Optimize Your Budget for Any Debt Level

You’re not going to believe the trick I use while budgeting to pay down my debt load. A fool-proof way to optimize your budget no matter what your debt level.

Optimized Budget
Your Budget Will Be Optimized

This may solve your debt problems simply and if you want to know how it works, click below.

Yes, you caught me, this is a horrific piece of clap-trap that simulates many of the helpful articles you find on-line on this (and many other subjects), and if you wish to read more about this and other reasons you keep reading this stuff read A Sucker is Optimized Every Minute by Virginia Heffernan in the NY Times. The sleazy tricks played by many sites (where they love to have Top 3 Lists, I might note) are pretty darn slimy.

The key word is in the title, and that is Optimize, the new Nirvana for all things, whatever you are doing, whatever the topic, it can be Optimized.

If this had been an actual scam you would have:

  1. Been asked for your e-mail address so that I could spam your inbox with even more lousy financial ideas.
  2. Most likely have some malware inserted on your system (much like Forbes has allegedly been doing to their readers). Read my security web site if you want to know about the malware tom-foolery.
  3. Left with the feeling that you have been cheated

You want to fool-proof method to optimize your budget?

Spend less than you earn (net) and save that money, or if you are in debt, pay down your debt.

All in one sentence, now that is Optimized. Seriously, don’t fall for these quick fix ideas. It takes a while to get into financial distress, so getting out of it is not going to be quick either (unless you win the lottery (NO!! that is not a plan!!))

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

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Debts are Like Weeds

Debts are like weeds!

debts are like weeds
Bloody Weeds

Debts are so much like Weeds, removing them (one by one) seems like an insurmountable task, yet, if you go at it a little bit at a time, in a shorter period than you thought, they are all gone, but you have to stay diligent or they will continue to dominate everything.

There is your lawn and finance tip for the day, if you want a fitness tip read Debt is Like Fat .


Questions with the answer, ” Get out of Debt “

Let’s kind of head towards Jeopardy’s model, and here is the answer that you need to ask a question for: Get out of Debt

get out of debt
Working Through Debt Problems

Questions with this Answer?

How hard could that be, let’s see how many interesting questions that could have that simple response:

  1. My wife feels that while our relationship is good, she wants us to be much closer, what should I do?
    Get out of debt, that way you don’t argue about money any more. You can concentrate on the important things in life.
  2. I feel worried all the time, and I have a hard time sleeping these days, how could I fix that?
    Get out of debt, you will then have 1 less thing to worry about. This is the simplest thing in your life to start fixing, so get at it
  3. I never have any money in my wallet, and I am living from pay cheque to pay cheque, which has caused me to be impotent, what should I do?
    Get out of debt, if your money worries are giving you issues with your love life, you really should get the hell out of debt.
  4. I am staying at my in-laws and they are driving me insane because they keep asking me when we are going to move out and have our own place, is there anything I can do?
    Get out of debt, you are living with your in-laws, ’nuff said! Oh and definitely move out if your in-laws live in Debt, Ontario.

Just had to get that one off my chest. Were there any questions that I might have missed?

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Who Cares About Debt I Only Pay 2% on my Mortgage

That was the gist of a comment left on my post Let’s Define Debt Free (which you might have seen yesterday on my Twitter Feed).

Interesting point of view that I don’t agree with for a lot of reasons. Mostly because rates are not going to stay this low forever. I have also never been a big fan of borrowing money to make money.

Having lived through the dog days of the 90’s in the High Tech World, where our CEO attempted to rationalize how for every dollar that Nortel borrowed they made $3 back, it never really made a lot of sense to me at the time, and at the end of it, maybe I was correct in my assumption that this didn’t make any sense. I realize that most businesses do have to borrow to get on their feet. To continuously borrow without paying off debt has always seemed rather fool-hardy to me.

Yes, I could have made a crass comment about how one "poke" from debt could deflate this balloon
Yes, I could have made a crass comment about how one “poke” from debt could deflate this balloon

The statement of why should I pay off debt when I can make more money investing, is fool-hardy? Just how long do you think the gravy train will last? If you have a Mortgage at 3% that you are simply paying down as needed, but you are investing that extra money in the Market currently, you most likely are ahead of the game (i.e. making more than 4% back on investments). Are you sure that is going to last, and are you taking your profits?

Crying Wolf?

This is my other concern. I had many colleagues and friends who were “on paper” millionaires, but never took their profits (and jumped to the wrong conclusions). Many folks did one of the following:

  • Never took out their profits, and they kept thinking that the bubble would keep growing (it didn’t).
  • Borrowed against perceived profits. Using their stock as collateral for loans to either buy oversized houses or extravagant vacations. Those loans were called when those stocks went bust.
  • Fiddled while Rome burned (i.e. didn’t get out because they kept thinking things would get better). I was very guilty of that too.
  • Sold, took their profits, but then invested in even riskier stocks (remember Pets Inc., or Groceries to the Door?). Some of those risky stocks burned through cash and then just shuttered the windows.

These are some of the reasons I am paranoid about Debt (yes I said paranoid) and feel it is a much better “investment” to pay it down, then invest in anything else.


Steroids and HGH are like Debt ?

Steroids and HGH are the great equalizer for athletes and they allow marginal athletes to become professionals, but at what cost? Seems an odd topic for a financial blog isn’t it, but indulge me on this one. Given what is transpiring in Major League Baseball it is relatively topical in terms of current events.

Somatotropine or Growth Hormone

Over the years we have seen some athletes admit to using performance enhancing drugs, starting in the early 70’s and even today I am confident there are PEDs (Performance Enhancing Drugs) being used (that are effectively undetectable (for now)). There are many stories of the athletes from the 70’s in the Eastern Block that have had serious health issues thanks to their use of steroids.  A classic case of short-term gain leading to long-term pain.

Currently we are seeing more than a dozen MLB players who are being suspended for using PEDs (although strangely they didn’t even test positive), and there are whispers in other sports as well, so it seems there are many athletes who are looking for the edge to get ahead.

The same way steroids allow a good athlete become a great one, debt can allow someone who has meager income to afford things that can end up being outside of their means. Debt and Credit  are financial tools (much like PEDs, growth hormones and anabolic steroids are simple tools as well), which if used in an adult manner (or not at all) can help folks financial well-being, however, the way that Credit and Debt are being touted these days, it seems they are way too similar to Steroids in terms of abuse (and financial life side effects as well).

One point to be remembered is that the abuse of Steroids and HGH are illegal in most countries, Credit and Debt are legal (if not completely condoned).



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