The Dumbest Strategy Ever?

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Partial Transcript

[The following is a partial transcript of this episode of The Scott Alan Turner Show. Listen to the full episode to hear this story, listener questions, money hacks, and inspiring stories of people that are changing their financial lives. Subscribe to the free podcast on iTunes or Google Play]

Today – “The dumbest strategy ever!” is what one financial leader was yelling at the TV about another financial leader. Who do you think is right? Today we’re taking people from debt dumb to financial freedom. In a box!

Can you think of a time where money had you confused? For example, everyone agrees paying off debt as quickly as possible AND saving the most money while doing it is a beautiful thing. I’ve been talking about this for a long time on the show. Most people are confused on what to do. Where to start. What order to do things. Which advice to follow. What about this. What about that? You know they don’t teach this stuff in school.

It’s kinda like dieting. Paleo? Keto? South Beach? Vegan? The McDonalds diet? Think about it – ask ten friends and you’ll get ten different answers. They all work. But you see, they all work for different people. In different ways.

Here’s what one of the financial pied pipers had to say:

“That is just plain wrong. So you are to do it this way and this way only.” And this one guru described this other guru as being debt dumb.

THOU SHALT NOT.

There are NO 10 Commandments of Personal Finance. Though I reserve the right to make them up for a future show. That could be pretty good.

I’m inviting everyone along to be in the band. Because I believe you’re smart enough to write your own rules that will achieve your goals. You just need the right filter, which I’ll give you.

You see, I had my own gurus about ten years ago that I followed. Blindly, I say honestly. I drank the Kool-Aid, I shouted from the mountain tops, I stood up on the street corners yelling sinner! Credit cards are from satan himself! Then I became more and more edumacated. When peeling back the layers, imagine an onion you’re working on. Mmmmm, blooming’ onion. When peeling back the layers, I cried. Figuratively, not literally. I scratched my head and thought, wait a minute. If someone owes $150 to Victoria’s Secret, due in 12 months. Maybe they had a 12-month same as cash bra sale. And they owe $2,000 at 22% interest due in 3 months as part of some TV sale, which should be paid first?

• Debt snowball says the Victoria’s Secret card. Pay off debts smallest to largest. Ignore everything else
• Debt avalanche says the TV. Pay off debts highest interest rate to lowest interest rate. Ignore everything else.

If I pay for bras before TV, I’m going to get hit with a big interest charge. Bras and TVs, this show is getting interesting.

I can sum it up like this – personal finance, is personal. I was like everyone else. I thought you could box up every one and cookie cutter them into this little thing, and boom, problem solved. Until you speak to lots of people like I have, and realize nobody follows the recipe. Everyone customizes it. What’s popular is figuring out what works. People don’t need diets or new diets. You need a lifestyle. Because diets don’t work. Lifestyle change does.

• If you can do a balance transfer, do a balance transfer.
• If one way doesn’t jive with your situation, change the plan.
• Keep going towards the same destination, just change the itinerary. Or the mode of transportation. Or the number of pit stops.

However, even me, some things I’m pretty firm on. THOU SHALT NOT. I’m not for raiding retirement accounts to pay down debts. Using a HELOC to pay off student loans. I would put college funding as a much lower priority. There are 1,000 ways to pay for school, but only one way to fund a retirement – your income.

I believe in figuring out a plan that works best for you. That you will follow. That you and your partner buy into if you’re not flying solo. I know that will change your life. THOU SHALT.

If you’ve tried and tried and tried and failed and failed and failed, maybe you haven’t found the best plan for you. The good news is all of the plans work. But they don’t all work for all people in all situations. Some plans are more efficient. Some plans are more effective. Some plans save more time or more money.

You see in football, teams run the football AND throw the football. They don’t only run the football or only throw the football. Or they would lose every game. It’s a combined attack to win.

So, thou shalt use your big ol’ brain, because you’re smart. Your listening to the show, right? That’s how I know you’re smart, even if we’ve never met. Because you’ve committed to listening, learning, and being led in the right direction. And when you have a question you must be willing to ask a question. I’m your guide.

Now just suppose instead of a diet you lived a lifestyle on your terms. Not other people’s terms. The Scott Alan Turner Show is about helping you achieve financial freedom, ultimate happiness, and awesome experiences. Imagine that. And imagine it happening faster, you end up with more of your hard earned money, and with more confidence in your plan.

Your get out of debt plan, your financial freedom plan, your retirement plan, is as unique as your hair, eyes, and nose. Thou shalt be smart, because you are smart.

End rant.

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