To pay or to get paid, this is the question.
Which banks are you working for? A stunning statistic shows the nation’s biggest banks own 63% (up from 17% in 1995) of America’s GDP (Gross Domestic Product): http://finance.yahoo.com/news/Financial-Debate-Renews-nytimes-391084522.html?x=0. If you’re like me, you’ve spent a countless number of months, years or decades paying banks like Chase (corporate headquarters photo below) and Bank of America. So, where do decades of payments lead you? Is there an end in sight or is it acceptable that pay day means banks get paid and borrowers will endlessly pay?
A recent story in the Sunday edition of the New York Times discusses the nearly 30 year long financial fog (which, we’ve become very accustomed to) of cheap credit, low savings and a historically high dependence on banks. As Wall Street recovers from the most economically shocking financial crisis since The Great Depression, it’s safe to say the days of record low interest rates, easy underwriting and care free personal finance on Main Street are coming to an end.
Restoring a less stressful quality of life and more efficient ways of doing business mean having a trusting relationship with the local bank around the corner from home versus financing a home online or through the mail; it means the concept of save and own instead of charge and be owned provides a sense of clear financial control with the confidence that was missing as millions of home buyers made the shakiest of choices for the biggest financial decisions of a lifetime. Decades of working and paying isn’t worth it because you are worth it.
Test your money management IQ with the quick exercise at the bottom of this post.
Here’s the New York Times article discussing our recent history of higher personal debt and minimal savings: http://www.nytimes.com/2010/04/11/business/economy/11rates.html?scp=10&sq=sunday%20april%2011%202010&st=cse
Below are the top 5 causes of bankruptcy according to investopedia.com, list each cause in order from most common to the least common cause of bankruptcy (without searching the net for answers)
A. Divorce/Separation
B. Unexpected Expenses
C. Poor/Excessive Use of Credit
D. Job Loss
E. Medical Expenses
Answers: #1: E #2: D #3: C #4: A #5: B
DW
