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Clark Howard: Living Large in Lean Times

Clark Howard will discuss how to survive and flourish in tough economic times with tips on how to buy, spend, and save money. Read Transcript


Pat: WELL, WE NEED THIS

HELP TODAY.

THIS IS A MAN WHO IS VERY

POPULAR.

GOT A WONDERFUL RADIO

PROGRAM.

AND HE HAS WRITTEN A

BOOK, "CLARK HOWARD'S LIVING

LARGE IN LEAN TIMES."

HE'S A SELF-MADE MILLIONAIRE

WHO LIKES TO BE CALLED

CHEAP.

AND ON THE CLARK HOWARD

SHOW, HE SHARES A WEALTH OF

MONEY SAVING TIPS.

TAKE A LOOK.

SAVE MORE AND SPEND LESS

IS MORE THAN JUST A MOTTO

FOR CLARK HOWARD, IT IS A

WAY OF LIFE.

CLARK IS A SUCCESSFUL

ENTREPRENEUR WITH THE

NATIONALLY SYNDICATED RADIO

TALK SHOW, A POPULAR TV

SHOW, AND BEST-SELLING

BOOKS, WHERE HE GIVES

VALUABLE MONEY-ACING TIPS.

YOU SHOULD NOT DO ONE

EVER IN YOUR WHOLE LIFE.

HOW IS THAT?

Reporter: IN THESE

TOUGH ECONOMIC TIMES, HE

WANTS TO SHOW YOU HOW YOU

CAN LIVE LARGE.

Pat: THE BOOK IS CALLED

"CLARK HOWARD'S LIVING LARGE

IN LEAN TIMES."

CLARK'S HERE WITH US.

WELCOME TO "THE 700 CLUB."

THANK YOU SO MUCH FOR

HAVING ME.

Pat: HOW DID YOU GET

STARTED ON THIS ROAD TO

SAVING MONEY?

IT ALL HAPPENED WHEN MY

DAD LOST HIS JOB WHEN I WAS

A TEENAGER.

IT TURNED OUT EVEN THOUGH WE

WERE LIVING A VERY FANCY

LIFESTYLE, THAT MY PARENTS

HADN'T SAVED AID MONEY AT

ALL.

WHEN MY DAD LOST THIS JOB,

WE WERE IN A HEAP OF

TROUBLE.

Pat: WHAT WAS HE DOING?

WHAT WAS HIS JOB?

IT'S FUNNY.

HE WORKED FOR MY MOTHER'S

FATHER.

HE THOUGHT HIS JOB WAS

SECURE.

HE HAD PASSED AWAY AND HIS

BROTHERS IN LAW SENT HIM

AWAY.

I WAS A FRESHMAN IN COLLEGE,

AND MY DAD TOLD ME THERE WAS

NO MONEY FOR ME TO GO BACK

IN THE SPRING.

SO I SWITCHED TO BEING A

NIGHT STUDENT, GOT A

FULL-TIME JOB DURING THE DAY

AND WORKED MY WAY THROUGH

UNDERGRADUATE SCHOOL AND

THEN GRADUATE SCHOOL.

THE GREATEST THING THAT EVER

HAPPENED TO ME.

THANK GOODNESS, KNOCK ON

WOOD, MY MOM AND DAD GOT

BACK ON THEIR FEET

FINANCIALLY AFTER A COUPLE

OF YEARS.

BUT I LEARNED THE LESSON.

IF YOU LEARN SOMETHING AS A

TEENAGER, YOU CAN STAY WITH

YOU FOR THE REST OF YOUR

LIFE.

I LEARNED YOU SAVE, SAVE,

SAVE BECAUSE THE RAINY DAY

EVENTUALLY COMES.

Pat: YOUR BOOK "LIVING

LARGE," SOUNDS LIKE YOU'RE

SPENDING.

ISN'T THAT AN INTERESTING

CONCEPT.

THE IDEA IS WITH SO MANY

THINGS WE DO, YOU CAN

STRETCH THE DOLLAR.

IT IS THE IDEA YOU CAN LIVE

A VERY NICE LIFE WITHOUT

CONCENTRATING ON GETTING THE

LATEST, GREATEST, HOTTEST

WHATEVER.

Pat: OKAY.

YOU CAN LIVE A PLEASANT

LIFE.

YOU CAN PROVIDE FOR YOUR

FAMILY, AND YOU CAN STILL

HAVE MONEY LEFT OVER AT THE

END OF THE DAY.

Pat: GIVE US A FEW OF

THE TIPS, WHAT YOU TELL

PEOPLE WHEN YOU'RE ON THE

RADIO --

THIS IS ONE OF THE BIGS

RIGHT NOW.

CELL PHONES ARE AN AREA

WHERE SO MANY OF US OVER PAY

SO MUCH.

AND THERE ARE WONDERFUL

DEALS ON CELL PHONE SERVICE

IF YOU GO WITH A

NON-CONTRACT COMPANY.

AS AN EXAMPLE, WAL-MART HAS

BECOME A BIG PLAYER IN CELL

PHONES, AND GENERALLY THEIR

PLANS ARE ABOUT HALF THE

COST OF GOING WITH ONE OF

THE MAJORS, AND YOU GET ALL

OF THE MINUTES, ALL OF THE

TEXTING, ALL THE WEB, AND

E-MAIL AND ALL OF THAT.

Pat: ONE VERSUS HOW

MUCH?

IF SOMEONE GOES WITH A

FANCY-DANCY SMART PHONE,

THEY'LL PAY $100 A MONTH FOR

CELL PHONE, BELIEVE IT OR

NOT.

THE MOST YOU CAN PAY IN A

WAL-MART STORE FOR UNLIMITED

EVERYTHING, $45.

Pat: ENORMOUS SAVINGS.

THAT'S $600 A YEAR.

THAT ADDS UP AFTER A WHILE.

THAT'S RIGHT.

AND THERE ARE SO MANY THINGS

LIKE THAT, THAT ONE STEP AT

A TIME, WE CAN MAKE A

DIFFERENCE.

LET'S TAKE PAY TELEVISION.

PEOPLE SPEND ON AVERAGE

ABOUT $1,000 A YEAR FOR PAID

TV, CABLE OR SATELLITE.

BUT BECAUSE WE HAVE THE TWO

SATELLITE PLAYERS, AND WE

HAVE CABLE, EVEN IF YOU WANT

TO STAY WITH TRADITIONAL

TELEVISION, YOU CAN PUT THEM

ALL IN COMPETITION WITH EACH

OTHER.

AND THEY WILL BID FOR YOUR

BUSINESS IF YOU ASK.

Pat: DISH AND DIRECTV

WILL COMPETE WITH EACH

OTHER?

AND THE CABLE OPERATOR.

YOU PUT THEM INTO A

THREE-WAY FIGHT FOR YOUR

DOLLAR.

AND SUDDENLY MAYBE YOU WERE

PAYING A DOLLAR, YOU GET

THAT FOR 50 CENTS.

SO THE IDEA IS YOU MAKE THEM

WANT YOU MORE THAN YOU WANT

THEM, AND THEN YOU GET A

DEAL.

AND LET ME TELL YOU ONE OF

MY GOOFIEST.

THE SIMPLE RAZOR.

Pat: THE CHEAPEST YOU

CAN GET.

TYPICALLY A GUY WILL

REPLACE A RAISIN ONCE A

WEEK, TWICE A WEEK.

MY LAST RAZOR LASTED ME A

YEAR.

Pat: WAS YOUR FACE FULL

OF CUTS?

I WAS NOT FULL OF CUTS,

BUT I PROBABLY SHOULD HAVE

BAILED ON THE RAZOR AFTER 10

MONTHS.

IF YOU DRY A RAZOR AFTER

EVERY USE, WHETHER YOU USE A

FANCY BLADE FOR A SIMPLE

BLADE, IF YOU DRY IT AFTER

EVERY USE, IT WILL LAST FOR

MONTH AFTER MONTH AFTER

MONTH.

RAZORS DON'T DEGRADE FROM

THE SHAVING.

THEY DEGRADE FROM MOISTURE.

SO IF YOU TAKE THE SIMPLE

EXTRA STEP OF DRYING THE

RAZOR AFTER YOU USE IT --

Pat: THAT'S

INCREDIBLE.

WHAT DO YOU DRY IT WITH?

THE TOWEL?

I DO IT WITH A TOWEL.

THE MOST EFFECTIVE WAY IS IF

YOU BLOW DRY IT, BUT YOU USE

UP ENERGY TO DO THAT.

AND THAT COSTS YOU MONEY.

JUT -- JUST DO THE SIMPLE

TOWEL.

Pat: BIG NUMBERS PEOPLE

SPEND ON IS THEIR MORTGAGE

AND CAR PAYMENTS?

WHAT DO YOU TELL THEM?

SURE.

THE CAR IS SOMETHING THAT

REALLY EATS UP OUR WALLET.

A LOT OF TIMES WE GET TIRED

OF A CAR BEFORE IT IS TIRED

OUT.

IF I CAN GET PEOPLE TO MAKE

ONE CHANGE WITH AUTOMOBILES,

IT IS THAT WHEN YOU FEEL

LIKE YOUR DONE WITH IT,

DON'T BE DONE WITH IT.

KEEP DRIVING IT.

ESPECIALLY ONCE YOU'VE

FINISHED YOUR LOAN.

MOST PEOPLE TAKE OUT A LOAN

TO BUY A CAR.

KEEP DRIVING IT YEAR AFTER

YEAR AFTER THAT.

THE GOAL: DRIVE A NEW CAR 10

YEARS MINIMUM.

DRIVE A USED CAR FOUR YEARS

MINIMUM.

MOST PEOPLE DITCH A CAR IN

THREE YEARS OR SO.

BAD IDEA BECAUSE CARS COST A

FORTUNE.

BUT IF YOU DRIVE ONE FOR 10

YEARS LONGER, THEY'RE SO

RELIABLE NOW.

THAT ONE CHANGE WILL MAKE A

HUGE DIFFERENCE IN YOU'RE

LIFE.

Pat: YOU CAN SAVE

THOUSANDS OF DOLLARS, MAYBE

TENS OF THOUSANDS.

A FORTUNE.

A TYPICAL CAR PAYMENT.

LET'S SAY SOMEBODY IS

SPENDING FIVE GRAND A YEAR

ON CAR PAYMENTS.

SUDDENLY, MAGICALLY, THERE

IS 5,000 DOLLARS IN YOUR

LIFE.

ONE THING PEOPLE SHOULD NOT

DO RIGHT NOW IS DITCH A

PERFECTLY GOOD CAR TO GET

ONE THAT IS MORE

FUEL-EFFICIENT.

DESPITE OF WHAT WE'RE PAYING

AT THE GAS PUMP, IT IS

BETTER TO KEEP DRIVING THE

CAR.

BECAUSE THE BIGGEST COST IS

NOT THE GASOLINE, BUT THE

COST OF THE VEHICLE.

Pat: TALK ABOUT

MORTGAGES?

MORTGAGES, BECAUSE OF ALL

OF THE FINANCIAL TURMOIL,

MORTGAGES ARE A STEAL RIGHT

NOW.

UNBELIEVABLE DEAL.

IF YOU, IN ANY WAY, CAN GET

YOURSELF TO A CLOSING TABLE

ON A REFINANCE, THE DEALS

ARE THE BEST OF OUR LIFE

TIMES.

PHENOMENAL DEALS.

ESPECIALLY IF SOMEONE WILL

LOOK AT A CREDIT UNION

10-YEAR MORTGAGE OR

TRADITIONAL LENDER 15-YEAR

MORTGAGE, THE DEALS START

WITH 3%, 3 POINT SOMETHING

PERCENT, WHICH IS REALLY

GREAT.

THE PROBLEM: ONE IN FIVE

AMERICANS ARE UPSIDE DOWN ON

THEIR MORTGAGES.

IT MEANS YOU HAVE TO GO TO

THE CLOSING TABLE WITH CASH

TO BE ABLE TO REFI YOUR

LOAN.

RIGHT NOW, THAT IS WORTH

IT.

Pat: WHAT WOULD

SOMEBODY SAY -- THE RULE OF

THUMB WOULD BE YOU NEED TO

STAY IN YOUR HOUSE FIVE OR

SIX YEARS.

WHAT DO YOU TELL PEOPLE?

GENERALLY, I WANT SOMEONE

TO MAKE BACK THE CLOSING

COSTS IN 30 MONTHS OR LESS.

IF YOU CAN'T MAKE IT BACK IN

TWO AND A HALF YEARS, IT IS

PROBABLY NOT A GOOD IDEA FOR

YOU TO REFI.

YOU KNOW WHO HAS THE BEST

OPPORTUNITY?

YOUNG PEOPLE BUY A FIRST

HOME.

HOME PRICES ARE DEPRESSED IN

MOST OF THE COUNTRY, AND

WITH MORTGAGE RATES AT THE

LOWEST THEY'VE EVER BEEN,

THERE HAS NEVER BEEN A

BETTER TIME TO BUY A HOME.

Pat: YOU CAN GET A

MORTGAGE AT 3%.

IT IS 15-YEAR, BOW 3.5%.

Pat: THAT'S

UNBELIEVABLE.

30 YEARS, ABOUT 4.5%.

Pat: UNBELIEVABLE.

IT'S A DEAL.

Pat: CLARK "LIVING

LARGE."

LADIES AND GENTLEMEN, THIS

MAN WILL TELL YOU -- YOU CAN

SAVE -- YOU'RE TALKING ABOUT

$5,000, $6,000 A YEAR IN

SOMEBODY'S POCKET.

THAT'S MY GOAL.

EVEN IF SOMEONE JUST TAKES A

FEW TIPS, THE GOAL IS TO GET

$3,000 MORE DOLLARS IN YOUR

LIFE EACH YEAR, WHICH A LOT

OF PEOPLE LIVING ON THE EDGE

ARE PASSED, IF YOU BRING

$3,000 BACK INTO YOUR

WALLET, IT CHANGES YOUR

FINANCIAL PICTURE

COMPLETELY.

Pat: LADIES AND

GENTLEMEN, CHANGE YOUR

FINANCIAL PICTURE AND LIVE

LARGE, CLARK HOWARD'S BOOK.

WHERE DO YOU GET IT?

THE BEST WAY TO GET IT IS

AT THE LIBRARY FOR FREE.

OTHERWISE, SHOP AROUND ON

THE WEB, LOCAL BOOKSTORES.

Pat: OKAY.

THANK YOU SO MUCH FOR BEING

HERE.

THANK YOU.

Pat: GOD BLESS YOU.

WONDERFUL.

WE ALSO HAVE MORE TIPS FROM

CLARK IN A WEB EXCLUSIVE

INTERVIEW.

TO WATCH THAT GO TO

cbn.com, AND CLICK ON TO

"IN THE GREEN ROOM" LINK.

EMBED THIS VIDEO


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