get+clark+smart

Get Clark Smart by Clark Howard
 * Brock Perry

Clark Howard discusses smart ways to build long-term wealth and save money wisely in his book __Get Clark Smart__. In it, Clark writes about ways to make you a better consumer by being able to invest for the future and make smart choices when it comes to real estate, buying a new car, dealing with insurance, and protecting yourself against identity theft. Clark Howard explains how many people end up regretting certain decisions they made when buying their car. He talks about how there are so many options available for car buyers to utilize, but rarely end up using them. He suggests that people look at cars when a dealership is closed so that there is not a salesperson to pressure you to buy. He also says that the best way to test-drive a car is to rent it for a day or two, which is the ultimate test-drive. He also shows how to avoid tricks that dealerships may pull on a customer, such as when they check a person’s credit report while they are test driving a car. Clark suggests that you should use the Internet to find out the dealer cost of the vehicle and options you want and begin negotiating from that cost. He also warns that if you choose to negotiate in the traditional manner with a car dealer, be prepared for a difficult process.

When dealing with trade-ins, financing, and extended warranties, Clark suggests that if you have a trade-in, the time to discuss it with the dealer is after you’ve negotiated the purchase of the car. He also encourages consumers to buy a manufacturer’s extended warranty or one from your personal auto insurer instead of a third-party contract. He explains the secret behind leasing, as he says how it is ba sically impossible to talk to talk to a car dealer without them wanting you to lease a car, primarily because it is profitable for them. Car dealerships make leasing prices so complicated that it is very hard for you to compare the prices. Leasing may seem cheaper than buying, but you are mortgaging your future when you lease. After a few years of leasing a vehicle and making payments, you own nothing. Manufacturers and dealers like to use up-front fees to create ultra-low monthly payments that mask the actual cost of a lease. However, most leases only allow you to drive an average of fifteen thousand miles per year, and if you exceed the limit, the person has to pay a penalty of eight to fifteen cents per mile. Clark Howard suggests that before you turn in a leased car, you should have it detailed inside and out, as well as making any needed repairs. Then, find out which company is officially responsible for determining that the car is in an acceptable condition. Offering advice on car repairs, Clark suggests that if your car is towed to a mechanic, do not allow the tow-truck driver to choose the repair shop because he may be being paid to steer your car to a particular shop.

Investment is a subject that many people fail to learn the smart ways to earn money from. Most people think they have little chance to become rich, and many people think the only way for them to make serious money is to try to win the lottery. According to the Consumer Federation of America, 25 percent of Americans think winning the lottery is the best chance for them to become millionaires. Clark Howard says the secret to creating wealth is with good habits and not investment wizardry. Clark suggests putting money aside regularly in a variety of stocks and mutual funds, as well as starting to save money as early as possible. When investing for retirement, the growth potential is a better bet than investments such as certificates of deposit, which end up barely keeping up with the rate of inflation. Another helpful tip Clark Howard offers is to not expect huge gains each year and to not worry about huge losses in the short term. Keep your eye on the target, which should be a long-term (ten years or longer) strategy.

There is a difference between investing for retirement and short-term investing. If you have an investment window of five years of less, Clark suggests staying conservative and to consider yourself a saver rather than an investor by getting bank certificates of deposits and money market mutual funds instead of stocks. Tips he offers are to choose less volatile investments if you may need your money in a few years as well as using the “laddering” strategy when it comes to certificates of deposits- buying certificates of different maturity and constantly rolling over the funds. When choosing an investment, it itself should be sound and having tax advantages is simply a bonus. When it comes to paying taxes, if you cannot pay your taxes of April 15, Clark suggests that a person should file your tax return anyway and attach an explanation, and if you are having problems with the IRS (as many people do), try the taxpayer advocate office (if that does not work, write to your congressman for help).

Clark Howard goes into great detail about credit cards. The response rate for credit card solicitations is down to less than one percent, and people are using credit cards more wisely as well. Forty percent of credit card holders now pay their balance in full each month, which credit card companies are now referring to as “deadbeats”. Credit cards are all about discipline, and if you can have good discipline with your plastic, all you need to do is get a card with no annual fee and a twenty-five-day grace period between the day of purchase and the date of interest. He also mentions three key tips when it comes to credit cards:

- If you frequently carry a balance, get a card with a low interest rate. The annual fee matters very little. - Do not carry more than two or three credit cards. They are unnecessary and can cost you up to $50 per card if they are lost or stolen. - Do not use debit cards, particularly for online purchases. They may help you avoid using credit, but thieves or errors can drain money directly from your checking account.

The next important subject Clark Howard tackles is dealing with debt. Clark says it perfectly: “America is drowning in debt.” The average American family carries a credit card balance of more than seven thousand dollars. He urges the American people: If you are in credit card trouble, stop using your credit cards. Plain and simple. Stay away from offers that tempt you to buy merchandise with no money down, no payments, and no interest until a later date. If you need help, do NOT immediately file for bankruptcy. The best option is Consumer Credit Counseling, which can help you work out a debt repayment plan. Filing for bankruptcy or foreclosing on a home will remain on your credit history for the rest of your life.

Clark Howard’s book __Get Clark Smart__ combines useful advice on different financial situations along with an encyclopedia of useful websites and organizations that help consumers learn more about different events they are participating in. It also provides several worksheets in a workbook design to help people in their consumer battles. He also includes a “Drop Dead” letter to collection agencies, as well as a model letter of complaint to various agencies. In my opinion, we need to look to Clark Howard for all of our financial advice. Clark Howard for President!!

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