Control Your Credit, Control Your Money

The masses have been sold on the trick of living a debt filled lifestyle. A large gas guzzling car, a SUV etc. Owning every gadget on the market. Clothes galore, that generally are out of style the very next year. There is no way you can win this battle. It is what makes the rich richer and the economy keep going around. Save yourself, save you family and friends, stop the madness. Financial Independence should be the lifestyle you strive for. You must control your credit and control your money.

I know you have wasted much money getting into debt, it is called "keeping up with the Joneses". Be careful because it will cost you lots of money getting out of debt. You can save yourself happiness, stressful times, disappointment and money by not digging this dreadful hole. STOP DIGGING NOW. The more money you make, the more money you need, unless you stop digging a deeper hole. If you are like most people, you have probably painted yourself into a financial corner with a 30 year mortgage (ARM), student loans, car loans, multiple credit card payments and even a 2nd and 3rd mortgage. Ouch. You are likely living from paycheck to paycheck and "renting" many of the clothes and toys by making those crazy monthly payments.

I understand why and how you got yourself in this kind of situation because I was there myself. I was miserable and know how stressful life can be when you are deep in debt. But, there is hope, there is light at the end of the tunnel. But YOU MUST STOP DIGGING THE HOLE DEEPER. NOW.

The forces in our society getting us to spend our money continue to win out over those who want us to save, insure and invest for the future. This was never a good thing, but now in the 21st century, it must stop.

Social Security and other government programs will never be able to take care of today's 30, 40 and 50 year olds when they retire. Not nearly as it did for the 60, 70, and 80 year olds. For a long time 15-20 workers were paying into

Social Security for every recipient drawing benefits. Now the ratio is headed for 2 to 1.

WHAT DOES THIS MEAN FOR OUR SOCIETY IN THE 21st CENTURY?

Reductions will have to be made in our medical care and Social Security programs. Many pension plans including those for ex-federal employees, will have to be reduced, as they are as we speak. Employee benefits for many retired people will have to be cut. It is absolutely VITAL that people, from now on, put more of their discretionary income into savings, insurance and investments to give them peace of mind about the future.

Millions of new investors must be created. Millions must turn into regular savers and more careful spenders. Stock ownership must be encouraged. People must be aware of the need to be insured adequately for the longer life they will be living, even if it means fewer new cars, RV's, computers, PDA's and expensive nights out. Smaller liquor bills, fewer cigarettes, less extravagant travel, wiser spending and less abuse of credit must become the norm for millions of people....until they have prepared for retirement and periods of ill health before dying. Their non-working years will last far longer than that of their grandparents.

There are advantages in using credit wisely. These advantages can be enjoyed by consumers who keep their credit buying under control. Most people can afford about 10% of their net income to installment debt. This does not include mortgage payments. If you pay out more than 15% you should cut back: more than 20%, serious financial trouble can result.

To avoid becoming over-extended, keep a record of your credit debts. This should be done each month and any increases should be examined closely and dealt with. Further, do not accept more credit than you need. Keep about $2,000 reserve in unused credit for emergencies. Do not keep credit you don't need. Used credit is counted against you when you apply for a loan or other credit. Do not expand your credit because you receive a raise; inflated costs and taxes seldom leave much surplus for increased spending. You must handle your finances as if there is a TOMORROW.....because there is!