My Financial Epiphany: Change to Survive
By Mr. ToughMoneyLove | January 6, 2009
For many in the Christian church, today - January 6 - is celebrated as the Feast of the Epiphany, commemorating the arrival of the Magi who traveled a great distance to visit and offer gifts to the baby Jesus in Bethlehem.
In secular terms, an “epiphany” is a sudden perception or insight into reality or essential meaning of something. Usually, an epiphany is prompted by some simple thought, experience, or event in your life.
Mr. ToughMoneyLove experienced an epiphany of sorts this weekend about the future of our individual and collective financial affairs. It was actually triggered by something that Scott Burns wrote in a recent column titled “Home Preparedness and the $50 Billion Straw.” This is what Scott said that really affected me:
What can we do to feel safe again?
Should we push the politicians for fundamental reform?
No way. They simply aren’t qualified to provide it. Neither party has shown any willingness to stop promising benefits that have to be paid for by our children and grandchildren. Their Ponzi scheme, more politely known as Social Security and Medicare, is far larger than the alleged fraud of Bernard Madoff.
The tough answer is that we have to change. The moment we ask the politicians, regardless of party, we’re disempowering ourselves and empowering them.
That is the opposite of what we need to do.
The key phrase is we have to change. Many of us have long distrusted politicians and resigned ourselves to their propensity to spend our money on pork, entitlements, and on other things that get them re-elected. But we continue to vote with hope for yet another candidate who offers ”change we can believe in.” But, as Scott Burns says, the politicians are simply not going to change. Instead of principled leadership being provided by men and women with knowledge, wisdom, and common sense in matters of money and finance, we get goofballs like Arnold Schwarzenegger, George Bush, Barney Frank, Charley Rangel, and now Al Franken. Can you believe it - “Senator” Al Franken spending our money?
It seems that there is an endless supply of people who can get themselves elected into positions where they have power over our financial lives but are completely incompetent to exercise that power. Unfortunately, there are also millions of voters willing to put and keep those people in power. As just one example, Franken is being foisted upon us by the same voters who turned a professional wrestler (Jesse Ventura) into a governor. Thanks Minnesota! And you voters in Illinois- aren’t you totally embarrassed? You’re going to need to build a new prison just to house all of your corrupt politicians.
So my epiphany is that not only should I resist any hope that our government will do the right things with my money and our financial institutions, I must acknowledge that it never will. But I should not simply despair. Instead, to survive economically I will have to be the one making the changes.
Last November I wrote about adopting a survivalist approach to our economic crisis. In his recent column, Scott Burns is thinking the same way and offers some tips for becoming an economic survivalist on a more or less permanent basis. (Check out the books he recommends.) There are lots of other like-minded folks out there, including the conspiracy theorists and armageddon predictors who say buy gold and guns then hunker down.
I’m not interested in gold and guns as a survivalist strategy. But I am going to try even harder to build up a variety of assets - including some very hard, paid-for assets - that will allow my family to survive economically without depending on a traditional income. That is a change that I can make to keep as much economic power with Mr. ToughMoneyLove and away from those in our government who just want to abuse their power over my money as well as the money of my children and grandchildren.
I have a lot of thinking to do about what being an economic survivalist really means. Having an epiphany provides realization but not necessarily solutions. Who knows, I may become an evangelist for an “economic survivalist” movement. (I even registered the economicsurvivalist.com domain name just in case!)
So now I am wondering if any of you have ever had a financial epiphany. If so, what was it? Maybe I am late to the party with mine. If so, tell me about it.
Image credit: Daniel Wildman
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Topics: Financial Planning, Money and Behavior | 5 Comments »
My Year End Financial Performance Review
By Mr. ToughMoneyLove | January 5, 2009
Mr. ToughMoneyLove has spent a good part of the past five months being critical of others who use poor judgment in matters of personal finance. Many of my targets have been politicians, Wall Street investment bankers, and disciples of the almighty credit score. Depending on your own attitude about these subjects, I may come across as an arrogant know-it-all. There is no question that I infuse my writing with heavy doses of skepticism and sarcasm. However, none of my targets have been you personally. When I write, no offense is intended to any of you and, I hope, none taken. (There have been a few obnoxious comments left but I use the ultimate weapon on those folks: I delete their comment.)
Topics: Financial Planning, Investing | 2 Comments »
It’s Time to Estimate the Market Value of Your Home
By Mr. ToughMoneyLove | January 4, 2009
We’ve all been avoiding the scary task of checking on the current market value of our home. We have read that the median price on sales of existing homes fell 13.2% in one year, the biggest drop in 40 years. We also know that new housing starts in November were 624,000 units, down from 1,178,000 units a year ago. (Source: Barron’s) All of the housing news is bad except for mortgage rates which have fallen.
Mr. ToughMoneyLove thinks it’s time for all homeowners to face the music and find out what has happened to our own home valuations. The numbers won’t get any better if you avoid looking at them. I promise.
Topics: Financial Planning, Loans and Borrowing | 8 Comments »
Ways You Should Not Save Money This Year
By Mr. ToughMoneyLove | January 3, 2009
The popular media are chock full of ideas on how consumers can save money this year. The frugalists who write personal finance blogs are particularly good at identifying clever and unique ways of saving money on almost anything you can think of.
Unfortunately, I have been reading articles in my local paper and elsewhere that some people are saving money in ways that are shortsighted and financially risky. That got me thinking that maybe someone should point out those mistakes and perhaps prevent others from doing the same things. So I appointed myself - Mr. ToughMoneyLove - to do that job.
Topics: Financial Planning, Insurance | 3 Comments »
Start the 2009 Work Year Right for Your Money and Your Life
By Mr. ToughMoneyLove | January 2, 2009
If you are like Mr. ToughMoneyLove, January 2 will be your first work day of 2009. Your New Year’s Resolutions are fresh in your mind. Perhaps on that list of resolutions are goals such as “keep your job” and “make more friends.” If not, maybe they should be. In fact, these two goals/resolutions can work nicely together to make your 2009 better for both your money and your life.
Topics: Money and Behavior | 5 Comments »
Consumers, Lenders, and New Year’s Resolutions
By Mr. ToughMoneyLove | January 1, 2009
I don’t plan on writing much today as I suspect that most computer users are either hung over, watching football, trying to lose weight, or cleaning up all of the holiday mess.
Mr. ToughMoneyLove has been informally surveying New Year’s Resolutions posted by various internet users, particularly in the personal finance world. Even the federal government has published a list of the most popular New Year’s Resolutions. Second on the list is “Manage Debt.” That’s outstanding.
Topics: Debt and Credit | 6 Comments »
A Glimpse into One Retirement Future
By Mr. ToughMoneyLove | December 31, 2008
Mrs. ToughMoneyLove and I are wrapping up our short visit with family in Florida. This visit has exposed us again to the different retirement lifestyles available in one of the most popular retirement destination states. Florida is attractive to retirees both for the weather and low taxes, including no state income tax.
My Dad lives in The Villages which has to be the largest retirement community in the world. It has grown tremendously since our last visit. I have decided to spend some time over the next few months writing more about it as well as a different retirement lifestyle that my mother enjoys.
Topics: Retirement Planning | 2 Comments »