I posted about your site on my blog as well!
http://momsfrugal.blogspot.com/2009/01/frugality-for-men.html

Great job here! Love it!
-I will look over your ebook and likely use it for my teen boys.
Blessings!
-Donna-

Just wanted to send out a message about a website I created (www.finmind.com) for personal finance since it could help out people in this group. I used to do all my finance stuff on Excel, but that was a pain because I had different versions floating around on different computers.

This website does stuff like track expenses, create a budget, etc. If you want to give it a try, visit http://www.finmind.com. It’s free and I am not making any money off of it (no ads). Send me any comments if you have feedback or suggestions.

Thanks,
Eugene

Recently here in Australia, employees of several financiers have complained that they are pressured to “sell loans” to people that can’t afford to repay them.

Fortunately, savings here are (slightly) higher than in the USA.

I truly do believe that debt is the freedom killer. So many of our friends have rushed out and bought really prestigious newer homes that’re beautiful, yet they’re so far in debt with the mortgage that they can’t afford a bucket of paint to change anything up.

Conversely, my wife & I bought a dumpy, diamond in the rough, fixer-upper home in a decent, but far from upscale neighborhood. 12 years later, it’s unrecognizable! We’ve redone every room (to some degree), including an extensive overhaul of the kitchen and one of the bathrooms. We’re planning to gut & redo the master bath this Summer. Point is, the house was very low priced so we’ve been able to easily afford to do lots & lots of upgrading to make it into a very nice home. It’s still quite modest-sized – and features none of the vaulted ceilings or other trappings of the new McMansions – but we love it!

All of us are slaves to the banks. Let that sink in. Everything you see, pretty much, is not owned outright. A lot of it has been purchased with consumer credit card debt, mortgages and second mortgages. The boats, the cars, the SUVs, computers, playstations, and the houses are all being purchased on somewhere between 5% and 25% interest. Very few people pay cash on the barrelhead these days.

I worked for a commercial bank for over 2 years. Banks don’t like to be undercollateralized. They’ll jack up your rate, cut down your access to credit, demand more collateral or interest when they think you’re a risk. God forbid you miss a payment or bounce a check. If you don’t have money, they’ll charge you more! Here’s a particularly funny comedy routine about this ironic situation:
http://www.youtube.com/watch?v=rpaCQKJpE9k

And, as we can see from the most recent economic news, the banks live by different economic rules than we do.

There is no such thing as good debt. You may think leverage is a good thing, as long as you’re on the right side of the lever. But conditions in the marketplace can change rapidly. And — unless you’re like Donald Trump — you won’t be able to negotiate when your creditors come calling or it’s time to face a margin call.

I’m on a mission to pay back all of my debt within the next 20 years. I may get lucky and get everything paid off in 10 if I transition from a well paying IT job into an even better paying job at a big law firm. Most people aren’t as lucky as me.

This consumer culture is sucking us dry. The inflationary policies of the federal reserve are a disincentive on savings. The concept that there is good debt flies in the face of centuries of human wisdom.

Reject consumerism. Take advantage of the 401k and, if you’re lucky like me, the employer matching funds. Invest in precious metals or foreign currencies like the Swiss Franc as a hedge against inflation. Teach your kids that DEBT = SLAVERY. Get off the grid. Live frugally.

Good points. Some debt is inevitable and even helpful, but should be approached with discipline and self-restraint.

Do you have a source for your statement that most bankruptcies are caused by medical expenses? During the summer I worked at the Dept. of Justice, the number of non-medical related bankruptcies were outweighed by those caused by poor financial choices. Of course that isn’t a scientific sample, so I would be interested to know if there are any hard numbers out there.

I’d also point out that not all debt is bad. Borrowed money is not some evil, corruptible force. Debt is just another tool. One that can be used to great benefit, and even profit, if you possess true discipline and self-control.

Also, unfortunately, some debt is unavoidable. It isn’t always about Grande Lattes or pimped out SUVs. More people declare bankruptcy due to medical debt than any other reason.

The American economy is in a downturn, but be cautious of fluff statistics and sensational reporting making things look worse than they really are. Things are rarely so one-sided or bleak.

Lastly, don’t lose faith in your fellow Americans. This nation has seen far greater challenges than this. We will carry this burden, just like we always have.