The Bottom Line

In order for a business to succeed it needs to make a profit. At year end revenues either exceed expenses or they don't, and if not the doors close … end of story. The same thing holds true for our personal finances. When payday comes along the question remains the same ... is there any money left over after paying the bills, our profit, or are we broke?

The question is the same month in month out, year in year out. The key to creating profit within our money management business is not as so often stated “live within our means”, but rather “live beneath our means” … a distinction of immense import.

                                             Roger L Caron

Debt Dilemma

As a nation we have racked up more than 14 trillion in debt, much of it owed to foreign countries who may or may not be friendly to us. And a large percentage of American consumers have done the same via plastic. The result of this decades long credit binge are enormous both for our nation and our citizenry. Sooner or later the piper will have to paid with crushing interest.

On a personal level consider what occurs when minimum payments are made on a charge card, a common practice by many cardholders. On a balance of $3600 at 18 percent interest, it would take 22 years to pay off the balance. The interest alone would total $8000 bringing the total payments to $11,600 ... over three times the initial obligation. The urge to live beyond our means both as a nation and as consumers is indeed a “Siren Call” to fiscal disaster.

                                         Roger L Caron