Bankruptcy of America – A Game Plan

For those of you just joining us, this post is part of a series   -  I have been reviewing a seminar I attended put on by Jerry Robinson entitled “Bankruptcy of our Nation”. You can find out more about his seminars and books by going to www.jrmi.org.

After all the bad news that Mr Robinson delivers about the economy and our national economic condition, he then gets to the practical part, his ten recommendations on what to do. You could sum up this section with the saying “Get your mind right, than do right!”. Today I will cover the first five recommendations:

1. Admit that man cannot rule man. Men are going to fail, which means governments, businesses, financial institutions, etc. are going to fail. So plan accordingly. Be prepared.
2. Commit to Financial Education. Research and learn – don’t just believe everything you hear. There are three teachers in economics that try to tell you what to do, be careful of them: corporations trying to sell you things; media that helps them sell things; and bank and financial institutions that provide the money or debt to buy those things. Avoid the “herd” mentality (following everyone else). Study to learn how investments operate and function. Do your homework.
3. Create a network of family and friends. People are the greatest asset. We all need family and friends to help us, and for us to help.
4. Give to Charity. This is the number one tool against materialism. This current generation is 480% richer than the generation that lived during the Great Depression, and yet we give less percentage wise than they did.
5. Save 15% of your income. There are five factors that erode our finances, so we need to plan and save for these factors:

(a)     Taxes

(b)     Inflation

(c)     Planned Obsolescence (things need replaced)

(d)     Deferred Expenditures (things we will need to save for to get)

(e)     Technological Advancements (computers, cell phones, etc.—upgrade)

If we are not saving 15%, then we will sooner or later get hit – and hit hard. We    need to plan for these expenditures that will happen.

Well, those are his first five steps. How are we doing? Although I don’t agree with everything he said (the gloom and doom especially), I think these first five steps are a good beginning for anyone to do. I liked the explanation for the 15% saving rate. It is the first time someone explained in some detail how much and why. Now, I am no where near that, but on the surface it makes sense – definitely something for me to consider.

Tomorrow I will go over his other five recommendations. Trust me, some you will know, some will have a twist!