Prometheus Council

[Gene]

I am mad as hell about the BS bail out and the drivel spewing from Washington, D.C. and Wall Street! I had written a huge piece on this, and then remembered this is not a place for lengthy commentary perse. So, for those of you who are in dire financial straits I want to give some advice. I forget that not everyone has the right mind set to work through this.

My little spiel

I was not in favor of the bail out, never was, and never will be. That is metaphorically water under the bridge and we are screwed. The government just became a land lord with immediate access into our personal finances. We just became a socialist nation at the signing of that mill stone around our neck. Greed has just ruined this nation, and removed the rosy future for our children and grand children – and the only ones who are not going to suffer are the very ones who perpetrated it for they already have their money.

Okay ---

Learn how to manage your money. Learn what a zero based budget is; put yourself on one, and stick to it. Give yourself 90 days to get it right if you are not budget conscious. Discipline yourself to pay off your debt and become debt free.

Your new mantra: If I cannot pay for it in CASH I cannot afford it!

A budget is no more than telling your money what to do! It is not meant to deprive, it is not meant to control a spouse; its ONLY purpose is to tell your money what to do – period!

Number One: Get an emergency fund of $1000.00 as fast as possible.

Number Two: Start paying of your debts, lowest to highest.
A. Determine the smallest monetary debt regardless of the interest rates
B. Pay minimum allowable on all the other debts, and attack the smallest with all your financial ability until it is paid off.
C. When the smallest is paid off – attack the next smallest debt with all your financial ability until it is paid off. Continue this mode until you are debt free – excluding your mortgage if you have one.

Number Three: Then pay into your emergency fund until you have three to six months of EXPENSES in this fund.

Number Four: Invest 15% of household income into a self managed and pre-tax retirement fund – this includes meeting the maximum your employer will match if you participate in plans of this type and things like ROTH IRAs.

Number Five: Build a college fund for your children / grandchildren if applicable

Number Six: Pay off home early – by paying a minimum of one extra payment yearly. This drops a 30 year fixed to about a 22 year payoff. And pay more if you can. (And if you cannot pay your mortgage, let it go back to the bank - we just voted a 700 billion dollar bailout - take advantage of it - at least I'll know someone I'll be taxed to support! )

Number Seven: Build your wealth
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The 4 inches of gray matter between your ears is your primary weapon, everything else is for expediency

[Steve]

Don't forget
Invest in guns and ammo...

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Luke, I am your father.
Noooooooooooo!

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