Tuesday, September 15, 2009


The inventor of the dollar had a great idea. I can exchange the value of my labour for goods. This was good because I worked, earned a dollar, and then saved it so I could buy the goods.

Over the past decades we have tried an easier way. When I want goods I use credit to get those goods and end up with debt. We have worked that game to the point where I can now owe more than I own. My debt is over 100%, which we will likely pass on to our children.

How did we get there? The insurance companies learned that when they get people paying they can keep as much as they dish out. Then, the furniture and car companies learned that with credit they can make more money on money than on goods. In the process, we end up paying double for all that we buy. That is why credit is dumb. That is why savings is smart.

There are things worse than having no money. When we chase it full bore we lose sight of why we are doing it - our values and behaviour get messed up. Family life is more hectic and frustrating than an airport. We have lost sight of what’s important in our lives. We are raising our kids in some money fantasy world.

Our money-driven fantasy world is weird. When we can’t stand the pressures we do drugs, alcohol and all the other diversions. To get money we gamble and lose the money we didn’t have anyway. We can destroy our way of life.

Nations have the same problem. The big money managers have the credit virus big time. On the brink of disaster they convince our governments to lend them our money to bail them out so they can turn around and lend us our money at high interest rates. All these big guys think they can solve the credit crunch by borrowing more money than we knew existed, if it does.

In the meantime, families have a pile of credit card, car loan and mortgage debt deeper than we know how to shed. The big guys get rid of debt by cancelling their obligations - leaving savers who loaned, empty handed.
We can only do this with personal bankruptcy which takes us into a new lean world. We need a better family money solution than those coming from the big guys. That solution is not asking the big guys for even more of our money from the government so that we can supposedly borrow our way out of our debt.

Let’s hear from you on this latest FAMILY CHALLENGE.

Wednesday, September 02, 2009


Joe has lived under two different money worlds. In the one, the big idea is that the big money guys provide capital that results in jobs, incomes to pay for goods and services. In the other, the big idea is for government to make rules so that the sharing of wealth is somewhat fair and matches needs.

Neither idea is bad in itself. What is very bad for Joe is that we now have an ungodly mix of both.

The capitalists found they could make lots of money by offering Joe endless credit. Unfortunately Joe went for it - credit cards, lines of credit, loans, mortgages, etc. His debt load now nearly equals his net worth.

The socialists set up tax systems that require hosts of bureaucrats to make the rules and see that Joe pays all his local, state and federal taxes. The systems are like cancer. They spread on their own and are hard to get rid of. This happens mainly because bureaucrats like jobs that are secure, pay well with all the benefits.

So, poor Joe is under a mountain of debt and taxes. Business and governments now have Joe where they want him. It is not in their interests to help him.

So what does Joe do? First he needs to pull back on borrowing and start saving. He needs to take back control of his family finances. This is going to be tough but not as tough as the corner he is now in.

The switch from credit to savings will certainly mean down grading of his major assets - home and cars. Saving goes into the budget list of essentials. He will only put his money where he is sure it is safe. He will no longer trust experts and their free advice.

Some families have already been doing all this. They are in control of their finances. They have savings for kids’ college, retirement and accidents. They are living well because they are not controlled by the big, greedy systems that take their money.

For more please see: www.familycybermall.org

Do you know someone like Joe and this FAMILY CHALLENGE?