Lesson's from the US housing crisis!

I just read this article here. The Americans have got them selves in a pretty sticky situation. As with every challenge there is a learning experience. So what can we learn from this?

1) Don’t bite off more than you can chew. If you can not afford it with out the use of “creative” financing then do not buy it.

2) Stop living off credit of any kind. If you are a home owner take advantage of our debt elimination program, other wise start rapidly eliminating your debt.

3) Make cash king. Save for your large purchases, most people really do not pay off those ” don’t pay a cent, no interest for 5 years” sales at the big box stores, before their terms start to kick in.

4) Improve your credit rating. It is easier than you think. Start by paying your bills on time, keep your balances well below your limits. However once paid off, keep them open, as your self control you show by keeping zero balances will help prop up your credit.

5) Start your own business. Get paid for something that you are good at. It is also a good tax deduction. See you accountant for full details.

6) Last but certainly not least.  Learn to invest. Face it you are not going to work forever. Some day you are going to want to leave the working world behind. Make sure you are ready for it. Be a good student, read books like “The Wealthy Barber”  or “Rich Dad Poor Dad“.

If you would like us to help you eliminate your debt, just let us know.

Cheers,

Pat

p.s  I also just discovered this great book on Amazon, “The Subprime Solution” Let me know what you think.