Ground Hog Day

Thought for the day: “The definition of insanity is doing the same thing over and over again and expecting different results.” - Albert Einstein

I had been toying with the idea of starting a blog to share money-saving tips with people. I know there are already hundreds if not thousands of websites and newspaper/ magazine columns dedicated to this very thing already out there. But the more I heard experts giving advice on how to save money, the more I realized they were telling folks how handle their money pretty much as I do. As I am already working on a book about eliminating debt it seemed like the perfect time to begin helping folks to save their money. You won’t get rid of your debt until you learn how to save.

I wanted the blog to look polished and sound professional, so I began putting thoughts down on paper and planned to have a year’s worth of posts gathered before I even went live. Then I made a recent trip to a “finance” company just around the corner from my house. I had gotten a flyer in the mail advertising cash loans up to $2,500. Curiosity got the best of me and I grabbed the baby and rode over to see what this operation was all about. The name included “People” and “Finance” implying that they were the finance company “of the people.” I wanted to know what kind of financing options the people have these days.

When I arrived at the “finance” company address I found it to be in a shopping strip location. I expected to see huge dollar signs on the store front and signs advertising Pay Day Loans! and Car Title Loans! There was nothing of the sort and when I walked inside the front office looked just like a bank lobby with all of the desks lined up on either side of the room. The young man behind the desk to my right was the first to speak, “Yes, how can I help you?”
“I’m here to inquire about a cash loan.”
“Do you have your account number?”
(No, moron I’m “inquiring about a loan”)
“No.”
“Okay, what’s the last name?”
“Parchert (no danger in him being able to spell that), why do you need that?”
“I’m sorry. Are you making a payment today?”
So now I break it down into very simple English. “I received a flyer in the mail from your company. It said you do cash loans. I need to speak with someone about that.”
“Yes, I can help you with that. First, let me get some information from you.”

I remained polite the whole time I was there. I just didn’t offer any information and explained to the young man that I just needed some information from him. I said, “Well, before we get started I’d just like to know what kind of rates you’re offering.”
“That depends on how much you’re borrowing.”
The flyer had said “up to $2,500” so I went with that figure. The “banking professional” turned to a chart on the wall and found that amount of money. He slid his finger down to the corresponding interest rate and said, “That would be 42%.” (Holy %#&?!) I rose from my chair, picked up my baby, said, “Thank you. I’m sorry for taking your time. I thought this was a legitimate finance company” and left.

Okay, so I fibbed a little when I told the guy I thought they were a real financial institution. But I had hoped they were offering “the people” a little better deal when interest rates are at an all time low. Unfortunately, with low rates and high unemployment it is a time when these types of companies are thriving! People are starving for cash and will destroy their financial future just to get through this month. The hounds are out there offering quick cash and preying on the desperate.

That’s when I realized “The People” need this blog now. I don’t want to just help you save money when you go to the grocery store (but I will incorporate some shopping secrets along the way). I want to share with you the philosophy on handling your money that I learned growing up. I took for granted that we were all pretty much raised the same way and viewed spending and saving in a similar fashion. Then I got out in the real world and found I have a very unique idea of how to conserve that which I have without depriving myself. I'll be sharing this philosophy with you one post at a time.

Another reason for starting this blog today is that it’s Ground Hog Day. If you have seen the movie you know where I’m going with this. Bill Murray is a weatherman doing a report on Ground Hog Day. He keeps waking up on the same day, doing the same thing, running into the same people in the same places and having the same conversations. Day after day his alarm goes off with the same song playing and once again it's Ground Hog Day. Maybe you are in a financial tailspin. You keep trying over and over to get out of debt but can’t seem to make any headway. Chances are you are repeating the same mistakes that got you into a bind in the first place. Don’t worry, there’s a light at the end of the tunnel.

Your money saving tip for today: Think long term. Be patient and good things will come your way. More on this tomorrow.

Jason