Posts Tagged ‘expenses’

“Americans feel squeezed because the cost of rent, medical insurance, and tuition – as well as other basic living expenses – is rising much faster than their wages. This creates very real problems for ordinary people.

By every measure – including stagnating wages and rising costs – things have been going downhill for the American middle class since the early 1970s. August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard. Since then, the dollar has been a pure fiat currency.

The rejection of sound money is the primary reason why inflation has eaten up wage growth since the early 1970s – and the primary reason why the cost of living has exploded.

Measured in gold, wages in the U.S. have fallen over 84% since 1971…. Priced in gold, the minimum wage has fallen 87% since 1968. Note that the federal minimum hourly wage was $1.60 in 1968. It’s $7.25 today, or 353% higher in dollar terms. But that $7.25 buys 87% less than $1.60 did back in 1968. That’s the story you won’t hear from the mainstream press.

Inflation follows a clear a pattern of corruption:  In a fiat currency system, the government will invariably print an ever-increasing amount of currency. This makes prices and the cost of living rise faster than wages. The average person feels the pain, but doesn’t understand what’s happening. More people support politicians who promise freebies. In order to pay for the ‘freebies,’ the government prints more money. This creates even more inflation, and the cycle repeats.”

-Nick Giambruno

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“Keep the biggest wealth-stealing expenses—like your house, cars, and entertainment—to a necessary minimum.” -Mark Ford

Savings Boost

Posted: November 20, 2015 in Money Matters
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“Now, there are only two real ways to boost your savings:

  1. You can either cut down on your monthly expenses…
  2. Or, two, you can boost your income.”

-Unknown

Life Income

Posted: October 10, 2015 in Money Matters
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“The more your income exceeds your expenses, the faster you’ll build your savings… and improve your quality of life.” -Mark Ford

Do you want to be like everyone else?  Are you one to follow the beaten path?  Does conventional wisdom seem like the most comfortable place to be?  Let’s take a peek at what others are doing before you give a final answer.

The news is filled with, what is to me, troubling discourse.  Bloomberg News reported on March 9th that “global debt exceeds $100 trillion”.  They explain this to be a 40% increase since 2007.  Wow, that is a lot of money!  “Governments have been the largest debt issuers,” according to the Bank for International Settlements.  How long will it take to pay that off when governments have to borrow more money to cover their current expenses?!!

In a DailyFinance article from January 2, 2014, another bubble seems to be forming in automobile loans.  They give an example of a gentleman who had just filed for bankruptcy, yet received a check in the mail from a finance company for $30,000 to purchase a car from any car dealer in the area.  He went out and purchased a used BMW.  They report that “88% of GM’s North American financial receivables are firmly in the subprime category”.  With delinquencies on the rise, this cannot be a good sign.

What do these examples mean to you?  Are you currently a part of the credit growth people and governments are experiencing?  Can this discouraging news have any positive benefit for you personally?  Well, that depends!  Positive things can only happen if someone takes advantage of a situation.  The only way it can benefit you is if you do something other than the majority.

You can be different from those treading in their own sea of debt.  They are simply trying to meet their current expenses, paying interest but making no headway on their debt load.  This may even be you.  However, a simple yet willful defiance to increasing debt is the starting point.  It takes a first choice to turn the negative compounding of interest payments into your own financial reservoir.  Is it time to make a willful decision to be different?

Expensive Leak

Posted: September 20, 2013 in Money Matters
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“Beware of little expenses; a small leak will sink a great ship.” –Benjamin Franklin

Living on borrowed money is no different than living on borrowed time.  Eventually, the piper must be paid.  The news in Detroit today is just another example, and possibly the first of many to come, of what borrowing money to pay expenses does to a person or entity.  The volume of interest grows into a destructive nightmare.

Now, my point today is if a person is to live on borrowed money, at least live on money that one has first stockpiled and then borrow from the developed reserves.  If hard times develop, then that  private fund can be redeveloped at a slower pace, as plausible, and not according to the schedule of a creditor other than oneself.  Debt to oneself is much different than debt to another.