"Max Out Your 401(K)!"
Managing money has become increasingly more complex. In the 1990's, employees were taken away from their posts to attend a mandatory meeting, hosted by a nicely dressed rep from some 401(K) plan. The message was always the same: He or she strongly suggested that everyone contribute the maximum amount of their earnings or prepare to retire in poverty. Employees signed on and every so often would check the balance of that "look but do not touch" account and get a sense that, perhaps, saving is not that difficult.
When the economy tanked in 2010, though you can argue it may have started much earlier, advertisements for debt consolidation companies were everywhere. In 2010, 7.9 million people lost their jobs (money.cnn.com/2010/07/02/news/economy/jobs_gone). Those making minimum payments on credit card debt were in trouble. Those who were told they qualified for a mortgage, but really did not have the means to take on such financial burden, suddenly lived in fear of losing their home. Like Casinos, the banks so willing to loan money never had anyone's best interests at heart - except their own.
Here we are in mid-2013 and the same financial advice given to my father by his father in 1967 seems most sound: live within your means. However, unlike in my father's day when money management consisted of a pad of paper and a pencil, there are countless resources available to assist in accomplishing this goal. Financial experts, such as Mortgage Professional, David Hochberg, President of Townstone Financial, are featured on radio and television shows. In addition, the Townstone Financial website (http://www.townstone.com) provides information that is not common knowledge. For example: a divorced and unemployed woman may qualify for a loan 90 days post-divorce based upon her income (alimony and child support) and the duration of these payments. Who knew the divorce decree could be so useful? Second and third example: A credit score reflects one's ability to manage money; therefore, since banks cannot lose money, no bank will lend money to anyone with poor credit score. In the Poker Game of life, that credit score will beat an Ivy League education and stellar employment history every time. Lastly, do not be tempted to open or close any credit card accounts prior to applying for a loan. Perhaps it appears shifty? In any case, this can hurt your credit score. It is these essential, yet obscure, facts presented by Mr. Hockberg that changed my life. Please allow me to shout them out to the rest of the world!!!
The purpose of this blog is to provide information about managing money. This blog will provide basic budget information and templates you can print out as well as provide those obscure facts that can save your @ss. Trust me - when I began taking charge of my finances three years ago, opening mail caused me to hyperventilate. We go one step at a time here. Have you decided to live within your means? Have you decided to think of purchases in terms of "wants" and "needs"? Then, take my hand because we are going to conquer the world.
