Recent Events
Many of you are well aware about the recent Taliban attack in Peshawar Pakistan that has killed 145 people, including 132 children. This unspeakable atrocity has been treated as a planned operation to oppose the Pakistani security force activity against Taliban in Pakistan. Taliban is essentially targeting the children of the people who are fighting them. However, the Taliban has been targeting the Education system in Pakistan for a lot longer.
Poison in Education
The root of all evil in this world can be found in the degree and scope of education a society provides for its youth. One of my classmates in college once told me - "my parents did not want me to be educated in Lebanon, which is why I went to school here (Hartford)". The reasons that Syed's parent's didn't want him to be educated in Lebanon was due to the narrow view of humanity, a steady dose of hatred, and the lack of value for a human life that the local education set for the young. His parents did not want him to see his neighbors as sub-human, hate those who are unlike him, and sacrifice his life in the name of some holy war. So they smartly shielded their child from this poison and immigrated overseas to provide a better chance for their child to succeed. The result - when I met Syed he very much valued human life and treated his peers as equals regardless of race, sex, ethnicity or religion. But not all children of Radicalized Islamic areas of the world are as fortunate.
Taliban
There is no better example of education specifically catered to Radical Islam and Terrorism than that of the Taliban. The very name translates to 'Students'. However, the material they disseminate among their own followers is nothing short of repressive Jihadist propaganda that teaches a very narrow sliver of Islam, skewed toward fostering hatred. They teach a repressive diet of conservative Islam with a repressive view of women's rights and intolerance toward those who do not conform. The Taliban are so opposed to female education in Pakistan, that they were inclined to shoot a defenseless girl, better known as the Nobel Peace Prize winner Malala Yousafzai, in the head. This organization is so opposed to freedom of education, that they are willing to kill their young to get the point across. And, sadly, this vile commitment has again manifested itself in Peshawar this past week. The Taliban, 'Students', know very well that their poisonous rhetoric cannot hold up to scrutiny when confronted by freely educated youth and they are afraid.
Enlightenment
Golda Meir, the former Prime Minister of Israel, once said: "Peace will come when the Arabs start to love their children more than they hate us". She was specifically talking about opponents of Israel using children as front-line soldiers and/or shields. These actions epitomize the Terrorist mindset of taking the value of even a child's life as a 'shahid', a martyr, dying for a cause and rejoicing in the death itself. This concept is not unique to the Arab-Israeli conflict. The Taliban itself advocates such acts of martyrdom for their own purpose and regard the militants who died in the Peshawar School siege as such martyrs. We must seek a higher level of understanding as human beings across this world - such atrocities have no place on this planet.
As people of the earth, each an every one of us must fight to provide free and independent sources of education to every corner of the earth. We live in the age of the Global Internet, where such collective action should be possible. We must similarly fight to expose these false prophets (Taliban, Al-Qaeda, Hamas, Hezbollah, etc.) for the scum of the earth they are and eradicate them from existence - for they are the true poison of this planet.
Sunday, December 21, 2014
Thursday, December 18, 2014
White Privilege: Reality and Myth
The Background
Even if you only casually pay attention to the news, you have probably heard the term white privilege being used more frequently, as racial tensions have been heightened across the country due to incidents of alleged racial injustice. These racial tensions tend to drown out the underlying catalysts, the fire-starters, below a flood of public outrage that grows so strong, that it becomes nearly impossible for ordinary people to objectively distinguish fact from opinion or emotion.
It is while I was presenting the facts of one such incident, free of opinion or emotion, that an old high school friend of mine remarked to me: "How does it feel to be bathed in White Privilege and Ignorance?"
White privilege is a term that summarizes any and all advantages that the white population experiences above common experiences of the non-white population under the same social, political, or economic circumstances. Such advantages are unearned and are applied based on the values of the white population. Furthermore, white people may not recognize some advantages as they are passive in nature (i.e. greater social status, freedom to move, buy, work, play and speak freely). Lastly, the concept of white privilege also implies the right to assume the universality of one's own experiences, making others as different or exceptional while perceiving oneself as normal.
Racism - History and Present Day
Schools across our nation have the history of Slavery, the Ku Klax Klan, Segregation, Civil Rights Movement, Martin Luther King Jr., Malcolm X, South African Apartheid, etc. as class syllabus. The racial injustice in our history is important to understand and remember in order to prevent future generations from repeating the same behavior. In historical context, minorities in any country have been discriminated against in a wide variety of ways. Historically, entire communities and countries have been responsible for atrocities and discrimination on a massive scale.
Though gradually, through education, integration, and legislation, we have been able to overcome the mass prejudice and discrimination with time. We haven't eradicated it yet - various white supremacist groups still exist and certain parents choose to pass down racial hatred to their children. However, racism in modern day is an exception, not a blanket policy anymore.
Erroneous Premise
The basis for white privilege is misplaced. Poor white people have more in common with poor black people, than with any upper class of their own race. Case in point - in the very same manner that an unarmed black teenager is shot, a white teenager is shot as well. Dillon Taylor was an unarmed white youth in Utah who was gunned down outside of a convenience store.
The opposite is also true - rich and ruling elite people have more in common with each other, than with any lower economic class of their own race. Rich athletes, entertainers and politicians often get away with a warning, probation, suspended sentence or community service. Whereas any common person would serve time in jail for similar offenses regardless of race.
What are perceived as advantages specific to the white population, are in fact advantages associated with the dominant group in a society - the rich and ruling elite. As such, the correct term should be 'Elite Privilege', not 'White Privilege'.
While that term is not as 'sexy' for getting media ratings, re-tweets, or feedback; it is the most accurate one when talking about injustice in the modern age. The correct term also does not serve the purpose it originally intended it to serve.
Purpose
The true intent of the white privilege term is to gain the sympathy of ordinary white population and join the cause against perceived injustice of minorities, regardless of facts in the given case. This method provides greater volume of support and shapes the public opinion as being overwhelmingly against perceived injustice. What is important in these cases is to evoke the sense of guilt, while focusing more on emotions, opinions, and history; rather than the facts at hand. When you focus on emotions, opinions and history; you can rationalize and justify anything to support the 'just cause'. It is the modern version of the proverbial 'race card'.
Another related common use of 'White Privilege' is the Carte Blanche justification it provides for any actions committed by a member of a minority, no matter how unlawful they may be. Anything from robbery, grand theft auto, abuse of law enforcement, to drug trafficking and beyond can simply be justified by being blamed on injustice stemming from white privilege. And because the concept nicely closes out its definition with the 'universality of one's own experiences', it states that a white person cannot possibly relate to a person that belongs to a minority, while still soliciting that white person's sympathy.
Reality and Myth
Going back to my friend's remark to me: "How does it feel to be bathed in White Privilege and Ignorance?". That entire statement was the culmination of a passionate man's frustration who felt just in his cause, who stated his opinions, feelings and history on the matter we have discussed. In the end, they could not compete with concrete facts, so he did the only thing he could - shift the focus on me with the Myth of White Privilege. All the while, ironically, he was the one Ignorant of the Facts.
The reality is that I am a white first generation legal immigrant from Ukraine. I had to learn the English language almost from scratch when I arrived in the United States. I worked hard in High School to earn grades good enough to get a scholarship to offset the cost of Higher Education, as I knew my parents needed to save for my younger sister's education. There were no racially advantageous scholarships categorized for my white skin color. My parents paid next to nothing for my University thanks to my academic efforts and the various jobs I undertook while attending. For the amount(s) I could not pay immediately, I took out loans. When I graduated with a Computer Science degree in 2000 (after the dot-com bust), there was no Affirmative Action initiative to get white graduates jobs right out of the gate. Instead, I worked wherever a paycheck was available for a period of time. As soon as I was able to do so, I repaid all my school loans. All the while, I never blamed anyone for the hand I was dealt and took a fair account of my standing in life.
So to answer my friend - I have no idea, because that's a bath I never had.
Final Thoughts
Just because some individuals of a minority group are mistreated, doesn't mean that all individuals of a majority group enjoy a 'privilege'. Why did the creators of the term White Privilege chose to focus on the alleged advantages of the white race, instead of focusing on the disadvantages of the minorities? The answer is simple - focusing on the Minority Disadvantage does not evoke a sense of guilt from the white people and it does not accuse anyone of benefiting from the alleged systematic mistreatment of minorities. The guilt-evoking aspect, coupled with alleged beneficiary of mistreatment, provide the perfect media tool to gain traction and popular support.
Be a critical thinker and use facts, don't just follow the trend/herd. For the population at large - No matter how just it may feel, it is important to get the facts before voicing and promoting an emotional misinformed opinion. Otherwise, you may find yourself accusing a friend of yours without merit and having to support your position, while realizing that deep down inside you are wrong.
Finally, I want each and every one of you to ask yourself just one question - Do I want to live in a world that holds each individual accountable for their actions based on facts or do I want to live in a world that holds trials of public opinion based on emotion and history, rather than the facts at hand?
Thursday, December 11, 2014
Real Crime
Media Madness
Due to the profit-first nature of the modern news era, the real crime committed is by the news media, both conventional and internet-based. This crime manifests itself as a tidal wave of suggestive reports that tend to focus on the worst sensationalist aspects of our society, even when they're untrue. As a result, majority of the population's minds are already set, before any real allegation is put forth. In the world of modern news, everything that glitters is ratings gold.
The problem with Law Enforcement is that it rarely receives the accolades for getting the difficult job done right on a daily basis. However, it always gets crucified in the media when there is even a hint of wrongdoing. It is especially lucrative for the media ratings if that wrongdoing could be made to look racially motivated.
Due to the profit-first nature of the modern news era, the real crime committed is by the news media, both conventional and internet-based. This crime manifests itself as a tidal wave of suggestive reports that tend to focus on the worst sensationalist aspects of our society, even when they're untrue. As a result, majority of the population's minds are already set, before any real allegation is put forth. In the world of modern news, everything that glitters is ratings gold.
The problem with Law Enforcement is that it rarely receives the accolades for getting the difficult job done right on a daily basis. However, it always gets crucified in the media when there is even a hint of wrongdoing. It is especially lucrative for the media ratings if that wrongdoing could be made to look racially motivated.
Don't get me wrong - sometimes criticism against the Police is well deserved and there certainly is a history of racial profiling such as traffic stops and searches. However, more often than not, the perceived notion of wrongdoing is promoted by the media for the sake of ratings. Furthermore, if you can get a connotation of a Racially motivated crime by the Police, the ratings will be off the charts. You can get a lot more viewers to tune into the news later in the evening if you pitch a racially motivated crime by the Police, than you can just by simply presenting the news objectively. The concept of a sensationalist story that has no conclusive evidence, just the perception of wrongdoing, is the trademark template of the top prostitute in the 21st century - the news media.
Recently, we have had two decisions by grand jury not to indict Police Officers in separate and distinctly different cases. I am talking about the tragic deaths of Michael Brown in Ferguson Missouri and Eric Garner in New York City.
Both cases have been sensationalized by the media with suggestion of white Police Officer misconduct that lead to the deaths of black males. However, upon further review these cases are more about decisions made by individual police officers, rather than a racism epidemic suggested by the mainstream media and Al Sharptonians - (those who seek personal gain through false championing of civil rights).
Both cases have been sensationalized by the media with suggestion of white Police Officer misconduct that lead to the deaths of black males. However, upon further review these cases are more about decisions made by individual police officers, rather than a racism epidemic suggested by the mainstream media and Al Sharptonians - (those who seek personal gain through false championing of civil rights).
Michael Brown and Darren Wilson
The Ferguson Missouri case involved Michael Brown and his friend Dorian Johnson, who robbed a convenience store and were on their way back. The officer, Darren Wilson, initially told the two men to walk on the sidewalk, as opposed to the path of moving vehicles. He then remembered about the convenience store robbery and decided to confront the two men, pulling his vehicle across the path of Michael and Dorian. At this point, Michael Brown approached the vehicle and began and altercation with the Darren Wilson, which led the the first discharge of the officer's firearm. Michael ran away from the vehicle after the first shot was fired. When Darren Wilson called Michael Brown back to the vehicle, Michael Brown proceeded to charge at the officer presenting a threat to his well being. This is the point at which Darren Wilson discharged his firearm in the direction of Michael Brown, mortally wounding him in the process.
As soon as this story broke out, the news outlets focused on statistics about black and white, about perceived prejudice and racial inequality that had nothing to do with the key factors in this incident. As a result, in the minds of many young adults who seek out perceived injustice, Darren Wilson was already tried and convicted of a murder and a hate crime. While it is certainly true that the deceased in this case was black and the police officer was white, this information is secondary and inconsequential to the sequence of events here.
Matter of fact is that Michael Brown committed a crime and Darren Wilson attempted to apprehend him in connection with that crime, when Michael Brown resorted to violence striking the police officer in the process and wrestling for his firearm. In this country, when someone resorts to violence, everyone has the right to self-defense. There's almost no doubt that Darren Wilson protected himself and the community by using his firearm to stop a criminal in his tracks. It is tragic and unfortunate, but Darren Wilson was doing his job fairly and justly. The grand jury also reached the correct decision in this case. While the assistant District Attorney's conduct was inappropriate in presenting the grand jury with an inactive law, it simply did not apply in this case. At the end of the day, in this case justice was served.
Eric Garner and Daniel Pantaleo
The Staten Island New York case involved Eric Garner who was previously sighted selling loosies (loose cigarettes), which is considered a petty crime. Eric Garner was visibly upset at the officers approaching him repeatedly and went on a rant pleading to Police Officers to leave him alone. When he refused to be taken in to custody, the Police Officers approached him and Eric Garner came up behind him, putting him into a choke-hold (which is a technique that has been prohibited by the NYPD since 1993). Eric Garner was then seen on the ground saying "I can't breathe". He was pronounced dead at the hospital. The coroner's report read the cause of death as the compression of the neck and chest. There is no doubt that other health issues contributed to the cardiac arrest and death of Eric Garner, but the main catalyst was the illegal choke-hold by Daniel Pantaleo.
Once again, the news media was salivating at the prospect of disseminating toxic and divisive perceived racism in this case. It was all in the name of ratings, it usually always is these days. The news outlets and online publications became awash with opinions as facts that were so inflammatory, it sparked protests. In this case, however, as opposed to the Ferguson Missouri case, the officer Daniel Pantaleo has been summoned to court before on racial profiling charges and misconduct with respect to minorities.
Regardless of any real or perceived racism, let's proceed to the matter at hand. The video reveals the entire incident, which leaves very little to no room for any ambiguity. There was more than enough manpower available to apprehend Eric Garner without the use of an illegal choke-hold. The tape shows Daniel Pantaleo using the choke-hold to take down Eric Garner, as Eric Garner notes he has difficulty breathing. In this case, the grand jury decision is the highest forms of injustice toward Eric Garner and his family. There is more than enough evidence in this case to proceed to trial and level a conviction.
What we have learned
Regardless of whether any misconduct occurred, the news media puts forth a highly suggestive case of racism any chance that presents itself, because it is good for the ratings and ultimately the news company's bottom line. This kind of reporting makes the public conduct it's own trial based on suggestive misrepresentation, feelings and public opinion, and not all of the facts at hand. It is a dangerous phenomenon that must be dealt with by education and tolerance.
Focus on the case, not the race. In both cases, just by dealing with the matter at hand and how the law enforcement representatives conducted themselves, you could reach the correct decision without getting the racial aspect involved. Would it have mattered if Michael Brown or Eric Garner were white? No! Law enforcement misconduct is the same across the board and must be treated as a failure in terms of conduct, without racial connotation.
If it's not black versus white, the mainstream media doesn't care. Nobody in the mainstream media even blinked at the death of Dillon Taylor in Salt Lake City, Utah on October 1st of this year. He was a white youth shot and killed by the police outside of a convenience store. However, the news outlets mostly did not pick up this story as it wasn't relevant to their agenda of higher ratings and internet traffic. If the story doesn't evoke raw emotion and spirited opinions, it's simply not newsworthy in the 21st century drowned by sensationalist news norm
My Hope for the Future
One of my greatest desires is that the general population will become a little smarter and more skeptical of the information which the news outlets feed them. It is important to take the news media with a grain of salt these days, realizing that in the end these are corporations that need to make a profit. This leads to them being more of an entertainment news machine, rather than real journalists that report genuine news that have to undergo sufficient scrutiny before being presented to the public as factual information.
Matter of fact is that Michael Brown committed a crime and Darren Wilson attempted to apprehend him in connection with that crime, when Michael Brown resorted to violence striking the police officer in the process and wrestling for his firearm. In this country, when someone resorts to violence, everyone has the right to self-defense. There's almost no doubt that Darren Wilson protected himself and the community by using his firearm to stop a criminal in his tracks. It is tragic and unfortunate, but Darren Wilson was doing his job fairly and justly. The grand jury also reached the correct decision in this case. While the assistant District Attorney's conduct was inappropriate in presenting the grand jury with an inactive law, it simply did not apply in this case. At the end of the day, in this case justice was served.
Eric Garner and Daniel Pantaleo
The Staten Island New York case involved Eric Garner who was previously sighted selling loosies (loose cigarettes), which is considered a petty crime. Eric Garner was visibly upset at the officers approaching him repeatedly and went on a rant pleading to Police Officers to leave him alone. When he refused to be taken in to custody, the Police Officers approached him and Eric Garner came up behind him, putting him into a choke-hold (which is a technique that has been prohibited by the NYPD since 1993). Eric Garner was then seen on the ground saying "I can't breathe". He was pronounced dead at the hospital. The coroner's report read the cause of death as the compression of the neck and chest. There is no doubt that other health issues contributed to the cardiac arrest and death of Eric Garner, but the main catalyst was the illegal choke-hold by Daniel Pantaleo.
Once again, the news media was salivating at the prospect of disseminating toxic and divisive perceived racism in this case. It was all in the name of ratings, it usually always is these days. The news outlets and online publications became awash with opinions as facts that were so inflammatory, it sparked protests. In this case, however, as opposed to the Ferguson Missouri case, the officer Daniel Pantaleo has been summoned to court before on racial profiling charges and misconduct with respect to minorities.
Regardless of any real or perceived racism, let's proceed to the matter at hand. The video reveals the entire incident, which leaves very little to no room for any ambiguity. There was more than enough manpower available to apprehend Eric Garner without the use of an illegal choke-hold. The tape shows Daniel Pantaleo using the choke-hold to take down Eric Garner, as Eric Garner notes he has difficulty breathing. In this case, the grand jury decision is the highest forms of injustice toward Eric Garner and his family. There is more than enough evidence in this case to proceed to trial and level a conviction.
What we have learned
Regardless of whether any misconduct occurred, the news media puts forth a highly suggestive case of racism any chance that presents itself, because it is good for the ratings and ultimately the news company's bottom line. This kind of reporting makes the public conduct it's own trial based on suggestive misrepresentation, feelings and public opinion, and not all of the facts at hand. It is a dangerous phenomenon that must be dealt with by education and tolerance.
Focus on the case, not the race. In both cases, just by dealing with the matter at hand and how the law enforcement representatives conducted themselves, you could reach the correct decision without getting the racial aspect involved. Would it have mattered if Michael Brown or Eric Garner were white? No! Law enforcement misconduct is the same across the board and must be treated as a failure in terms of conduct, without racial connotation.
If it's not black versus white, the mainstream media doesn't care. Nobody in the mainstream media even blinked at the death of Dillon Taylor in Salt Lake City, Utah on October 1st of this year. He was a white youth shot and killed by the police outside of a convenience store. However, the news outlets mostly did not pick up this story as it wasn't relevant to their agenda of higher ratings and internet traffic. If the story doesn't evoke raw emotion and spirited opinions, it's simply not newsworthy in the 21st century drowned by sensationalist news norm
My Hope for the Future
One of my greatest desires is that the general population will become a little smarter and more skeptical of the information which the news outlets feed them. It is important to take the news media with a grain of salt these days, realizing that in the end these are corporations that need to make a profit. This leads to them being more of an entertainment news machine, rather than real journalists that report genuine news that have to undergo sufficient scrutiny before being presented to the public as factual information.
Thursday, October 16, 2014
How to Minimize Debt
How do you avoid being buried by debt?
Most well off individuals will tell you that the first step to saving and accumulating wealth is to live below your means.
1) Don't borrow money unless it is absolutely necessary.
2) Budget your spending, revise and reduce periodically.
3) Pay off any debts as soon as you possibly can.
Some people, such as myself, are fortunate enough to have had the right education and upbringing to understand personal economics very well at a young age. However, there are far too many people in this country who borrow, refinance, and borrow again; all as a part of what they consider to be the normal order of things. Pretty soon, this debt gets so large that you are only able to pay the minimum payments. This all ends, when you are staring up at the impossible debt mountain, while deciding whether it's worth to go to a debt forgiveness specialist and plead for mercy or to declare personal bankruptcy and have your debts (aside from school loans) written off.
It doesn't have to be this way. As long as you are employed and have income going into your bank account every month, you can work out a strategy to protect yourself from potentially toxic debt cycle.
Education
The first big decision you will make in your life as a young adult is to decide which college to attend. But it starts even before that, with the question - what do you want to do in your life in order to earn a living? Therefore, it is my suggestion to all High School kids out there to truly use your early years wisely to discover what you want your profession to be. Higher Education is incredibly expensive, and these loans cannot be defaulted upon in order to be written off. Once you have your direction in life, research the Colleges which have the best programs for your chosen profession in your locale - living at home while attending college will save you money. Out of those schools, pick one that has the lowest net cost = (tuition + meal plan + fees) - (qualified school scholarships + grants). In addition, make sure to apply for all relevant scholarships and grants available from your State and Federal Government - these will knock down your net cost of education even further. If the remaining net cost cannot be offset by contributions from your parents or relatives, that's when you will need to make use of the student loan institution. Finally, as long as it doesn't interfere your studies, find part-time employment to offset cost further.
Living Space
Once you graduate College, as long as you have a good relationship and understanding with your parents, I suggest you live at home for the first couple of years. It saves you money and allows you to pay off your School loans faster. But sooner or later, you will have to move out and live on your own. Do yourself a favor, disregard the mainstream media with respect to home ownership - it is a losing game for someone who cannot buy a house outright (or pay at least 80% of the cost up front). Even with a friendly 30 year Fixed Rate of 4.25%, you still wind up paying twice the cost of the home over the lifetime of your loan. This was strictly mortgage - there are other upkeep and maintenance costs that come with home ownership, which puts the financial squeeze on the owner further. This prevents you from putting away money which you can save, invest, or use to create another stream of revenue. Renting, on the other hand, allows you to forego financing, maintenance and upkeep costs; all while retaining that money for another purpose. On the other hand once you have saved enough to pay at least 80% of the desired home, you may want to purchase the house if you have, or are intending to start, a family. Assuming the home is paid off in full, or in a short amount of time, you are only paying for property taxes after that.
Food
Learn to cook and learn to shop for cheap ingridients. A lot of people get lazy in the age of the internet, choosing to spend their time with their cell phones, tablets and laptops; rather than choosing to protect their wealth. You don't have to become a master chef, just learn a few quick simple recipies that you enjoy and won't break the bank. The use of store-bought ingridients and home utilities can save you up to 50% over middle of the road restaurant in terms of food preparation and clean-up. On those occasions when you do choose go out, ty to find a discount such as a coupon, flyer, groupon, livingsocial, etc.
Clothing
Make sure shop at stores that offer quality goods at a deep discount (Marshalls, TJ Maxx, etc.) or go to outlet stores that get their goods directly from the manufacturer. As long as the clothes have a brand name and look in current style, chances are people won't be able to tell where you got them. Only buy the clothing you plan on wearing, as opposed to collecting dust. Value your money, to spend it frivolously.
Non-Essential
With non-essential spending, such as gadgets, toys, vacations, and everything else that does not fall into living essentials category, it is important to keep this category as lean as possible. I get it - you want to enjoy your life. You should definitely go on a vacation, get yourself a big screen television, a nice reclining couch. However, realize that these are not time sensitive purchases and you can wait until a great deal presents itself. You will want to do a little research on what you want to buy and the cost range for that item. Just remember - the latest, greatest and trendiest, is also often the most expensive.
Budgeting
Keep track of your incoming money and outgoing money. Sounds simple, but very few people actually do this. It is as simple as opening your Excel Spreadsheet document (or a Google Spreadsheet document) and recording your salary and expenses. This will give you an idea if you are cash flow positive or negative. Cash Flow Positive is when you have additional money left over at the end of the month when you subtract all your expenses from your salary. Cash Flow Negative is when you wind up with money owed after all your expenses are substracted from your salary. In general, even if you are Cash Flow Positive, you will want to increase your salary and other sources of income, all while decreasing your expenses as much as possible.
Tackling Debt
When it comes to paying off your debt, you have to realize the interest with which your loans grow (4.5%, 6%, 7.5%, etc.) are a lot higher than the percentage the bank or treasury bonds will earn you (0.10%, 1.45%, 2.25%, etc.). Therefore, it is in your best interest to put some of your Cash Flow Positive money toward paying off additional Principal of your Highest Percentage Loan each month. This strategy will help you pay off your loans faster and greatly reduce the amount of your hard earned money that would otherwise be wasted on paying loan interest over the life of your debt.
New Streams of Income
Your primary profession does not have to be your only source of income. You should treat your time as a valuable resource. You may learn another skill, start investing, find small off-hours work that pay, write for money, teach, etc. Whatever you choose to do, try to figure out how to better spend the time you usually watch TV, play video games, or surf the interenet. This is all extra time that you can leverage to supplement your salary.
No matter at which stage of life you are in, if you work on these basics and apply them in your life consistently, it will allow you to evade your dependency on debt and save you money to enjoy living more comfortably.
Most well off individuals will tell you that the first step to saving and accumulating wealth is to live below your means.
1) Don't borrow money unless it is absolutely necessary.
2) Budget your spending, revise and reduce periodically.
3) Pay off any debts as soon as you possibly can.
Some people, such as myself, are fortunate enough to have had the right education and upbringing to understand personal economics very well at a young age. However, there are far too many people in this country who borrow, refinance, and borrow again; all as a part of what they consider to be the normal order of things. Pretty soon, this debt gets so large that you are only able to pay the minimum payments. This all ends, when you are staring up at the impossible debt mountain, while deciding whether it's worth to go to a debt forgiveness specialist and plead for mercy or to declare personal bankruptcy and have your debts (aside from school loans) written off.
It doesn't have to be this way. As long as you are employed and have income going into your bank account every month, you can work out a strategy to protect yourself from potentially toxic debt cycle.
Education
The first big decision you will make in your life as a young adult is to decide which college to attend. But it starts even before that, with the question - what do you want to do in your life in order to earn a living? Therefore, it is my suggestion to all High School kids out there to truly use your early years wisely to discover what you want your profession to be. Higher Education is incredibly expensive, and these loans cannot be defaulted upon in order to be written off. Once you have your direction in life, research the Colleges which have the best programs for your chosen profession in your locale - living at home while attending college will save you money. Out of those schools, pick one that has the lowest net cost = (tuition + meal plan + fees) - (qualified school scholarships + grants). In addition, make sure to apply for all relevant scholarships and grants available from your State and Federal Government - these will knock down your net cost of education even further. If the remaining net cost cannot be offset by contributions from your parents or relatives, that's when you will need to make use of the student loan institution. Finally, as long as it doesn't interfere your studies, find part-time employment to offset cost further.
Living Space
Once you graduate College, as long as you have a good relationship and understanding with your parents, I suggest you live at home for the first couple of years. It saves you money and allows you to pay off your School loans faster. But sooner or later, you will have to move out and live on your own. Do yourself a favor, disregard the mainstream media with respect to home ownership - it is a losing game for someone who cannot buy a house outright (or pay at least 80% of the cost up front). Even with a friendly 30 year Fixed Rate of 4.25%, you still wind up paying twice the cost of the home over the lifetime of your loan. This was strictly mortgage - there are other upkeep and maintenance costs that come with home ownership, which puts the financial squeeze on the owner further. This prevents you from putting away money which you can save, invest, or use to create another stream of revenue. Renting, on the other hand, allows you to forego financing, maintenance and upkeep costs; all while retaining that money for another purpose. On the other hand once you have saved enough to pay at least 80% of the desired home, you may want to purchase the house if you have, or are intending to start, a family. Assuming the home is paid off in full, or in a short amount of time, you are only paying for property taxes after that.
Food
Learn to cook and learn to shop for cheap ingridients. A lot of people get lazy in the age of the internet, choosing to spend their time with their cell phones, tablets and laptops; rather than choosing to protect their wealth. You don't have to become a master chef, just learn a few quick simple recipies that you enjoy and won't break the bank. The use of store-bought ingridients and home utilities can save you up to 50% over middle of the road restaurant in terms of food preparation and clean-up. On those occasions when you do choose go out, ty to find a discount such as a coupon, flyer, groupon, livingsocial, etc.
Clothing
Make sure shop at stores that offer quality goods at a deep discount (Marshalls, TJ Maxx, etc.) or go to outlet stores that get their goods directly from the manufacturer. As long as the clothes have a brand name and look in current style, chances are people won't be able to tell where you got them. Only buy the clothing you plan on wearing, as opposed to collecting dust. Value your money, to spend it frivolously.
Non-Essential
With non-essential spending, such as gadgets, toys, vacations, and everything else that does not fall into living essentials category, it is important to keep this category as lean as possible. I get it - you want to enjoy your life. You should definitely go on a vacation, get yourself a big screen television, a nice reclining couch. However, realize that these are not time sensitive purchases and you can wait until a great deal presents itself. You will want to do a little research on what you want to buy and the cost range for that item. Just remember - the latest, greatest and trendiest, is also often the most expensive.
Budgeting
Keep track of your incoming money and outgoing money. Sounds simple, but very few people actually do this. It is as simple as opening your Excel Spreadsheet document (or a Google Spreadsheet document) and recording your salary and expenses. This will give you an idea if you are cash flow positive or negative. Cash Flow Positive is when you have additional money left over at the end of the month when you subtract all your expenses from your salary. Cash Flow Negative is when you wind up with money owed after all your expenses are substracted from your salary. In general, even if you are Cash Flow Positive, you will want to increase your salary and other sources of income, all while decreasing your expenses as much as possible.
Tackling Debt
When it comes to paying off your debt, you have to realize the interest with which your loans grow (4.5%, 6%, 7.5%, etc.) are a lot higher than the percentage the bank or treasury bonds will earn you (0.10%, 1.45%, 2.25%, etc.). Therefore, it is in your best interest to put some of your Cash Flow Positive money toward paying off additional Principal of your Highest Percentage Loan each month. This strategy will help you pay off your loans faster and greatly reduce the amount of your hard earned money that would otherwise be wasted on paying loan interest over the life of your debt.
New Streams of Income
Your primary profession does not have to be your only source of income. You should treat your time as a valuable resource. You may learn another skill, start investing, find small off-hours work that pay, write for money, teach, etc. Whatever you choose to do, try to figure out how to better spend the time you usually watch TV, play video games, or surf the interenet. This is all extra time that you can leverage to supplement your salary.
No matter at which stage of life you are in, if you work on these basics and apply them in your life consistently, it will allow you to evade your dependency on debt and save you money to enjoy living more comfortably.
Wednesday, September 17, 2014
How The Rich Campaigned for, Lobbied and Stole Economic Recovery
It is no secret that today on the Internet, Television and Radio you will hear news of the Great Economic Recovery! While it is certainly true that the traditional indicators of economic health have shown positive signs of life, it is also true that the American Elite (the American equivalent of Russian Oligarchs) have gamed the system to make the economy look healthy, while screwing the average American in the rectal cavity.
The average middle class American today (wage per capita less than $60,000) will find their adjusted-for-inflation annual wages down by 5%, as opposed to six years ago. Compare that with the upper class (wage per capita more than $150,000) and the upper crust (wage per capita more than $500,000), whose adjusted-for-inflation annual wages are up by 10% and 25%, respectively. You can see the unfair disparity in these figures.
You may ask yourself - how come the economy seems like it is healthy?
The answer is simple - it is a combination of the Federal Reserve pouring in money into the markets without any rational limits, the Unemployment Index not showing the full picture and the Corporate landscape using creative means to make a profit while preventing the benefits of those profits to reach common Americans.
It is clear as day that since the financial crash of 2008, the Federal Reserve has been printing money to mask the deflation that should have taken place in order to stabilize the unhealthy explosion in asset values which occurred due to Bank Deregulation and the Housing Asset Bubble. And, to a certain extent, the Federal Reserve has been successful in psychologically bypassing the panic and collapse associated with the deflation of the Great Depression of 1929.
However, just like Herbert Hoover's administration in the post-crash years, Barak Obama's administration has stepped into the same trap of trying to stimulate the economy from the top down. In Hoover's time it was called "Trickle-Down Economics", in Obama's time it is called "Bailout" and "Stimulus Package". History teaches us that it doesn't teach us anything. Just like in the 20th century, in the 21st century the Corporations kept the money made as a result of Government assistance, while the average American has seen their savings shrivel and their paycheck devalue with time.
With respect to the Unemployment Index, all it shows is how many Americans are getting a paycheck. While it is true that there are many more people employed today as opposed to four years ago, it is also true that the vast majority of recent employment opportunities are either part-time, contract, full-time positions with lower salaries, or full-time positions with multiple role responsibilities. As such, a large majority of American population that is a part of the "employed" figures according to the index is in fact "underemployed", if not completely overworked.
Corporate profits are up! The American stocks are soaring in value. But the vast majority of this growth is due to creative tactics, not an increase in productivity. The Corporations are using the free liquidity pouring in from the Federal Reserve to restructure their debt (refinance) and make their balance sheets look healthier. They are also cutting their biggest expense - the employees. Whether it is through laying off older more expensive employees in favor of fresh from college graduates, reducing employee benefits, or "consolidating" their workforce by having fewer employees do more - it leads to the appearance of profits. If that wasn't enough, the profits the companies are getting, they're not using to grow the business and hire more people - the corporations know there isn't a growth in the actual demand. Instead, they increase the value of their stock by putting all of those profits to buy back their own stock, which leaves the remaining shares more valuable - making it look like the company is growing, when in fact it is not.
So the Corporate Landscape, which was too big to fail, is thriving! However, the ordinary people who make these corporations work are losing. They are losing in wages, benefits, personal time, rising cost of goods, and oh by the way having their tax dollars sponsor the bailouts of the very companies that are now fleecing them.
The true problem is that we, as a people, have lost faith in our Democracy. Through our apathy, we have turned it into a De Facto Polyarchy! Get off your lazy ass and write a page, just a page, to your local representatives and senators. Make sure that your voice is heard! Make phone calls to those same representatives and senators. Get your community to know the facts and get them voting. This should be our Outbreak - an Outbreak of Consciousness.
So the Corporate Landscape, which was too big to fail, is thriving! However, the ordinary people who make these corporations work are losing. They are losing in wages, benefits, personal time, rising cost of goods, and oh by the way having their tax dollars sponsor the bailouts of the very companies that are now fleecing them.
The true problem is that we, as a people, have lost faith in our Democracy. Through our apathy, we have turned it into a De Facto Polyarchy! Get off your lazy ass and write a page, just a page, to your local representatives and senators. Make sure that your voice is heard! Make phone calls to those same representatives and senators. Get your community to know the facts and get them voting. This should be our Outbreak - an Outbreak of Consciousness.
Saturday, March 8, 2014
Crisis via Modern Warfare - Broadcast Media and the Interne
Let me be Captain Obvious for a moment - It is all about the money. It is not about giving you the true unbiased information about events foreign and domestic. It is about how profitable each minute of airtime can be for the parent corporation.
It doesn't surprise me anymore, but the manner in which the mainstream media conducts its news broadcasts and disseminates irresponsibly bias information is anything but newsworthy. It is, in fact, more commerce-oriented rather than being genuinely informative. The way CBS, NBC, FOX, ABC, CNN, MSNBC, and countless others stay on the air is by keeping their commercial time slots full and profitable. In order to do so, these corporations need to attract advertising interest through high viewer ratings. Since market research shows that the attention span of an average American has dipped to an all time low, the broadcasting companies need to find ways to "spice up" their news and make them more entertaining. As a result, what the average viewer receives on a nightly basis from these so-called news sources is a regurgitated version of the truth that has been skewed, dramatized, and fragmented enough between commercials to keep you on the edge of your seat to prop up the networks' viewer ratings. In effect, it becomes this entertainment with the pretense of being the news.
In this example, we will use the current events in Ukraine to reveal the mainstream media's malfeasance. Due to this perversion of the news broadcast, it has become an inadvertent instigator of heightened tensions worldwide through misinformation and horrific omissions of the general public. In order to get viewer ratings, a broadcasting corporation will use inflammatory titles and edgy rhetoric like 'Invasion' and 'Cold War', instead of reality-bearing labels like 'Unrest', 'A New Day in Ukraine', 'Tensions on the Rise', and 'Russian Response'. Why would a broadcasting company use the fear-inducing and instigating labels? In order to raise its viewer ratings, of course. An average American viewer will dismiss a basic newsworthy label, because it's simply not sexy enough. However, pitch them a conflict-inducing story line on a world scale, and you have a viewer for the next half hour. What these labels do, however, is form a predisposition in the viewers' minds that sets them up for a news story that is anything but objective.
Outside of rephrasing and omitting facts, these news corporations fail to do basic fact-checking that is the staple of a good news reporter. One fact that almost every news corporation have gotten woefully wrong is stating that the current Ukrainian government is legitimate. While it is certainly true that the protesters overthrew the previous Ukrainian president Viktor Yanukovych, the protests themselves were all peaceful through December until the radical factions arrived at the scene. The radical far right-wing parties that brought violence with them, and subsequently instigated a response after over a month of burning and killing security forces. It is these radical factions that "inspired" the Ukrainian Parliament to abandon Viktor Yanukovych and vote him out, just after the president's February 21st agreement with Western representatives to transition to a new unity government that would provide equal representation for all Ukrainians. The reason being, is that a unity government that represents all Ukrainians would be completely against the far right wing parties Right Sector and Svoboda (Freedom), who brought violence to the protests. These parties want an "ethnically clean" Ukraine and regard the Holocaust as a "bright period" in history. Many in these parties are proud descendants of the militant Ukrainian freedom fighters who volunteered into the Nazi Wehrmacht during World War II and committed bloody atrocities for eight years after the end of the war. Therefore, the presidential agreement of February 21st was completely against their stated interest.
Even before the change of government, the United States and European Union were at a tug of war as to who gets to control the spoils of an imminent government change in Ukraine. In a leaked phone call between a US diplomat Victoria Nuland and a US ambassador in Ukraine, they were clearly discussing how the United States is working to "assist" a government change, cherry-picking Yanukovych's successor, and saying f**k the European Union with respect to the Ukraine's future. Yet this segment got only a brief mention in the Western mainstream media, as it would not bring the desired volume of viewers and might actually turn viewers away with disgust at politicians altogether. http://www.theguardian.com/world/video/2014/feb/07/eu-us-diplomat-victoria-nuland-phonecall-leaked-video
The current interim government of Ukraine has initially made two promises after an armed takeover - Russian language would no longer play a prominent role in Ukraine (changing the existing law that dictated both Ukrainian and Russian would be supported equally) and that the people responsible for the Independence Square sniper fire (that killed nearly a hundred protesters and security forces combined) will be brought to justice. Neither of these promises came to fruition. The interim government backed off the Russian language reform and is no longer interested in investigating the culprits behind sniper fire.
Here is where the Russian media churned up its propaganda machine - going as far as saying that the Russian language will be banned in Ukraine and anyone speaking Russian will be subjected to criminal persecution. Completely false, but reported by the Russian media. Which makes Russian media... just like any other bias mainstream media.
The Western media, beating the drum of doing the right thing and spreading democracy, just stepped over the initiative to bring those responsible for the Independence Square massacre to justice. But, surprise surprise, in the age of information we are able to obtain evidence that suggests the Ukrainian right-wing factions are responsible for the sniper fire that killed the security forces and protesters alike. This, of course, would explain why the interim government is no longer interested in the investigation which would bring the guilty parties to justice. In a phone call between EU Foreign Affairs Chief and Estonian Foreign Minister, it was disclosed that there is a growing understanding that the people responsible for the Independence Square sniper fire (which killed nearly a hundred protesters and security forces) were the leading right-wing parties that sought armed escalation and confrontation - and that these are the same parties that stand behind the current interim government. https://www.youtube.com/watch?v=UhY02at4v4U Once again, the Western media stepped over this information, and never reported it again - because it's not good ratings.
Here is a video of the shootings http://www.liveleak.com/view?i=5dc_1393953567
If I was still in Ukraine, I would be very fearful of far right wing parties like the Right Sector and Svoboda(Freedom). They represent the extremists who brought the violence to Independence Square and may have been the direct culprits behind the sniper fire that caused the massacre of February 20th. Their representatives Dmytro Yarosh (Right Sector) and Oleh Tyahnybok (Svoboda) are sure to run in the upcoming Ukrainian elections. And they should be feared, as their extremist views could easily divide Ukraine without any external intervention if these individuals gain any significant elected posts.
Now for the the leading political figures in Russia, EU and US. And this is the kind of analysis you will never get from the mainstream media. Let me state it again - it is all about the money. Neither Barack Obama, Angela Merkel, nor Vladimir Putin can give a damn about the people of Ukraine. When they see Ukraine from a geopolitical perspective, this is what they see -
United States and European Union's perspective:
1) Another nation to conform to the Euro currency and prevent European Union's disintegration.
1) Another nation to conform to the Euro currency and prevent European Union's disintegration.
2) Increased Defense Budget for European Union and the United States due to fear.
3) Access to natural resources available within the Ukraine,
4) Access to Ukrainian territory for the purpose of stationing NATO forces at the Russian border.
Russian perspective:
1) Secure Ukrainian Natural Gas and Oil fields, as well as the supporting pipelines.
2) Keep Russia's only warm water sea port and the home of the Black Sea Fleet (Crimea).
3) Increased Russian Defense Budget to protect Russian interests in the area.
4) Have a neutral government in Ukraine that is cooperative with Russia.
5) Keep the NATO forces at the edge of the Ukrainian border, not the Russian border.
Vladimir Putin is not interested in invading Ukraine, but he does want to create the fear of invasion, to create enough instability in Ukraine that will influence the upcoming election. The threat of Crimea's secession, is only designed to create instability - he won't actually go through with it because the plan is not economically feasible from a Russian fiscal perspective.
Despite denials by all Russian officials, and legal correctness, for all intents and purposes the troops on the ground in Crimea are of Russian origin. Let me explain, these are forces that were trained an equipped by the Russian Federation, and subsequently disavowed so that Russia may legally deny that they are Russian forces.
United States and European Union are largely incapacitated, because of their dependence on Russian natural gas and oil. Therefore, any punitive measures, would hurt both parties.
In order to resolve this conflict, Ukraine must be united as a whole and defend its own interests, independent of all foreign influence. But that is not going to happen, until countries to the East and West of it stop regarding it as a juicy steak on their plate.
Wednesday, January 22, 2014
From American Dream to Corporate Lie
Before we start, I want to make it clear to everyone - I no longer consider the American Government and the American Corporate landscape two separate entities. They have been melded together and when I refer in this article to "Corporate", I refer to both as one.
Ahhh, the American Dream. It began as a reflection of our forefathers' desire to give every citizen an equal opportunity to succeed, to get ahead in life. The desire to move up, achieve a greater social and economic status are all the trademarks of the New World, as no other modern society before the United States of America has provided such an opportunity. This premise of wealth and prosperity through hard work and dedication proves elusive to most. Yet through most of American history, it has yielded some of the most productive working and middle classes in the world. This concept has given the Corporate structures a great advantage in terms of innate motivation and productivity. Furthermore, people are unlikely to rise up and rebel against the Corporate structures, as this very premise makes the people believe that by rising up or rebelling they are risking a lot. While the average American citizen that followed this premise in the past was unlikely to achieve the American Dream, the very pursuit was good enough to earn a decent living - something we Americans often take for granted.
It is, of course, pure genius from a managerial perspective. You have a productive dedicated workforce and a mental safety net for the Corporate without a whole lot of effort needed from the top. However, since the time of our forefathers, there have been significant changes in economic and societal landscapes.
From a Corporate standpoint, a person can earn money, which means that he or she can be taxed on the money earned. Furthermore, that very same person can be a productive worker for any Corporate structure. Therefore, that person has the potential to provide the Corporate structures with profit twice. As far as the Corporate landscape is concerned, the more ways money can be generated from the same source, the better.
In present day, the American Dream no longer stands as just a premise of a better tomorrow through personal effort, but rather a well-crafted concept of acquisition of goods and status, regardless of means. You've all heard the standard consumerism version - a good education, a house, two kids, two cars. This is the Corporate Lie.
This is just Corporate Propaganda to make you feel like you're doing what you think is an accepted tried and true path to prosperity. In reality, for most people who blindly follow this version of the American Dream, it is a path to financial and personal ruin.
Let's break this down. For every part of the American Lie shown above, I will give you the following - the way the Corporate structures profit from the person and an alternative the person can pursue in order to benefit himself or herself instead of the Corporate structures.
I will start with Education, both emotional and academic. This is the foundation for all successful individuals that I have come across. The Corporate Lie dictates that pursuing a higher education (College or University) can provide you with a big salary, consequently financial stability and is crucial to your career. However, this lie is pushed by the for profit schools, which are in fact corporations themselves. These corporations make money from Student Loans and Government Grants. Grants are often paid for by the American Taxpayer, while Student Loans are an easy way to make money off the student who follows the Corporate Lie. As a result, The School Corporations profit from tuition, the Bank Corporations profit from loan interest, while the American Taxpayer and the Student are paying. What's worse, the same Corporate structures are outsourcing the very professions you are being trained to fulfill. So it is very likely that after leaving a higher education facility with an enormous debt, you may not have a reasonable opportunity to pay it off.
From a Corporate standpoint, a person can earn money, which means that he or she can be taxed on the money earned. Furthermore, that very same person can be a productive worker for any Corporate structure. Therefore, that person has the potential to provide the Corporate structures with profit twice. As far as the Corporate landscape is concerned, the more ways money can be generated from the same source, the better.
In present day, the American Dream no longer stands as just a premise of a better tomorrow through personal effort, but rather a well-crafted concept of acquisition of goods and status, regardless of means. You've all heard the standard consumerism version - a good education, a house, two kids, two cars. This is the Corporate Lie.
This is just Corporate Propaganda to make you feel like you're doing what you think is an accepted tried and true path to prosperity. In reality, for most people who blindly follow this version of the American Dream, it is a path to financial and personal ruin.
Let's break this down. For every part of the American Lie shown above, I will give you the following - the way the Corporate structures profit from the person and an alternative the person can pursue in order to benefit himself or herself instead of the Corporate structures.
I will start with Education, both emotional and academic. This is the foundation for all successful individuals that I have come across. The Corporate Lie dictates that pursuing a higher education (College or University) can provide you with a big salary, consequently financial stability and is crucial to your career. However, this lie is pushed by the for profit schools, which are in fact corporations themselves. These corporations make money from Student Loans and Government Grants. Grants are often paid for by the American Taxpayer, while Student Loans are an easy way to make money off the student who follows the Corporate Lie. As a result, The School Corporations profit from tuition, the Bank Corporations profit from loan interest, while the American Taxpayer and the Student are paying. What's worse, the same Corporate structures are outsourcing the very professions you are being trained to fulfill. So it is very likely that after leaving a higher education facility with an enormous debt, you may not have a reasonable opportunity to pay it off.
Let's take a step back - a good academic education begins with the right mindset at a young age. That mindset can only be framed through good emotional education from parents. It is only once a person feels good about him or herself and knows how to handle emotions, as well as how to express them, that a kid is able to get the most out of academic education. Next, all the building blocks a person needs for a good academic foundation can be found from first grade through the end of high school. There are classes of both general and specialized nature that any student can take in high school, which are applicable in the workforce. By the time you leave High School, if you have dedicated yourself, you should be ready for the workforce in a general sense. Now a student needs to acquire what is considered "higher education", which I consider to be skills relevant to your profession. Now I am not saying that students should skip college, far from it. In fact certain professions - Doctors, Lawyers, Engineers, actually require college. And some fields do not require higher education at all. However for majority of academic fields, a combination of less costly book study with online courses can yield better results than attending a far costlier four year university. In a four year university a student will wind up taking courses that have nothing to do with their given profession, while an online curriculum can be crafted to include just the relevant courses - after all you're paying for it. Also, while you're going through online study and book study, make sure to get an internship in your field of choice - it will teach you to apply academic knowledge to practice. And that is all you need to get the higher education necessary to enter the work force. The rest of what you need in your given profession is on the job training, that's how the vast majority of graduates (including from ivy leagues) get started anyway.
Home ownership is the most advertised part of the Corporate Lie. We have heard all the monikers - it is the first step to raising a family, it is an investment. First of all, you can raise a family in an apartment, a condo or a log cabin, if you are so inclined. Last time I checked, human reproduction in America does not coincide with owning a home. Second, a home is not an investment, far from it. A house is a depreciating asset that in most cases loses value over time and is susceptible all kinds of risks beyond your control. The "investment" myth came about the inflating home prices during the latter end of the 20th century and the first few years of the 21st. However, if you track people's salaries with respect to home values, you will see that the home by itself serves as a preservation of capital at best and a total loss of equity at its worst. A home is a dwelling that the Corporate landscape loves for a multitude of reasons, here are some:
1) Banks Collect Interest - With a 3.75% rate on a 30 year mortgage, you will wind up paying an additional 50% of the value of your home in interest over the life of your loan.
Home ownership is the most advertised part of the Corporate Lie. We have heard all the monikers - it is the first step to raising a family, it is an investment. First of all, you can raise a family in an apartment, a condo or a log cabin, if you are so inclined. Last time I checked, human reproduction in America does not coincide with owning a home. Second, a home is not an investment, far from it. A house is a depreciating asset that in most cases loses value over time and is susceptible all kinds of risks beyond your control. The "investment" myth came about the inflating home prices during the latter end of the 20th century and the first few years of the 21st. However, if you track people's salaries with respect to home values, you will see that the home by itself serves as a preservation of capital at best and a total loss of equity at its worst. A home is a dwelling that the Corporate landscape loves for a multitude of reasons, here are some:
1) Banks Collect Interest - With a 3.75% rate on a 30 year mortgage, you will wind up paying an additional 50% of the value of your home in interest over the life of your loan.
2) Mortgage Backed Securities (MBS) - These bonds represent future earnings from home loans.
3) Insurance Premiums - You are required by the lending bank to pay for home insurance, which increases over time.
3) Insurance Premiums - You are required by the lending bank to pay for home insurance, which increases over time.
4) Property Taxes - Local townships love the taxes collected from home owners and constantly increase them.
5) Home Improvement Stores - Where you will spend money to make the home fit your style.
6) Furniture Stores - Where you will get a bed, couches, chairs, and tables.
And don't forget the implied repair costs associated with home ownership - a leaky roof, torn siding, burst pipe, termites, carpenter ants, mold, heating/ac problems, etc. These are all things you would likely not be responsible for, had you been living in an apartment or a condo. When you add up the difference in costs of living in a house versus apartment/condo, and add that difference to cost of the home, you can consider yourself lucky if you get half that money back when you are ready to sell your "investment".
The only way that a house becomes profitable for the consumer is if you are renting it out to tenants or its land becomes suddenly valuable due to a natural resource discovery or proximity to a desirable site.
My advice is to go for an apartment or a condo, and you will be pleasantly surprised by how much more money you can save. With the condo, make sure to only buy it when you have the money to pay for it outright - you don't want to pay the interest on the loan, trust me. You will have far fewer headaches and more money in your pocket.
Next up are the children. The Corporate structures do not see your kids as pride and joy, they see them as dollar signs and future consumers/taxpayers. With the kids, you have to pay for baby formula, diapers, clothes, medicine, daycare, etc. Yet some adults in this country are not prepared to be parents at all, neither emotionally nor financially. Life is not a lock-step approach where you hit a milestone and move on to the next one - it is a path specific to the person you are (as well as your partner) that is unique in every sense. And you should only have kids when you're absolutely ready to be responsible, in every sense of the word, for bringing another life into this world. Introducing a child into this world by parent(s) who are unable to provide the right environment for that child, is downright criminal in my opinion.
Cars, the Corporate Lie emphasizes status symbols above all else. And much like the house, a car is a status symbol. Even more so, it is also a depreciating asset that will need to be replaced at least a couple of times in your lifetime. In most cases it requires a loan, where the banks make money on interest. It provides business for the Auto Repair shops, Auto Body Shops, Oil Change facilities, Auto Parts stores, Insurance Companies, etc. Unlike the house, you do need a form a transportation. And for most people who live outside large cities where Mass Transit can be a viable substitute, a car is a necessity. However, heed my advice and don't treat it as a status symbol - get something that meets your needs for transportation while taking the least out of your wallet, nothing more. A Bentley is not going to get you to work any faster than a KIA during a traffic jam in the morning.
Don't live the Corporate Lie, live your own version of the American Dream that is based on personal fulfillment and true happiness that is not tied to anything you can buy.
The only way that a house becomes profitable for the consumer is if you are renting it out to tenants or its land becomes suddenly valuable due to a natural resource discovery or proximity to a desirable site.
My advice is to go for an apartment or a condo, and you will be pleasantly surprised by how much more money you can save. With the condo, make sure to only buy it when you have the money to pay for it outright - you don't want to pay the interest on the loan, trust me. You will have far fewer headaches and more money in your pocket.
Next up are the children. The Corporate structures do not see your kids as pride and joy, they see them as dollar signs and future consumers/taxpayers. With the kids, you have to pay for baby formula, diapers, clothes, medicine, daycare, etc. Yet some adults in this country are not prepared to be parents at all, neither emotionally nor financially. Life is not a lock-step approach where you hit a milestone and move on to the next one - it is a path specific to the person you are (as well as your partner) that is unique in every sense. And you should only have kids when you're absolutely ready to be responsible, in every sense of the word, for bringing another life into this world. Introducing a child into this world by parent(s) who are unable to provide the right environment for that child, is downright criminal in my opinion.
Cars, the Corporate Lie emphasizes status symbols above all else. And much like the house, a car is a status symbol. Even more so, it is also a depreciating asset that will need to be replaced at least a couple of times in your lifetime. In most cases it requires a loan, where the banks make money on interest. It provides business for the Auto Repair shops, Auto Body Shops, Oil Change facilities, Auto Parts stores, Insurance Companies, etc. Unlike the house, you do need a form a transportation. And for most people who live outside large cities where Mass Transit can be a viable substitute, a car is a necessity. However, heed my advice and don't treat it as a status symbol - get something that meets your needs for transportation while taking the least out of your wallet, nothing more. A Bentley is not going to get you to work any faster than a KIA during a traffic jam in the morning.
Don't live the Corporate Lie, live your own version of the American Dream that is based on personal fulfillment and true happiness that is not tied to anything you can buy.
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