Stupid tips...

"Tips to get out of debt" ... Okay, so the election is over. So what should the news shows beat on now? Oh, yea... the economy and how we are all going to die in the streets, homeless. AGAIN, Matt Lauer is asking the so-called Financial Expert what we should all do to survive. She says AGAIN, call your credit card people and ask them for a cheaper interest rate, get a second job, buy generic food in bulk, shop at K-Mart instead of department stores, etc., etc., etc. STOP it already. We've heard it a million times!! Guess what, People! I'm not in debt! And neither are millions of Americans that were smart enough to only buy something when they had the money to buy it... and DIDN'T buy something if they couldn't afford it, or found themselves trying to convince themselves that they could! Oh, sure, I have a car payment. And I do have 2 department store credit cards... one with a $54 balance, and one with an $82 balance. Both of those will be paid off by tomorrow afternoon when I get on line and pay them off.... before the month that I bought them in is over.

I don't own my house. I rent. Why? For a couple reasons... first and foremost, because when we looked into it, the payment for a $100,000 house (which is smaller and crappier than my rental) was going to be around (house pmt, plus taxes, plus insurance, plus fees, plus whatever else the mortgage people and the government throw in) $1000 a month. That kind of payment would cut into my budget, and force me to cut back on other daily expenses. Can't afford it? Kinda. Moreover...don't want to HAVE to. So we didn't buy. Pretty much a no-brainer. I don't give a damn what society says is the "right thing to do" or what the "American Dream" is. If I'm paying $500 a month for rent, why should I pay $1000 for a smaller house? Equity? Where? Did you ever look at your house payment vs. what you are really paying? First $1000 payment... $50 goes to principle and the rest goes to interest. It's going to be YEARS before you see any equity.

Bonus #1... that other $500 a month that I could be giving to the bank... goes to my general savings account and retirement savings . I am saving it NOW... not hoping to sell my house for more later.
Bonus #2 ... I can use that money in general savings for Christmas, weekend getaways, annual vacations with the family... without charging a thing to a credit card!! Wow! I give myself money at 0%! Imagine that. And if I don't think I can afford an extravagant Christmas gift-giving season, or a weekend getaway, or a vacation with the family... I don't do it. Duh! Bottom line... if I can't afford it, I don't buy it! My friends and family have never staged a coup for not buying them extravagant gifts or for not taking them on vacation one summer.

My kids' father (my ex) recently built a huge house in a all-the-houses-look-the-same neighborhood. They have two large vehicles, and 6 kids between them. He and his wife both work to pay for it all. His job, I suspect, pays well... very well. She quit her job for a very short time when their baby was born (he's 2 now). But then... she had to go back to work... to help pay for all that stuff. They couldn't afford for her to NOT work. Hmmmm... People make their own choices for their own lifestyles, I guess. Fortunately, my ex has given me a teaching opportunity for my kids. I tell my oldest... you see both sides... A life like your father's... live in a big house and have nice stuff that comes along with huge debt (and unending monthly bills...) but really nice stuff, nonetheless. Or, a life like your mother's... live in humble accommodations and have suitable stuff which comes along with no huge debt and no monthly stress... albeit our friends are not the least bit jealous of us and we certainly aren't impressing the neighbors. My son's life will be his own in less than a year. He will choose his path. I'm glad he gets to see examples of both financial routes.

I was watching the morons on the Suze Orman show that call in for tips. They are OUT OF CONTROL and I don't feel a bit sorry for them!!! These people call Suzy and say, "Suzy, I have a $3000 monthly mortgage payment. I have a VISA with at $15,000 balance, another VISA with a $25,000 balance, and three store credit cards with $2500 on each one. I am making the minimum payments on all of them, but I don't seem to be getting anywhere. Oh, and I make $5000 a month. What should I do?" DUH!!! If you couldn't afford to pay for it, you shouldn't have bought it!

Scenario... You want a 46" LCD HDTV. Cost - $1000. You don't have the money right now, but you could pay it off in 120 days! So, duh, save the money for 120 days and buy it then. But then you find yourself saying to yourself, "But I want it NOW!". You know what! You sound like Baruka on Willy Wonka, you dope! In 120 days you will either #1 - Have a new TV, bought and paid for without payments or interest. or #2 - Change your mind about the TV because you find you really didn't want it that bad anyway. And that, my friends is...

Bonus #3 - I have found by saving to pay for something I wanted... I didn't buy it. Didn't want it that bad anymore. In fact. This example I just wrote about... it happened to me. Now I still have $1000 in savings, and I suspect there will be a good sale on HDTVs this Christmas shopping season. I may buy then... and save even more money.

Bottom line... I am sick of how-to-get-control-of-your-debt tips. Why are news shows trying to help people who "found" themselves in deep debt? They didn't just "find" themselves there one day... they dug that hole themselves through greed and the need to impress others. Too bad. Now, let's see more information on where the rest of us should go on vacation... because we can afford it... because we are smart, and because we are going to pay in cash. And we get back home we will have no debt to stress out over... A true stress-free vacation!