Mutual Finance

Santa Claus, in addition of being one of the most recognizable figures of society, is possibly the single most important consumer. Santa, in fact, is so important for our economy that I often wonder why is it nobody at either the Bank of Canada or the Federal Reserve System has ever thought of putting his effigy on the Loonie or the Greenback. Santa is the quintessential consumer, a real big spender, and whatever he decides to spend his money on not only is vital to a great many small businesses and stores but it sets also the economic tempo for the first few months of the new year as well. Beyond all the gifts and presents Santa is fond to so lavishly shower upon all of us every year for whatever arcane reasons, his greatest impact is to be found in the way his generosity affects the equilibrium between spending and saving. To be more specific, Santa has the greatest say on the most important element of the economy: the domestic pool of capital.

Consumers Spending is one of the basic pillars of capitalism. Its weight is to be felt both domestically as well as in international finance. Nowhere is Consumers Spending more powerful than in the United States. American consumerism works like a gigantic magnet: not only does it affect the domestic economy - it also exerts its huge gravitational pull on countries as far away as Europe and East Asia. In fact, it can be said that were it not for how Americans spend - particularly at Christmas time - a few of those countries would be chronically on the verge of bankruptcy.

In order to realize how powerful American Consumers Spending really is, one has to take a look at Consumers Saving first. Consumer Saving represents quantitatively two-thirds of the pool of capital out of which the U.S. draws its money for investments and capital projects. It is only natural, therefore, that fluctuations in the level of Consumers Saving reverberate throughout the American economic structure. Generally speaking, it can be safely stated that as the level of Consumers Spending increases the level of Consumers Saving diminishes. This is only obvious, since the algebraic relationship between the two - at equal levels of real (spendable) income - is inversely proportional.

What is a little less clear, however, is the fact that under normal circumstances a decrease in Consumers Saving will be matched by a corresponding increase in Corporate and Government Savings. This is so because since consumers spend more (and save less) to buy goods, corporations and firms will earn more by handling more cash while, at the same time, Government will not be pressured to spend or overspend to keep people employed. Practically therefore, the effect of a jolt in Consumers Spending is ultimately to reduce Government Spending or, as they like to put it in High Finance:

[] Consumers Spending (+) = Consumers Savings (-)

[] Consumers Savings (-) = Corporate Savings

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“Don’t worry about what others think of you… They don’t! They’re too busy worrying about what you think of them.” Rich DeVos

Fear of Failure Itself

It took me a long time to realize that the majority of fear is based on the possibilty of failure. The problem was never the fear itself, but what the fear made me feel. Imagined feelings that compounded the more I dwelled on them.

If you have ever pondered for long on something you fear you know the effect it can have. It doesn’t take long for the irrational feeling of dread to take control. The more time spent dwelling on the negative, the further in despair you become.

How bad can it really be? What would happen if you spent as much time thinking positively about the obstacle. What if what made you fearful was really an opportunity to prove how powerful you are. Your fear is personal growth waiting to happen, you just need an attitude adjustment.

With the proper thinking, fear is only a challenge. In fact, it can lead you to personal development that leads to a greater happiness and well being.

Keys to Conquering Fear

Do not avoid your fear- Take small incremental steps to overcome it

Every time you have to face fear put it in a positive light. How will facing this fear make you a stronger person

Think of rational positive thinking strategies instead of negative programming

Constantly look for ways to improve yourself

Cultivate an attitude of achievement in everything you do

Continue to move toward your goals at all times

Don’t resist your fear, instead relax with the motivation that you can overcome. When you come to this realization it will be a great day. Not only will you have overcome an unfounded feeling, but you will have accomplished another success.

To get your free ebook and learn more about Alexis Froehlich’s #1 business pick for 2006, visit http://www.SecretsforHealth.com

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Two heads are better than one, so sit down with your spouse and plan out your financial future together.
Prioritize your bills.

By determining which bills to pay in which order, you’ll get in the habit of making sure your essentials are always paid first.

Be careful using credit. Sometimes a financial crisis will come not because of a layoff, but because you’re overextended. Most people can afford to devote 10 percent of their net income (after taxes) to installment debt, not including mortgage or rent payments. If you pay out more than 15 percent, you need to cut back.

Establish an emergency fund. Open a savings account and start “paying yourself” 10 percent of each paycheck.

What happens if we run into an emergency and our emergency fund isn’t enough?

Don’t panic. When facing a financial crisis, stay calm. This will help you think logically and you’ll avoid unnecessary arguments with your spouse.

Quit spending money. When faced with a financial challenge, it’s easy to use your credit cards. But you may run up your balance to the credit limit and not be able to afford the payments, which will result in a poor credit ratingsomething you won’t want during a crisis time.

Prioritize your bills. Pay essential, or survival, bills first: food, mortgage or rent, utilities. Next, pay car insurance, medical needs, child support, and any loans such as automobiles and furniture that are secured as collateral.

Then pay the nonessential billsthose debts in which no immediate consequences occur if paid late: credit and charge cards, attorney, medical, and accounting bills, newspaper and magazine subscriptions, life insurance, childcare, gyms, or clothing.

Communicate with your creditors. If you can’t pay your bills or can only pay a partial amount, your creditors may be able to help you to establish a repayment plan.

Some lenders will allow you to defer one payment a year, meaning the payment for that particular month doesn’t have to be made. The deferred payment is added to the end of the contract.

Take notes of any conversations with creditors, listing the date and person with whom you spoke. Whatever arrangement you make, get it in writing from the creditor before you send in money.

Know your rights. Many collection agencies are in violation of the Fair Debt Collection Practices Act. To get a copy of this legislation, visit www.ftc.gov. If you feel you’ve been violated, file a complaint with the Federal Trade Commission at their website.

Find outside help. Many churches and Para church organizations run programs to help you navigate through financial troubles.

A debt management company may also be able to help you reduce your payments, lower your interest rates, and pay off your debt faster than trying to do it yourself.

Such companies can also negotiate with your creditors to bring your accounts current if they’re past due.
Avoid bankruptcy. Bankruptcies should be your last resort. A bankruptcy can remain on your credit report for up to 10 years.

Nathan Dawson writes for http://www.marriedfinances.com and http://www.successfulmarriageresource.com, great online sources for marriage and finance information.

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