$16 Muffins and What We Can Learn From Them
The Department of Justice spent $4000 for 250 muffins. Doesn’t it seem sort of extravagant when you do the math? They also spent $121 million on conferences in a two year period including $600,000 on event planning. Now our cash strapped country has to pay the piper for such lavish spending. So what can you learn from such wasteful spending? Accountability and fiscal responsibility come to mind.
As we headed into a recession the government kept spending and spending. Soon we found ourselves deeper and deeper in debt. Rather than cutting back or at least try to control spending by purchasing cheaper muffins, getting competitive bids or hiring a full time staff member they continued down a path of irresponsibility. Obviously now drastic measures need to be taken to reduce spending, cutting costs and reducing debt; all this while trying to stimulate our troubled economy. Or they will need to come up with more money, aka raising taxes.
So what exactly does this have to do with you? While it is really quite simple, when times are tough it make sense to cut back on the little things to reduce spending rather than continuing on a path of debt and self-destruction. Things like skipping the mani-pedi, brewing your own coffee, bringing a bagged lunch or working a second job are small sacrifices you could easily do to save money and fund your emergency fund. By having such a fund, if something happens like your car breaks down or your roof leaks you will have the money to repair it. You wouldn’t have to incur debt or make drastic financial decisions.
Obviously there will always be the individual who continues to spend $300 on a pair of shoes so people won’t think they are hurting financially. But the truth is that you can only do that for so long before you get in over your head. At some point it isn’t about brewing your own coffee, it becomes about selling your assets such as your annuity, your car or your home just to survive. No one likes bill collectors and being in debt isn’t a picnic either therefore wouldn’t it make sense to live within your means and create a budget you can stick to?
Rescue Capital has a few tools on their website that can help you to reach your goal of financial responsibility. We are also looking into developing other tools too so if you have any suggestions on new tools or ways we can improve the ones we have just email us at rescuecapital@gmail.com
Controlling fear in a down market could be profitable
Thanks to the S&P down grade; the stock market took a nose dive Monday morning. Investors are panicked and dumping their stocks in droves rather than risking further losses. However, this might not be the wisest decision. By keeping a cool head, experts believe that you, the individual investor, can benefit from others’ fear.
I am not a stock or financial expert per se, but I’ve been around the block long enough to know that the stock market will eventually rebound. I also spend a great deal of time reading financial magazines, blogs and newspapers. According to the experts, one of the worst things an investor can do right now is panic, sell their investments and ask questions later. While it is typically against human nature to do so, remain calm and not flee is what you need to do. I know it is hard when the same experts write articles about the next recession.
Next, it is time to do some research. Look at what you have in your current portfolio and try to look for opportunities to diversify your holdings. Make a list of stocks you would like to buy but you can’t afford. Watch and wait. If they drop to 30% of their current price buy them. Eventually your affordable stock will rebound and you can gain a hefty profit. Think of all the investors who bought during the weeks after 9/11 or when Toyota tanked. They made handsome profits from a crisis situation.
Obviously I am not suggesting you dump all your money into the stock market or borrow money you don’t have to finance your purchases, but if you have some money in a savings account, CD or an underperforming annuity it might make sense to re-invest your money.
If you have an annuity and you would like to look into the possibility of re-investing some of your future payments, give Rescue Capital a call 866.688.3532.
Have you reached your debt ceiling and don’t want to default or file bankruptcy?
The U.S. government has hit the debt ceiling. Treasury Secretary Timothy Geithner, is now urging Congress to raise the debt ceiling or the country’s legal borrowing limit. Wouldn’t it be nice if we could all increase our debt ceiling? Although it’s highly unlikely credit card companies, mortgage companies, or even the local banks would allow us borrow more than we can pay back because it is a huge risk they are not willing to take.
Structured settlement annuity holders do not have the option to ask their creditors for more of a limit, in fact, the only option they may have is to pay the money back in full, in installments or default on what is owed. Defaulting should be avoided at all costs. Not only does it affect your credit and future borrowing ability but the process of filing bankruptcy as well as losing everything can be emotionally turbulent.
Many of those with annuities or structured settlements who have reached their debt ceiling don’t have Congress to turn to. However, they can turn to Rescue Capital and convert their annuity into a lump sum. With the option of selling a portion of their monthly payment s or a lump sum that is due in 5, 10, or 20 years away, annuity holders can take control of their budget today.
Just as the U.S. Treasury Secretary has long-term and short-term goals in mind, so should you when it comes to selling your annuity.
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