Credit and Debt

Posted by on Jan 4, 2016 in Uncategorized | 25 comments

“Rocket Science” Money Tips for 2016

3 CERTAIN ways to go from DEBT to WEALTH

 GoldBag300 1)   EARN before you spend

2)   Spend LESS than earned

3)   Accumulate savings


But why the emphasis on EARN?

Maybe because “modern” society seems to be determined to make us believe that someone or something else owes us a living.

But if you look up the origin of this phrase – “The World owes me a living“, you find the opposite is true.

“No, my son, the world does not owe you a living. The world does not need you, just yet; you need the world…

But don’t fall into the common error of supposing that the world owes you a living. It doesn’t owe you anything of the kind. The world isn’t responsible for your being. It didn’t send for you; it never asked you to come here, and in no sense is it obliged to support you now that you are here…

When you hear a man say that the world owes him a living, and he is going to have it, make up your mind that he is just making himself a good excuse for stealing a living. The world doesn’t owe any men anything son. It will give you anything you earn…”

Perhaps it is in someone’s interest to have us blame someone or something else for our condition?

Perhaps if someone else is responsible then we develop an unhealthy dependency on that someone or something?

Dependency? What does Dependency mean?




1. a dependent or subordinate thing, especially a country or province controlled by another.

2. dependence.

“the country’s dependency on the oil industry”

synonyms: dependence on, reliance on; More


This idea that someone or something else is responsible for what we are, what we do and what we accomplish has been used as a control mechanism – for a LONG time.

Of course if we earn our income before spending it and we spend less than we earn, then we will have a surplus of money. Is this not a much better idea than being broke?

3 CERTAIN ways to go broke

1)   SPEND before you earn

2)   Spend MORE than earned

3)   Accumulate debt

 Credit Cards


Did you ever hear from anyone the idea that you absolutely MUST HAVE GOOD CREDIT?

Did you ever ask why?

Were you given any other answer than – “So you can borrow money of course!”

Borrowing in order to have credit results in an obligation to pay.

This is also called DEBT.

The one sane argument for having good credit is that you have that as a backup to your savings. But should we follow without question those who tell us to borrow and tell us it is a necessary thing to have debt?

Credit Trap

Turn on your TV, pick up a magazine, turn on the radio, surf the net, what do you see?

Credit Card ad

Is it possible that we are constantly conditioned (or brainwashed) into accumulating debt rather than savings?

Does our government set a good example or insist that we educate our children in the BASICS OF MONEY AND FINANCE?

How effective are our elected officials at applying sane financial basics?


Debt Graph


Perhaps some ethics deficient individuals rely on the “rest of us” believing that money and finance are way too complex for anyone other than themselves to understand?


Loan Shark1

Want to break free from the debt trap and achieve Financial Freedom?

Maybe it would be a good idea to start by learning the basics of money and finance.

These are the exact same basics that the “very best” economic minds apparently either do not understand or understand too well.

Yes it IS A GAME.

Perhaps more of us need to understand the rules?

3 bags for Jan 2015 FB ad


  1. ty

  2. Thanks!

  3. Great presentation of the simple truths regarding finance. These basics apply to personal finance or the economics of the country. Very nicely done. I would love to see you write a “basic finance curriculum” to be used in high schools.

    • Thanks John – great idea! We did deliver Financial Competence to hundreds of schools in the 90s and the feedback was all positive. So we need to pick this up again.

  4. Thanks for this succinct punch on a life basic, especially at the start of the new year. It is so easy to go into agreement with spend, spend, spend, that it always helps to be reminded of the small and oh-so-important fact that you have to ensure you have the money before you spend it and after you’ve saved at least some. It’s so important to continuously confront that the barrage of present-day media is constantly attempting to corrupt common-sense living in the most underhanded and covert manner. As Dave Ramsey also said: it’s NOT a myth that some old people actually DO have to eat dog food. Unless one saves for retirement, that type of scenario is no joke.

    • Great – you should be writing Finance Blogs!!!

  5. Good advice. The course is simple and easy to understand.

  6. Yep, these principles should be taught from the beginning in school and practiced by parents to set the right example to their kids. Not a “do what I say not as I do” mentality. The parents can then begin bringing their kids up with these principles with allowance, savings, spending etc.

  7. Really shows that “reality” being pushed is a trap, but so prevalent and accepted that it is difficult to see the trap. Just becomes “the norm”. Insidious. Dangerous. What can a person, much less a society do if encumbered, introverted, unable to see outward because so personally consumed and buried. But I guess that is the plan. Takes education out of this as nobody else is going to reach out and help. Looking forward to your courses.

    • Thanks much Dan – good observation!

  8. Very much needed basics Larry that perfectly fit into our times / continue the brilliant work! Very very well done.

  9. Wow very spot on!

  10. I’ve often said that learning how to balance a check book and learning about basic finances and the trap of credit cards should be taught in every high school as a part of the basic curriculum. Great that you’re putting this out there!

    • Thanks much Laura!

  11. Great article. I find this information to be very very true. Simple pieces of advice but very powerful when applied.

  12. Awesome information. Also, if one were to take even 1% of his weekly income and put it into untouchable reserves (preferably in precious metals like silver), he’d end up a very wealthy person.
    All the best,

  13. This looks great and is something nearly everyone needs. The fact that kids graduate from High School and cannot balance a check book or know how to set up a budget is a sure formula for failure and existing in a state of slavery.

    • Great comment Lance, thanks!

  14. The simple subject of economics that you cover above in three succinct steps, has been confused in a magnificently Machiavellian obscuring of motive—to coast along on the backs of other people’s sweat and tears. Mis-educating everyone to think the same way may allow the perpetrators to blend into the fog of a lowered moral standard, but in the long run, undermines their own position—if nobody works, from whom can they skim, what wealth can they siphon?

    • Hey Steve – thanks very much for commenting!I think this says you agree with simplifying the subjects of money and finance? 🙂 Hi to Monica – we should hook up?

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