For years, I’ve been writing about the failure of our educational system to teach financial literacy. Why has no one has mentioned the possibility that today’s financial crisis might have been averted if basic money management had been part of our school curriculums? Anyone with minimal financial literacy should have been able to see the problem coming. It doesn’t take an economist to understand that you can’t live forever on borrowed money. This is especially true when a significant portion of the borrowers aren’t credit worthy.Read More..>>
Don’t equate real estate asking prices with selling prices, especially in a down market like the one we are currently experiencing. Smart sellers will always ask for more than they expect to get in order to give themselves room to negotiate. In all markets there is a difference between average asking prices and average selling prices. This difference can vary widely depending on market conditions.Read More..>>
This is a tough article to write. In this space I try to discuss scenarios to which most working people can relate and then give a tip on how to deal with them. This month isn’t a simple matter of giving a tip on budgeting, saving, credit, investing or some other money management technique. It’s about trying to explain in layman’s language a huge problem that threatens our economic well being as a nation. We enjoy a standard of living in America that is the envy of the world, but it’s one which has been built on debt and that doesn’t seem to concern most people. I wish I could blame it all on our public educational system which is failing miserably to teach consumer mathematics, but parents are as much to blame as educators.
As a pilot who flies a turbine engine airplane, I am required to attend annual recurrent flight training at an approved flight training center. This year I received my updates at the SimCom Training Center in Orlando, Florida. This is a three day session in which the airplane’s normal and emergency systems are reviewed in a classroom. Then piloting skills are put to the test in a simulator where in addition to testing normal instrument flying skills, the instructor throws every type of emergency imaginable at you to see if you can handle it. (I passed!)
For several years, Mike has been filling this space with article after article about saving, investing, budgeting, getting out of debt plus other money management ideas. Those who have read and followed the tips he has offered are probably breathing a sigh of relief right now as we continue to struggle with this economic slowdown and tightening credit. The real estate bubble burst with Earth shattering consequences and those who were speculating are suffering the consequences. Whatever your situation, the big question is, “What do I do now?”Read More..>>
Pick up a newspaper or turn on the television; you will be bombarded with stories of doom and gloom blamed on the crisis in the real estate market. Can’t anyone see the real problem? The collapse of the real estate market may be contributing to high oil prices, bank failures, the sagging economy, job losses and other economic problems, but the reason for the downfall is simply greed. Speculators, relying on the Greater Fool Theory bid real estate prices up to unrealistic levels and left the last ones holding the properties facing huge losses.
Earl Nightingale once wrote, “If honesty did not exist, it would have to be invented, as it is the surest way of getting rich.” I agree with this because every truly successful person I’ve ever met had a very high level of personal integrity. Sure, I’ve met people who have made a lot of money using standards that were less than perfect, some even unethical, but ultimately these individuals always fell from grace.
An example of what I’m talking about occurred while I was still in the outdoor advertising business. I had a young man working for me as an account executive who was a real go-getter and a top producer, but an incident occurred that caused me to question his integrity and keep a close watch on his activities.Read More..>>
Everyone would like to be in a position where they didn’t have to worry about money. That’s called financial independence! The problem is, there are a large number of predictable obstacles that stand between youngsters entering the workplace and oldsters leaving it with the security of knowing they have provided for the rest of their lives and won’t have to struggle in retirement. Most of these obstacles fall into four categories: Transportation, Children, Retirement and Silent Killers.
Pick up a newspaper or turn on the television news and you won’t be able to avoid stories about the sagging economy; homes being foreclosed, gas prices hitting record highs, savings at all time lows and mounting personal and governmental debts. During times like these people with cash reserves survive and often thrive while those without reserves get in serious financial troubles. When the economy is booming and everyone is making money, it’s easy to get lured into believing it will continue forever. That has happened to many people.Read More..>>
Successful real estate investors know that the two things most likely to produce favorable responses to wholesale offers are cash and your ability to close quickly. To be able to use these advantages, you’ll need to develop a good support team consisting of Realtors, appraisers, attorneys, insurance agents, and property managers, but there’s no relationship you can develop that’s more important than good banking relations.Read More..>>