Author Topic: Good Financial Advise  (Read 1642 times)

Pokethis

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Good Financial Advise
« on: December 03, 2008, 12:04:37 PM »
From RGE Monitor http://www.rgemonitor.com/blog/roubini/254642/financial_times_op-ed_how_to_avoid_the_horrors_of_stag-deflation  comments section that I thought was good advice

"From last blog:

"PeteCA, could you please go into a little more detail about what that means and what an individual should do in terms of financial/family protection? I'm getting a very bad feeling based on all the smoke and mirrors from the from the "experts", but am a beginner at the more complex financial issues (although I am learning as fast as I can)."

Beth ... some quick anwers. Just my opinions.

1. If you are educating yourself - then that is the single most important thing you can ever do. The more that Americans find out how the US economy really works, the more we have the power to take things back into our own hands. Knowledge is power. So don't be discouraged if things don't make sense at first, because those in control in Washington and Wall St have done a lot to obscure the truth from the American people. Persist, and things will come to you.
2. The outcome of the economy is uncertain, and no-one can tell you for certain how this will play out. That includes me. Therefore, don't take excessive risks with your money or assets.
3. Your job is very important right now, because the USA is headed for much higher unemployment levels. And personally I believe it will be tough to shake this major loss of jobs - things won't easily go back to the way they were before. Try to keep your job at all costs (even if you hate it).
4. Get out of debt. If possible, get out of debt completely. Americans have become enslaved by high levels of debt. Once you get to the point where you don't owe the banks anything, they cannot dictate your future.
5. Be frugal. If the Gov't gives you a stimulus check, put some into savings and use the rest to pay off your debt (credit cards, auto loans etc.). You decide how to allocate the amounts. But DON'T buy more stuff! One of the best weapons that you have to fight the system is to avoid being endebted.
6. We are all headed for a lower standard of living. Get ahead of the game by learning how to function with less. Develop support networks, and find ways to get goods and services cheaper through your friends.
7. Crime is going to go up. Expect that and plan on protecting yourself more.

PeteCA"


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Re: Good Financial Advise
« Reply #1 on: December 03, 2008, 12:25:17 PM »
I absolutely agree with Pete on this.  The biggest factor in my humble opinion is living debt free.  As Americans we are impatient to the point of willingly enslaving our selves to our lenders.  Not only is living debt free very liberating, there is a comfort in knowing that when my paycheck comes in, I can direct it ensuring the safety and well being of my family instead of dispersing it out to loans on cars, toys, etc. 

The caveat: it would be awesome to own your house, but it is unlikely unless you are very wealthy.  That being said, you can still live debt free (except for the house) and accomplish everything you need too.  Renters should prepare too! 

A great resource that I personally can vouch for is DaveRamsey.com.  He has a radio show that is stellar and he is know on Foxfinanial channel (though I haven't seen it).   

Good Luck!
v/r  BerskerkerPrime