Last Friday, there was a show on ABC TV with Mellody Hobson. Of course, the title caught our attention.
UN-BROKE : WHAT YOU NEED TO KNOW ABOUT MONEY
After Mellody started talking about the premise of the show, it showed a scene with Antonio Banderas and Marisa Tomei as a married couple talking about a future student loan. Student loans are low interest rate, but the amount is outrageous. Can you explain to me why college costs so much?
Then Cedric came on the show talking about CASH and fair exchange. Pay cash.
Mellody led into credit cards. These are staggering figures. The AVERAGE family – most likely with two parent income – has 5 credit cards with a total of $10,000 balance. This will take 58 YEARS to pay off the balance with minimum payments. AAAAgggghhhh!
Cedric showed up again talking about SUB PRIME mortgages. SUB PRIME – get it? And who was sitting around that table when the idea came about? It was a trap for consumers. But consumers did NOT pay attention and think that 1 + 1 = 100,000 !!!
Then he talked about having only ONE credit card.
Seth Green showed his “crib” and his “ride”. The man has investments and lives modestly. Kudos to Seth Green!
Media and marketing does not help our budgets. Now is it chic to cut coupons?
Marisa and Antonio started talking about having an emergency fund and a safety net at least a year of saefy put aside.
What about $1 per day (in a piggy bank) for the next 4 months?
Then what about $5 per day the following 4 months? Do the math. How much would that be in one year?
The Jonas Brothers talked about stocks – and Mellody said buy while stocks are low and stay in for the long term. Same with bonds. Do you know the difference?
DOW, S&P 500, NASDAQ
Even Oscar from Sesame Street was on this show!!!
Why don’t they teach this in high school?
Retirement – what is a 401 (K)
Christian Slater and Rosario Dawson explained what a 401(k) is and why you should take advantage of it.
Our favorite part was Samuel L Jackson. He portrayed an author as a guest on a radio talk show. Getty Greene.
He looked stressed out. He said he, Getty Greene, was broke and he explained how and why. Then he wanted the audience to take action and shout wherever you are – in the street, out the window, etc.
“I’M BROKE AS HELL AND I’M NOT GOING TO TAKE IT ANYMORE”
He said this is what we are going to do:
-buy cheaper cars to use cheaper gas
-pay off credit cards and only use one for emergencies
-buy cheap stocks and stay in for the duration
-live within your means
THESE ARE THE MELLODY HOBSON UN-BROKE STEPS:
#1 – one credit card for emergency
#2 – buy an affordable house
#3 – emergency fund for 1 year
#4 – buy stock for the long term
#5 – retirement savings
Life after collection debt elimination?
**If we missed any parts, let us know. This is only a paraphrased version.
So is this the answer??? What do you think?
NEXT LEVEL CREDIT
“Taking Your Credit to the Next Level”
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