Fascinations with Procrastination

Photo courtesy of Mark & the Zebra

Before this recession and the downturn in the economy. It seemed like the hardest thing in the world to get someone to put away money in an emergency fund. But as the unemployment numbers have swelled, so too has the sense of urgency to stash the cash... y'know just in case.


But at the same time, some... no MANY people still refuse to make any serious changes to their approach towards their financial behaviors.


I sometimes find it interesting to study the conditions under which we are forced to shift gears and move into an uncomfortable situation (saving) to avoid the effects of another uncomfortable situation (compulsive spending/shopping, living check-to-check, living the good live, etc.) -- even when we know it was the right thing to do all along, and also know that it will put us in a far better position moving forward.


Okay, I just used alot of words to say very little, let me bottom-line it for you lol. We don't like to change until we HAVE to.


Now, please dont feel like I'm picking on you, trust me when I say this applies to me most of all.


When my car is running strong I dont take nearly as much care to maintain it as when it's giving me trouble. And the same goes with my finances. It took a MAJOR situation before my wife and I decided that we NEEDED to get out of debt completely. Before that event, we were already settling into the "minimum payment mode" on all our accounts.


But once we were faced with that situation, it put us in a place where we really had no choice but to get all the way out of debt and stop digging ourselves deeper or dragging it out any further.
I can't wait for the day that I'll be able to share exactly what that situation was. Hopefully my wife will give me the greenlight someday. But I know for now that it's still too fresh and close to home even though the actual situation was resolved long ago.


Er... but back to the point I was trying to make... ah what was it?


We don't like to change until we HAVE to!

Romans 13:8 puts it this way (NIV):

"Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellow man has fulfilled the law."

And verse 11 continues:

"And do this, understanding the present time. The hour has come for you to wake up from your slumber, because our salvation is nearer now than when we first believed."


See, there really is no time to waste because most of us truly know what 'time' it is. For this year my church leadership selected the phrase "Now is the Time" as the theme for this year's ministerial focus. And although this year is now more than half-way over, I still want to offer those words as something for you to consider...


NOW IS THE TIME!

@W


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How I would save GM… The Great Auto Lotto of 2009!

Photo courtesy of jhoweaa

GM is a car company right? So how would I save a car company? I would sell it’s cars! Put on your thinking caps boys and girls, it’s time to do some math!

Our Government has committed roughly $50 billion to bail out this automaker. So let’s say the average GM car cost $26k…

($50,000,000,000 divided by $26,000 = 1,923,076 brand new cars)

Let’s keep the math neat by rounding the figure to 1.9 million… that’s a lot of cars right? So then the question becomes, “Who would those cars go to?” And I would answer that question easily, “The GOVERNMENT… duh!”

In my scenario essentially, the government just contracted out GM to operate their entire fleet of vehicles. Everything from FBI cruisers, surveillance vehicles, even the *motorcades of Diplomats and elected officials can be covered by this $50b ‘contract’. (*President Obama already has a stable of tricked out limos produced by Cadillac, a GM brand, so there ya go!)

Next question: “What if the government doesn’t need all 1.9 million vehicles for it’s own use?” Answer: They raffle off the excess vehicles to the public… after all WE did pay for this bail out with our own money right? Any US citizen with the means could essentially enter a lottery to get a crack at the leftover inventory of vehicles. They could buy as many tickets as they like to increase their chances of getting a brand new vehicle for a DIRT CHEAP price.

For example if the government used 1 million of the vehicles to replenish/upgrade it’s stock of fleet vehicles, 900k would be left. Again, to keep the math clean, let’s say that 300k have a price range of $0 - $10,000. They would be raffled off at $100 per vehicle. That would equal $30 million instantly pouring back into the economy. Then let’s say that 300k have a price range of $10,000 – $30,000. These would be raffled off at $500 per vehicle. The proceeds would equal $150 million for this group of vehicles! Then lastly, we have a final group of 300k vehicles with a price range of $30,000 to $50,000. The raffle price for these would be $1000 per vehicle because of the premium/luxury nature of the lines offered at this price. This group would bring in $300 million.

Now keep in mind this is just a basic experiment and it only takes into account one raffle ticket sold per vehicle… but as I said earlier, the buyers could buy as many tickets as they like. The total revenue from the scenario we just did comes out to $480 million, and THAT does not take into account taxes, tags, and freight charges on the vehicles themselves – which again goes back to the government. I would also add a stipulation for any raffle winner that they could sell their current vehicle for no more than equal value of the raffle ticket they purchased! This would again, instantly create a secondary car market and most likely DOUBLE the figures I just gave at the very least.

And what’s more, GM isn’t the only auto company in need of this type of “bailout”. This would serve as the perfect catalyst to reinvent both the US auto market and the overall rules of engagement for the consumer they sell to.

Now, I’m sure some one reading this is going to ask, “What’s the point of the Government spending $50 billion on this example just to make back a minimum of $480 million?!” But to that I ask this question: “What’s the point of the Government bailing out GM with $50 billion and having no plan other than to ‘keep it afloat’ operationally while the company still slowly bleeds to death in this economy?!”

GM is a car company… and something needs to be done with the cars right? I don’t care how much you say you don’t like American made cars… if you could get a brand new one for $100 to $1000 you’d be down for it!

What would you do?
@W

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Stimulate Me: The Greatest "Story" Ever Told!

Photo Courtesy of kyle/thebookpolice

Growing up, I used to get in BIG trouble for calling someone a liar. Even if they actually were lying! Instead I was encouraged to say "So and so told a 'story'."

This never jived too well with me. A lie is a lie. And there's a BIG LIE being told to you on a daily basis as far as the economy is concer-- um excuse me...

THIS JUST IN...

"Only YOU can prevent this nation's colapse!"

While I was driving home last night listening to talk radio, I heard a politician lay out the steps to strengthening the economy. Basically, he said it was all on YOUR shoulders to fix this. Yes YOU!


"Thank Heaven for the express line, I only have 7 items!"

YOU have to buy brand new American cars, and Flat screen tv's. Oh and while you're at it please prop up the restaurant industry by eating out more so that we can get back to being America the Beautiful... Um and since we're on the subject you would do well to pick up a premium gym membership so that all that eating out doesnt ruin your perfect American figure. Mmmm but come to think of it either way you're gonna need to buy a whole new wardrobe cause either you're gonna lose weight from working out, or gain it from eating out... just a thought. - $igned : Capitol Hill, Wall Street, & The Media.

P.S.: You can't save money and save the country from financial ruin at the same time so dont even try the first one. We're counting on you to do what's right for your fellow Americans...


Emancipation from Stimulation...

I'm hearing more and more about people who want to do the right thing for the 'economy' so they are foregoing paying down their personal debt, and spending more of their income to 'help' troubled industries such as dining, travel and retail.

C'mon guys, please dont compromise your responsibilities to your family by taking on any part of this 'national burden' that's being sold to you on the airwaves. THAT IS NOT YOUR JOB!!

If you DO still have a job, it is to provide for your family and manage your personal situation to the best of your means.

Unless you are an elected official, or an economic adviser by profession, this nation's economy woes are NOT your responsibility.


The 4 Walls: The frame of your financial house.

In times like this - no scratch that -at all times you have 4 main responsibilities, or what Dave Ramsey calls the 4 Walls: Food, Shelter, Clothing, and Transportation.

When things are tight, keep those 4 things going, and only those 4 things. Not the 401k, not the greens fees at the country club, not the Costco membership, and not the standing order sent to you monthly from Omaha Steaks or the 12 different magazine subscriptions you currently recive.

While the nation is expecting you to take care of it, I'm expecting you to take care of you.

So what's it gonna be?

@W


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Suze Orman: Your Loss is Her Gain...

Photo courtesy of Glennia


"I'm proud that I make money, that I work hard, that I've created what I've created. But I can tell you this: I haven't hurt one person getting here." - Suze Orman

Oh really Suze?

I usually don't do this. I usually don't 'go after' someone in the public eye. But Suze Orman has pressed my final button, so I just have to get this off my chest.

Orman is considered to be the most recognizable personal-finance expert in the world. And quite possibly the most polarizing as well.

Now anyone who follows this blog knows that I'm a fan of Dave Ramsey's methods for eliminating debt and managing your finances. Not because I have a 'thing' for Dave, but first and foremost because he uses the Bible as a foundation for the principles he teaches. There is proven truth to what he says... he doesn't sugar-coat it, he doesn't water it down.

Suze on the other hand seems to "play to the crowd" a bit too much for my liking. She wont tell you what you NEED to hear all the time, because it may alienate you from being endeared to her.

I just read an article about her on Time.com called "The Queen of Crisis". I highly recommend checking it out. But I digress...

My biggest problem with Suze is that she's not afraid of credit. She wants credit to be your friend in turning your woes into wealth.

Last week I caught the 2am replay of Oprah. (Please don't ask...) Suze Orman was the guest of honor and she was answering every one's "tough" questions about this economy and their money. Questions like: "We're getting married this summer and we want to spend no more than $50,000. After our expenses each month we have about $500 leftover. How can we afford to make this happen?"

Suze told them that they couldn't afford it, but she then went on to tell them HOW they could afford it!

Oh, and how about the couple that wanted to remodel their kitchen and bathroom by taking out a $76,000 Home Equity Line of Credit (HELOC)? Suze said "Go for it!"

Whaaaa? Excuse me? Have you seen property values lately?

To me this is reckless! While we're facing the worst economic situation in the last 80 years, The world's foremost financial expert is on a show with possibly the widest viewership into the 'average American home' and she refuses to be a voice of reason against the mentality of trying to afford what you cannot afford?! Really? At a time like this?!

In the quote at the start of this post, she says she hasn't hurt one person getting to where she is... but I beg to differ. With advise like the variety she gave on Oprah, I shudder to think how many people she hurt in that hour alone. How many people did she just empower to continue to run their finances into the ground?

Ok, and one last question...

Why does she charge $80,000 per speaking engagement? Is her advice really that valuable? As I said before when it comes to the economy, our loss is apparently her gain.

Till next time,

@W



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@Risk Theater: Crisis of Credit (Visualized)

Photo courtesy of Students of Calvary

http://www.crisisofcredit.com/



"The Short and Simple Story of the Credit Crisis.Crisisofcredit.comThe goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated. This project was completed as part of my thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.For more on my broader thesis work exploring the use of new media to make sense of a increasingly complex world, visit jdjarvis.com"


Hi guys, It's been a while since I posted a video and I found just the thing today.

This is a quick, easy and sleek explanation of the financial collapse we all now have front row seats for.

Enjoy!





Any Questions?

@W


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The Passion of the Price... (tried to rhyme with Christ)

Photo courtesy of jennipenny

Ok, so It's confession time... How much did you spend on Christmas gifts?

For the 2nd straight year, my wife and I have budgeted only $150 TOTAL for Christmas gifts, and for the 2nd straight year we've come in under budget! We decided only to buy for immediate family members and a select few friends.

I've gotta tell ya, it's pretty liberating to spend such a small amount and still find quality gifts to give to each person. It really hurts me to watch people in the check out line spend the same $150 on just 2 sweaters from Banana Republic and then complain about how they dont have any money to spend on gifts for others.

This year we focused on giving relevant books as the main gifts. And ironically few things have been more relevant to so many people this year as the state of the economy has been. With that in mind we decided to gift copies of Dave Ramsey's Total Money Makeover. We hope it doesnt come off over zealous, but we simply feel that with the amount of success we've had doing the plan, it would be grossly neglegent of us not to impart that information to our family and friends!

It's similar to when you first fall in love (and hopefully stay in love) with Jesus. You just want others to know how it feels to be on the winning side! But honestly, the thing that would have truly made this a wonderful christmas for me, would have been if we could all agree not to exchange gifts at all this year. Not because my wife and I couldnt handle it (oh yeah $150 on gifts just PLUNGED us back into debt haha.) but because some of our friends and family still make a 'thing' out of buying gifts even when they cant afford to and then get themselves in financial trouble trying to appease everyone with a gift.

That's just not us anymore... call us weird but we've had it with the whole Giftmas gimic that's been shoved down our collective throats!

If you didnt get on board with us in keeping the Christmas budget down this year, you've got 364 days to get on board for the 2009 Holiday Season... there's no time like the present.

Merry Christ-mas,

@W

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This Christmas: Foreclosure in HD

Christmas-time is upon us and by all accounts it's gonna be a BIG one... and when I say 'accounts' I'm talking bank accounts.

Because of all the economic turmoil we've seen this year, retailers are BANKING on YOU to bail them out the same way Capitol Hill did Wall Street.

This year you can expect to be lured with never before seen low prices on all sorts of 'big-ticket' items. HDTV flat-screens, home theater systems and high end appliances will be sold at price-points so obscene that you will feel like it's too good to pass up.

For instance these are the projected price ranges for Flat-screen LCD, HDTV, and Plasma displays this holiday shopping season:

• 19-inch high definition LCD: $199
• 32-inch HD LCD: $399-$499
• 40-inch 1080p LCD: $799-$999
• 42-inch HD plasma: $599-$699
• 50-inch HD plasma: $899-$999

My my that sounds like a sweet deal doesn't it? And just to think that these same types of offers will be pouring in at you across the board this shopping season.

Oh yeah, and on top of all that, the Christmas shopping season Officially started October 1st this year, to give you plenty of time to start this festive season off with a bang!

This Christmas, retailers are gonna sell things so cheap that you'll want to buy everything you see so you can put it in your house. But if you fall for that trap you're gonna find yourself and your gorgeous HDTV out on the streets!

I'm willing to bet that half of my readers aren't current on their mortgage, but they're already beginning to plan their Christmas lists... now understand, I'm not saying that to be mean or hurtful but the statistics on the news are coming from somewhere. And even if those numbers are grossly exaggerated, whatever the 'real' numbers are they're probably still shockingly high.

C'mon, lets be real. Odds are you or someone you know will buy one of those flat-screens at that 'bargain' of a price this year... but why? Do they NEED a new TV? Probably not, because if they're like most other Americans then the odds are also high that there are more TV sets in their household than people!
So again, they're not out buying them because they NEED them. So then what is it that 'makes' us want them?

It's my belief that the Flat-screen TV has replaced the 'White picket fence' as the feature of choice in the American home. The same way that 'Chrome rims' have replaced the sound system as the accessory of choice in the American car. The flat-screen has become what I call an 'affordable' luxury item - a universal status symbol of sorts - that indicates your earning potential and that you have disposable income. The catch is that most of us don't have 'disposable income' we just 'dispose of our income' unwisely. I could go on and on with examples of this concept but I'll wrap this post up with one that has really bothered me this week.

If you live anywhere near a college, high school, or middle school, then you probably witnessed the annual homecoming festivities. I was recently told about some local teenagers who got their parents to pay for them to rent multiple stretch limos and drive them to downtown DC for dinner. (You're probably saying big whoop-dee-doo, @W) Here's the part that set me off... these teenagers wanted to go to PALM. Palm restaurant is a notoriously exclusive and expensive restaurant across the street from the White House. On any given night you can see Karl Rove, Colin Powell, Tiger Woods and various hot-shot CEO's and executives at various tables. It will run you about $100 for a meal... an individual meal. And here theses kids are wanting to eat at this place for HOMECOMING! And their not even upper-classmen either, their freshman and sophomores! What are they gonna do for graduation, charter a jet to Vegas for dinner at the Bellagio?!?

The saddest part is that you cant blame the kids for the ridiculous-ness of that story. The blame is on us, the adults who they've watched spend recklessly for their entire lives. The materialism that dictates so much of their social interaction - all of the bling, and the swag, and the stuntin - is just an extension of what they've always seen from us. It's just sad that they've had to view all of this with a level of detail and clarity that even the most expensive HDTV setup cant rival.

Have yourself a merry little Christmas...

@W


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