Tapping your 401K? Why do you think you deserve what you can't afford?

http://www.msnbc.msn.com/id/23241606

The thing about articles like these is that they keep getting written, yet almost everyone in the blog boards disagree with them. Most people realize they are stupid and want things that they can't afford so they do the responsible thing and go without. For those of you who get it, skip to here. For those who don't get it, here it is again.

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It is a simple fact of life. Life is all about value. Value of friends, value of family, value of health, value of what you can provide to society...Yeah, that's right. Value of what you can do for your employer. I'm pretty sure everyone understands that billions of people can shovel dirt for a living and that is why shoveling dirt isn't a billionaire's job. Few people can play in the NBA (I've heard about 400?), though, and hundreds of millions of people pay to watch NBA games and thus NBA players make millions.

The problem with the article above is that it panders to those who think they are more valuable than they really are. Trent Charlton is one of those people. The second there was mention of a BMW it confirmed what I already knew, Trent thinks he deserves what he has.

I hear it all the time "I work hard so I deserve a (fill in the blank) BMW." This is the problem with people today. Working hard isn't a sign of being valuable anymore. When physical labor was required and in short supply, working hard meant something. When labor was so simple that finding an employee who shows up was half the battle, putting in the hours meant something. Today you have to be valuable. Simply showing up to work every day and doing your job is required, millions of people do this every day, but it isn't very valuable. Get it?

So what to do about spending more than you make. I love the hypocrisy of main stream articles. The article above claims that Trent is taking out the loan to pay for basic necessities. Here's the problem in a story.

I know a person who works at a cable company and she gets people coming in saying "If I pay my cable bill I will not be able to feed my kids." She gets about 3 people a week claiming this. SAY WHAT? I'd say "Thanks for telling me that you are abusing your kids so that you can watch TV! By cutting off your cable today you can afford $80 more a month in food! I'm glad I could help. Don't come back now!"

Instead of emphasizing the importance of making good decisions and taking responsibility (like not buying a vehicle with a $520 a month payment if you can't afford it and not having multiple credit cards let alone maxing out your credit cards you do have) I'll focus on what "necessities" to cut. Unfortunately, I can't even get my head around the bills (necessitates) people pay for monthly because, well...I think it is a waste of money (NetFlix, club memberships, junk like that).

First, how do you owe money on camera equipment? Are you using it as a business that you tried and failed at? (If so...good job! We need more small business pro's like you and keep trying; you'll figure out how to make it work.)

1.Cable, dish network, whatever other TV provider people pay for these days. First thing to go.

2. Cell phone. Did you sign up for a 2 year contract to get a "free" phone? There isn't a reason for this.

3. All monthly club memberships.

4. All entertainment expenses (going to movies, renting movies, buying ice cream, driving for no reason...

5. Start eating cheaper food. Are you use to wine and fine cheeses? Try again.

6. Start doing things yourself. Use to getting your oil changed, tires rotated, house cleaned, lawn mowed...Get out and get some exercise, it will make up for that gym membership we cut above.

7. Disconnect your Internet connection. 10 years ago you didn't even know what it was, you can live without it. At least cut the speed back.

8. Lower your auto insurance coverage amounts, raise your deductibles on your health insurance.

9. No new purchases for at least 6 months. Why? You don't have enough money, that's why.

10. Ditch the 3rd car if you have 3 or 2nd car if you have two. If car pooling/riding the bus is embarrassing, welcome to being poor because you can't afford to have the things you have.

Sound too harsh? I think it is harsh I don't own two yachts, I have to work in the first place and that life isn't fair. But that's how life is. I can't provide enough value to society (or as I look at it I choose not to) so I can't have it.

I'm going to say it right here, right now. Anyone who thinks that professional sports players are over paid or that doctors make too much or CEOs (except the rouge few that make the news) make too much...YOU ARE AN IDIOT. OK so maybe not an idiot but you are clearly misguided. I wish I could perform the evil rich man poor man test on you and give you a chance to truly earn few million and watch how your attitude changes about rich people. But, that's another article.

I'll add to this article as I think about it more and talk to other people to see what they are spending their money on.

Copyright Findawish.com
02-19-08