Well, Now…

Well now, we’ve all listened and watched as our government officials as well as various and sundry talking-heads explain the present financial problems and explain their particular version of where we are, how we got here, where we’re going, and what the good-bad-terrible outcome will be when we get there, wherever it is that we’re going.
So, if you’re as sick as I am of listening to all these conflicting views of depression, repression, inflation, deflation, hyperinflation, buy gold, buy commodities, buy tax-free bonds, buy, buy, buy….. then maybe you’re ready for some  old-time novel information that may actually be worth something to your family
First of all, if the present deflation (consumer prices going down) trend keeps going, there is some level at which producers may hit red-ink in their production bottom line.  If that happens, they will stop producing.  On the other hand, if deflation reverses, and we start having inflation, then your dollar will purchase less and less.  By the way, in an era of serious deflation the dollar is worth more, so that is why the Treasury can print bushels of greenbacks without worrying about creating inflation with more paper notes floating around than before.  But the process of controlling the amount of notes floating around is not what this is all about.
Years ago, the Prophet advised everyone to get their house in order by accomplishing a few simple things which are just as valid in today’s environment as they were when he spoke them.  Basically they boil down to this list:
1.  Avoid debt like the plague.  The only two things you should go into debt for are your house and your car.  And that is only if you cannot save up enough to buy them for cash.
2. Manage your resources:  first, pay yourself ten percent of your net income in the form of a savings account.  Then pay your tithes and offerings.  The rest of your net income is for the operating expenses for your family:  Utilities, transportation, food, clothing, entertainment, education, etc.
3. Maintain your own education and training.  If you stagnate in your education then the world is passing you by because every field of endeavor has constant advances, changes and challenges.  Yesterday’s training may not be sufficient for today’s job requirements, and the best trained employee will be that much more valuable to the employer.  If you are a small business owner your business survival may well depend on keeping up with new developments in your field.
4. Develop an emergency reserve to see you through temporary times of turbulence.  A supply of basic foods and basic supplies which you actually use in a revolving manner; newer in back of the older so that expiration dates are not exceeded.  An amount of emergency cash that could meet your possible emergency needs.  Something you must carefully consider for yourself.
Now I’m going to mention a subject that has ruined several of my acquaintances, driving otherwise financially secure people into abject poverty, legal problems, bankruptcy, and, in one case, even  into the homeless shelter:  Namely, the over-support, or perhaps over-indulgence, or perhaps misplaced trust, regarding their children.
At some point in life, everyone has to learn to support themselves.  Even the birds of the air and animals of the field and forest require their offspring to survive on their own and find their own food.  Unfortunately, some human parents seem to think it’s their God-declared duty to support their children through an entire lifetime of bad decisions, excesses, and self-indulgence.  Neither God, nor logic has ever declared such a duty for parents.  The expectation is that when you bring children into the world, you clothe and feed them, teach them proper principles through their formative years, you guide them in choosing the right paths and choices, encourage them to maximize their public education opportunities your tax dollars are paying for, teach them to work hard and plan towards their professional goals, and then you let them go forth on their own.  Nobody, not God nor logic of any kind says you have to continue to support your offspring beyond their own age of capability.  Except, of course, for the bankers and educators who want you to go into eternal debt, mortgage your house and your future in order to send junior or missy to their university.
Now, I’m sure there are some of you who will huff-and-puff at this idea, and tell me I’m full of bullpucky and you owe your kids a life of laziness and self-indulgence until the day you die, then they’ll sell off everything you still had left, if anything, and then they become a drain on society just like they were a drain on you.  So, if you tell me I’m full-of-it, then I’ll tell you that you’re full-of-it, and we’ll leave it at that because neither of us will agree to the other view.  “Nuff-Sed!”
I do know one thing for sure; all the so-called professionals in the finance field have fallen completely on their collective arses and taken the world’s financial system with them.  The bankers, realtors, financial advisors, credit facilitators, and all the other fellow travelers, as well as the government and all its supposed auditors, officials, bureaucrats  were all totally inept at the very least or criminal at the worst.  And this slide into the present financial morass did not start with George W. Bush, no matter what version of revised history the present crop of spinmeisters wants to feed you
So that’s about it for today’s quick thoughts.  Be logical in your decisions.  Don’t allow yourself to fall into the “keeping up with the Jones’s” trap, don’t allow yourself a champagne appetite on a beer budget, establish a personal savings program that is sustainable, have a reserve of your necessary foods and supplies on hand, and finally, don’t overindulge your children.  It will only retard their ability to become productive members of society.
And that’s the short version of how I feel on that subject.  Yours may differ.
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About kglawton

I'll never die because I have so many things to be completed.
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One Response to Well, Now…

  1. Ken says:

    This was originally written in October 2009, but is still valid. At least, "IMHO". 😉

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