I am giving up, and I predict...

People in the U.S. just don't seem to be getting angry enough to come together in order to demand the changes necessary in the financial industries in order to make sure this sort of thing does not happen again.

Right now I am seeing two classes of people: Those that know and understand what is going on are hoping to again make lots of money as long as there aren't any new regulations to stop them from ripping us all off. The other class of people are just too stupid, disinterested and complacent that they would never get their collective behinds off the couch to do much of anything or take the time to learn how money works or prevent the rich from continually ripping them off. Sorry if it offends, but what the hell are you doing about this mess? Complaining to me about this post? That's not getting anything done.

This country, I fear, is going to continue the way it has, with the rich getting richer on the backs of those below them. The poor will become a class of slaves. Maybe, if this country is lucky, it will see a civil war resulting in a revised constitution providing rights to all the people who have not had many rights before ending in a new style of government, with less division this one currently has.

I don't make myself out to be a prognosticator, but I did tell people about the collapse of banks and the economy. It happened, although a little sooner than I thought. I now make another prediction, we have not seen the end of this financial disaster. We are in the eye of the storm and next year will see things at least twice as bad as they are now. This country, if it does nothing to prepare itself, will fail and will no longer exist after 2012, at least not as it does now. The dust bowl Depression Era was only a preparation to what is coming. People forgot to listen or take the lessons to heart.

What to do?

Yesterday I was mad, mad at the rich looking out only for themselves when more than half of all people in the U.S. slave for a wage that doesn't afford them even the basics in health care, even a single vacation in their lifetime or much of anything for that matter.

I still say, we need a revolution in this country, a revolution that turns everything upside down, bringing more balance to a system filled with greed, special interests of the rich, corporate welfare and a tax system that unfairly taxes people. This country needs a serious overhaul, from our government, banking system, lending and corporate governance.

We need a private, people run, non-profit oriented spy system that spies on the spies and reveals the dirt on all that goes on. Everything that influences us as ordinary people, the marketing techniques, rules that keep the rich, well, rich, fraud, Madoff-Ponsi schemes, all the way to what are our leaders are doing behind our backs and all those back room deals. A group of people who work together to expose corruption and more to then take action, legally and sometimes if the law protects these scoundrels, illegally. A group of people who, if any one is questioned, can't reveal anything because they are only one in a much larger network, an underground. This network should be made up of hackers, software people, secretaries, barbers, anyone really, people that can listen at the boardroom keyhole and share what is going on. Ordinary people spying on decision makers making sure they always have the peoples best interest at heart and not their own. A group of hero's made up of ordinary people.

Scams, ripsoffs, being held at gun point

The AIG news is some of the worst greed I've heard recently. They just can't stop ripping off the tax payer any worse. The greed of the rich is so bad I am ready to jump on the bandwagon of 'Kill The Rich.' I do make comments like, beat that sucker or they deserve a good lashing, but I have never gone so far as to advocate the extermination of anyone. But the rich have gone too far.

Millions of people are out of work and these people demand a bailout to make sure they stay rich, not to make sure their company stays in business or employees keep their jobs. Even thought they have contracts they should have done the right thing, give up their bonuses until the company is out of hawk and making money again. Contract or no contract - do the right thing people!

For the last two and half decades executives have laid people off to increase profits, ensure bonuses and benefit packages so big more than 90% of us will never see, seeming to only exist in fantasy. During that same period of time the middle class and poor have seen a reduction in vacation time, sick days, personal days - if they still exist at all, reduction or elimination or health benefits and the same for pension funds.

All of this is not because companies don't have money, it has just shifted upwards to fewer and fewer people. That's right, the rich have made themselves richer not by hard work but by ripping us all off, running the biggest scam in the world, they deserve it. Well I for one am tired and I'm making the call to arms.

There must be a list of executives somewhere and they should be posted just like the most wanted criminals, which they are. These people deserve to have bricks thrown through their windows, tires slashed, spat upon in copious amounts, heckled, booed, pee thrown on their expensive cloths, poop too, also rotten tomatoes, tripped so they fall into the gutter, tossed down a man hole into the sewers, and chased by mobs of people out of the country, preferably make them swim to some other place than this country. If they drown, all the better.

I for one can not stand the greed of the rich any longer. Let us dust off the guillotines and start taking heads, just like the French. See how they turned out, they're doing better we are. They are more productive than us and after the French did away with their rich nobility they prospered, people have more rights, make more money than we do, everyone has health coverage, month or more vacation time and full retirement benefits and more. So I am calling for an old fashioned uprising and while we're at killing the rich, lets do away with the IRS too. It's only a private corporation that has no place in our system any longer.

Who is repsonsible?

There are so many things going on in the financial world that it can seem overwhelming. So who's is responsible to make sure it all works the way it should?

That really depends on who you ask. You might be told its the regulators. Congress. The industry itself is suppose to behave responsibly. But ultimately, it is your responsibility. That is right, you are the one who needs to take full responsibility for what happens. But, but.... But you don't know enough. But you are no one and no one cares what you have to say. That's your fault too.

By not knowing how things work, how do you know they are working in your best interest? You don't!

By handing off responsibility to someone else you are literally opening yourself up to fraud, theft and being taken advantage of. When you are not informed and make sure who you hand your money to is being accountable for it, then you are at fault for its loss and this current financial mess.

You may not enjoy hearing this, but it is absolutely, 100% true. So, you just going to continue ignoring your responsibility or are you finally going to wake up and take responsibility?

The news about the state of the economy

People need to stop listening to the news, or at least realize, its all hype. Most of what I hear on the news anymore is pure garbage:
--we're going to come out of this within 6 to 12 months - yeah, right, let try years from now
--things are still not as bad as during the Great Depression - sure, then why keep comparing things to it - right now there are just as many people unemployed as during the Great Depression (don't look at percentages, look at real numbers)
--just keep shopping, things will get better - they just want your money and could care less if you are poor, broke or a debt slave

Grow up people! Here is what I think:
--the news should be forced to either say, 'we don't know' or tell the truth, whichever the case may be
--people that run banks should all be flogged and then slapped with harsher rules and regulations, after all, they've committed fraud for far too long
--people like Madoff and his wife should be treated like the scum they are, everything they own should be taken from them and they should be forced into harsh labor to pay everyone back
--whoever creates bad loans should be forced to hang onto them and not through lies pretend they are good investments and sell them off (in part that's what caused this economic mess and had a rippling effect all over the world)
--all top executives in every corporation should take a deep pay cut, either pay into universal health care to cover their employees, give them more time off and pay bonuses based on how well the company does, after all they created the profit, not the executives

I could rant on, but what use is it, no one cares. That's the real problem isn't it. No one cares. No one does anything about anything. People just sit at home and complain to the TV rather than get off their back-sides and do something. Make sure banks and corporations no longer rip us off. No, they would rather believe in the fantasy that someone else will fix things. They don't have to do anything. They're powerless after all, why try.

This Economy is Effecting More Than The Pocket Book

This economy has got everyone in a slump. There are people in denial who continue living their lives as if nothing is wrong. Then there are people who act as if we are seeing the end of the world. That's not happening yet.

Everyday in the news the stock market continues to go down. Why? For far too many years credit has been too available without regard to whether anyone could afford it. Also, companies have cooked the books, falsifying their bottom line, which helped fuel a buy, buy, buy in stocks. Remember Enron? They cooked the books! Madoff got away with it for decades. And there are certainly more out there. Where there is one rat, there are more. It happened because no one was paying attention or willing do anything about it because they too made a lot of money, lots of it, and as long as they made money, they didn't care too much.

Now people are seeing huge losses and its effecting them in more ways than just in their pocket books, bank account or investments. There is a serious increase in depression, an emotional slump. People are down right depressed. The fortune they were counting on in their retirement is now gone. Some of it is because they got greedy, like in the cartoons, they only saw dollar signs. Instead of being diversified with their money spread around, they were looking at more than doubling their money in fewer investments.

The depression that people are feeling due to their losses in their investment is real, but few are doing much about it. People are resorting to gambling in hopes of making up what they lost, only to lose even more. While others are drinking more, maybe even straight from the bottle as their escape. What people could do instead is, get involved to change policy to stop this sort of investment fraud from happening in the future. It would be proactive, positive and depression relieving. But far too many people would rather drown their sorrows than do anything. It would mean they would have to accept some responsibility.

It is truly a sad state of affairs and it looks like no one is going to do much about it.

In my recently published book, Recession Survival Guide, I give people not only some background into what help bring us to this point but also what anyone can do to help themselves. It sells for $19.95 and can be downloaded immediately. Along with the book I am giving away the following: 3 files demonstrating the power of compound interest, budget workbook, The Money Changers which explains banking industry, and a recipe booklet.

Gardening can save you money

Throughout history, before the large chain grocery stores, people grew much of their own food right outside their door. Today, there is no reason you couldn't do the same, to save money, help relieve stress and eat healthier organic food. In fact, there is no reason why no less than 50% of the food couldn't be grown within 100 miles, or even within a city's limits. There is no reason food has to travel 4,000 miles before it gets to your table.

No Dig Gardening

The idea of no-dig gardening was developed by Esther Deans an Australian. It was developed both as a labor saving idea, and a method to rejuvenate badly depleted soil in a vegetable garden.

It starts with layers of newspaper, add hay, straw and compost in succeeding layers, you can create a growing medium without resorting to digging, one that is rich in nutrients and which will simplify weeding while encouraging your desired plants to grow. The layers compost together, greatly encouraging earthworms. Gardens are maintained by adding manure, compost, etc., and should not be dug up, as this will undo the good work.

The principle of the no-dig has sound foundations. Excessive cultivation of the soil, especially when very wet or very dry, will damage the structure of the soil, and lead to compaction in either case. Excessive cultivation also discourages earthworms, and they are the best free labor a gardener has.

Some followers of permaculture and organic gardening have translated no-dig into never-dig, which is a mistake. If you start with a base soil that is badly compacted, then your no-dig garden will initially work well, but you may find your garden does not continue to perform. The fertile layer you have built up will encourage earthworms, but worms need to shelter from excessively hot, dry, cold or wet conditions. They seek shelter from extreme conditions by burrowing deeply into the soil, sometime many feet down. If they can't find shelter, they die out or move out.

Initial cultivation of the soil before you apply the no-dig system will guarantee a better environment for worms, and thus a better garden for growing your plants, over the longer term. Give the no-dig approach a try – you will be pleased with the result.

Recession Survival Guide Sale Ends Soon

That's right, the sale price of $13.95 is ending March 1st. That is the last day you can get this well researched and referenced book at its sale price. It is the book of our times helping everyone who has bought it so far. It comes with a Full 60 Day Money Back Guarantee, and I have yet to have anyone feel the book was not worth the purchase price.  After March 1st the price will go up, and from the input I've received, it will not go to its full price of $22.95.  As has been pointed out to me, there are too many people who are struggling who can benefit from the information in this book. I've decided to only raise the price to $19.95 after March 1st, which is still affordable. 

Buy Your Copy Today, before the price goes up!

Blog syndication

I just added my blog to my myLot account. It was actually very easy to do. Another nice thing about myLot, it pays you to participate. Ok, not a lot, but hey, for people who are out of work, stay at home parents or just have some time on their hands they can make money participating through their own account. Check out myLot, see it for yourself then create an account. Every little bit of coinage helps.

myLot User Profile

Bailouts

I don't know how to feel about all this bailing out of corporations. Don't we have a free market system? If so then these companies should be allowed to fail, fall flat on their collective keisters, and hard. But, since we don't have a true free market system, we have a mix that includes socialism for the rich and corporate welfare.

How many people know that corporations are getting hundreds of millions of our tax dollars each year, from federal and state funds, for no other reason than they exist. Sometimes they beg the government for money to market their product or to help keep the price low. Who does it benefit? Not me! I am paying for the same product twice essentially. Once at the register and once when my tax dollars are handed over without regulation, restriction or any pay back terms.

Here are some examples:

• Oil companies, with profits of nearly $150 billion in 2007, were getting about 20 - 25% of their profits in the form of subsidies from the government - around $30 billion. Why? They not only lobby hard but they also have a lot of friends in government, both state and federal, and we the taxpayer foot the bill. I would rather pay a fairer price, $4 at the pump, and see the oil companies make less profit and no double dipping - subsidies/corporate welfare.
• A big company like Wal-Mart will go into an area, get local government to pay for the land and construction of a new store, pay no income taxes - although they collect it from employees, and get a tax break on sales tax - which they also hold onto. Essentially they get are getting paid to move into an area and then pay no taxes, even though they collect them from employees or on sales. The pitch is usually they are bringing jobs to the area. When they close up shop the building can not be reoccupied by another store, it has to be left empty or torn down.
• A number of corporations will pit two or more cities against each other in order to extort money. A company will claim they are looking for a new place to move to, ask for tax breaks, up front money and so forth. Many cities are more than willing to bring enticements to the bargaining table, even grants by handing over money without any requirements. Then the company stays put where they are currently with a pocket full of new money.

In my next post I'll provide some links to books or websites to help you better understand how corporations are double dipping into our pockets and usually not paying their fair share of taxes. Until then, do a search on Google, you'll be surprised at how wide spread the abuse is.

Building Wealth Slowly: Using the power of compound interest to build wealth

Many people think it is hard to become wealthy. It all depends on how you define it, doesn't it? If you think of wealth as having loads of money, in the millions, then yes, it may be hard to become wealthy for you. If on the other hand you think of wealth as having enough money to pay the bills and your money is invested wisely, and in a diverse manner, so that it makes you more money, then the answer is, no, it is not hard to be wealthy.


Assume you are just out of college, have a job with an income that allows you to pay your bills with a little left over. If you were to put a $150 a month into an IRA that grows at 8% a year, you will have about $605,000 at age 65. A 10% a year return on compound growth is about what you should expect if the money were invested in a no-load S&P 500 Index Fund. To some that may seem like a lot, but it really isn't, remember inflation eats away at any investment at a rate of 3 to 4% a year, as do mutual fund fees.


In the example above, for about $35 a week or $5.00 a day you would be on your way to being a millionaire. If you chose to live a little more frugal, you could easily save between $8.00 to $10.00 a day, or $56 to $70 a week. Saving $8 a day will result in $953,555 by age 65, and at $10 a day results in an investment growing to $1.19 million.


A simple example, if you deposited $100,000, OK many of us may not have that kind of money at the moment – it's just an example, and you left it alone for 10 years, here is what it would be worth if it earned 3%: $135,000. Not bad, not bad, considering you didn't do anything to earn $35,000. But, lets say you earned 9.05% interest, it would be worth $245,000, a full $110,000 more than at 3%. That's the power of compound interest and time. If you invest for the long-term in a higher paying investment account, you can more than double your money.


If on the other hand you contributed the full amount of $5,000 a year to a retirement account you would have $1.48 million. That's only about $14.00 a day and you could have a small fortune. If you decided to live without some expenses: using credit cards, extravagances, daily lattes, bought used cars instead of new, and invested your pocket change (about $30 a month) you could actually save well over $2 million before retirement.


Just remember, always invest your money diversely: stocks, mutual funds, high yield savings accounts, CD's, Mutual Funds, bonds, T-bills, so on. Your money may not grow as fast as if it were invested in only one more risky high paying interest investment, but at least you'll get there with less risk, and stress. Remember, time and the power of compound interest are on your side. The younger you are and you would like to build wealth, do whatever you have to scrape together your investment contributions. Every day you procrastinate is another day your money is not working for you.


Consider that most people are spending their lives paying to borrow other people’s money. If you save and invest, other people will be paying you to use your money. It’s a lot more fun to see your money working for you building wealth.


The older you get the harder it gets to grow your money slowly. If you wait until you are 32 to put away $4,000 a year at 10%, you would only have about $975,000 by 65. At 42, you would only be able to accumulate about $350,000 by 65. As you can see, your wealth diminishes the later you begin investing because it is not able to rely on compound interest to work for you.


The moral of the story, start investing today, invest often, and as much as you can. Also, every dollar you spend is not invested, so live a frugal and more wealthy life.

What now?

People lived high on the hog for far too long. Now that markets have dropped and are staying low, the only the bankers and brokers are really making any money. Everyone else is wondering what will happen to them next week, because this week they avoided being 'laid-off.'

Now that things are tough, everyone is more concerned about money. The cost of living is on people's mind, even if they wont say it out loud. So, what exactly is the cost of living?

I guess that depends on who you ask. The government figures it one way while news outlets, well I can't say where they get their data, but they say another thing. Here are some categories I have used:

• --Rent/mortgage (got to live somewhere)


• --Transportation (got to get around, at least to work and home again)


• --Phone (one with basic service only-it's a must to get a job)


• --Education (to keep a job or get a new one, can't do without)


• --Food (if people eat more at home the cost is lower, but I figure 50/50-home/eat out)


• --Clothing (or you get arrested and need nice cloths for the job)


• --Toiletries (I think you know why this one)


• --Utilities (the basics, nothing fancy)


• --Home furnishings (again the basics-someplace to sit, tables, bookshelf, etc. - nothing fancy no kitsch)


• --Appliances (can't cook without a stove and can't keep food without a fridge)


• --Electronics (only those that are needed, no extras or fun things-no game boy)


• --Vacation (can't live without some R&R, it makes people more productive and reduces stress and less medical costs! - some employers are stupid when it comes to giving people time off, they just don't get it value or purpose.)


• --Medicine (all the things not covered or have to pay extra for)


• --Retirement funding (since employers are pushing it onto employees to do their own doesn't mean they shouldn't cover it)

Yeah, a lot of categories, but as you can see, I am only looking at what is needed, no extras or wants. I figure cost of living in two ways: 1) what it actually costs plus 15%, or 2) if minimum wage if had kept up with the cost of living. Either way, both numbers are very close. Ready? It costs an individual $68,000 to $75,000 a year to pay for everything, and I am not talking extravagances here or in any way with a lot of extras, like cable TV or fancy clothes. That's right, around $70,000 a year!

People making less are not only struggling, but not making it. If they get sick, they are more likely to get the worst care, or none at all, and poor people are more likely to die because no one will treat them. As for retirement, maybe some people would still remember the news stories of some elderly eating cat food, living without heat and a lot of other things. Well that's what happens when there is no retirement planning and no money to fund it. You've got to thank God we live in the U.S. where we are all told we have a chance at the “American Dream” but few actually realize it.

Making money online

I have surfed for more than 2 years looking for legitimate businesses and ways to make money online. Ya know, there are more scammers and rip-offs online than hucksters at a fair.

But, here is something that is not only legit, oh boy, it can make you money, around 8 to 9% return on investment. Sounds too good to be true, doesn't it. Well, it's not. This is not only legitimate and legal way to make money, many people are involved in it. What is it? Lending money.

Let me explain. This is a company that has filings with the SEC (Securities and Exchange Commission) which also oversees businesses traded on the stock exchange. The Lending Club allows you to either borrow money, lend money or do both, but not at the same time - you do one or the other at one time (unless rules change). I am a lender on the Lending Club. Yeah, you can worry about losing money, and sometimes it happens. What's nice though is the ability to check the background information of a borrower, to see their credit rating, have they ever been delinquent on a loan, and how long have they been a member of the Lending Club. You can even send them an email, asking a question, so the whole thing is much more personable.

If you are either in need of money or would like to make some money, then at least check out the Lending Club. I started lending a small amount, $100, and as I make money I will loan out more. If you are skiddish, that's fine, but still want to make some money, then invest very small amounts, like $50, so if a person does turn out to be really unreliable and defaults, at least not much was lost. When was the last time your bank gave you a 9% return on your investment? Its worth checking out the Lending Club. 

On a cautionary note, don't invest your entire nest egg in one place, that includes having your money in one bank. That's how fortunes are lost.

So much crap to weed through

Here is something I shared on another website and find it relevant enough to share it here. After I do a search, usually with Google, I get frustrated with all the non-relevant websites I have to go through to find the one's that provide the information I'm looking for.

Just when I think I've found a site with real information it's selling me something yet again. It's like no one is willing to share, even a little of the, information without asking an unreasonable amount of money for a crappy ebook. I miss the days before all these crappy ebooks went up for sale. Too bad Google can't weed out the crap and let me get back to information surfing.

Hey, here's an idea for Google: Allow, to a small extent, surfers to rate sites - 0=crap to 10=fantastic - just what I was looking for, so the crap can eventually fall out by being pushed to the bottom of the search results. So if I end up buying an ebook that makes claims it doesn't follow through on then I can rank it low, hopefully as other people would so it drops down in the search results. They would have to do some sort of tracking to make sure I'm not rating my competition poorly, or visa versa - one vote per person would be good. This would provide a non-biased software ranking and people ranking, which would allow for better and more accurate search results.

Then, the only way for crap to be ranked higher, they would have to pay more for their Google Ad and the worst their ranking is, the higher the price would go. Yeah, weed out the crap!

How about it Google? Combine a public ranking system, StumbleUpon type system and your own software into a new and revolutionary search engine. Just remember where the idea came from.

Is Capitalism Dead?

The way capitalism is practiced, I see it as a lame sick horse that needs to be put out of its misery. A quick bullet to the head and it's over. Done. Then we can begin anew. 

Our current unsustainable capitalistic ideas are out-moded, not in line with reality. Capitalists see everything as infinite: resources, money, the environment - everything. That just can't be true. We live on a finite planet, where everything has a limit. There is only so much of anything and when it's used up, that's it, no more.

If we as a species, the planet, and all life - a gift, is to remain, then the rules of engagement have to change to ensure our, the planets and all life's continuance.

A short post as this will be part of my new book by the same title.  For those who have not had a chance to check out my book: Recession Survival Guide, it can be bought here:  http://recessionsurvival.richardboettner.com/

Have a fun Valentine's Day.

Madoff made me mad

Yesterday I let my anger out that had been building from the Madoff thefts. Even if you didn't invest directly with Madoff there are funds that did and there is a possibility many more people lost investments than is being reported. I had to get it out and today, after some time to think about it, this is what I wish would happen:

• Madoff's should be moved into a scummy bug infested cheap apartment, so they don't spend money they stole living in a lavish apartment. They should get just enough money for food and not a dime more.
• Madoff children should have all their assets frozen until they can prove they bought them with their own money and not with stolen money.
• Family members should also be investigated.
• All assets, whether currently in the hands of family or friends should all be seized to pay back as much as possible.
• Any retirement fund: social security, mutual fund and so forth should be taken from the Madoff's and used to pay back people they stole from.
• Both Husband and Wife should be made to get a low income job, with lots of hours - like in a fast food place, to pay back as much as possible before their die.

I really want them to suffer and the only way to do that is to take everything from them, it was paid for with stolen money after all, and have them work to pay as much of the stolen money back as possible. They do not deserve sympathy. I don't think people should do them harm, otherwise they can't be forced to pay back the stolen money, but spitting on them and shaming them until they are dead is acceptable. Calling them names in public to humiliate and maybe cause them to feel bad is also acceptable. I do not think these people should be allowed to continue living anywhere near the life they were use to while they stole millions of dollars from people.

I think this would be fair. The problem is people aren't willing to act and demand the courts to move faster while the Madoffs continue to spending their ill gotten booty.

Mad-off makes me mad, but...

What Madoff did makes me mad, but the fact our government [SEC], which is suppose to make sure rip-offs like don't happen, did nothing. Nothing for a whole decade. Now, people are sitting around their homes grumbling at what this guy got away with. I read in the paper today how Madoff's wife took $15.5 million out of the company, probably to hide the money. The whole mailing jewelry to family members this past December is just wrong. Hope the court is holding all of it. What, do these people think they can just keep ripping us off and like squirrels hide their wealth and not pay any of it back. They are crooks! Thieves!

If I lived in NY I would form an semi-organized mob, go to their residence, force my way in, take absolutely everything: cloths, jewelry, paintings, other art work, furniture, and even the food, oh and pets. Leave them nothing but the bare floors. Then I would leave, call someone to turn over anything of value to be held until the court decides how it will be redistributed. The food, either have a party outside their apartment or give it to a soup kitchen. The pet(s) go to a shelter for adoption. I would leave the Madoff's with nothing, the same thing they did to their investors.

Then I would petition to seize all their bank accounts and even work day and night with others to dig through all phone records and bank records to track every last transaction. I would then pull back money transfers and put it all into an interest earning account until the court decided how it will be divided up. Whatever else may be in the form of property I would begin putting liens on it. I would even dig real deep into all relatives, domestic and foreign and begin putting holds on their assets too. 

No mercy baby. No mercy! These people deserve no mercy, and by the time people and the courts are done with them should end up with nothing. They should be worse than homeless - naked and living in the sewer.

There, that's how I feel about it! And I wish people would get mad and take everything from these people. Every time people see them on the street, they should be spat on. No mercy. No forgiveness. The same thing they showed their investors who trusted them with millions.

What is the cost of living?

What exactly is the cost of living. I guess that depends on who you ask. The government figures it one way while news outlets, well I can't say where they get their data, but they say another thing. Here are some categories I've used:

• rent/mortgage (got to live somewhere)
  
• transportation (got to get around)
  
• phone (one with basic service only-it's a must to get a job)
  
• education (to keep a job or get a new one, can't do without)
  
• food (if people eat more at home the cost is lower, but I figure 50/50-home/eat out)
  
• clothing (or you get arrested and need it for the job)
  
• toiletries (I think you know why on this one)
  
• utilities (the basics, nothing fancy)
  
• home furnishings (the basics-someplace to sit, tables, bookshelf, etc. - nothing fancy)
  
• appliances (can't cook without a stove and can't keep food without a fridge)
  
• electronics (only those needed, no extras or fun things-no game boy)
  
• vacation (can't live without some R&R, it also makes people more productive and reduces stress -> less medical costs! - some employers are stupid when it comes to giving people time off, they just don't get it.)
  
• medicine (all the things not covered or have to pay extra for)
  
• retirement funding (since employers are pushing it onto employees to do their own doesn't mean they shouldn't cover it in increased pay!)

Did I miss anything?  You tell me.

I figure cost of living in two ways: 1) what it actually costs plus 15%, or 2) if minimum wage had kept up with the cost of living. Either way, both numbers are real close.  Ready?  It costs an individual $68,000 to $75,000 a year to pay for everything, and I am not talking extravagantly or in any way with a lot of extras, like cable TV or fancy clothes.

Now I want to hear from others. Give me your feedback, I want to know what you have to say.

Living Frugal

Living frugal does not mean being miserable, or necessarily giving up some of your wants? In my own case (as is the case with many people who live a frugal life) it meant getting things I really wanted. Spend less money on each thing or activity, and I can have more of them, right? The key is spending less and getting what I need.

Housing

The first house I owned was small. I had payments of $485 per month. (Ok, this was some years ago, but it can still be true today.) With taxes, insurance and repairs, it still cost less than rent. With two bedrooms, an expanded living room, and a nice fenced-in yard, it was comfortable. It needed some work and sometimes I could trade handy-work for something, paying only for materials.

Two things that I did made it cheaper. First, I paid down the mortgage as much as I could when I was working as quickly as possible. Within a few years I owed virtually nothing, and from that point on it cost an average of $350 per month to pay for the utilities, phone, garbage collection, taxes, insurance, and repairs. Now this is living cheap.

It became even cheaper when I rented out the other bedroom. I got $195 per month and I included all utilities. I found a decent young guy to rent to, making this more than cheap living, for him and myself. That meant I paid less than half, $155 a month.

Planning

With lower expenses I could work less, so I could get by without a car and use public transportation – the bus. This saved me even more money. An occasional bus fare, and the bicycle I bought didn't add up to a fourth of what it cost to have a car. I needed to plan my trips around town better, but it was well worth it.

I never paid more than $40 for a piece of furniture. I knew what was important and not go extravagant. Since no one could tell the difference between a nice, clean used couch for $40 and one that cost $600, I bought the former. Thrift stores are great for this sort of buy.

When I worked less, I had time to carefully consider my options. I paid half of what others paid for groceries buying from ethnic stores. Everything was possible because I had time to search for deals.

I never cared much for jobs, so I worked mostly part-time for a number of years. I played chess, wrote poetry, and read good books. This was all possible not because I made a lot of money, but because I spent less than I made, and used the difference for the things that mattered to me. Of course any extra money that came my way went right into my savings account where it earned interest and in case I needed it when I didn't have a job or I needed to repair or replace something.

This article isn't meant as a how-to guide. I only wanted to explain how I was able to buy the things so cheaply and still enjoy life. This was in tented to get you thinking about possibilities. What are the principles? Find ways to pay less without getting less. Don't buy things you don't need. Spend less time working and more time doing the things that bring you joy. Stay out of debt. Finally, know what is truly important to you, because this is what you can have more of by living frugal.

A More Equitable Income

I have to admit, I have been distressed by the lack of people standing up for their rights in this country, especially when it comes to the exchange of their time for an income.

Since the 1970's the average income has fallen well below sustainability.  I remember as a youth when minimum wage was $2.90 and hour, more than enough to pay for everything. Now, minimum wage has not even doubled in 30 years and yet inflation has doubled several times since the 70s.

People have allowed themselves to be lulled into believing that if they try change things, they would lose their job because there is no way to pay them more. Lie! If a company can afford to pay executives their outlandish wages and benefits then there is plenty of money to go around.

The reason wages are kept low is because executives increased their wages to astronomical levels. Not only are their wages at unsustainable levels but so are their benefit packages: health care, cars, housing, golden parachutes, memberships and more.  Executives of corporations do not need these outlandish sums they are getting, especially when their own employees do not receive a livable wage.

Looking around the world at other industrialized westernized countries: Germany, Austria, France, Australia, New Zealand, among others, you will find they pay a minimum wage that is much higher than our own. Often these countries pay no less than $20,000 to $30,000 a year. The U.S. is the only industrialize country that does not pay a livable minimum wage! Not only are we the only industrilized country that pays its employees one of the lowest wages, but we also have no gauranteed paid days off: vacation, sick time, personal time, a minimum number of holidays.

There is more than enough to pay a minimum wage that starts at $15 an hour, today, without increasing prices. Just lower executive pay and benefits and put them back into the hands of the employees who are truly responsible for the wealth of a company, not the people at the top. Don't get me wrong, I am not proposing some sort of communistic ideal here. All I am saying is, the greed at the top will never trickle down, so force a more realistic distribution of wealth a company has. One that rewards hard working people at a more equitable level.

2 Simple Secrets To Success

Stop for just a moment, take a look around and ask yourself if this is the quality of life you were hoping for. If you answered “No”, then my question to you is “why not?” “What are you doing to change your life?” Most people who are asked what they have done to change their lives say “it’s no use because...” and so it goes..., excuses. One excuse after another.

People will also spend a lot of time blaming someone or something rather than take responsibility for their lives and take action. Many people feel more comfortable staying put where they are right now than do something about it. They would rather complain and get sympathy rather than become successful.

But it doesn’t have to be that way. The first step in getting out of this rut is to stop making excuses and assume responsibility for the quality of your life. You can change your life situation today. How do I know? I know because others have done it. I have done it!

There will always be obstacles, they never go away, but none that can’t be overcome. The only requirement is the desire to change. Mark Twain once said “It's not the size of the dog in the fight; it's the size of the fight in the dog.” If your “want to bring about change” is strong enough, you can achieve almost anything you set your mind to.

The second step to getting out of the rut is step out in faith and, just do it. There is no time like the present to change course. You might not succeed the first time, but you must keep trying. Success will come with persistence. Remember the old saying “Today is the first day of the rest of your life.” Don’t worry about making a mistake, they are lessons to learn from. Albert Einstein once said “Anyone who has never made a mistake has never tried anything new.” Mistakes and failures are tools that teach you how not to do something so you can find how to do it the right way.

So step out. Take a chance, and as William Durant, the founder of General Motors said “Forget past mistakes. Forget failures. Forget everything except what you're going to do now and do it.”

Did someone mention affordable health care?

Medicine in the U.S. is a for profit business only affordable those people who can pay. There is nothing wrong with a for profit business model, as long as it is reasonable and everyone can afford it. For profit medicine on the other hand has become such a huge money maker that it excludes about one-third of all U.S. citizens.

Medicine should be run more like a non-profit, where everyone is covered and neither surgery or pharmaceuticals are the only options available. True preventive care, not diagnosis touted as prevention, should be put at the top of the list of the care provided. People may have heard how non-profit care can not afford to stay in business, no fault of their own. It is due to the profiteers: pharmaceutical industry and the medical technology industry charging high prices. If the profit aspect were taken out of the equation medicine would certainly be more affordable. If other forms of care which are not currently incorporated were working side by side with our current form of care and insurance companies had to cover them, then we would all would be better off.

If U.S. wants to create a health system to cover the homeless, elderly, and those who can't afford health care then start by eliminating duplication in the system. Combine Medicare and Medicaid. It makes no financial sense to have both. Remove executives and a few other duplicate jobs, keeping the employees needed to process claims and a few others. Instead of reinventing the wheel, copy the best parts of what other countries are doing in processing claims, making it easy enough for everyone to understand. Force the change to take place in 6 months, otherwise people will only drag their feet forever never completing the task resulting in claims it doesn't work. Once they have been joined the next step will be that much easier and faster. Collapse into this new system the Veteran Affairs medical care system. The new rules are in place, staff too, so adding it will take almost no time whatsoever.

From there begin offering health care to everyone not currently covered. Free to those who make 260% of minimum wage and below. You may think that is a high percentage, but if you really think about it, it isn't. If minimum wage is at $7 and hour 260% only comes to $18.20 per hour or $37,856 a year. If you think about what things cost today: rent, owning a car, food, clothing, and everything else needed to live and work, anyone making less than $40,000 is just barely getting by.

That is how you create affordable health care for everyone in the U.S.

The need to change

The need to move from selfish wants to shared needs is paramount if we are to see any kind of  positive change. If we are to see less of a separation of the haves and have-nots, we need to begin thinking in terms of how our decisions effect not just us, but all of us, going to a "we" mode of thinking. Our current way of thinking, acting and doing business is only impoverishing more people each year, further dividing us as a nation. During President Bush's years in office we saw about 1.3 million people fall into poverty each year. That is an increase of almost half of one percent each year. There are over 35 million currently living in poverty in the U.S. And, as more people become impoverished we will only see more desperate acts of survival: purse snatching, identity theft, break-ins, car jacking, among other forms of theft. People need to wake up and realise that their selfish acts effect a whole lot more people that previously thought. Selfish acts spread throughout society like a disease effecting an entire populace.

Please, if you want to see real change, begin to think not of yourself, but rather of others. Only by giving can you receive back more than you give.

Using Credit Wisely

Many people opt to use credit from different credit institutions to fund their needs and pay bills. Not a wise decision. It is usually people from working families, middle to lower incomes who opt to use credit to pay for whatever they feel they need. The reason being that people can’t afford to spend money, because they just don’t have it. Credit is the worst option to resort to.

It is much better to put off purchases than to go into debt by making use of credit.  I recommend that people instead pay off all their debt and save their money for the purchases they may need. Credit should never be use to pay for the things needed like, groceries, gas for the car, rent or the mortgage and so forth. Credit should always the last resort, not the first.

That will be 6 cent please

A group of high school students from Kent Denver School came up with an idea which they took to Senator Jennifer Veiga.   The idea, to charge 6 cents for every plastic bag a customer would use. Veiga thought it was a good idea and drafter legislation to do just that.

It's a great idea for several reasons:

• less shipping weight having to haul around plastic bags, leaving more room for actual merchandise
• less pollution as many bags end up being tossed about by the wind until they get caught in branches or something else, in the landfill they become part of a very toxic soup that can end up in our drinking water
• they choke our landfills
• many bags end up in the ocean where it kills sea life, there are even floating islands of plastic in the ocean now
• our dependence on foreign oil goes down a little more, ever so slightly

But, there is also this:  some stores will now charge an arm and a leg for cloth or other bags, because customers will have less of an option.  One cloth bag does save the consumer money, especially if they are going to be charged 6 cents for each plastic bag.  In fact, one cloth bag could replace more than 6,000 plastic bags per person, a savings of $350, after the cloth bag is paid for.  Cloth bags are bulkier and also heavier, which makes carrying groceries home a bit harder, especially for people like myself who walk, not drive.

Before this becomes legislation maybe someone should think this through a bit more and not allow grocery stores to charge an arm and leg when this becomes law.  It would be good for the environment, our health - less pollution in both manufacturing and dumping of plastic, and cloth bag do reduce our dependence on oil.  Lets just not let the consumer be gouged in the process.

Recession Survival Guide

My book is out at long last and if you would like to buy a copy, it is available at recessionsurvival.richardboettner.com.

The book is well researched and referenced, covering why are in this financial mess and how to help yourself so you are not as affected by it.

If anyone has comments about the book or would like to see additions or changes, you can post here or send me an email (my email address is in the book).

Thanks,

Richard.

Hopin Mad!

Why is it people in this country continue to allow legalized embezzlement by corporate executives at the expense of both customers and employees?

When I heard the news of what the CEO of Merill Lynch had done and how much money was squandered away while the company failing, I just had to say something.  In my opinion, executive pay and benefits is outrageously, to the point of obscenity, high.  They get to pay themselves whatever they want and take bonus as they see fit, literally robbing a company blind.  In doing so, the price of goods and service have to go up in order to allow them to continue to rob the company, us, blind, because no one is stopping them.

I actually get most pissed off at the people of this country, who actually allow this to happen.  Why are people so stupid to think they can't do anything about it?  Don't get me wrong, executives do deserve a nice, fair income and benefits, but not at the expense of employees or their customers.  I am not their slave!

I propose, if there are others, which I am sure there are, who feel the same way I do, to get together and force legal changes.  Some suggestions:

• if employees are facing cuts, all executives do too in an equal manner
• if there are stock options for executives, there should be the same options for employees - after all, they also contribute to the success of the company
• cut executive pay, by at least half, and use that to pay for 100% health care of all employees, add more vacation days; sick and personal days off - to reduce stress which leads to improved health
  Corporate America has lied long enough about there not being enough money to provide affordable health care to their employees or to give them more than 2 weeks vacation days a  year or personal time off.  If that were true, executives couldn't be paid what they are being paid.  They are robbing their employees of everything!
• if executives get a bonus or pay raise, then all employees get one - automatically
• all executives are responsible and answerable first to their employees and then to their customers for both the success of a company, but most of all for their failures
• if a company is failing, executive pay and benefits get the first cut, before any other employees
• if a company seeks and gets a low interest loan because times are tough, executive pay and benefits, if they haven't been lowered already, get lowered and frozen until the loan is paid back in full and no bonuses are to come out of the loan either
• executive benefit packages should be made more reasonable - no free: apartments / homes, tickets to the arts, limo or other transportation, lunches or dinners, company plane rides, exceedingly high expense accounts and so forth.  A company should not be a free ride for executives. They should be made to pay more of their own way, are after all, they are getting huge incomes.

That's a start.  Of course, some would see me as extreme, but it is time we said, STOP, I've had enough, and do something about it.  We need to stop executives from robbing all of us, while half the country lives below a living wage, without health insurance or benefits and barely enough time off to catch their breath.  Stop expecting someone else or our government to do something about it, you need to do something about it!

It Can Pay To Be Stingy

We all know the importance of saving money. Especially for those unexpected events in our lives or retirement. If a 20 year old were to invest a dollar a day, it could grow to about $500,000 after 50 years, assuming a 10% annual return on investment.

There are more ways to boost a retirement account. By cutting your expense by just a few dollars each day adds up quickly. First, you will need to understand the importance compound interest and boosting the return by one percentage. 1% may not seem like much, but after you have saved a dollar a day for one year, your savings would have grown by an additional $3.65 a year. You might be thinking, why bother, right? Wrong.

If you take your time to take out your calculator, that one percentage difference is a really BIG deal. Instead of a 10% annual return, you can assume that you are now achieving an annual return of 11%. While saving a mere $1 a day, how much will your money become after 50 years? The amount would now be $730,000. That extra 1% return will give you an additional $230,000. Assuming you spend $100,000 each year in retirement, this extra 1% will give you an extra 2 years of comfortable living.

In addition to looking for the best return on your investment, you should be looking for ways to cut unnecessary expenses. By reducing spending and not buying one coffee, snack, finding cheaper parking or taking mass transit, you can add as little as a few dollars each month to your investment to as much as a couple of hundred. Also, investing the pocket change you go home with every month adds up quickly too.

A candy bar each day adds up to more than $750 a year. A cup of coffee can add up to about $1,000 a year. Your pocket change comes to an average of $360 a year. Investing these amounts will make you a millionaire by the time you retire, when combined with your other investments.

Without interest payments, that $360 in pocket change you collect each year will add up to $18,000 over 50 years. With compound interest it turns into more than $20,000. Not bad when you think about it as this is investing without really thinking about it.

It pays to be stingy, saving your money and looking for an extra 1% return on investment. I believe you can save much more and the sooner you start, the better off you will be and the sooner you will reach a million dollars.

Budget For Your Future

When was it that you sat down and really thought about your financial future? People are busy these days and you think "well, I'll have time to do it later." You're dead wrong. It is NEVER Too Late to start saving money!

If a 25 year old puts in $2.00 a day into a savings account ($60.00 a month), by the time you reach 65 he'll have a million dollars. However, what is a million dollars these days - really? It's practically chump change with the rising cost of living, especially housing.

So you have to make a budget to save for both emergencies and the future. Don't expect Social Security to kick in, they're having problems already - much less when you get to retirement age!

Here are some strategies to help you save for the future and your retirement:

1. Make a list of all your monthly income.
   
   
2. Then make a list of all your expenses.
   
   
3. Subtract your expenses from your income. Hopefully you come out ahead and not spending more than you make. If not, then you need to make smart decisions on which expenses are a necessity and which are not. Do you really need a cell phone, or is it just convenient?Discipline yourself now and you'll thank yourself later!
   
   
4. Do this for several months, making adjustments to your budget. And then at the end of each month, figure out where your money went, especially unnecessarily. Did you go out to eat more than once a week? Did you buy your lunch instead of bringing a sandwich from home?
   
   
5. Put 10% of your income into a savings plan. This is the "rule of thumb" amongst investors on just how much you should be saving a month. Pay yourself first!  Even the Bible says, 'God helps those who help Themselves.'  It's not being greedy, it's being wise!
   
   
6. Consider other options besides savings. Perhaps invest in a 401k or an IRA. Check with a financial planner to see which one would suit your needs and financial situation best.
   

Really that's all there is to it! Never take money out of your savings for frivilous purchases like a new pair of shoes or to go to a movie. That is for your future! However if your car needs a new transmission, the emergency fund is there for you!

It takes self-discipline and the desire to want to have financial independence. Apply these easy techniques and you'll be on your way!

What's the big deal?

Some people seem to think going Green does not equate to saving money.  Where they get this idea is beyond me. 

Sure, some items do cost more intially like CFL bulb but in the long run they not only last longer, they use a lot less energy than a conventional light bulb.  So what is you can't afford to replace all the bulbs in your house in one day.  Spread it out over 3 to six months and I gaurantee you will see the savings very quickly.  By the end of the year you will see anywhere from 20% to 40% savings on your energy bill.  Who can say no to that?  You do want to save money, don't you?

Until next time...

Five Days Left!

Wow, only five days before my book is released.  I've been so busy thinking about all the details, creating a website, who will host it, press releases, promotion and so many other little details.

Now I'm no big name author like, King; Koontz; or even JK Rowling, but I am sure that my book will sell just fine.

I've been working on this book for some months now.  The book, Recession Survival Guide, is about money, its history, why and how we got into this financial mess, banks, savings, creating wealth and like the title says, survive this, or any, recession.  It was written to help anyone who makes use of the information I present.

Stay tuned, as I will provide a link here on January 20^th where you can buy a copy of my book.

Your Credit, Your Rights

Sometimes, things happen that can cause credit problems: temporary loss of income, an illness, even a computer error.  Solving credit problems may take time and patience, but it doesn’t have to be an ordeal.

The Federal Trade Commission (FTC) enforces credit laws that protect your right to get, use and maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws protect your rights by requiring businesses to give all consumers a fair and equal opportunity to get credit and to resolve disputes over credit errors. This article explains your rights under these laws and offers practical tips to help you solve credit problems.

Your Credit Report

Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Consumer reporting companies sell the information in your report to businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. Under the Fair Credit Reporting Act:

• You have the right to receive a copy of your credit report. The copy of your report must contain all the information in your file at the time of your request.
  
  
• Each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – is required to provide you with a free copy of your credit report, at your request, once every 12 months. Consumers from coast to coast will have access to a free annual credit report if they ask for it. 
  
  
• Under federal law, you’re also entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
  
  
• Otherwise, a consumer reporting company may charge you for another copy of your report within a 12-month period.
  
  
• You have the right to know who asked for your report within the past year – two years for employment related requests.
  
  
• If a company denies your application, you have the right to the name and address of the consumer reporting company they contacted, provided the denial was based on information given by the consumer reporting company. 
  
  
• If you question the accuracy or completeness of information in your report, you have the right to file a dispute with the consumer reporting company and the information provider (that is, the person, company, or organization that provided information about you to the consumer reporting company). Both the consumer reporting company and the information provider are obligated to investigate your claim, and responsible for correcting inaccurate or incomplete information in your report.
  
  
• You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

Surviving in this recession

We are all looking for ways to make ends meet, especially during this Recession. I keep saying the same things everyone else seems to be telling people. Maybe no one is listen and that's why there's so many of us saying it. Here are some short tips for you.

Six quick tips:

1. adopt money saving habits that fit your needs and family
2. keep a spending log to see where your money is going
3. follow a budget, incorporating your spending log
4. buy things from a second hand store, not everything needs to be new
5. mend or repair things to make them last as long as possible
6. keep a change jar you deposit into your emergency fund

Need I really say more at this time? I will be posting something longer soon. Until then, pinch your pennies, stop spending like there's no tomorrow you really don't need more stuff and become debt free for pete's sake.

Happy New Year Everyone!

The first thing on most people’s mind is, making a resolution. In my opinion, stop making yearly resolutions, especially financial ones.  Why do people torture themselves, especially when they know that they don't keep a resolution?  Make a life plan instead.

Here are some financial suggestions I have for you:

• stop living on credit – get rid of your credit cards or using only one for business


• use cash, limiting how much you spend each week


• pinch every penny you have, investing it


• walk more often, its both healthy and saves you money


• build an emergency fund along with other funds for long-term goals (a new car)


• create a budget, adjust it regularly until it reflects your needs, then stick to it


• saving small amounts add up, especially with compound interest

People often refuse to believe that saving a small amount will add up to much. If you put aside $20 a week for 30 years earning 10% interest (the historical rate of the stock market) you end up with $188,200 and you will only have had to save $31,200 yourself. The rest is all compound interest.

Can’t find $20? Spend less each day. Buy less: lattes, chips, minutes of gossip on your cell phone, candy bar, less bottles of water and you can actually save more than $20 each week. If you also put aside all of your pocket change each day adding it to your weekly deposit, you will have an additional $6 each week. Saving money doesn't have to be hard. You just have to do it on a regular basis.  This can't be that hard to do, or is it?

Make this your Life Resolution instead.