First Step to Mastering Your Finances is to Ignore What Chase Says Matters


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There are many things which come together to make for a successful business enterprise. These things are conveniently divided into four key managerial
segments or functional areas of business including the production, marketing, human resource development and finance.

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First Step to Mastering Your Finances is to Ignore What Chase Says Matters

  1. 1. ==== ====The Truth About Managing Change: ====I couldnt believe this commercial I saw recently. Well, thats not really true, not much surprises meanymore. Not the extent to which people through ignorance or intent can get their personalfinances so screwed up, nor the lengths lenders will go to help them along that slippery path.The commercial in question showed a guy in some store sitting in what appeared to be his ownprivate home theater. Hes in a big leather lounger, in front of a huge widescreen HDTV, with thesurround sound and so on. The look on his face is pure ecstasy. You can see the wheels spinningin his mind trying to figure out how to obtain this setup for himself - now!What you hear next is the pitch from Chase - that by merely using his cell phone to send a textinquiry, he can find out immediately if theres enough room for this charge on his credit card or lineof credit.Does anyone not see the absurdity in that?I mean its nuts on so many levels its hard to know where to start.Unfortunately, far too many will not have a clue to what Im talking about, and if they arent already,they will likely soon join the millions currently in debt over their heads.For those few that genuinely want to understand whats so foolish about the above scenario, readon. The rest may as well stop reading now - enjoy your life, good luck.First off, no one should ever be unaware of their credit card balance - mainly because the onlyresponsible way to use a credit card is for convenience and pay it off every month.Secondly, you will never get ahead by living beyond your means. Doing so, means no saving, noinvesting, no way to ever stop working, retire early and enjoy doing what you really want.Carrying a balance is like paying for something 10 to 20 times over. Its amusing that peopleactually invest in the stock market and yet carry balances on their credit cards. Think about it, ifyour card charges you 18% interest, you can make an 18% return simply by paying it off. Thatsalmost twice the market return of 10% for the last 70 years. Duh........So heres the summary of whats wrong with the commercial above. The guy is carrying a creditcard balance, so he overpays for everything; he has no clue what that balance is; the fact he has abalance shows he lives beyond his means; hes about to live further beyond his means withanother unnecessary expense, which will compound the existing problem.
  2. 2. Can anyone say treadmill.....?I was disappointed in seeing Chase air such a commercial. Id like to see them and others takemore responsibility in not leading ignorant and gullible consumers down the garden path.However, I have no ability to influence what companies do, and their responsibility is to make adecent return for their shareholders. So heres an idea, stop paying Chase and start makingmoney off them by getting rid of their card and buying their stock.Theyre actually owned by JPMorgan - you know, the guys that just bought up Bear Sterns at afire-sale price - and did it with the Fed backing the lions share of high-risk debt. Pretty cool deal.Bear was one who got burned by being up to their ears in subprime mortgage backed securities,when the bottom fell out. Thats another level of foolishness, but a discussion for another time.However, not all that debt will turn out bad, and at pennies on the dollar, plus being pulled downwith commercial banks in general, JP may be looking attractive. Besides potential growth, theyeven pay a decent dividend.By the way, thats just a thought, nothing said here may be construed as investment advice.However, getting rid of credit cards, at least their balances - that, you can take to the bank!In various blogs, John Allen writes on a range of topics from technology to finance. Read more onmoney, getting out of debt, alternate work-styles, retiring early, subprime, etc., in his commonsense blog or check out watches on where he indulges a fancy withwatches and the history behind more notable timepieces. You can also find some great deals.Article Source: ====The Truth About Managing Change: ====