The first and arguably most important step of the plan I follow is to make certain you have a very solid reason for playing along. While true for so many things in life, when it comes to financial planning, this is major item. Think about it, unless your bills are on auto-pay, you see them only a few times a month. If they're on auto-pay you might not even look at them unless something seems off. Most people have direct deposit of their pay, and thus don't see the pay check each pay period, so unless there is a serious and persistent reason, it's easy to loose sight of the target.Keeping focus for your efforts is a requirement, but at the same time can be a struggle for many. After all we're all busy people, and even if we're in between jobs right now, it's not like we're sitting around micromanaging our finances. So the question becomes how to keep focus, while at the same time living our lives.
Personally I'm getting tired of all the negative press about the economy these days, and I'm going to find a solution that works. I mean seriously, how many more people are going to be found out for just not getting it? First there is the insane amount of money being spent to bail-out banks and institutions who are "too big to fail". Then there are the Bernie Madoff and Tom Daschle scandals to contend with. From just these simple examples, it's clear that there is a distinct difference between "them" and regular people like you and me. Unfortunately for us, their shenanigans have a serious impact on our daily lives. This isn't a simple case of providing a risky mortgage to people who didn't have the financial reserves to deal with the obligation long term. It's rather a complete lack of perspective on what average Americans face day in and day out. What's worse is that even after the market collapse, they still don't really get it, and I personally don't see that changing any time soon. Consider that the bail-out money isn't really accounted for, that auto makers are trying to feed at the federal bailout trough, and we are getting close to our next stimulus package, but I'm pretty certain no-one is really trying to figure out how to help regular people like you and I. Sure they claim that by spending on infrastructure and sending out stimulus checks the world will be better, but think about it; did you spend your stimulus check last year, or use it pay down credit cards? The only solution I hear anyone proposing is that we need to get people spending again. Democrats think that government can spend their way out of the problem, and Republicans think that giving checks to people will cause them to spend their way out. The problem with both these solutions is an assumption that if you give people money they will then spend it. The bail out plan of 2008 has already shown us that if you give money to large corporations, they will indeed spend it, just not on things which will help keep people working. The stimulus checks of 2008 have also shown that if you give money to struggling people, they either spend it on staple products, apply it to their savings as a buffer from future problems, or use it to pay down existing debt. Spending money is exactly what is required, but given the current financial climate, most people are now too scared to spend; which brings me back to my opening statement. Consumers have to have confidence that their personal situation is stable enough before they're going to spend any significant amount of money. As an example, at my day job we just had a round of layoffs last week. We lost some really good people, and its going to be tough on them to find replacement jobs in this climate. I personally was looking to replace my five year old car, but am now going to keep it until I can be reasonably certain that I could find a new job should the need arise. I seriously doubt that I'm alone in this sentiment, and that's the problem. Part of the solution thus needs to be a focus on the positive by our news outlets. Lead with the good news, not the bad. I'm not stupid. I know that anything which is decided in government is going to have waste and warts. Tell me how its going to help matters not what the flaws are. Are we going to be in deeper debt as a country -- hell yes. Is any plan going to solve the problem today, tomorrow, next week or next month -- hell no. Are there solutions for the country -- again hell yes. Are there solutions for main street American -- again a resounding hell yes.Here's my good news for today. My personal financial situation is pretty solid right now because of a plan I've been following for almost 15 years. When the market collapsed I decided that I would encapsulate that knowledge into a piece of software and share it with anyone who wanted it. I'm not a financial counselor by any stretch, but this plan has worked for me, and I can see no reasons why it won't for you. There is no rocket science involved, but the math can be a bit much; hence the software package. This is not a quick fix "solution". I strongly believe that anything which is promising dramatic results or a "quick fix" should be avoided like the plague. I'm calling the software The Ultimate Debt Manager, and it's not yet "done". It is however "done enough" for people to start using. Given the "Ultimate" title, you can guess that I've big plans for it, but only you can be the judge of its success. In this blog I will present both the plan itself, cover various topics relating using the software, and occasionally rant about the state of the economy and those attempting to "fix it good". If you've read this far, I encourage you to obtain The Ultimate Debt Manager and let me know what you think of it.Today's rant brought to you by the number 6 and the letter K. Have a good one folks.
