Financial Times Are They Worse Than We Think

Posted by on January 9, 2009 · Leave a Comment 

It seems that although trying to report the facts, the news media is being told to keep a positive spin on the financial world, and focus on the positive as opposed to the negative when it comes to money matters.  Unfortunately, as the end of the year figures become public, there is no where for American’s to hide, we are in some serious trouble.  Unemployment statistics are rising each month, sales in all the major retailers are down, and people who have their money in the stock market are panicking and with good reason.  Yesterday, Barack Obama addressed the country talking about the financial crisis and said that Congress must act quickly to put a plan into effect or things are going to plummet.  I don’t think that Congress knows how to act quickly, and I also think that they are at a loss as to what to do.  I don’t know that the incoming President has all the answers, as a matter of fact, I don’t think that anyone does.  It is like when you overspend for years, and then you lose your job, basically we are up a creek.  All the bailouts in the whole world are not going to stop us from going into a Depression in this country.  You can’t just undo all the mistakes that have been made overnight, and no one should expect that from anyone including the new president.  The one thing that I know is that we need to start tightening the belts on spending all around.  There is no need for spending money like we do in this country, and it is really time for us to look at our “budget” which is far from balanced and stop spending money that we don’t have.  This country does not need small cutbacks, we need to cut back in all areas and start using the excess to knock down some of this debt that we have accumulated.  It won’t happen overnight, but working together with a clear understanding of the hole that we all collectively have created, means we start to put this horrible financial crisis behind us.

It may be a long haul for the American public, but we can all do our part.  Volunteer time, money or whatever resources you have to help others if you are not one of the one’s in need.  You could need help in the future, so keep in mind that what you put out there comes back to you ten fold.  We need to help each other, just like we did following 9/11.  We need to unite and show the world what American’s are made of, and it isn’t money.

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5 Biggest Money Mistakes

Posted by on August 24, 2008 · Leave a Comment 

From the rich to the low income, money and stretching a dollar is on everyone’s minds these days.  A recent Dr. Phil show reviewed some of the biggest money mistakes people make, and I found the information very interesting so I am passing it on to you.

1.  Living Beyond Your Means – One of the biggest mistakes people make is that they want more than they can actually afford.  Spending money on things you can’t afford will most definitely put you into financial crisis.  We as American’s must learn to live within our means.  We may not want to but if the math says we can’t afford it, then we can’t.  There is no magical way to afford things that are beyond the dollars you bring in, so live wise and be frugal.  In the long run, being debt free will give you much more than that new TV or car will.

2. No Emergency Back Up Plan – Families must live below there means if they are going to be able to tuck some money away just in case of emergency.  In this country, families used to only have one income, and in that case if one party was unable to work, the other party could just get out there in the work force and earn a paycheck to keep the family afloat.  Now with most families using all the income potential just to get through the day to day, it is more important than ever to have a savings plan and to keep adding to it each paycheck.  Hopefully you won’t ever need it, but it will be nice to know that if you hit a rough patch you have something to fall back on.

3. Fixed Income Is Not The Only Answer – Fixed income is an important regular, steady income and is very helpful to have, however there are other ways to make money, and there is nothing wrong with investigating other options while bringing in the weekly paycheck.  There is a whole world of business opportunities available, everything from starting your own home business, to finding a side job that allows you to work from home.  Be sure to not limit your options to just the jobs that will bring in a paycheck, sometimes your greatest earning potential may lie in a great idea you have, so don’t just dismiss all else, keep your options open.

4. Cashing Out Your 401K – Sometimes you may not have a choice.  Financially, you may absolutely have not other options, however, if at all possible keep that money in there.  It is money that you can use for a down payment on a home or for kids college, and in addition to those things, you may also need need it to supplement your Social Security Income when you are old.  If at all possible, don’t take the money, and if you need to try and take as little of it as possible.  It is not a good idea to steal from your future to pay for today.

5. Believing The Myth Of Fixed Expenses – There are absolutely no fixed expenses.  When budgeting and realizing that you can’t meet your monthly expenses with your income, it is time to cut down to the bare minimum.  A car payment is not fixed, sell the car, pay off the loan, and buy a cheap car to get you back and forth to work.  You can reduce your energy bills by being more conscientious.  There are ways to reduce just about every bill that you have, if you just work at it.  More peace will come into your life if you are living below your means.  Happiness comes directly from the peace in knowing that you don’t owe anyone, anything, so cut back now and reap the rewards, you will probably even live longer being this kind of stress free.

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