Herman School of Business
Patience Please...
Because the politicians made a huge fuss this week about the bail out, many Americans think we just got into this mess. And of course that it is someone else’s fault. And they want to know what someone else is going to do about it.
Most people in this country believe our lifestyle is a God-Given Birthright simply because they were born here. And those flooding in over our borders want a piece of that lifestyle pie also. They want free schools, help with housing, medical treatment and a minimum wage that breaks the back of the small businessman. It won’t work and now we are seeing the effects of thinking for years that it could.
Who pays for the lifestyle you have? Your food now travels from around the world, not around the corner and although the grower pays dirt wages to his field hands, they then pay a fortune to ship the stuff here where it travels on trains and trucks until it gets to your grocery store. Is that being “Green” with all the wasted energy moving products halfway around the world? And that farmhand in Guatemala would appreciate a thank you for working long days in the blistering sun so you can save ten cents on your salad.
How much do you spend monthly compared to what you make? If you could save each month what you pay on your debt each month in a few years you could be rich. Really rich on just a modest income…but not by shoving it in the stock market where the hooksters and crooksters will suck the life out of your account. There is no free lunch folks. You can’t turn your money over to a fund manager who charges fees to have the privilege of burning through your money. Why not just let the Fund Manager make half of your profits and not get paid at all if there are losses. After all, that is how most business enterprises work. You give me money for a car and I give you the car. If my business loses money that year I can’t come back and adjust the price of your car so I can make up my losses. And if enough people buy cars from that dealer he will make a profit and get to keep it.
P.T. Barnum said there was a sucker born every minute. He would change that sound bite because today there must be three or four born every minute. We just let our elected officials rip the pocket off of our pants because they couldn’t wait the few extra seconds to let us slowly take our wallet out of our pocket.
But…there is a way out for you. Don’t get caught up in the overspending, credit depending ways that most American’s live. It is never too late to start saving for your financial future. Live within your means…cut up your credit cards…sell assets you haven’t used in months or years…and apply all you can to debt reduction. Once you have that debt heading down your life will be looking up!
People buy a car because they “got a great deal.” They put little or nothing down and got 1 percent financing. They loaded up the vehicle with options fit for a king…why not have the best? Your payment is four or five hundred dollars a month and you feel like you are being a responsible adult. Bull-hocky Driver Dan. That five or six thousand dollars per year could be put on a credit card debt you have paying 25 percent or higher in interest. So…that no money down car with 1 percent financing is really costing you twelve to fifteen hundred dollars a year in interest because you don’t have enough money to pay off the cards. Know math or there will be no money.
- Posted: 8 October 2008
- Comments: 0
- Category: Running a business
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