Your Questions About Eliminate Debts Your Own

Chris asks…

How do you handle your own budget?

In your personal life, lets say you are in debt $10,000. You decide you want to eliminate this debt or at least get it down to a more comfortable level. Do you…

A. go buy a $1,600 flat screen with your credit card or
B. invest your money in a company that says they have a project that offers a 10% return on your investment?

Please give your answer, your reasoning and your political stance
C. was not an option…but fine, C. would be equivalent to doing nothing at all (which is what some Republicans are saying we should do)
Bash: that is awesome of you as a son to do that for your mother…that is our social responsibility to do that, to help our family, our friends and our neighbors (and many do). It is not the responsibility of the government to do that nor is it the governments right to tell me that I have to do that. If she were in need, I would give on my own behalf and I do so regularly. I give my money to the causes I believe in and the things I want to support…that is my right to do that and I take great pride in doing so. See the difference? Spending money we don’t have on things that won’t help pay down that debt in the future is moronic. We will be worse off in 3 years once these projects are complete because then all those people will once again be without jobs, and the bills are still gonna be rolling in.

John answers:

Why would you limit it to your two examples? I also would be reasonable with my spending and pay off debt. In the ‘real’ world I have to live within a budget. My income cannot be less than my expenditures. I am a responsible spender.

A company can “say” they will offer a 10% return, but where is the guarantee?

James asks…

Here are another 7 debt eliminating tips?

Speak to a credit counseling service to help work out a plan: your “must pay” outgoings, arrange with creditors to freeze interest and accept a revised monthly payment.

Stop using credit cards to make it to the next paycheck. Stop getting further into debt.

Don’t overpay your debts — leave enough so you have enough for regular expenses too.

Avoid eating out. Cook your own meals, except on very special occasions.

For entertainment, visit friends and be creative on how to entertain yourselves and your family without spending a dime.

Don’t pay off your credit card balance from the emergency account. Don’t touch the emergency account at all — it doesn’t exist!

Look for expenses coming up in the future and plan for them, so you don’t have to go into debt when they come up.

If these are not good, just tell me so I don’t have to write it. Be honest. If it helps you at al, just let me know. I have 59 more tips.

John answers:

What are the rest/ I need helpppppppppppppppppppppppppppppppp!!!

Steven asks…

Is it wrong to teach children about money from your own mistakes?

My wife and I have had a history of being grossly financially irresponsible We are currently halfway through paying down $68K in credit card debt which is now $37K.

We have had some lifestyle changes, which I welcome, and she despises. We continually argue about whether the children should learn from our mistakes.

My daughter is enrolled in Ballet. Ballet is running $54 per month. I have been trying to eliminate this expense because I think it is ridiculous that we are spending this money. My wife believes this will destroy my kid’s childhood.

My idea is to give my daughter the $54 per month in a savings account and eventually invest it to teach her about money. I think teaching her about saving money is more important than her learning how to dance.

Am I being a complete Pr*ck, or am I right.

John answers:

Teaching your children how to handle money and become financially responsible is a parent of parenting that is often neglected. I wish I’d had that kind of training when I was growing up. As a parent of adult children, I didn’t do much better, we were too busy living from pay check to pay check.

The trick is to teach your children to not make money a god in their life but to handle it responsibly.

It sounds like the ballet is a real sticking point. Are there other areas where you can cut back to keep that in the budget? If your daughter really enjoys it then try to find a way to keep it. Take your daughter out on a date (lunch at McDonalds) just the two of you and ask her how she feels about ballet. If she’s getting tired of it then perhaps there’s something else she could do that would be fun and not cost quite as much.

There needs to be a little bit of money for fun, otherwise life gets too mundane and depressing.

Does your wife had dreams of the ballet lessons leading to something greater in the future for your daughter? Was ballet something she felt deprived of in her childhood? It just sounds like there’s something behind her decided opinion about the ballet lessons.

Is is possible to discuss the ballet issue without an argument breaking out?

Perhaps you could “discuss” it in e-mails to each other rather than verbally. I know I can sometimes express myself better by writing it down than verbally. You could each have your own yahoo e-mail account and try to tdiscuss it that way.

Besides, it is my opinion that children need to be exposed to a lot of different things as they grow up which gives them different skills, expands their learning, and helps them to find out what they like. These experiences can lay the foundation for their future and could help lead them to a particular career.

It depends on your daughter’s age as to what you would teach her about finances. A very young child would have several pots for their money. 10% of what a child gets should go to the church offering (if you attend church) or to a charity. 10% should go for a savings. From here you could add another 10% or divide the 10% savings in half so there’s a short term and a long term savings goal perhaps with a picture of the item(s) being saved for, then what’s left is for spending as she sees fit. When the spending money is gone, it’s gone until she gets some more.

If she’s older then definitely a savings account would be appropriate. But still keep the 10% for church or charity. I would also have her save up for something specific that she wants besides having money in her savings account. The item she worked and saved to get will be much more appreciated.

It seems to me that there is a mind set that’s tied to being successful financially and that way of thinking should be taught as well. I’m talking about the way one regards money, such as seeing it as a tool, that there are boundaries to set and not to be crossed, and such. I’m trying to figure that part out still.)

As for your wife’s attitude regarding the changes you’ve had to make perhaps you can have a discussion about that through e-mail. Find out what her expectations are or were. Let her know that once you’re free and clear that circumstances will be better but that some of the changes may stay in place so you can then begin to save money and invest money for your future. (I know that when I get upset that quite often it is because I had an expectation that wasn’t fulfilled or was shoved aside or something.)

If things are bad enough between the two of you perhaps you need to get some counseling.

By the way the link below might be helpful for your relationship with your wife.

I hope this was helpful.

David asks…

Will the federal tax cuts are good disease be the end of the USA financially?

the policies of the USA have been going in the wrong direction for a long time in many different categories.
This tax issue is one of the most significant ones…..somehow we have come to accept crazy talk as intelligent conversation….that having a financial statement yield net positive cash means that revenues must be cut. lol Meanwhile the same snake oil salesman keep complaining that the financial statement for some weird reason is constantly yielding negative cash flow and that the cumulative negative cash flows over the years are ovewhelming. They want to have their cut revenue cake and it eat their negative cash flow must be solved cake too.
This is insane thinking, but its considered intelligent talk….just like sending the jobs of your own citizens and eliminating your manufacturing capability …sending those jobs to a country that is spying on you and building a military arsenal in anticipation of going to war with you someday and has nukes pointed at your country is a good thing…….or allowing your country’s border to be invaded by millions of dirt cheap workers so that your own citizens’s wages can be depressed and their jobs taken is considered a good thing, or that paying $5,000 for an hourly and relatively minor surgery is perfectly acceptable, or having perpetual warfare and financing them by borrowing money from a country that is essentially your military adversary is considered clear thinking…etc… Like I said, the path is wrong..up is down, wrong is right, common sense is irrational…..the world is no longer round…its flat.

(EDIT) the top marginal tax rate in the USA in the 20th century was as high as 91% at one time for wealthiest americans..it was as high as 70% as recently as 1980….today, it is merely a fraction of those earlier figures when the USA by the way was more sound from a balance sheet point of view.
Corporations used to pay about 30% of all national federal tax revenues as recently as the 1960’s…today corporations pay 5% of all national federal tax revenues.

Our politicans at the federal level have developed a new thing…that money can be spent without having revenues to pay for them….something that anyone with a financial background knows or any common sense for that matter knows is unsustainable and not sound and that the rising debt over the years will bring a day of reckoning. Now some will say….oh its the spending…yes there is a spending problem, and cuts can always be made to eliminate unnecessary, outdated or wasteful programs…but do not be fooled, the real story here is that you do not need to have revenues to pay for things…that somehow you can just borrow it perpetually.

John answers:

I hope you are brushing up on your mandarin.. I’m going to send away for a Rosetta Stone CD!

Lizzie asks…

I would like your opinions on this economic theory?

Ok so I know that this idea is a little out there but I’m curious of what other people think. That and it is late in my time zone so yea not thinking clearly.
Inflation occurs when the value of a dollar or whatever monetary unit becomes less valuable. Inflation is controlled by interest rates and most people like to get fixed rates so they don’t get all confused with their house loans. So here is an example, a man buys a car for $20,000, then the value of a dollar drops by a ridiculous amount and theoretically his car is now worth $20,500 or whatever random number above 20k you can think of. Say he bought this car with a loan that he had taken for the 20k and let’s not get into much detail on the loan other than he has a fixed rate. Now I believe it is true that how much he has to pay for the loan does not go up, in theory if he sold the car at the price of $20,500 he would make a profit, correct?
Now take a look at our United States government, we are billions if not trillions of dollars in debt. Are those rates fixed? If so, would not make sense to print out a ridiculous amount of money and pay back our debt and completely eliminate it? This would cause our dollar to be almost absolutely worthless, but we are out of debt. Now everyone is theoretically broke because it takes for example a million dollars to buy a can of pop or soda or whatever you call it.
But, in my mind, actually adjusting to the new inflation would be impossible so everything in our own country should be the exact same price. The only way to adjust on this kind of scale would to be for the government to state that everything in everyone’s bank account and stalks and everything were to increase the in proportion. Your bank account yesterday was $2,000 and the government says you just have 2 billion now for example. If everything is instantly proportional but what our nation owes then what is the difference?
I can only think the effect on those of us in this country is every other country in the world now hates us but for how much we have done for them in the past I think it is about time we think about ourselves and each other.
It’s just a random thought I had, and yes I probably should lay off the caffeine… but thanks for reading and give me your thoughts. I am an econ major in college right now so I might be able to turn this into a good economic theory paper if I can get some intriguing thoughts form you people.
Thanks,
HOOAH!

John answers:

Hi

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