Live without extravagance

Warren Buffet, one of the richest men in THE WORLD, lives in a five-bedroom house he bought in 1958 in Omaha, Nebraska for $31,500.
I don't know him well enough to say he doesn't live without extravagance in other aspects of his life, but I admire the aforementioned fact.
In today's world, people seem to be out to get as much as they can as quickly as they can. We used to keep up with the Jones and now we have to one-up the Jones.
I believe that the Lord blesses us with all things. I also believe we are accountable before Him for the way we use what He has blessed us with.
Do we use our assets for extravagance? To prove something to ourselves or others? To live only in the moment and give no thought for tomorrow? To help only ourselves, giving no thought for "our neighbor"?
At the judgment bar of God, when He gets out our financial/fiscal records, where will we stand? Did we stand in a great and spacious building and point fingers at others who had less than we did? Did we wear fine-twined linen with little children in our midst wore rags and no shoes or winter coats? Did we pay our tithes and offerings? Did we cheat our employer? Our neighbor? Our creditor?
Do not judge others, only yourself? Where do you stand?

Inflation in the near future??

It is likely that inflation and higher interest rates may be coming. Obama has flooded the economy with cash and these two results are likely to happen as a result. One as a consequence of more money in the system to buy the same number (or less) of goods and one is a consequence of trying to reign money back into reserve.

Do you have major purchases in your near future? You may be better off now to go ahead and make the purchase.

For an example: we have a very old furnace, air conditioner, and water heater. We know they will not last much longer. Every summer we hope and pray that the air conditioner will last one more season.

If we buy now we can take advantage of low prices, low interest rates and a tax credit.

If we wait until we have a problem and are forced to replace them at the last minute, we may have to buy them with inflated prices at high interest rates. In addition, the tax credit ends this year.

We do not have the cash now, and likely will not in the next couple of years. We are better off purchasing them now however and saving ourselves the headache of dealing with an urgent need and paying more due to inflation at a higher interest rate.

Are you going to need a car? Now may be the time.

Christmas Giving

If you watch the news, the buzz word for the week was BLACK FRIDAY. I don't like that term in the first place, but whatever. More importantly, all of us are trying to figure out how much we are going to spend on Christmas. This is not rocket science. How much did you save? How much do you have?

The average family spent just under $1800 last year. I guess we're average. However, it's NEVER wise to use debt as a way to finance gift-giving. I would feel just terrible if I knew you had gone into debt to buy me something I probably don't need in the first place.

You don't have to (and shouldn't) spend alot on gifts. The important thing is the thought in the giving, not giving just to give. Remember the reason for giving. We give as a symbolic gesture because HE gave.

Ideas for Mom and Dad under $20:
Wonderful scented candle (with a lid)
Lotion (scented or unscented)
Ear rings (pierced ears)
itunes card (we might be old, but we're not dead)
a tie
a scarf
stamps
restaurant gift cards
a nice flashlight
umbrella
measuring spoons
DVD/CD
Wii points
a handbag (with a cell phone pocket)
a wallet
pens
assorted greeting cards
magazine subscription

Credit Card Magic

Having a credit card can be a valuable asset in times of emergency. It also allows you to rent cars and hotel rooms. If used properly you can be rewarded in other ways.
First, don't use credit cards to borrow money, which is essentially what you do when you buy things you cannot pay for on that billing cycle (borrow money from a bank when absolutely necessary and pay far less interest). Use your card only for purchases you can pay for in full when the bill comes due. Never allow yourself to pay interest or late fees on a credit card.
When we were first married thirty years ago we decided we would reap the rewards of having a credit card without paying the penalties. When we use our credit card we record the transaction as though we had written a check. Consequently our bank balance shows our true balance. Instead of recording a check number place a CC in the space. Then when the bill comes, compare it with your checkbook registry to ensure you have recorded everything, checking off each transaction as cleared, and write a check for the entire amount. You won't need to subtract that check from your balance because you have done so throughout the month.
Following this plan you can build good credit and enjoy the added benefits offered from banks, i.e. cash back or airline miles (our favorite).
We do have a $50 fee each year for our credit card but we earn an airline ticket about every five months. Two airline tickets for $50 is quite a bargain.

Never late!

If you don't have your bills set up for automatic payment (which I highly recommend), then sit down and write a check the very day you get the bill in the mail. Mail it out that very day, or the next. You will never forget to pay a bill and will never pay unnecessary late fees.

Recipe for debt

When your yearnings exceed your earnings.

The Gift

The following is a story I read on www.foxnews.com today.

There are some really nice people in the world.

DALLAS —

A Texas woman went to a housing auction distraught about the prospect of watching strangers bid on her foreclosed home.

Then one of those strangers bought it back for her.

Now Tracy Orr can return to her Pottsboro home, making payments to the woman who unexpectedly and impulsively bought it for her.

"It means so much to all of us," Orr told Dallas television station WFAA. "It's not just a house."

Marilyn Mock said she was acting on instinct on Saturday when she decided to buy a house she had never seen for a woman she had never met. Mock was at the foreclosure auction to help her 27-year-old son bid on a house when she struck up a conversation with Orr, who was crying about losing her home.

Orr had bought the house for $80,000 in 2004 but fell behind on the payments. She lost her job a month after taking out the loan, and earlier this year she lost the house. On the spot, Mock decided to buy it, eventually bidding $30,000.

"She didn't even know if I had a job or was a nut case," Orr said in a story for Wednesday's online edition of The Dallas Morning News. "She didn't even see a picture of the house."

Mock told a crying Orr she could stay in the house, making payments to her instead of a bank.

"She needed help. That was it," Mock told the newspaper. "I just happened to be there and anybody else would have done the same thing."

Orr said she hopes others will do as Mock did.

"More than my house, she gave me something inside, and that's more important than material or financial things," she said.