LOOKING FOR A HANDOUT FROM THE PRODUCTIVE

We live in a nation that does not understand the way that finance and economics work. Most people do not save for the future because they have put their full faith and trust in the U.S. Government. They look to the government to provide for them in their golden years. They have bought into the Ponzi scheme that the government has foisted upon it’s citizens. Most people do not understand the way that Social Security, Disability, and Medicare work. All they know is that they were forced to pay into the system and they are entitled to be paid more than they contributed.

The way that these systems work is that the productive have to pay into the system to pay for the unproductive. The unproductive are very demanding and will vote to keep this system in force. They are in favor of the unearned. This mentality is characterized that these individuals do not want to go out and compete. They want everything provided for them with no effort on their part. On what legal basis does anyone have to money that I have earned? It is unlawful for anyone to have access to money I have earned.

Anyone that is on Social Security, Disability, or Medicare are already receiving government money without doing anything to earn it. These government benefits are given based solely on age or supposedly not being able to work. These government benefits are not given out because the individual has earned them. There is no effort expended by the recipient of these benefits. These benefits are therefore unearned.

The Frugal Accountant believes in earning his way in life. He is forced to pay into Social Security and Medicare against his will. He does not believe that his neighbor has any lawful right to income that he has earned. He believes that each of us must make our own way based upon our abilities, not by age or medical condition. Social Security, Disability, and Medicare is socialism. With this system, we lose our individuality. We become our neighbor’s keeper rather than our neighbor being their own keeper.

There are many in this nation that seek to continue to turn the lawful world upside down. They are illogical to say the least. They seek to play on your emotion to get something that they have not earned. They will make such asinine statements such as people who still work are not the only ones struggling to make it. Just because someone is struggling to make it in the real world does not entitle someone to receive government benefits.

President Bush has proposed again issuing tax rebates to stimulate the economy. The details of this legislation is beyond the scope of this essay. In a letter to the editor, a retired factory worker from Eastman Company wrote in that it is not fair that he is not going to get a tax rebate. He is on disability. I guess he does not realize that he is already receiving government money. He is receiving benefits he has not earned. He wants to get a rebate also.

He thinks that because he paid into the federal tax system when he worked, he is now entitled to receive a tax rebate. Obviously, he thinks that the federal tax is the same as Social Security. He thinks that if you pay federal taxes that you are entitled to federal tax rebates. He does not understand the way the system works. There is nothing wrong with being a factory worker. All honest work is admirable. What is not admirable is wanting a handout.

He says in his letter, "Where is my check? Why will I not see any of it?" All he cares about is getting his share of this payout for which he did not contribute anything. He is already getting a government check for which he has not earned. He gets this check because of a medical condition. You and I have to work to provide for this man and his wife. Part of our earnings are going to pay for his disability and he is not satisfied with this. He wants even more of our earnings.

Fortunately, this man is being shut out. It is about time that the unproductive are not allowed to take from the productive. What is frightening is that people like this man have the right to vote. Who do you think they will vote for? They will always vote for the politician who will promise to stick a gun in the belly of the productive. These individuals want something that they have not earned. Obviously, this man has no pride in himself. If he did, he would not be squawking. When you receive something without earning it, you cannot feel good about yourself.

FINANCIAL SYSTEMATICS

Everyone lives by a philosophy whether they are willing to admit this or not. Most people are not wholly consistent with their underlying philosophy. Most people do not have a system for each facet of their lives. They will at times try to follow some kind of system. This is good and better if they would follow through consistently. Thinking systematically is complex thinking. It is not simplistic and therefore, the reason that few have established systems.

The computer I am working on is a system. I am typing with a keyboard, on a screen, and it is being recorded on my hard drive which is contained in a box. There are cords going everywhere and yet all of these individual parts constitute one system. Whoever developed the computer system may not have realized that he was using the principle of unity and plurality. The reason that a computer system works is because God is Unity and Plurality. He is One God in Three Persons. Another name for unity and plurality is the One and the Many.

All systematics are based on the foundation of unity and plurality. Finance is the unity and income, expenses, investments, assets, liabilities, net worth etc. are the pluralities. They comprise the whole. There are also sub-unities and sub-pluralities. A Balance Sheet is an unity and it is comprised of three parts, assets, liabilities, and net worth. An Income Statement is an unity and it is comprised of three parts, income, expenses, and profit/loss.

Those who think in terms of systematics will be the ones who generally earn the most income. Being able to think complexly will have the advantage of increasing your income. Developing a financial system is understanding what finance is as an unity and also comprehending the constituent parts of a financial system. This understanding allows the individual to be able to apply his knowledge to his financial situation.

A lot of people do not believe in systematics. This is why there are lotteries. Those who play lotteries are saying in essence there is no way of becoming systematically wealthy. They are gamblers. They are also lazy. They do not want to have to think and produce. They are looking to get wealth quickly. Of course, they will lose is it just as quickly because they have not learned how to manage money. Money will end up managing them.

Systematics requires discipline. In fact, systematics is disciplined application. Once you find what works, you keep working the system over and over again. Systems are the application of order. Using systems brings order to your life in every area that it is applied. Efficiencies are created when things are done in an orderly manner. Your mind can only think of one thing at a time. A system allows you to be able to put together many thoughts all at one time. A lot can be accomplished by the use of systems.

ASSUMPTIONS ASSUMED

Introduction

The bottom line in an income statement determines whether you made a profit or incurred a loss. Profit means that you have been successful at what you were doing. A loss indicates that there are adjustments necessary to becoming profitable.

When in comes to our financial health, we cannot keep enduring losses. This is indicative of spending more than comes in or outflow exceeds inflow. This situation cannot persist for too long. It is better to be in the black than to bleed red. Income statements tell us where we are financially, based upon our decisions. It is a form of either positive or negative feedback.

Our goal in having a healthy financial situation is to increase the bottom line which is our net worth. Your net worth is what you actually own. It is assets minus liabilities. It is the remainder. If it is not increasing, then something is wrong and needs adjusting.

Presuppositions

Honesty is essential in all affairs of life and no less in business and financial affairs. Some believe that you can separate law and business and succeed. Ha, Ha, Ha. It never works that way. The best thing one can do is to be with oneself. If you do not believe me, cheat your customers and see how long you stay in business.

The first thing we have to do is to recognize that each of us are limited. We do not have unlimited anything. There are many self-help gurus who promise that have the ways that will enable you to release unlimited power. This is an attempt by limited man to try to be his own god. It never works because it is simply not possible. These charlatans promise much more than they deliver. Self-help is nothing but designer god-making, a do it yourself god. It is making God in your own image. This is a myth. Avoid it. You need something that works in the real world. Even credit cards limit the amount of money that you can borrow from them. They do not give you carte blanche.

One has to be realistic and use resources that are available. Man is never creative, only inventive. In other words, he can only take what already exists. He does not speak and it is so. He creates nothing ex nihlo. Man is designed to think analogically. This presupposes that man is created. Noah Webster’s 1828 Dictionary defines "analogical" as, "...Thus analogical reasoning is from some similitude which things known bear to things unknown. An analogical word is one which carries with it some relation to the original idea..."

Without first establishing your presuppositions, you will arrive nowhere. This is because you do not know what you want. This will lead to many false starts and then failure. Without direction, you will find yourself doing things just to do them. In other words, there is no purpose nor meaning.

Most people live purposeless and meaningless lives. They lack focus and vision. They do not know what they want out of life and so they do not get it. They do not live up to their potential. This is why it is essential to have a financial philosophy behind all of your financial decisions.

To be successful, in any endeavor, you will need to find a pattern of success. You will have to find someone who has successfully performed what you are seeking to learn. You will need a teacher. Manufacturers use a model or pattern that works. Find out what works and avoid what does not.

Education and Wisdom

Many are under the delusion that having the right education and degrees will ones success. What is more important than education is wisdom. Today’s education is missing the most vital ingredient, the Bible. Without wisdom, you will never be a financial success.
Webster defines "education" as, "The bringing up, as of a child; instruction; formation of manners. Education comprehends all the series of instruction and discipline which is intended to enlighten the understanding, correct the temper, and form the manners and habits of youth, and fit them for usefulness in their future stations. To give children a good education in manners, arts and science is important; to give them a religious education is indispensable; and an immense responsibility rests on parents and guardians who neglect these duties." Education encompasses the whole man and is the responsibility of the parents, not the government.

"Wisdom" is rendered by Webster as, "1. The right use or exercise of knowledge; the choice of laudable ends, and of the best means to accomplish them. This is wisdom in act, effect, or practice. If wisdom is to be considered as a faculty of the mind, it is the faculty of discerning or judging what is most just, proper and useful, and if it is to be considered as an acquirement, it is the knowledge and use of what is best, most just, more proper, most conducive to prosperity and happiness...Wisdom gained by experience, is of inestimable value..." Life is about making the right decisions.

Conclusion

One cannot possibly hope to make sound financial decisions, if he does not possess the requisite knowledge and information to do so. This can either be done by ones effort or by seeking qualified advisors who specialize in a given area.

We can increase our financial acumen by having knowledge of basic financial laws and then applying them to our everyday life. Knowledge, without being able to apply it is worthless. We need practicality.

SPIRITUALLY IN DEBT

Most people would not think that being in debt has spiritual roots but it does. This is because the majority of people do not think in spiritual terms. Being in debt means that someone else owns you. You end up working for other people rather than working for yourself. You are not free to do as you please. You must please your master, your creditors and they can be a hard taskmaster because they can take everything you own from you.

Proverbs 22:7 makes this spiritual condition apparent, "The rich ruleth over the poor, and the borrower is servant (slave) to the lender." Those who are deep in debt are ruled by impulse rather than delayed gratification. They are visually motivated. They see something that they want, they purchase it on credit without regard to how and when they will pay for it. When purchasing on credit and not paying it off at the end of the month means that every purchase is more than the purchase price plus sales tax. Interest expense must also be added which makes the purchases more expensive than their original list price. You have to earn more money to pay off your purchases under this arrangement.

Delayed gratification is self control. It is disciplining oneself. The Frugal Accountant believes in delaying gratification. He is willing to wait and save his money before making major purchases. He will also think about saving his money to make a substantial down payment on a house purchase or car purchase. This brings down the amount that has to be borrowed for these major purchases and ultimately the amount of interest that will have to be payed.

There is an axiom that the spiritual always precedes the physical. The condition of the heart determines are attitude toward debt. The Frugal Accountant does not want to mortgage his future. He does not want to spend his entire life working for someone else. Instead of purchasing a house that will keep him tied down for a long time, he looks for a house that he can afford and meets his needs. It does not make sense to purchase a house that you cannot fully utilize. You are paying for a lot of empty space.

In purchasing a car, one must realize that this is a depreciating asset. It loses its value over time because it is machinery and machinery rusts and eventually wears out. Vehicles are designed to get us from point A to point B. Buy a car that you can afford. I own two cars. Both are used cars. I cannot afford to make payments or the price of a new car. When purchasing a new car, you will also be paying more for insurance than with an used car. If you purchase a car using credit, you have to factor in the interest paid. Many people talk only about the purchase price. Psychologically, they do not want to think about all the costs involved. Purchasing a new car also means that you will be paying higher sales tax.

Real estate, generally, appreciates over time because it is not going anywhere and also it is heavily influenced by the amount of real estate supply in a geographical location. Like a new car, the more expensive the purchase price for the home means that you will be paying higher property taxes and home insurance. Also, when you borrow money to purchase a home, you have the added cost of paying mortgage insurance.

Borrowing money has many negative ramifications. This is why it is wise to take into consideration the effect borrowing will have overall. The Frugal Accountant considers the total cost of purchases, not merely the purchase price. The Frugal Accountant knows that borrowing money adds to the purchase price and means that he is going to have to work harder to pay for the purchase. Learning to live without and saving up to purchase items is prudent and highly recommended.