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What Type of Borrower Are You?

The Kia commercial comes on: 


“We wanna see YOU in a new Kia! Come on down to the dealership & you could be approved for ZERO DOWN on a brand new Kia! Act quickly, the sale ends at the end of the month!” 


There are only 3 types of thinkers as it relates to this ad. Unfortunately, only one of them is treating their money properly. 



Ahhhh the ole “zero-down” sales tactic. It will leave consumers in one of 3 positions.  

  1. Dead, sunken at the bottom of the financial sea 

  1. Floating above water holding onto a life vest for dear life 

  1. Aboard the yacht, sailing away from the scene 


Which do you relate to? Read through the 3 schools of thought for “zero-down” below and see for yourself! 


The Sinker 

You, my friend, do not want to be the sinker. The sinker views this as an opportunity to spend money…and that is all. The sinker jumps at the opportunity to get the Kia with zero-down. The car dealership is most definitely taking advantage of the sinker. They understand that they will be getting more in interest out of the sinker than the sinker will ever get out of their dollars elsewhere. Unfortunately, the sinker makes up the largest percentage of consumers out there today. 


As for the sinker, he or she is spending a low, fixed amount per month at a high, fixed interest rate for a very, very long period of time. He or she is not saving additional money in a place with a high rate of return, either. Instead, the sinker is likely spending those dollars on more items with “zero-down” and the cycle continues.  


The Floater 

Unlike the sinker, the floater cannot fathom the thought of going into debt. It scares the yazoo’s out of them. The floater has been saving for years to come up with enough cash to pay for the Kia out of pocket. He or she sees zero-down advertising as a scam & is unwilling to learn a better way through next level thinking. The floater most definitely makes up the 2nd largest percentage of consumers out there today.  


Unfortunately, this person is content with doing what they have always done because that is what they have always been taught to do. That’s ok for them, though, because they are not giving up money in the form of interest to a bank in order to purchase the car.  


The Sailor  

Only a very, very small percentage of America is the sailor (we’re convicted in turning everyone into a sailor). A different thinker, the sailor is most definitely interested in this zero-down deal. He or she would never want to immediately throw cash at a depreciating asset like a Kia (or most any car). The sailor understands money and knows an opportunity when he or she sees it.  


So, other than drowning at the bottom of the financial sea, what makes the sailor different than the sinker?  The sailor saves their down-payment in a place earning a higher rate of return than the loan on the car. 


The sailor understands a concept neither the sinker or the floater understand. This concept is leverage. The sailor realizes that if they can use someone else’s money (in this case the bank, or cash in a specially designed life insurance policy) they can earn an even higher rate of return on their dollars elsewhere.   


The sailor is not against paying cash, either; it is just commonly someone else’s cash. Most sailors use mutual insurance companies cash reserves to make purchases or investments. He or she likely has dollars stored in a place (like a specially designed whole life insurance policy) that he or she can leverage to make large investments (like real estate, or his or her business, etc.) or even purchases like a Kia. 


Have you put yourself in one of these 3 groups? If you are the sinker or the floater, there’s good news! You have the tools to become a sailor at your fingertips.  


Have a best friend who is not a sailor? Share this with them! Challenge their thinking (without Wall Street). We’re working to change the financial landscape of our country one person at a time and believe that you spreading the word will boost us in getting there. 

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