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http://www.askmrcreditcard.com/creditcardblog/carnival-of-money-stories-show-and-tell-edition/

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Another friend told me that she works with a local non-profit that works with minorities to try to encourage them to open bank accounts and teaches them how to balance checkbooks, etc. The problem they face is that the community cashes all of their checks at the local liquor store or check cashing store because they don’t believe in banking for some reason.

Basic financial education should really be a mandatory course in school. I was lucky enough to have such a program, but then we have that sort of stuff in the Midwest.

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She sounds clueless, but part of the problem might be that she hasn’t found anyone to talk to about these issues–they are uncomfortable to them or they are just as clueless themselves. (The exception being her real estate lender, who gave her plenty of advice which she never should have taken.)

I’d recommend the Vanguard total market fund.

I’d ask why she doesn’t like banks and ask her how those problems compare to the problem of carrying around the cash. Easy advice: put it in a drawer; do not take it out unless there is an emergency.

I’ve met plenty of people who ask for advice and can’t take it–those people just have to hit rock bottom I guess.

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“Janet” obviously cannot be reasoned with and while appearing to ask for advice will actively refuse to consider any that involve, you know, changing anything. I know lots of Janets who pull the same damned act all the time; they like to bitch and moan and play poor duped victim when 95% of their woes were brought on by their own bad decisions, but when offered a way out it’s always “oh I can’t do that… can’t cut back, can’t save, can’t can’t can’t” which always means “I won’t.” Well then stop wasting everyone else’s time and go run out back and shoot yourself and do the species a favor.

Pet peeves; I got a whole litter of em.

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And it gets better…I got bored after 4 months of “Retirement” so went back to work driving a bus for (insert name of Major Theme Park in Orlando) that transports their College Program Students around.

It’s great to talk to the kids but some of the overheard conversations….especially the Cell Phone ones can be truly unbelievable.

But about Janet….She is going to be in a lot of trouble sooner or later…probably sooner.

She needs to convert the ARM to a Fixed as soon as possilbe before the Credit Crunch makes it impossible and she becomes one of the Foreclosed who needs an Apartment…and with the vast numbers of them going to be needed and the short supply Apartment rents are going to go UP UP UP in the next 2 years..

For investing she needs to do something simple like an Index Fund with Vanguard or Fidelity and have an automatic depostit from her Paycheck…Yes thats possible I have it done from mine to a Vanguard Fund….Very simple to set up and better than an automatic from the Checking Account…the Money never gets to the Checking and so she won’t forget about an Automatic Withdrawal coming up and spend the Money and incur the Outrageous Bank Charges.

As for the bit about carrying around a lot of cash and spending it…she doesn’t have the discipline to carry it so it needs to be in the Bank.

Personally I tend to carry around a lot…usually $3000 or so but I also trained myself to think through any purchase…no matter how small…before actually through with it.

The advantage of my carrying so much is that I can usually get a Great Deal when I want to buy something….its amazing the discounts one can get when one is standing there fanning oneself with a stack of Hundreds….The KNOW you are serious and have the Money to purchase and I’ve often had salespeople drop other customers to come wait on me.

Besides…its comical to watch them Drool…}:~D

~ Roland

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She was so overextended on all her credit it was ridiculous- but everyday I would hear her arguing with creditors about how she needed to get cut a break. Sadly, this would only enable her to extend on the next card.

She had all the latest shoes and fashions- to the point where she would have a new outfit almost everyday. She moved to another department and we still have two huge boxes of her shoes in our coat closet- for when she’d change up from boots in the winter.

Her daughter *had* to go to private school because of behaviour concerns regarding the kid’s friends at the public school. The daughter *had* to belong to cheerleading (unaffiliated with the school) as an afterschool activity- to the tune of hundreds of dollars for cheer training, trips, outfits, etc.

Its crazy how mixed up “others” priorities can be- but then I realize I am those peoples “other.” They see me as a miserly freak, barely eking out an existance for my family of 6 on one income.

Whatever.

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