There’s an old saying, “A fool and his money are soon parted.” In today’s complex systems, even the wise can end up in hot water financially. Wanna see how true? Watch the news.
$13.8 trillion dollars. This figure represents the total household debt as the result of a study done in 2008. And right up until today we see the havoc that spews from foreclosures and credit card debt. Pawn shops are thriving, and repos rule the neighborhoods.
There are worthwhile debts. Buying a home is debt that translates into an investment. It provides tax advantages and builds equity for future financial needs.
As Americans we have become accustomed to pampering ourselves, and really have taken wastefulness as a right of being an American citizen.
“Waste not Want not” is another old saying. But here in the land of plenty, our habits have gotten us a bit off track. In order to maintain our lavish lifestyles we have gone way into debt, keeping an optimistic eye out for an upturn in economic status and a validation of our faith in the system that always came through before. This time, things don’t have the same feel. Things could be kinda ‘down’ for a while, and many are panicked, pressured by the debt incurred while hoping for a safe and positive outcome.
A bleak forecast looms over our heads, with many falling by the wayside , too far to climb out, broken without remedy. But wait! Amidst all this gloom is REAL HOPE. You will still have to stop it with the extravagance, but you WILL be able to pay your debts and live within your means without going under. continue reading…
People spend lots of money on the things which are useless for them. In order to manage your debts you have to be wise with your money and also with your decision making. Decision making is important because this is the point where you decide whether to purchase this thing right now, is this the correct time to purchase this thing, am I investing on the correct thing and etc.