Are you in control?

“They used to call me valued customer, now they are sending me hate mail.”

 

Becky Bloomwood Confessions of a Shopaholic

Every year, 1½ million Americans file for bankruptcy.

Imagine a widow with infant triplets who renews her health insurance policy the minute her old policy expires. She can’t get an internet connection, and she doesn’t want to risk being uninsured, so she gets up from the chair, only to trip over the power cord and fall headfirst onto a hardwood floor. She breaks 8 teeth and dislodges her lower vertebrae, requiring tens of thousands of dollars of dental work, surgery and rehab. She works as a model, so now she can’t draw a paycheck for the year. Two years ago, her husband died when he happened to be driving along a faultline as an 8.0 earthquake hit, so his life insurance didn’t pay out because it was an Act of God. The triplets’ grandparents all live in the Czech Republic, and the woman lives on a ranch in southern Oregon, miles from any neighbor who could help her get back on her feet. So she declares bankruptcy.

How many of last year’s bankruptcy claimants have similar stories, and how many bought too much junk on credit and never bothered to budget?

This might not sound kind, but most people in bad financial straits are there because they chose to be. Not in the sense that they said “I can’t wait to be broke,” but in that when they were buying cars with 8.9% financing and spending $100 a week on cigarettes, they didn’t think about where it would inevitably lead.

No one wants to die in a car accident, but if you drive through enough stop signs while talking on the phone, you can’t be surprised if it happens. (Of course you can’t be surprised, the part of your brain that senses surprise[1] is now on the asphalt next to your cerebrum and your hippocampus.)

Personal responsibility is neither quaint nor outmoded. When enough people fail to exercise it, it leads to macroeconomic calamity. Of all the financial disasters of the last few years – the subprime mortgage crisis, the monster budget deficit, the stock market losing half its value, centuries-old investment banks going out of business – every last one happened because people who could have taken responsibility for their money chose to do something else instead.

 

“People tell you life is short. Life is long. Especially if you make the wrong decisions.”

-Chris Rock

Come check out Control Your Cash for one reason: your relationship with money is almost certainly dysfunctional. You don’t know what you don’t know, probably because nobody ever taught you.

Join, read, comment, share ideas. You can stop letting money act on you – and actually take charge of it.


[1] The amygdala, if you care.

 

Ty Pennington’s petting zoo

The moment you step through the gate of The Grand Canyon Deer Farm you’re inundated by does and their fawns hoping for a treat. When they realize you didn’t pay $5 for a souvenir cup containing 2¢ worth of corn, they turn away and have nothing more to do with you.

However, you can snicker when the deer greet the next suckers visitors who show up holding corn.

At Old McDonald’s Petting Farm just outside of Mount Rushmore, the goats congregate around the machine that dispenses feed and look at you with hungry, soulful eyes. Even the pot-bellied pigs rouse from their midday naps, lumbering over to the food chute on the chance that an altruistic tourist might be packing apples.

To see a stark example of the major difference between captive animals and wild ones, drive a few dozen miles west to Wyoming. Offer some grain to a wild pronghorn. Not only will it reject your gift, it’ll turn tail and show you why it’s the fastest mammal in the Americas.

Captive animals equate people with food. They forget to instinctively forage for food and fear predators, making it impossible for them to survive in the wild for very long.

The same thing goes for humans. Like Sharon Jasper of New Orleans, who complained that the taxpayer-funded Section 8 apartment she moved into after Hurricane Katrina is a “slum.” Instead of thanking those taxpayers for saving her from sleeping in the park, she complains that she still has to pay her utilities and security deposit.

Jasper’s newly renovated apartment features wood floors. And that big TV must cost as much as a year of utility bills.

How about the Harper family from Georgia? They were chosen from thousands of applicants to appear on the ABC show Extreme Makeover: Home Edition. They received a new $450,000 home (their old house was razed) – plus a scholarship fund for their kids and a home maintenance fund, totaling $250,000. They also got an all-expenses-paid week in Disneyland while other people built their house.

Now they’re getting a foreclosure notice from the bank that gave them a $450,000 line of credit without asking them what they were going to use the money for or how they planned to repay it. Darn that ABC, why didn’t they tell us we’d have to pay back any money we might borrow?*

Evelyn Adams won the New Jersey lottery in consecutive years and managed to squander $5.4 million. She donated much of the money to slot machines in Atlantic City, and actually said “I wish I had the chance to do it all over again.”

Apparently her financial strategy is to win the lottery a third time.

These are the deer (or goats, or pigs) we create when we give people what we think they need instead of expecting them to work for what they want.

People are not forged by their circumstances so much as they are by their choices. If circumstances dictates destiny, there would never be a Sheldon Adelson, J.K. Rowling, Chris Gardner nor Oprah Winfrey, all of whom rose from modest beginnings. And all of whom chose to change their circumstances and accept the sacrifices that go along with that choice.

Self-sufficient people don’t have the luxury of being victims. They take responsibility for their actions, choices and life – and get freedom in return.

*ABC did arrange for the Harpers to meet with a financial planner.

Fight or flight

When adversity knocks, do you answer or hide under the covers?

The passengers on United Flight 93 took a stand.

Some people trapped atop the World Trade Center on 9/11 flung themselves to the ground rather than wait to be incinerated.

 

“… maybe he didn’t jump from the window as a betrayal of love or because he lost hope. Maybe he jumped to fulfill the terms of a miracle. Maybe he jumped to come home to his family. Maybe he didn’t jump at all, because no one can jump into the arms of God.

Oh, no. You have to fall.”

Tom Junod, The Falling Man – 9/03 issue of Esquire Magazine

Reblog this post [with Zemanta]When your turn comes what will you choose?

Make your choice

An American creed:

By Dean Alfange

I do not choose to be a common man.
It is my right to be uncommon.
I seek to develop whatever talents God gave me — not security.
I do not wish to be a kept citizen, humbled and dulled by having the state look after me.
I want to take the calculated risk; to dream and to build, to fail and to succeed.
I refuse to barter incentive for a dole.
I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia.
I will not trade freedom for beneficence nor my dignity for a handout.
I will never cower before any earthly master nor bend to any threat.
It is my heritage to stand erect, proud and unafraid; to think and act myself, enjoy the benefit of my creations and to face the world boldly and say — ‘This, with God’s help, I have done.
All this is what it means to be an American.”

Originally published in This Week Magazine. Later reprinted in The Reader’s Digest, October 1952, p. 10, and January 1954, p. 122, lacking these words: “I will never cower before any master nor bend to any threat” and “to stand erect, proud and unafraid.”

The Honorable Dean Alfange was an American statesman born December 2, 1899, in Constantinople (now Istanbul). He was raised in upstate New York. He served in the U.S. Army during World War I and attended Hamilton College, graduating in the class of 1922. He attended Colombia University where he received his law degree and opened a practice in Manhattan.  In 1942 Alfange was the American Labor Party candidate for governor of New York and a founder of the Liberal Party of New York. Dean Alfange was also Professor Emeritus at UMass Amherst and a leading figure in various pro-Zionist organizations (between other actions, in November 1943, he appeared before the House of Representatives and addressed them on the rescue of the Jewish people of Europe). He died in Manhattan at the age of 91 on October 27, 1989.

A soldier’s death

Stephen Fortunato was killed by a roadside bomb in Afghanistan Monday.

He left us his view (warning profanity-he is a soldier after all) on the war and America:

“I am doing my part in fighting a very real enemy of the United States, i.e. Taliban, Al Qaida, and various other radical sects of Islam that have declared war on our way of life. Unless you believe the events of 9/11 were the result of a government conspiracy, which by the way would make you a MORON, there is no reasonable argument you can make against there being a true and dangerous threat that needs to be dealt with. i don’t care if there are corporations leaching off the war effort to make money, and i dont care if you don’t think our freedom within America’s borders is actually at stake. i just want to kill those who would harm my family and friends. it is that simple. Even if this is just a war for profit or to assert America’s power, so what? Someone has to be on top and I want it to be us. There’s nothing wrong with wishing prosperity for your side.”