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Topic Title: explanation of the "four walls?'"
Topic Summary: order in which to pay?
Created On: 08/16/2011 11:10 AM
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 08/16/2011 11:10 AM
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MyTMMO User
I confess, I've done stupid

Posts: 84
Joined: 07/24/2011


Hi,
I have read Dave's book, but still wonder what covering the four walls first means? I have seen it many times here and just want clarification. Thanks!
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 08/16/2011 11:13 AM
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MyTMMO User
I'm not normal

Posts: 446
Joined: 09/25/2009


4 walls: basic necessities

1st: Food
2nd: Utilities (NOT cable or dish, basics like electric, water, gas, BASIC phone service, BASIC internet if that's a need for what you do)
3rd: Mortgage or Rent payment
4th: Transportation (pay your car payment if you have one, put gas in it, have insurance on it)

He also says clothing is one of the 4 walls, but then he says that most people usually have enough clothing to get by on. I hope this helps.
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 08/16/2011 11:27 AM
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MyTMMO User
More Than Enough

Posts: 24037
Joined: 09/01/2005


Je_ruhl said it all! It's just a priority list of what's most important, if you only have so much money and it's only going to go so far.
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 08/16/2011 12:04 PM
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MyTMMO User
I am Dave

Posts: 1625
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Agreed. The basic idea is not to go hungry to pay credit cards. Eat first, make sure your basic needs are met, then save or pay debts.
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 08/16/2011 12:55 PM
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MyTMMO User
Golden Gazelle

Posts: 38900
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You pay all of those 4 things BEFORE you pay credit cards. Sadly, we often have new folks here who are 3 months behind on their mortgage payment, but have not missed any credit card payments. They have it backwards.
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 08/16/2011 01:14 PM
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MyTMMO User
Family Tree Changer

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Housing also includes homeowner's or renter's insurance

Meds that are necessary for good health
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 08/16/2011 08:48 PM
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MyTMMO User
I confess, I've done stupid

Posts: 84
Joined: 07/24/2011


Thank you all for clarification. I know what you mean about the credit cards sometimes getting paid first. Though we haven't had that happen, there have been times when other things get paid over what is most important. This is a good reminder!
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 08/16/2011 09:05 PM
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MyTMMO User
I stole Dave's boat

Posts: 19372
Joined: 10/21/2007


The reason he tells you to always pay your four walls first is because even if money is tight and creditors are calling and you're stressed, you will handle it all better, you'll function better, you'll have some measure of peace knowing that you and your family have food, shelter and transportation. You'll work better, you'll handle stress better, you'll deal with life much better if your 4 walls are secure and in place. There's not much peace in having Visa up to date if your stomach is growling and you're afraid there might be foreclosure papers waiting for you when you get home. Ya know? At least if your belly is full and you have a roof over your head, you can think clearly enough to deal with Visa when they call.
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