If your time to you is worth savin'...
Then you better start swimmin' or you'll sink like a stone
We are in an epoch where I believe people will be distinguished not as much by status and financial worth, income from employment or other means (or little to none), looks or personal bearing, community or style of life, rural or urban, although those things will always matter to some degree. Rather it will be if they are coping with the times or they are not, regardless of what populace they are from. The world is rapidly changing and living in it, at it's basest, is either acceptance or denial.
The darkest angst of most people is being alone, with no social significance, income or money and living in a weekly motel splitting pills and dumpster diving. How you cope with that reptilian fear determines how well you will fare in difficult times. There is a grain of truth in what you believe will happen to you, actually will. If you encounter your lizard brain fears, you will likely overcome them. Among us are many people, who have never experienced life during a significant economic downturn that affects most of society. They probably are in most need of examining their innermost dread, if they're smart and they dare to, to avoid being surprised in the worst way. As a matter of fact it is worthwhile for everyone to explore, far better to be surprised in the best way, whether or not you believe the world is turning a different direction.
Everything that I needed to learn about life I learned during the turbulent times of the late sixties through the early eighties during my teens and twenties. For me the years spanning between 1968 and 1982 were packed with racial strife, assassinations, political scandal, war, riots, anti-draft movement, hostage-taking and terrorism, energy crisis, labor difficulties and unrest. All of those things seemed distant to me at the time though, although it was ever-present in the news and the topic of conversation among everyone. What directly affected me was the economy and how I was going to not only survive but thrive in it. I had to face what I was afraid of.
Every once in awhile you feel a tap on your shoulder and turn around only to face yourself.
There were technical recessions in the years 1969-1970, 1973-1975, 1978, 1980 and 1980-1982 but to me it was one long economic haul of "stagflation" and constantly figuring out ways to keep my head above water and staying afloat. I started working and paying taxes and social security in 1968 when I was 14 years old. In 1972 I went to work for the Bell System which from 1974 onward, operated in constant surplus and layoff mode. I eyeballed my fear that life would be a long treadmill of deprivation and resolved that I would not let it be like that. The amazing thing is that it forged me into living in ways that not only made ends meet but more often than not, improved what I had, while also still being happy and not feeling deprived.
That time period forced me into a life of thinking creatively, learning self-reliance, independence, motivation, problem solving, never giving up and always going forward. I learned how to take what I had and make it into something better, enjoy life without an excess of material consumer goods and often more than enough. I managed to be comfortable in my living situation and obtain what I needed and wanted in innovative alternate ways. It was very often difficult and I sometimes thought life would always be that way. In hindsight those years prepared me for how to deal with all kinds of difficult situations, not just economic, as I encountered them. It also made me more original and I created my best early art, photography, writing and music.
Your old road is rapidly agin'
Please get out of the new one if you can't lend your hand
It is my belief that people will either learn to live ingeniously and do the best with what they have, figure out ways to obtain what they don't have if they really need or want it, or they won't. There are many people living more innovatively now, many who aren't but will and many who never will. Those who don't will remain stuck in a time warp the rest of their lives and there is little the rest of us can do about it. There is still enough "America" in the United States to rise above difficult times for most people. The knowledge is out there to figure out means, although it may require significant changes in attitude and approach to life, to rise above hardship and difficulties. Very often what some people consider a catastrophic lifestyle change isn't that at all, their expectations are out of alignment.
If some do not want to confront their basest reptilian fears, no one else can force them. Our only obligation is to make what is known available to them, it is their obligation to mobilize themselves and actuate their reality.
http://www.youtube.com/watch?v=jrVkEKcSoFE
Showing posts with label personal finance. Show all posts
Showing posts with label personal finance. Show all posts
1/3/11
9/27/10
Quote of the Day: Henry Wheeler Shaw
The only man who sticks closer to you than a friend, is a creditor...
"Debt is like any other trap, easy enough to get into, but hard enough to get out of."
Henry Wheeler Shaw
American Humorist 1818-1885
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"Debt is like any other trap, easy enough to get into, but hard enough to get out of."
Henry Wheeler Shaw
American Humorist 1818-1885
American Middle Class and Debt
The deception of debt...
When I was growing up and lived in a British society, the middle class abhorred debt, it was to be avoided at all costs. Indebtedness was considered the weakness and downfall of the upper classes, the aristocracy and the rich. In that era (I'm referring to the fifties and sixties) the wealthy were notorious for carrying way too much debt to keep up the appearance of a lifestyle that did not match their incomes. The middle class were too sensible for that and intolerant of the wealthy for their foolishness with money. Americans in general prior to post-WWII felt pretty much the same way, primarily because they did not have access to credit. Many of the Founding Fathers were debt-ridden because they considered themselves to be "gentlemen" and were competing with the Lords of England and more than a few fell into a trap and hard times due to it.
The availability of "buying on time" after the second World War was purposefully intended to get Americans to end their conserving, thrifty, saving habits to stimulate the economy by turning them into consumers. Since many of the newly manufactured goods, cars, washing machines and the like, as well as cookie-cutter houses, were priced at high markup to boost businesses bottom line, most Americans couldn't afford to pay cash for these items. Business and government was not prepared to wait for people to save and thus the era of "buy now, pay later" was born. The cycle of stimulating business profits by pricing planned obsolescence products highly, lending consumers money at interest and trading in those products when they wore out for more credit, was born.
There is nothing wrong with wanting a more comfortable life, with possessions that make daily living easier or aspiring to a higher standard of living. The problem seems to have become matching what one would like and the ability to earn the money to pay for it, as well as the unbecoming trait of placing undue importance on the appearance of being wealthier than you are. It is also an ethical problem if you assume more debt that you can reasonably be assured of your ability to repay. There is also the character issue with the expectation that material goods will fulfill human needs and desires that in reality, only non-tangible things can fill. A society becomes void of character when people seek happiness primarily in consumer goods and diminishes the value of good character, education, virtue, ethics, knowledge, interesting conversation as things that also can be enjoyed to enrich itself.
Debt appears to be an American institution from the beginning and everyone has to make their own decision about their use of it. Debt has now become a way of life that has led to a gigantic economic crisis, requiring a long period of deleveraging, that is affecting society as a whole. From this point forward credit and indebtedness should be taken more seriously before it is undertaken. Those that take on too much debt and especially those that have repudiated it, regardless of circumstances, should be disdained. Whether a large segment of the American population has the character or will to do that remains to be seen.
A significant portion of the American people need to take a long, hard look at themselves and adjust to a way of life that is not filled with all the articles that are "buy now, pay later," because the cost later is far more than just owing money. It is at a cost to the heart and soul of what America is really about and risks what this country is supposed to be and for what it stands for.
When I was growing up and lived in a British society, the middle class abhorred debt, it was to be avoided at all costs. Indebtedness was considered the weakness and downfall of the upper classes, the aristocracy and the rich. In that era (I'm referring to the fifties and sixties) the wealthy were notorious for carrying way too much debt to keep up the appearance of a lifestyle that did not match their incomes. The middle class were too sensible for that and intolerant of the wealthy for their foolishness with money. Americans in general prior to post-WWII felt pretty much the same way, primarily because they did not have access to credit. Many of the Founding Fathers were debt-ridden because they considered themselves to be "gentlemen" and were competing with the Lords of England and more than a few fell into a trap and hard times due to it.
The availability of "buying on time" after the second World War was purposefully intended to get Americans to end their conserving, thrifty, saving habits to stimulate the economy by turning them into consumers. Since many of the newly manufactured goods, cars, washing machines and the like, as well as cookie-cutter houses, were priced at high markup to boost businesses bottom line, most Americans couldn't afford to pay cash for these items. Business and government was not prepared to wait for people to save and thus the era of "buy now, pay later" was born. The cycle of stimulating business profits by pricing planned obsolescence products highly, lending consumers money at interest and trading in those products when they wore out for more credit, was born.
There is nothing wrong with wanting a more comfortable life, with possessions that make daily living easier or aspiring to a higher standard of living. The problem seems to have become matching what one would like and the ability to earn the money to pay for it, as well as the unbecoming trait of placing undue importance on the appearance of being wealthier than you are. It is also an ethical problem if you assume more debt that you can reasonably be assured of your ability to repay. There is also the character issue with the expectation that material goods will fulfill human needs and desires that in reality, only non-tangible things can fill. A society becomes void of character when people seek happiness primarily in consumer goods and diminishes the value of good character, education, virtue, ethics, knowledge, interesting conversation as things that also can be enjoyed to enrich itself.Debt appears to be an American institution from the beginning and everyone has to make their own decision about their use of it. Debt has now become a way of life that has led to a gigantic economic crisis, requiring a long period of deleveraging, that is affecting society as a whole. From this point forward credit and indebtedness should be taken more seriously before it is undertaken. Those that take on too much debt and especially those that have repudiated it, regardless of circumstances, should be disdained. Whether a large segment of the American population has the character or will to do that remains to be seen.
A significant portion of the American people need to take a long, hard look at themselves and adjust to a way of life that is not filled with all the articles that are "buy now, pay later," because the cost later is far more than just owing money. It is at a cost to the heart and soul of what America is really about and risks what this country is supposed to be and for what it stands for.
5/12/10
Guidelines of Money
Personal finance and money have their own commandments...
If you're doing what you should be doing with money, then money will fall into place for you.
Everyone has their own relationship with money but it is important to understand that money has its own relationship and commandments that are outside of the individual. If you take control of your money, you will not feel out of control of money. The way you relate to money says a lot about you and what you value. Keep foremost in your mind the understanding that money is an illusion, especially today's money that is printed off presses with no real value, like gold or silver, behind it. The value of money can quickly change depending on economic, political and social circumstances, so it's critical to not let your values be based on the value of money.
That is not to say that having money is not important in our society. It clearly is. The problem comes when our concept of money is not clearly defined with our concept of ourselves. It is alright to like money but it shouldn't affect who you are. If that is clear, you will have the money you need (and probably more) because you are clear about managing the money you have, leveraging it to the best advantage, which then leads to comfort with money and the rest follows. That's because your mind is in the right place with it. You will have the things you need and be in a position to gain things you want.
Assessing the personal value of money:
1. Acknowledge that your personal values have to be enduring concrete values, not based on material goods but autonomous and existing separately of money.
2. There are intrinsic agendas in the world you exist in and how you relate to it and them. They should be consistent with your way of life and include monitoring your money and your attitude about it.
3. Money should not be the driver or the destination, it is the result of achieving something of real value. If money is the only goal, misery follows.
A lot of people are in personal turmoil because of the relationship they've had with money and not understood what it really was worth and the damage it could do to them. Personal finances sooner or later, if not properly handled and misunderstood, eventually require reconciliation. How someone copes with that is dependent on their values, their willingness to reevaluate their affiliation with money and if they want to change. Money is fundamentally a relationship with things in the world and how you view things is important in understanding your relationship with money. There is nothing wrong with having things, whether your desires are modest or ostentatious, as long as you purchase them in an ethically correct manner.
It is a fact of life that some people have more money than others and it's not always due to what is fair, how hard one has worked or sometimes how well they've handled money. Nor does it have anything to do with your value as a person. Circumstances just are what they are and coming to terms with them in a harmonious way depends on harmony with personal values. There may be struggles with money but they can be relatively free of strife. Struggle is different from strife.
It's essential to control your money so it doesn't control you.
Enduring commandments of money:
1. Take charge of your finances, manage them yourself, never abdicate control. It is your money and peace of mind.
2. Live within your means: budget, monitor expenses, do bookkeeping and maintain records of your money. This does not have to be complex, it can be a notebook or an envelope system.
3. No debt is key. Exceptions might be a car, a house or property but only if it makes practical sense. Use credit sparingly; preserve your credit score.
4. Maintain a significant enough amount of savings for a backup and emergencies. Pay yourself first, preferably five to ten percent, or any amount, even if it's a few dollars or pocket change.
5. Avoid emotionally based financial decisions. If in doubt, don't do it, trust your instincts to avoid fear of finances and disastrous results.
We are entering three years of economic crisis and for most people, except the uber-rich, the end is at least three to five years away. Every indication is a second wave has started and it is even more important we take care of our money. If you are in a situation where you made money mistakes and it is causing you difficulty, own up to them and find relief in working towards solutions. Invest in your peace of mind by doing that and as much as possible, follow the commandments of money. Once resolved, following all of them will likely be easier due to lessons learned. If you are not in financial trouble and not following the guidelines of money...Start NOW!
If you're doing what you should be doing with money, then money will fall into place for you.
Everyone has their own relationship with money but it is important to understand that money has its own relationship and commandments that are outside of the individual. If you take control of your money, you will not feel out of control of money. The way you relate to money says a lot about you and what you value. Keep foremost in your mind the understanding that money is an illusion, especially today's money that is printed off presses with no real value, like gold or silver, behind it. The value of money can quickly change depending on economic, political and social circumstances, so it's critical to not let your values be based on the value of money.That is not to say that having money is not important in our society. It clearly is. The problem comes when our concept of money is not clearly defined with our concept of ourselves. It is alright to like money but it shouldn't affect who you are. If that is clear, you will have the money you need (and probably more) because you are clear about managing the money you have, leveraging it to the best advantage, which then leads to comfort with money and the rest follows. That's because your mind is in the right place with it. You will have the things you need and be in a position to gain things you want.
Assessing the personal value of money:
1. Acknowledge that your personal values have to be enduring concrete values, not based on material goods but autonomous and existing separately of money.
2. There are intrinsic agendas in the world you exist in and how you relate to it and them. They should be consistent with your way of life and include monitoring your money and your attitude about it.
3. Money should not be the driver or the destination, it is the result of achieving something of real value. If money is the only goal, misery follows.
A lot of people are in personal turmoil because of the relationship they've had with money and not understood what it really was worth and the damage it could do to them. Personal finances sooner or later, if not properly handled and misunderstood, eventually require reconciliation. How someone copes with that is dependent on their values, their willingness to reevaluate their affiliation with money and if they want to change. Money is fundamentally a relationship with things in the world and how you view things is important in understanding your relationship with money. There is nothing wrong with having things, whether your desires are modest or ostentatious, as long as you purchase them in an ethically correct manner.It is a fact of life that some people have more money than others and it's not always due to what is fair, how hard one has worked or sometimes how well they've handled money. Nor does it have anything to do with your value as a person. Circumstances just are what they are and coming to terms with them in a harmonious way depends on harmony with personal values. There may be struggles with money but they can be relatively free of strife. Struggle is different from strife.
It's essential to control your money so it doesn't control you.
Enduring commandments of money:
1. Take charge of your finances, manage them yourself, never abdicate control. It is your money and peace of mind.
2. Live within your means: budget, monitor expenses, do bookkeeping and maintain records of your money. This does not have to be complex, it can be a notebook or an envelope system.3. No debt is key. Exceptions might be a car, a house or property but only if it makes practical sense. Use credit sparingly; preserve your credit score.
4. Maintain a significant enough amount of savings for a backup and emergencies. Pay yourself first, preferably five to ten percent, or any amount, even if it's a few dollars or pocket change.
5. Avoid emotionally based financial decisions. If in doubt, don't do it, trust your instincts to avoid fear of finances and disastrous results.
We are entering three years of economic crisis and for most people, except the uber-rich, the end is at least three to five years away. Every indication is a second wave has started and it is even more important we take care of our money. If you are in a situation where you made money mistakes and it is causing you difficulty, own up to them and find relief in working towards solutions. Invest in your peace of mind by doing that and as much as possible, follow the commandments of money. Once resolved, following all of them will likely be easier due to lessons learned. If you are not in financial trouble and not following the guidelines of money...Start NOW!
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