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Managing Your Money - They Don't Teach this in School (But They Should)

kcstack@charter.

By Carol Stack Category: 0

Submit your Articles Here!

kcstack@charter.net.


Best regards

Carol Stack
http://www.christysdogportal.com

Managing Your Money - They Don't Teach this in School (But They Should)
The education bureaucracy has really done us a disservice
by failing to teach students two important things:
economics and how to handle money. Most parents can't teach
their children how to handle money because they were not
taught themselves. This is a vicious cycle, and it needs
to stop. Someone, either the schools or the parents, need
to teach children how to stay out of debt and how to handle
their money. They also need to teach children about
economics.

Without a good understanding of economics people will
believe whatever the government or the media tell them
about why taxes need to be raised, or why we need to impose
unfair tariffs, and so on. No matter what you think about
Reagan as a president, he was right about his economic
policy: let people keep more of their money and tax revenue
will actually increase.

If you were old enough in 1980 to remember what was
happening, you might remember how the United States was in
a terrible period of high inflation (interest to buy a
house was in the double digits), low morale, and a weak
economy. Remember the term "malaise?" The whole country was
described as being in a malaise.

Then Reagan became president and lowered taxes, encouraged
us to work hard and invest in IRAs that earned 10% tax free
interest, and told us to be proud to be Americans. It
worked.

The country turned around so dramatically that Reagan won
the 1984 election in a landslide. Even the media couldn't
deter people from voting for Reagan. He won 49 states,
losing only in Minnesota, which was his opponent's home
state.

What does this have to do with money management and
economics? For one, it showed how lowering taxes really
does increase tax revenue. It showed how if the government
lets Americans keep more of their hard-earned money they
will invest it wisely and create wealth.

Americans took their money and invested in businesses. That
in turn created more jobs for the low and middle classes.
During the 80s people increased their giving to charity,
which helped the poor.

So what does this history lesson teach us about handling
money? It teaches us that lowering taxes is always a good
thing. It teaches us that living within our means is
necessary to keep out of debt. And it teaches us that it is
good to be generous and help others.

Today we have grown accustomed to paying for everything
with credit. We buy our cars, our vacations, and our toys
on credit. We even pay for our education on credit. Then
each month when the bills come due we struggle to pay the
minimum amounts due.

It's not easy to get out from under a lot of debt, but it
is possible. It requires a lot of discipline. It might
require selling the new sports car or the new 4x4 to get an
older vehicle. It might even require selling the house with
the super-big mortgage and buying a smaller home that you
can better afford.

Selling your home might not be such a bad idea. Sell the
home that takes up so much of your income and buy a duplex
or fourplex. You live in one of the units and rent out the
others. That way other people are paying your mortgage.

In closing, keep this in mind: If the minimum payment on
your credit card debt requires more than 15% of your
income, it is out of control. Take care of the problem now
before it gets any worse. If you need to, shop around for a
good, trustworthy and knowledgeable financial counselor and
get help to reduce your debt.

One more thing, don't let this problem destroy your
marriage. This is a temporary set back and there is no need
to blame the other person. Work together and start digging
your way out of debt.

If you can stick with it and succeed you will be stronger
and wiser for having lived through it. Then you can teach
your children how to keep from making the same mistakes.


----------------------------------------------------
Carol Stack has done extensive studies on debt relief and
financial planning. She has a web site especially for
people who want to get out of debt. You can visit it at
http://www.debt-relief-right-now.com and learn how to
manage your money and get out of debt.


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