Do you hear that VISA? It’s me, Greenbacks Magnet

I like my Visa. Always have. But it does not outshine cash.

Let’s face it, Visa is everyone whether you want it to be or not. Visa is accepted at the gas station, grocery store, airports, restaurants, and shopping malls.

Even vending machines take credit cards now. I once read that if you have to put groceries and gas on plastic, then you’re in trouble.

A book I read called Maxed Out, discusses the dangers of heavy dependence on credit.

You want to get on the right side of Mr. Interest, whereas, you earn it instead of pay it.

Here’s how you do it.

Read the fine print. Make sure to read your credit card statement. Know what interest rates you are paying and pay attention to the fees.

Pay off in three years. Credit card statements now show payment information of what happens when you pay only the minimum or what to pay to pay off your account in 3 years. If you stop using your card, you can pay it off in this time and be out of debt.

Plan to repay debt. I have read over 100 finance books and many state the same messages. One in particular is to make a plan to pay off all debt if possible in 3 to 5 years. Excluding the mortgage.

Setting goals. Write down a realistic plan to get rid of credit card debt. You need the amounts owed and interest rates.  The goal has to be measurable such as 3, 4, or 5 years.

Stop digging. You will have to stop using plastic. It’s the only way.

Save for emergencies. Have a rainy day fund to help kick the credit card habit. If you can save 1-month worth of expenses, you can start to kick the habit as you can pay for what you want with cash.

Delayed gratification. Plan your expenses. If you want to go to a concert next year, then start planning well in advance and save the money to pay for it with cash. No credit equals no debt.

Right side of Mr. Interest. Once you pay off the credit card debt, you can focus on investing the money you were paying in finance charges and start earning interest of your own instead of paying it.

Simply put, you can go from paying interest to earning it on the money you invest. This 8-step plan will help you get there.

Join the top Ten Percent Club

The wealth inequality in the United States has reached a height not seen since the Great Depression.

The cries of unequal pay are falling on the deaf ears of politicians.

Therefore, it is up to you to start figuring out what you can do to change this in your life.

For starters, let’s define what someone has to do to join the ten percent club of wealth.

Let’s keep it simple and define families in the top ten percent as those with a net worth of $1,000,000.

That means that if you fall into the top ten with a net worth of $1,000,000 in 2017, you have more wealth than 90% of the population. And you are a member of the top ten percent. This is no small feat.

How do you get to $1,000,000? In keeping with simplicity, you could have a paid off home or home equity with a value of $250,000.

The other $750,000, which is needed to reach the upper echelons of wealth in the ten percent club, would be in savings and investments.

To accumulate $750,000 in savings, you need to save $6,600 a year for 30 years and earn a rate of return of 8%.

Basically, you could amass a cool $1,000,000 net worth by paying off a $250,000 home and saving $6,600 over 30 years to join the top ten percent. All this done simultaneously over a 30 year career, would equate you to having accumulated a net worth of $1,000,000.

Being a ten percenter is not so bad. It’s actually pretty great. Simple math and living will get you there.

Forget Simon, do what Buffet says

Warren Buffet is the greatest investor of all time.

He has a net worth of over $70 billion dollars.

It is safe to say that he knows what he’s doing. And if you listen to him, you are likely going to be better off than the average joes.

Some of his best quotes on life you can find here  Warren Buffet quotes

Here are some of my favorite quotes from the wisdom of the Oracle of Omaha, Warren Buffet.

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

Focus on value over price. If you do not want to lose money, then limit spending and find ways to save and invest to grow your money.

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

If you wouldn’t do it when being recorded, then you probably shouldn’t be doing it. Don’t do anything you don’t want on the front page of a newspaper.

Someone’s sitting in the shade today because someone planted a tree a long time ago.

All good things need time.

Risk comes from not knowing what you’re doing.

It was reported that Buffet spends 80 percent of his day reading. He has knowledge and uses it to his advantage. Reading, studying, and learning are the only ways to limit risk. You can put all your eggs in one or a few baskets if you know what you are doing.

You only have to do a very few things right in your life so long as you don’t do too many things wrong.

Staying away from negative behaviors and activities in vices such as drinking, smoking, and gambling can make sure that you will not hurt your chances to become wealthy.

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

Don’t follow the crowds. Use your knowledge to make informed decisions. When others say the sky is falling then it is time to invest.

Honesty is a very expensive gift – don’t expect it from cheap people.

People that look to cut corners often lack integrity. This could hurt your bottom-line.  If you skip all the rungs on the ladder to success and wealth, you also miss the lessons along the way to stay successful and wealthy.

If you’re in the luckiest 1 percent of humanity, you owe it to the rest of humanity to think about the other 99 percent.

Helping others is its own reward. It is a moral imperative to help those who need it. Helping the bottom 4 billion at the economic pyramid has far reaching and lasting positive effects on humanity.

Too often, a vast collection of possessions ends up possessing its owner. The asset I most value, aside from health, is interesting, diverse, and long-standing friends.

Life is about building relationships. Treat them well and you will get that treatment back in return. People are always more important than things.

You can’t make a good deal with a bad person.

There is no value you can place upon a good person or friend. Stay away from negative or bad people because they can’t be reasoned with to do the right thing.

Final Remarks. In this life, it can’t be all science and no philosophy. Humanity is a part of everything you do. Your highest civilian duty is to be humane. If you want to build your wealth, it is simple: help others.