Bailout: Where You Throwing Your Money?

Our government is about to unload another HUMONGOUS stimulus package to improve the economy.  Whether or not it serves its intended purpose remains to be seen.  Our new president and Congress believe that saturating the economy with more money will restore the economy’s health in the long term.  Let’s make the bailout personal.  How much has excessive spending helped your personal finances?  What are you throwing your money at?  What results are you getting on your expenditures.  What percentage of your monthly income is spent in the following areas:

DEBT

Non-mortgage debt – credit card payments, signature loans, student loans, vehicle loans, etc.

Mortgage Debt – Principal, Interest, Taxes, Insurance (Home)

Food – Groceries, Eating Out,

Insurance – Car, Life, Health, Disability, Long Term, Dental 

Entertainment  – movie rentals, vacation,

ASSETS

Savings – Emergency Fund, long-term savings

Retirement – pension, 401K, IRA, Roth IRA, SEP-IRA, Roth 401K, etc.

It’s important to know what returns you are getting on the dollars you spend? Are you spending a lot of your income on servicing debt?  How much of it is being spent on assets?  Unlike our congressman, you have to be accountable for your financial choices.  While it’s unclear who will pick up the tab for our government’s spending, you are accountable for what you spend. Do yourself a favor and spend money on things that appreciate rather than depreciate. Adios!

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