| On Debt and Disney Movies... |
[May. 14th, 2008|06:57 pm] |
Happy hump day to all! I had the distinct honor of guest-starring on his Superfied Radio Show on Bree-FM! We talked about love and life and money (or lack thereof). It started as a text message chain and before I knew it, I was on the air! Before and in between being on live, Alex and I were talking and catching up, since it has been a while since talking, and while on live, we discussed many things, a few of which were not related to any other thing we talked about. I was credited for single-handedly boosting the listener count by 10%! One thing we talked about specifically was debt in America, which was a subject in ![[info]](http://p-stat.livejournal.com/img/userinfo.gif) roytheboys last entry. I had a response here to what he said in that entry, and it is behind the lj-cut!
( Rant present in the El-Jay cut )
The car is still broke, despite consistently spending 1-2 hours a day trying to fix it. If I can't get it fixed soon, I am considering selling it as-is on craigslist. Any takers for a 1990 Honda Accord with a broken wheel hub?
I know I didn't mention Disney movies here. Pinocchio. There. I mentioned Disney movies... |
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| Can't Think Of A Title |
[Jan. 18th, 2008|04:52 pm] |
The Baby Steps to Financial Freedom, courtesy of Dave Ramsey. Don't begin the next step until the previous step is completed or if the previous step doesn't apply to you.
Step 0: There is an implied Zeroth Step here; it is the decision one makes to decide that one is no longer going to be in the debt cycle and constantly owe money to others. The Zeroth Step is also deciding that in order to enact a change, one must be willing to sacrifice and discard the lifestyle that got one into debt in the first place.
Step 1: Ensure you pay for the essentials only: food, water, shelter, clothing and utilities. Pay only minimum payments on all debts, and concentrate on saving up $1000 for an unexpected emergency.
Step 2: Continue minimum payments on all debts, except for the smallest debt you have, on which you pay as much as you can afford until it is gone. When the smallest debt is gone, begin to pay down the next smallest, attacking it with the money you used on the smallest. Continue until all debt (except for your mortgage) is paid off.
Step 3: Begin to save a larger emergency fund. Save up 3 to 6 months of total expenses in a savings or money market account as an emergency fund which is not to be touched except in the case of a real emergency.
Step 4: Put away 15% of your income into tax-deferred retirement accounts. When you want to make major purchases, do not go into debt to finance them; rather save up the cash you need to pay them off immediately.
Step 5: When it can fit into your budget, save up enough to pay for your children's college education.
Step 6: Pay your mortgage off early.
Step 7: Continue to build wealth and also give to charities, your church, or anyone that you feel needs it the most.
I recently saw a documentary called Maxed Out. It is available on DVD and I highly recommend it. |
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| I don't get it.. |
[May. 17th, 2006|05:55 pm] |
The stock market lost today. I lost on what little bit I have invested in it. The reason being? Fear about inflation.
Now stop for a second. If you understand the way economics works, that should make little sense to you. Think about it. Though there is understandable apprehension about the fears of higher interest rates cutting spending and spurring saving but how is it that selling all one's stocks is a good idea in the face of inflation? First of all, the inflation is being caused by a slowing housing market which is causing more people to rent. This should only be affecting that small sector of the economy, and the rate of inflation overall is still fairly low. If you get cut a check, you are in effect locking in the value of your assets, and liquidating it into the very cash whose spending power is going down due to inflation. It will hurt only other stockholders, who will in turn sell due to fear of a falling market.
I never understood the finer mechanisms of the group-panicy mentality. But I don't see the loss of the markets as a bad thing; I see it as an opportunity. If I had more cash, I would be buying up now. I believe in the long-term strategy, and would be buying now to complement my savings (and thin out my losses) in the long-term. Ah well... |
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