Tag Archives: Debt

The 5 Best Ways to Prevent Money Arguments With Your Spouse

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According to CNBC, finances are the leading cause of stress in a relationship. 35% of people surveyed said that money was the primary cause of friction in their relationship. Managing your finances as a couple can be difficult, but it doesn’t have to be. Here are 5 tips to help you prevent money arguments with your spouse. Continue reading

Would You Sell Your Body For Your Parents’ Debt?

One anonymous Hungarian girl, only known by her screen name Miss Spring, auctioned off her virginity on the Internet to pay off her family’s loans. What started off on EBay turned into a bidding email match after the website mogul shut Miss Spring’s operation down.

The winning bid came from a man in the United Kingdom for £200,000. The eighteen year old, who eventually wants to attend medical school, wanted to save her family from losing their home and being put on the streets after they borrowed "a lot of money in Swiss Francs, and now with the credit crunch in Hungary the repayments in Hungarian forints have tripled, she [her mother] couldn’t pay it back."

As many families experience the hardships of the dire economic straits, this is pretty much the extreme in terms of support. I appreciate where the girl’s heart is and understand that many times the well being of your family comes before anything else but where the hell is her mind?! One commenter on The Sun’s article said, in so many words, that this was a smart move since so many girls just give it away for free to some jerk but what if this girl would have inevitably saved her virginity and gave it to someone she truly loved? There is a part of me that feels she has the possibility of missing out on a very beautiful experience, even though from most of the people I know, that usually isn’t the case. 

My biggest question is, aside from where the hell is her mind, is where the hell is her family?!

I mean, I’m sure if I was like, "Yo, Mom & Dad, I’m going to hook you up with £200,000!" they’d be like, "GREAT!" but then take a step back and ask how in the world I was coming up with that much money without a salary, in which case, if I told them, I think my mom would start screeching about Feminism and my father would have a heart attack. I just don’t see how any parents would endorse this idea or accept the money from their daughter’s, basically, prostitution. 

How far would you go to get your family out of debt?

Would you accept money from your daughter’s sold virginity? 

Sources:

The Sun

 

Help For Lindsay Lohan To Get Out of Debt….It Will Work For You Too!

 I feel your pain, Lindsay. I have been in credit card debt over my eyeballs.

Nope, unlike Dr. Drew Pinskey I am not going to plant drugs in your car to frame you. Dr. Pinsky isn’t breaking the law breaking your Hippocratic oath?

After losing my marriage, business and health I had $88,000 of corporate credit card debt from my business (which seemed like $600,000 at the time.) Here are some tools that will help you and anyone out there get out of credit card debt. These tools worked for me, and millions like me. They can work for you.



1. Don’t Go This Alone


Lindsay, you are not alone. Studies show that currently 58 million Americans are not paying their bills on time. Get caring support as you reinvent your habits. ( No, Dr. Pinsky wouldn’t be on my list either.) Yes, you are going to need to change your habits. It isn’t easy. My prayer for you is that you have someone that sees your great good that goes beyond your current behavior. 



2. Use Paper Power 


You aren’t going to like this one…but it works. 

Simply, switch from plastic to paper money. A study from NYU and the University of Maryland found that when consumers switch from credit cards to cash and they automatically 30 % spend less. These studies show there’s a gut reaction that’s absent when we pay with plastic. That’s the reason you trade your money for poker chips (plastic!) in Las Vegas. Credit cards use this fact to their advantage.



3. Get A Grip

You aren’t going to like this one either.

Make a budget. Put the cash for each budget category into envelopes. Food, gas, entertainment, clothes, shoes etc. I did this. It is very simple and it works. From my own personal experience once you get down to the copper money (they are called pennies in case you forgot) in an envelope you are highly motivated to get out there and make some money. Highly motivated.

4. Pick Up the Phone 

Before a large expense, ask for a discount. Sure, you are Lindsay Lohan, but I know that this tip works for the rest of us. One LA consumer got her dentist visit cut for a crown from $850 to $550 by simply calling and explaining her circumstances and asking for a discount for being a long term customer. I’ve heard of lots of people asking for reductions on the rent they pay…and getting it. Give your landlord a call…and let me know.



5. Ask For Help


If you are in over your head in debt you can get help. Credit Counseling will help you with your budget and lower your interest rates. My bet is that Credit Counseling companies are call you right now. Lindsay, listen up…because this is a very hidden fact.

Most consumers aren’t aware that these credit counseling "non-profits" are actually funded by the credit card companies. They are not working for you…they are working for the credit card companies. I used a debt settlement company that cut my credit card debt in half. Having my debt cut in half helped me to avoid bankruptcy and give me the dignity to pay off the debt my start up business had created. Get educated and see what is the best fit for you.I am here to help you. If this worked for me, it can work for you.

Are you struggling under credit card debt? I want to hear your story. 



The Today Show "Reinvention Expert" shares her system to get out of debt using her "Turnaround Techniques." system with other consumers to get out of debt- for good. 



You can receive notice of my blogs by checking Become a Fan at the top. Ask Eli a question atinfo@elidavidson.com or go to www.elidavidson.com today.

Eli Davidson is a nationally recognized motivational speaker and executive coach. Her book,Funky to Fabulous: Surefire Success Stories for the Savvy, Sassy and Swamped, (Oak Grove Publishing) has won three national book awards. Eli is a reinvention catalyst, who can transform your professional and personal life from Funky to Fabulous with her 10 trademarked Turnaround Techniques that create rapid and remarkable results. Check out her blog athttp://funkytofabulous.blogspot.com/

PHOTO (cc): Flickr / thetruthabout

 

Gratefulness…

I am so grateful today for having a roof over my head. I paid my taxes today, and I am so happy that I did not have to arrange a payment plan. Though I owe money and am still paying off my credit cards, I am so much better off than a lot of people are right now.

Some people are hurting so much. They have had to move out of their homes, and don’t have hardly any money (if any at all). With limited resources, they are doing the best they can with what has happened to them.

I am realizing today how very lucky I am.

 

 

Mastering Money and Managing Debt: Being True to Your Own Action Style

 “Never be limited by other people’s limited imaginations. …You can hear other people’s wisdom, but you’ve got to re-evaluate the world for yourself.”
                –Mae Jemison, the first Black woman to travel space

If you are hoping to grow in the area of personal finance and organization, it is time to be really honest with yourself about your action style. How do you best stay on track with your goals? Are you a planner, the kind of person who gets more done when you set aside time each day to complete pre-determined tasks? Or are you a crammer, the type who is more productive when you are under a tight deadline? The basic question is: What motivates you?

Questions for Optimal Planning

Knowing your action style gives you expertise about yourself you can use as a foundation to achieve any task, whether it is reading a stack of loan papers or painting your children’s rooms. Begin by selecting a specific task and making some basic observations about it.  Next, ask yourself the following questions about your action style:

•    What motivates me?  (Fear, guilt, desire, hope, change, competition, etc.)

•    What helps me become “unstuck” when I am having difficulties getting started on a project or task? (Brainstorming, delegating, friend and family intervention, incentives, etc.)

Now ask yourself these follow-up questions to determine how to move forward:

•    How can I best motivate myself to begin this task based on my action style?
•    What are five things that I can do to move forward in completing this task?

Example

Task:  I want to organize my garage.

Observation:  I notice that this task does not move off of my to-do list.
What motivates me? I am most motivated when I feel excited by a project and know all the steps required to complete it.

What helps me become unstuck? When I have trouble getting started, it helps to fantasize about how the project might look and feel once it is complete. I also find it useful to brainstorm freely about all the steps necessary to complete this task and recruit friends or family willing to help out. (The project seems far less daunting when it is broken down into smaller tasks and the work is shared.)

How can I best motivate myself based on my action style? I can spend 15 minutes breaking down the project into itemized actions in a to-do list.

 What are five things that I can do to move forward in this specific task?

1.    Spend 15 minutes brainstorming and creating a to-do list for this project.

2.    Admire the neighbor’s beautifully organized garage to gain some inspiration and become excited about how great my own garage can look.

3.    Congratulate the neighbor on doing such a wonderful job in keeping her garage clean and organized, and imagine how proud I would feel if I could do the same.

4.    Include my husband/partner/neighbor/friend in my plan to organize the garage.

5.    Set aside some time and complete five items on my to-do list.

Now you have an action plan to motivate you to begin your task and guide you through it. Take five steps forward and keep the momentum going! Once you know what gets you started and what keeps you driven, you can act efficiently to tackle each item on your to-do list, one step at a time. What gets you started? Email me at Erin@GreenSherpa.com.

 

“Being True to Your Own Action Style” is step three in a 5-step process for mastering your personal financial management. For more tips to mastering your personal finances and managing your life’s flow, click on my other articles on this site, or find me at GreenSherpa.com.

 

My Thoughts on Transactions in the Ideal Economic System

hello and thank you for reading thsi blog.

below is a theorhetical model that I created for how transactions would operate in what I also theorize to be the ideal economic system. It explains some of the philosophy and lays out in detail the financial architecture that would support this system once it was in place.

enjoy

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FINANCIAL TRANSACTIONS IN THE IDEAL ECONOMIC SYSTEM (copyright joe benham 2008):

POINT NEGATIVE 2: the source of wealth (what comes out of the earth) belongs to the commons, requiring that entities (logging/mining companies, etc.) pay the people in compensation for whichever material resources they take out of the ground and whatever impact they have on the environment. This purchase takes place in the form of a credit transaction, through which the people are issued payment (either individually, or collectively through education, healthcare and other social programs), and the purchasing entity is issued the equivalent amount of debt, in the hopes that they will repay it by way of recouping that same money from the larger community that it was initially paid out to.

POINT NEGATIVE 1 (not covered in the meeting): in this competitive, capitalist, free-market enterprise system, "We the People" (not restricted to just U.S.) are the biggest and most powerful entity of them all and use  that power for the sake of our own best interest: the good of our society. this means that (aside from claiming ownership of the commons) we collectively do other things, like buy up and develop patents, invest in industry and exercise influence in all of our various markets, with the aim that we do so for the overall good of life on earth (remember, this is just a sketch of the ideal economic system; throw in details, if you want to fill-in the blanks some more).

point 0: once money has entered into the national or local systems, all transactions within it are done electronically and automatically. there are no banking middlemen involved and everyone has access to making transactions within their respective electronic network community.

point 1: Reverse Taxation: people are only taxed for hoarding money or spending it outside of their financial network. ANY spending or investing within the network is an automatic tax write-off. Taxation occurs only when money is either spent outside the system, stays too long in one’s pre-tax account or when it is exchanged for cash or foreign currency (because then it can no longer be tracked once it leaves the electronic system). because this is automatic, tax evasion would become impossible and would therefore no longer exist as a crime (you couldn’t do it if you tried).

point 2: Time-regulated, Automated, Pier-to-Pier Investing: This free-moving system allows people to have access directly to each other in the investment, lending and capitol-venture process. People can leverage their trust with one another for these individual undertakings, and for acting as agents in directing the contributions of collective investors toward their own ventures and those of others. This model is scalable to any size and is activated at the sole discretion of the investor, the entrepreneur and any agent they may happen to use. In  addition to that, community and government finance agencies could effectively eliminate abusive usury practices by offering 0% loans for necessary and socially responsible undertakings (no lender could compete with that). abusive borrowing could also be mitigated by means of automatic accounting and withdrawal from the accounts of those who would otherwise refuse to repay their loans (this needs more
compassion,
so please put in your two cents).

In this investment system, timetables are also set to discourage early divestment and mere speculation. This is done by way of taxing early withdrawal, similar to what is done with a 401-K. There probably would be some kind of mechanism to protect the investor too, but that solution is still being worked on (more suggestions please).

Two additional notes regarding investment and lending:
– it is offered exclusively for those with access to this network (tax-free access to network features of buying, selling and investing/borrowing can also be selectively granted to like-minded entities outside of their respective communities, as long as they adhere to the same standards of human rights, environmental/economic justice and social equality).
– borrowing and credit are used exclusively for moneymaking ventures or other ventures with lasting social, economic, humanitarian or environmental value. people shouldn’t have to extend their credit in order to purchase groceries, shelter, clothing and other basic daily life necessities. there should be social programs to cover people when they fall short in this way (remember too that people in this system would also have a real financial stake in the commons, so that many of these basic needs could be largely met before resulting to taking any kind of outside assistance. needless to say, though, this might foster an attitude against environmental and resource conservation by a society which directly benefits from cashing-in. there would be, however, regulations revolving around the safe-guarding of the environment in consideration of other forms of life and future generations of humanity in order to keep this from happening. more on that in my next
diagrammatical presentation).

point 3 (very long): local currency: This is the third tax shelter in this economic system (spending and investing being the other two, as mentioned above). People can buy local currency from their community bank in exchange for an equivalent amount of their own pre-tax national currency. They are free to hold onto that money for as long as they want to, or to spend it within their local or national community (for the sake of consistent international currency exchange, though, local currency would have to be converted back into national currency and then taxed before being spent outside the national system). This currency can then circulate in-perpetuity, until it is exchanged back for national currency by a member of that same local economic community, and simultaneously taxed.

the strong points working in favor of this kind of local economic system are that investment in local currency (and local community, by extension) are encouraged through two means:
– tax incentive is given to encourage people to convert their national currency into local currency and to discourage them from  converting it back.
– local currency in one community can freely be spent anywhere within the national system because it will ultimately have to return to that community in order to be redeemed for its equivalent value (minus tax) in national currency (money’s other strength is also in its liquidity, therefore it works best when it is both allowed circulate from its original source and encouraged to return back to it).

another detail which i didn’t go into during the meeting is that this local economic model also allows for more local investment incentive by means of less regulation in local capitol endeavors. although usury would still be largely discouraged at the local level by the availability of zero-interest loans, investments using a community’s local money for ventures within that same community would actually allow investors more leeway for divestment from endeavors which they felt put them at financial risk. This would make initial local investment more attractive to the investing entity. what we need to understand here is that the purchasing of local money IS an investment in that local community, no matter what local undertaking that local money attaches itself to or detaches itself from.

in addition to this, by virtue of the fact that people would generally not want to cash-in their local currency once they receive it, the investment power of their local community COULD be effectively doubled. This is because, while local currency is being circulated within the system, the national money backing it is simultaneously being invested in other projects by the local bank holding it.

i actually have two ideas for enacting this kind of local economic model, but i think that both would require legislation to change current laws:
– simply pass initiatives that would put said local banks, local currencies and tax incentives in place.
– somehow allow for pre-tax contributions to non-profit organizations in exchange for equivalent local currency, which could then be freely exchanged and then placed back into pre-tax status upon it’s exchange back into national currency (perhaps in the form of a consultancy payment to the individual redeeming their money from that same NPO).

The Four Scenarios: Debt Deflation, Hyperinflation, Quadrillion Play and Muddle Through

Dear Friends, from the vantage point of November 15th, 2008, whilst the Washington, DC, summit is underway amongst the leaders of the G20 nations, it would appear that there are four distinct global economic scenarios that may unfold towards the tail end of this year, 2009 and 2010:

Scenario 1: Debt Deflation 

Most product, service and asset prices keep falling and the vicious circle of deleveraging causes many businesses, factories and support sectors to shut down. This in turn causes rising and out of control unemployment and falling living standards quarter-in, quarter-out with a severe and ongoing headache for some governments to provide stimulus in the face of declining revenues. This is a similar scenario to the US in the 1930s post the 1929 Wall Street crash.

Scenario 2: Hyperinflation

Some governments print money to try to stave off a recession / depression and end up stoking large scale inflation in a similar way to the Weimar Republic in Germany around 1923 post the first world war’s conclusion in 1919. Hyperinflation is the flip side of currency collapse, which then leads to multiple domestic and trans-national black swans.

Scenario 3: Quadrillion Play 

The invisible one Quadrillion dollar derivatives equation underpinning the hundred trillion dollar plus debt pyramid manifest as "Eight Bubbles" (Ref: ATCA briefings) continues to experience trillion dollar black holes in which capital on the balance sheet vaporises without warning, month-in month-out. Governments via central banks try to hyper inflate and levitate the system by pumping trillions of dollars of liquidity into the system. The net impact is manifest via two opposite north and south directional vectors — hyperinflation and deflation. The two vectors collide continuously to create several vortices as the markets change direction nearly every day exhibiting high volatility. The consequence of being caught up in the resultant eddy currents of those vortices is that some asset classes levitate and give the impression of rising, albeit temporarily, and other asset classes fall or simply cease to exist as their underlying asset-base vaporises within the gravitational pull of the nascent financial black holes.

Scenario 4: Muddle Through

Given that fiscal stimulus is one component of GDP over which there is direct policy control, the muddle through is another possible scenario. However, government spending is always far too slow and occurs at some point in the future so we can expect a lunge towards cutting taxes or offering tax holidays, which is the high velocity component. The massive public sector borrowing requirement may have an adverse impact by way of currency devaluation. There is some probability that the governments’ massive stimulus packages and central banks’ interventions, after a while of uncertainty in the minds of people, act as a partial, deferred offset to the ongoing global financial system deleverage. Then markets may revive, although some of the eight bubbles are only partially deflated. Life goes on in a new muddled way as new and larger bubbles are created. Politicians stop panicking and get re-elected and a new bigger set of bubbles prepare themselves for collapse a few years later, say, 2015 or 2020. This is similar to the scenario post the dotcom and 9/11 crashes in 2000-2001 and the muddle through which occurred until 2007 on the back of extremely low interest rates, credit card, car and housing loans and the other eight bubbles. There is, however, one caveat. Countries without reserve currencies — of which there are really only two — and in particular those with with large financial sectors given the base of their GDP, can practically prime the pump only in a very limited way and in doing so risk moving from a banking crisis via a currency crisis on to sovereign default. That would mean expectations from fiscal stimulus are far too high, and not all countries would be able to muddle through.

Conclusions

Whilst the fear is that we may be heading for Scenario 1 and the way to avoid it is via a benign form of Scenario 2 coupled with Scenario 4, it may be important to ask, what if, Scenario 2 has already happened and the Weimar Republic’s printing of money is manifest in this broadband internet and high performance computing age, via the complex securities and instruments that private financial institutions created and sold between 1995 and 2007. This has been manifest via the invisible Quadrillion dollar derivatives equation and the associated hundred trillion dollar plus debt securitisation pyramid. Banks and brokers were, in effect, printing their own proprietary issues of "money" via complex securities and as a result their supply of money grew to exceed by at least one order of magnitude the money printed by central banks. Central banks failed to recognise this phenomenon and continued to focus on monetary growth and money velocity utilising old metrics rather than acknowledging the wider spectrum of public (central bank / government) and private money taken together. How could the central banks possibly fail to recognise this new phenomenon while securitisation and derivatives, the tools of liquidity creation, were a central obsession of the financial industry? In fact, the central banks played along, humming the mantras of privatisation and deregulation.

These quadrillion dollar worth private currencies — paper assets — have fuelled the globalisation process, massive and unprecedented world GDP growth, mergers and acquisitions, and large scale industrial / infrastructure projects, until natural boundary conditions kicked in, ie, the earth ran out of raw materials and natural resources in sufficient quantities. Scenario 1 started as commodity prices — food, fuel and raw materials — went into hyper drive to trigger the catastrophic demand collapse we are now witnessing. Now what we may be heading towards is in fact Scenarios 3 or 4, which are post the Weimar Republic’s hyperinflation manifest in most assets’ pricing and Scenario 1, which is yet to play its full course. In a nutshell, "1923" already happened up until "2007", "1929" happened in 2008, and the 1930s equivalent is now unfolding. Given that the Great Unwind is happening near the speed of light because of the internet, mobile and satellite communications, as well as high performance computing, it is possible to move to Scenarios 3 or 4 and out of Scenario 1, much faster than was practicable before World War II.

In parallel, the central bankers would like us to believe that they have been and are still in charge because they can print fiat currency at will and set monetary policy at near zero rates if they like. This is governance by magic. What if they can no longer exercise sufficient control and have become co-dependent on the parallel printers of money — manifest as paper assets — which happen to be the private financial institutions? What if the central bankers and regulatory authorities are encumbered by what the private financial institutions have done during 1995 and 2007, during which time the policing of the global financial system was inadequate and cross-border arbitrage opportunities exploded? This may mean that we are still living within a myth that central bankers can resolve the mess in the real economy and actually they can’t because the paper fuelling the real economy was not issued by them and large quantities of it resides off-balance sheet in a non-transparent way. Yet, the central banks have to mop up the ongoing toxic liabilities and black holes, which may or may not be possible ad infinitum given the unprecedented scale of this challenge. The quantum of asset price deflation underway post the collapse of the Weimar Republic type Quadrillion dollar paper asset bubble is so large that all the kings horses and all the kings men may not be able to put Humpty Dumpty together again. The power of central bankers may have been permanently eroded given that the centre of gravity has now shifted. It lies with the financial markets and their participators who transact the deflating quadrillion dollar plus paper asset equation of which fiat currency is a much smaller quantum.

Which scenarios do you think we are heading towards and in what sequence?

We welcome your thoughts, observations and views. Thank you.
With love and warm wishes to you and family

DK with family

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