This was sent to me today. I thought it was excellent because I was getting rather confused. This makes it easy for my uncomplicated brain. I think I am worried.
Tag Archives: debt
This was sent to me by a friend and I thought it very apt, with regard to our Governments, irrespective of what country it is.
We have all listened, via the television and newspapers the banter that has been going on between politicians. I for one, and I am sure I am not alone, are finding it very hard to have any respect for any of them. It does not matter what party they belong to. I find it hard to comprehend that we allow these people to run our lives, so easily take away our freedoms, basically give them the power to steal our hard earned money send our young to war.
When I saw this video, it almost shocked me in to understanding what our young generation will be up against in the future. I will not see it as I will probably be ‘pushing up daisies’ but it does not make me feel any less disturbed. We love our children and grandchildren none of us want them to struggle with their existence like it appears that they may.
I personally believe that these children will start standing up for their rights and these politicians will not get away with what they do now and I believe our kids will change the future because they will have to. I believe they will make a greater future for themselves and hopefully without politicians and Big Brother standing over them.
Power Line Blog held a prize competition for $100,000 for whoever can most effectively and creatively dramatize the significance of the federal debt crisis. Any creative product was eligible: videos, songs, paintings, screenplays, Power Point presentations, essays, performance art, or anything else.
Several entries have gotten a lot of attention and a lot of views or listens. But unquestionably, the one that has most gone viral so far is Doorbell.
This is a fine example of how much extra you pay on your purchases if you only pay the minimum each month on your Credit card. I know which one I would choose to pay.
So every time you buy something and put it on your credit card and just keep paying the minimum monthly payment it will give you some idea how much extra that item is costing you.
MINIMUM MONTHLY PAYMENT – OR NOT
SOURCE: VISUALISING ECONOMICS
If you are in debt then you are one of thousands, well actually millions. Just because you are one of millions, that are living on someone elses money, it’s not ok. You need to address this problem NOW, because trust me, the economy is not going to get better in the near future. If you want to protect what you have, start doing it now. Your salary is buying you a lot less than it did one year ago and the need to look after every cent you earn is now essential.
If you feel you are unable to take care of your debt problem on your own and cannot afford to pay a financial advisor then many Charities and church establishments offer free debt counseling. Counseling will help take some of the burden from you and look at things from a different perspective. Make use of the help, if you need them, use them. Once you get back on your feet, a donation would probably be very appreciated.
If you feel you can go it alone then here are some budget tips that will be helpful to you.
- Draw up a realistic budget: To do this write down your income including wages, benefits and other income as well as ALL your expenses.
- Ensure your expenditure includes: Insurances, holidays, house improvements and savings.
- Stop using credit: Paying cash is a perfect way to know exactly what you are spending your money on.
- Once you have drawn a budget, stick to it: Resist the temptation to buy now and pay later.
- Plan for the future: Create a new savings account to save money for future expenses and allows your balance to increase.
- Stock up on the essentials: Toilet paper, shampoo, soap, laundry products when they are marked down in price.
- Shop close to closing time; Many shops and bakeries offer discounts for food in the hours before they close.
- Buy Cheaper: If you shop at the farmers markets in the weekends you will pick up better quality and often cheaper fruit and vegetables and fresh-baked goodies.
- Leave your wallet at home: Unless you are specifically going shopping try leaving the wallet at home.
- Turn your air conditioner off: If your fuel is low turning the air conditioning will help reduce fuel consumption.
- Refrain from buying that delicious cappuccino every day: Now this is a hard one for me. Cut it down to twice a week.
- Empty the refrigerator: Before buying more food eat everything out of the fridge you will be surprised what you can make out of virtually nothing.
Like the Author of this article , I don’t like to sound pessimistic and don’t like writing articles of doom and gloom. I am not a conspiracy theorist and I really do like to present a positive future. I try not to get myself involved in any particular politics as in my opinion they are all a bunch of people who stretch the truth and don’t work for the good of the people and totally out of touch with reality.
Here comes the “But”. But this time I wanted to share with you an article I read which I thought explains so well where we are going and why. It is not looking very ‘Rosy’.
We all need to Stop, Look, and Listen and I know I keep saying this. You don’t have to be a business person or an economist to work out the financial maths of this country USA. Just take the time to sit and think about your finances. If you are struggling and cannot see an easy way out of debt then you are also looking at the financial woes of USA.
I wrote my book Simply Fantastic – Living better on Less, for one reason only and that was to try to make people think about what they are spending their money on. To start planning for the future. Getting themselves out of using credit as a way of life. To teach kids to respect money and not to waste it or just expect it to given to them from the parents. That credit should be an absolute no! no! in their young lives.
I was making the observation that people were thinking and believing [and still do] that all this economic downturn would go away, like it usually did. No, that is not going to happen. We all need to take action to protect ourselves and family now!
So anyway , to get back to the article, I believe you will find it interesting and if you do, pass it on to your friends or anyone that you think may be interested.
I read this article on one of my favorite websites http://www.sovereignlife.com/ that you may like to visit for some very informative subjects. They also have a free Ebook 7 steps to freedom which is also interesting reading.
Remember “If you don’t do different, nothing will change“
No Way Out
By Doug Casey, Casey Research
I really dislike sounding inflammatory. Saying that things are going to go terribly wrong runs a risk of being classed with those who think the world will end in December 2012 because of something Nostradamus or the Bible says, or because that’s what the Mayan calendar predicts.
This is different. In the real world, cause has effect. Nobody has a crystal ball, but a good economist (there are some, though very few, in existence) can definitely pinpoint causes and estimate not only what their immediate and direct effects are likely to be (that’s not hard; a smart kid can usually do that) but the indirect and delayed effects.
In the first half of this year, people were looking at the U.S. economy and seeing that some things were better. Auto sales were up – because of the wasteful Cash for Clunkers program. Home sales were up – because of the $8,000 credit and distressed pricing. Employment was up – partly because of Census hiring, and partly because hundreds of billions have been thrown at the economy. The recovery impresses me as a charade.
Let’s get beyond what the popular media parrots are telling us and attempt to derive some reasonable assumptions about how things really are and where they’re headed.
A Brief Summary of Our Story So Far….
Before we get to where things stand at the moment, let’s briefly look at where we‘ve come from.
That a depression was in the cards has been foreseeable for decades. The distortions cranked into the system in the ‘60s – the era of “guns and butter” spending by the government – resulted in the tumult of the ‘70s. Things could, and one could argue should, have come unglued then. But they didn’t, for a number of reasons that have only become clear in retrospect:
- Interest rates were allowed to rise to curative levels;
- The markets were non-manipulated and so, as they became quite depressed, were left to send out real distress signals;
- The U.S. was still running a trade surplus;
- The dollar had only come off the gold standard in 1971 and was still relatively sound.
Then, starting with Reagan and Thatcher, the world’s governments started cutting taxes and deregulating. The USSR collapsed peaceably. China, then India, made a shift toward free markets. And on top of it all, the computer revolution got seriously underway. All told, a good formula for recovery and a sound foundation for a boom.
But sadly, taxes, government spending, and deficits soon started heading much higher. Despite the collapse of its only conceivable enemy, U.S. military spending continued to skyrocket. Monetary policy encouraged everyone to take on huge amounts of debt, much more than ever in the past, and everyone soon found they could live way above their means. The stock, real estate, and bond markets got pumped up to ridiculous levels. The main U.S. export became trillions of paper dollars. Worst of all, the U.S. devolved into just another country, undistinguished by anything other than a legacy of a high standard of living.
The statistics say there are two credit cards for every person in The United States. I guess that means it is twice the Hell!
I cannot emphasize more, how essential it is that all families reduce their credit card debt. Take a look at the follow infographic and understand that credit card debt is the demise of your financial security.
It is not productive to be negative about your financial future. If you have credit card debt be positive about paying it down to ZERO. Start believing you can do it.
This Infographic is an example of what happens when you take the deep dive into credit card debt.
IF YOU DON’T NEED IT DON’T BUY IT.
There is a big drive and promotion these days towards economizing, living responsibly, and living on less.
Lifestyle changes need to be made. We need to consider the following 5 things:
- Down size.
- Live within your means; spend less than you earn.
- Comparison shop.
- Ask yourself – do I NEED this, or WANT it.
- Learn to say NO to debt.
1. Downsize: ($1,000)
This could mean many things, such as your cell phone. The average cell-phone plan costs about $80 a month, a study recently released by Utility Consumers’ Action Network. How many cell phones are there in your household? You could save approximately $1,000 per phone per year. That is something to consider. I have a pre paid cell phone as I rarely use it and most of the time I forget to take it anyway. I have one for emergency if I am on a road trip on my bike otherwise my life is just fine without one.
2. Live within your means; spend less than you earn. ($9,000).
This could mean looking at your vehicle situation. AAA estimates that it costs $9,369 per year to own and operate a medium-sized sedan that is driven 15,000 miles annually. You could save at least $9,000 a year if you gave up one of your cars. Start sharing, using public transport, and cycle more often. If you are desperate to get your “head above water” and get out of debt, you will find a way to do without that vehicle.
3. Comparison shop » Students living at home vs College.
The average cost of student room and board at colleges and universities is about $9,000 per year. If a child lives at home and attends a local University or community college approximately $9,000 is what you will save on lodgings. Unfortunately these days kids graduate with so much debt they have to come and live with you after graduation. Going to a local University and living at home can reduce the debt and hopefully they can afford to move on after graduation.
4. Do we want it, Do we need it. ($1,800 per family)
According to some government reports, the average American family spends roughly $1,800 on shoes and clothing per year. Most of us have more clothes than we need. I am sure if we went a year without buying any clothes and wearing what we have we would find plenty to wear. Try it; you’re likely to save yourself more than $1,800 dollars a year.
5. Learn to Say No to Debt. ($2,000+)
According to the Bureau of Labor Statistics, the average US family spends $2,668 each year eating out. If you have a family of 4 or more the cost is far greater than $2,000 a year. Eat at home more. The plus to this is you will eat more healthy food, eat less, and as a result, you’ll have more energy. One word of advise is don’t eat in front of TV. Use this time to bond with the family. Find out what the kids are doing. Have a BBQ in the weekends instead of eating out. Eating out is also one of the major reasons why there is debt in the family.
These are only a few of the savings you can make, there are many more if you take the time to consider your lifestyle.
For more information: Simply Fantastic: Living Better On Less