Photo courtesy of Nashville City Paper

Dave Ramsey is becoming more and popular these days, especially with the troubling financial times we are finding ourselves in. Dave Ramsey is a financial expert and writer, his most popular book is called The Total Money Makeover. He’s earned the title of financial guru by learning the hard way about finances and the risk of going head over heals in debt. Dave was leveraged in real estate investments to the tune of four million dollars over twenty years ago. As fate would have it, he lost it all when his short term loans were sold and the new banks demanded payment before it was possible for Dave to deliver. This experience has caused Dave to change his thinking on loans and personal finance. He now advises people to pay debt off and cut up the credit cards. I personally like his country boy, down to earth, shoot it to you straight mentality. Dave Ramsey reminds me of a teacher that I had back in high school. Frank Gentry, my old marketing teacher, had a similar laid back teaching style. Dave Ramsey’s lessons encourage you to think and grow. Few teacher’s names are remembered years later in life unless they have truly affected your way of thinking and how you view opportunities. Dave, like my old marketing teacher is definitely a “glass is half full” type of guy. If your sick and tired of living your life “pay check to pay check”, then you’ll definitely want to listen to what Dave has to say.

I’m no Dave Ramsey, but I can tell you that for over twenty years that I turned wrenches I never owed money to Snap On, Matco or any other tool trucks. No doubt, the tool trucks are definitely convenient, but as with many convenient products, like the ones offered at corner stores, a premium price is paid. My advice to anyone in the automotive repair industry, is to shop on-line to find many of the same auto tools that the tool trucks offer, at a huge savings (many times up to 50% off). Start by paying off the tool truck if you owe him money. Once you’re able to pay for the tools you need as you go, you’ll be keeping a lot more of your hard earned paycheck. Dave advises to get rid of all credit cards once they are paid off. I think that if used wisely though, credit cards are OK. In fact, if you own a shop and are able to use a credit card for purchasing parts from your vendors, it could even be profitable.

For instance, say you buy $25,000 worth of parts in a month with a credit card that pays you back 1%. That means you will earn $250 for using the bank’s money. The catch would be if you fail to pay the balance off on time. Also, details of how interest is figured has to be studied closely. Some credit cards will charge you fees even if the balance is paid off in full every month. I have a Bank of America credit card that is used for the business, I routinely receive $500-750 back in the form of a check. With the economic climate we are heading into, planning is a must and making the best choices on how we spend our money may make the difference between success and failure. If you’re an auto mechanic or a shop owner it may be time for a Total Tool Budget Makeover.