beat a dead horse but be careful if you choose to help those in need. Again ALL income levels ask for help when the market crashes. How would you feel if you donated food to the food bank? Good right? Well that food you donated just went to a family who within the last year went to the lake 4 times with their boat, had two nice vacations one to Hawaii one on a cruise at a total value of 15000 dollars, for the last 3 years have had car boat and truck payments totaling 1250(1500 if you include insurance, all 3 are about to be repoed), and to top it all off, they have lived in a house worth 3TIMES your house. Do you still feel good? This absolutely does happen.
I wrote about one experience here.
http://viscarjones.blogspot.com/2015/01/sometimes-it-falls-right-into-your-lap.html?m=1
And a follow up here
http://viscarjones.blogspot.com/2015/07/some-times-it-falls-into-your-lap-part2.html?m=1
At the time I wrote that my house was worth about 130k. So at 450k they had more than 3 times my house. They had plans to sell and move to a trailer park until something happened? Due to the bishop comments on the second post I assume they got help with their mortgage? Again and again I here "bishops are to help sustain life not lifestyle" I call b.s. here. If their house was saved, their lifestyle was saved.
And I'm done. More to come on surviving the next crash. It will come. Will you be ready?
I wrote about one experience here.
http://viscarjones.blogspot.com/2015/01/sometimes-it-falls-right-into-your-lap.html?m=1
And a follow up here
http://viscarjones.blogspot.com/2015/07/some-times-it-falls-into-your-lap-part2.html?m=1
At the time I wrote that my house was worth about 130k. So at 450k they had more than 3 times my house. They had plans to sell and move to a trailer park until something happened? Due to the bishop comments on the second post I assume they got help with their mortgage? Again and again I here "bishops are to help sustain life not lifestyle" I call b.s. here. If their house was saved, their lifestyle was saved.
And I'm done. More to come on surviving the next crash. It will come. Will you be ready?
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