Gold Investment

With so much going on in the Dada homes, it has been an intriguing year of business with a dearth of free time. I have no love for the weeks that turn into months because of hard labor, but my most recent labors have been labors of love — the kind of love I envision is as unexpecting and unfulfilling as possible for myself. I often times believe that the best love on can give another is the kind of love that goes unnoticed — offering someone a gain without them realizing that the gain has come, and also without realizing where it came from. While it isn’t capitalistic, necessarily, there is still a gain of pride that one can help another person without them knowing it. Paying for your neighbor’s electric bill — your very neighbor who is in debt but has taken the time to make his home pretty for the holidays. Producing a gift card for the local grocery story for the family of 6 living down the road who you know can not afford a plentiful Christmas meal. Shoveling the snow from the ground of the elderly when they’re still asleep. There are many ways to offer others something of yourself without being obvious about it. But that isn’t my Christmas dream — that is just what I do believe we should all do throughout the year for others.

Across many of the Christian blogs that I read and comment on daily (as time allows), the most recent topic of conversation has fallen to economic thought. Some bloggers I respect decry the capitalism of Christmas, whereas I uphold some of it (the spending) while decrying other parts of it (the debt). I’ve always felt that the best society is one where people are able to spend, but not by spending on their credit cards or taking out another home equity line. This Christmas has almost come and gone, so there is no time to actually lay out a plan for my Christmas Dream.

Some bloggers talk about the wasted money in Iraq that could be better spent sending charitable contributions to some third world village in Africa. While I do believe it sounds good, I don’t know if it is the best use of your dollars and your time. I have many friends who have traveled to Africa, Russia, the Phillipines and India this year for performing charity for the impoverished, but it saddens me when I realize that they themselves are in poverty, in debt — and so are the families living right next door. We have an entire society of families in the US who are likely in great debt, but are ignorant of it because they have a roof over the heads, cell phones in their pockets, 200 channels of cable, and all the clothing and food they require, if not more. Yet they are living today against their labors for the next 15-30 years. They even go into debt to try to help others — giving up their futures for something very temporary today.

My Christmas Dream isn’t about helping the needy in a foreign country, or even helping the needy close to home. It isn’t about volunteering just one day this month at a soup kitchen or clothing closet; it isn’t about putting another $100 in the offering dish at the congregation of your choice. It isn’t about teaching your children about the birth of Christ, or helping your neighbor shovel his driveway. It all sounds good, but these actions are merely temporary — band-aids over the bigger wound that the future will likely bring for many.

My Christmas Dream is to see millions of families take a vacation from Christmas and all consumer holidays for just one year. I envision a country of debt-ridden individuals focusing on removing themselves from the endless destruction of savings by stepping back and saying that this will be the year that we are free from bondage. Rather than buying another set of presents under the tree and providing for others around the world, I believe the best thing that we can do for others and for our own selves is to get rid of the burden of debt forever. The world will survive one year without our help — and our spending — but we can forever change our futures if we can work for tomorrow instead of for yesterday.

I have friends who are still paying off Christmas of 2004 — and probably will be paying that bill in 2007. That could mean that Christmas this year will take until 2010 to payoff. How much money is lost to the banks and the investment businesses in interest and fees that could be better spent on others? What percentage of your gross income is paid to various companies for the benefit of using tomorrow’s money today (or yesterday)? For most of my friends, it seems to be in excess of 20%, once you consider the taxes you also paid on the money that you spent reducing debt.

I love my savings in gold and silver — real money that has generally retained its value for thousands of years, even with the ups and downs of the commodities markets. But gold and silver isn’t for everyone, especially when debt is part of the picture. I don’t even believe in saving for the future in 401K and investments when debt is still part of your monthly payment schedule. Most will disagree, but I see no reason to try to save 30 cents today if it costs you $2 over the next few years in interest on the debt you could have paid down. When people talk about the benefits of home ownership — namely the tax break — I see no reason to spend $1 today to save 30 cents this year. It just doesn’t add up. The cost of renting today is far below what it costs to buy a house: there’s the mortgage, maintainance, insurance and support in taxes. For most families, their lives are dedicated to keeping their roof over their heads, but also in keeping what is below the roof filled with items that they did not have an immediate need for.

My Christmas Dream is now for Christmas 2007 — the dream of getting rid of any and all debt so that your future can be truly about focusing on your future and on the present for the needy. Is it possible? I do believe it is.

The first step to fulfilling that dream is to forgive anyone of any debt they have to you — for any reason. If you loaned money to friends and family, let them know that their present for today is the forgiveness of debt. Don’t even keep it in your mind — just release them from bondage. Debt can be one of the biggest reasons why friends stop talking, why family stops smiling and loving each other, and why employees and employers have rough relationships. If you are a boss, forgive your employees of any advances they’ve asked for. If you are a parent, forgive your children of any money you loaned them. If you are a friend, be a friend and free the friends that borrowed from you. If anyone asks why you are doing it, let them know that it is your Christmas Dream to see them free others from debt, too.

The second step to fulfilling the dream is to talk with your family — kids, siblings, parents — and let them know that in 2007 you will act poor because you are poor. Let them know that 2007 will be a year when you spend time together in meager dinners at home rather than extravagent meals out. Let your children know that you will be forsaking presents for the year so that you can have nicer presents in the future; show them that buying a $600 video game system today will cost you $2400 over the years that you pay it off. Show them that the reason mom and dad generally work is because your house that would cost you 5 years of income is actually costing you 37 years of income — 32 years that you could spend being with the family more by working less.

Live 2007 in poverty — call the cable company and thank them for their service, then send the boxes back. While you’re at it, pawn or eBay those TVs, too. The time we spend on the couch is time that could be spent servicing debt for one year. 3 hours a day seems to be about average TV time for a family of 4 — how about spending those 3 hours at a second job, or even going through a household of clutter to sell everything you don’t need on eBay to reduce debt? We’re talking about one year — 2.5% of your life that can open up 50% of your future. Get rid of all the phones but one. If you’re fearful because you will communicate less with your family and friends, think about what that says — you are too busy to see them face to face. Lamps? Sell them. Extra lighting means more spent on electricity. Keep your sweaters and your sweatshirts handy and put a maximum on the heat. Learn what it means to be poor when you realize that others in debt and bondage are probably living in homes without heat. We are blessed to have sweaters and cotton hats — use them for that year as you find yourself free of the $300 a month heating bill in Northern winters.

Are you driving a car that is being paid off? Sell it and work to pay off the remainder. Buy used only what you can afford to pay cash for. When a friend of mine considered bankruptcy last year, his BMW was repossessed, and now he is driving a $2000 Chevy. He first had to buy a $500 Hyundai that started 1 out of 3 times, but it drove strong for 6 months, and he pocketed over $4200 in savings in insurance, payments and maintenance. When the Hyundai failed, he received $500 in trade from a used car dealer that offered it, and he paid $1500 extra for the Chevy. It drives like a dream, even though he doesn’t attract attention on the road anymore. Honestly, he wasn’t attracting attention in his $700+ a month BMW SUV, since everyone can lease one, too. But he’ll be $8400 ahead this year in debt reduction. He skipped bankruptcy on my recommendation — I believe everyone should pay what they owe, even if they can’t. My own lost business will cost me hundreds of thousands of dollars and still take another year or two to finalize, but I am doing it properly rather than walking away from my debts just because a judge said I could. No thanks. My heart wouldn’t handle that.

Are you planning a family vacation this year? Cancel it and plan something closer to home. Camping is a ball — campfires, marshmallows, songs sung with laughter and embarassment and love. A week will cost you less than half a day in a vacation town. Teach each other a talent, talk to each other about what you like and dislike. Be a family, but not the kind you see on TV. They don’t show you the TV family’s credit card bills or payday loans to get what they have. You also don’t see your neighbor’s credit card bills, or your brother’s credit card debt. They probably have it just as bad as you might — but they’re also not worrying about it because “everyone lives this way.”

My Christmas Dream is just one year of sacrifice that is the best investment you can make. You’ll learn what it means to be poor — and you’ll see that you can handle it. You’ll lose 1 year of family time that will pay back huge dividends in future family time saved. You’ll understand that you don’t need the newest carpet or car or clothing; you can survive without the cable box and even become a closer-knit family. You’ll notice things about your teenage kids that you never realize should have been a concern. You’ll reinvigorate your family’s goals as you’ll free up your finances to afford things today that you won’t have to pay for many tomorrows. You’ll save so much time in not having to deal with the possibly dozens of bills coming in each month. Reduce your credit card holdings to one — and move all your utility bills and insurance payments and other bills to automatically deduct from your credit card so only one bill has to be met each month. Pay that card off each month, too, while reaping the benefits of cash back or airline miles used for future vacations that are paid in advance.

Regardless of your income to debt ratio, 10% of us can be free and clear in 1-2 years with a big step of sacrifice, but if you do it in 2007, you will skyrocket to the top 1% of the wealthiest persons in the world. A little savings with no debt is a huge leap in freeing your time, your emotions, your depressions and your fears. You will be happier; your family will be happier; your boss will be happier; your friends will be happier — they’ll have you back, and the time you spend with them will be dedicated to them.

Imagine tomorrow that you had nothing to pay but the utilities and the cost of living. Picture how freeing it would be that you wouldn’t have to worry about what direction your resale price for your home would be. If you free yourself from consumer debt, you can then focus on paying that home off in 7 years — being free and clear of all bondage while your kids are still kids, while you’re still a few years from AARP membership, and when you still have the energy and drive to work a little harder so that your future is about leisure and love.

That’s my Christmas Dream. Help yourself today so that you can help others for the rest of your future.

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