Both of these, in some way speak to how are leaders have failed us and we or we allowed it to happen. Obama is correct, we need change. However what we need is an overhaul of our political system. I have seen some headlines and crawls on news channels that ask, “Has Capitalism failed?” My answer is no. Our two party political system has failed us.

We have two parties that are more concerned with getting enough votes to stay in office than coming up with sound policies that will secure our nation for the future. Why are they mortgaging the future of our country to provide a few hundred dollars to ’stimulate’ the economy. Kevin, whom I linked to earlier, suggests investing that in gaining energy independence. Sounds like a great idea to me! At the very least, update our infrastructure so that electricity can be easily moved throughout the country. Provide some of that money for alternative fuel research.

However, both sides like to talk a good game. Why are we in the state we are in now? Ultimately, it is my fault and yours. We have given in to a two party idea. Why? If neither party is doing what is good for our country, and polls show that Americans don’t think they are as I think congress’ approval rating it at 11%, then why stick with them? We need to get out of this idea that these are our only two choices. We need to stop sitting on the sidelines. Vote third party. Or at least start writing your representatives in office.

Change is needed, but I don’t think it is the change Obama or McCain really wants.

-Kevin

The wildcats were not doing well on Saturday. About a third of the way through the 4th and final quarter, they were down 20-7. UK has the ball and turns it over. The fans in the stadium, start pouring towards the exits. Yours truly, watching it on TV at a local sports bar threw up my hands in defeat and went home. Many of us gave up. Little did we know, the Wildcats made a HUGE comeback and won the game. It would have been so exciting, but many of us gave up and missed out on the joy of victory.

In a similar way It is easy to give up when it comes to personal finance. There are times when it seems hopeless. You have a mountain of debt. You can’t seem to scrounge enough to buy a pack of Ramen Noodles, much less pay down that credit card bill. It can be depressing and overwhelming. Don’t give up! you can make it through. You will make it through. Just keep making the right choices.

Much like my Wildcats, you can make a comeback and so can I. No matter how far down or how late in the game. Stick with it, and you will have the victory!

-Kevin

It appears to me that Obama is going to win. Before you give me a high five or start calling me a socialist, that is not intended as an endorsement. Just an observation. If we assume that Obama is going to win, how can we take advantage of this? Green Energy.

Obama has said that he wants to get the US off dependence of foreign oil in ten years. That is a bold and aggressive task. That means he will use the government to fund research, give tax breaks, and other measures to accomplish this. Or at least try. This puts green energy in a good position. So this is an area I am going to spend a lot of time learning more about and finding some possible good investments within the next year or two as I expect to be able to start investing some within about two years. Plus, with the economy the way it is, it will likely be a couple of years to get things turned around. We technically haven’t hit a recession yet.

I know that McCain could possible still win. If he does, I think it would require a slightly different approach. He will be pushing for more nuclear plants. I am just looking at the polls and making the best guess I can. And since I think the key for financial security is planning ahead, I am going to try and get ahead of the curve.

-Kevin

I average spending about $11.00 a day on lunch or roughly $220 a month. That is just on lunch. This is completely ridiculous. In all honesty, it is a bit embarrassing for me to admit that I do this! So how am I going to deal with this monumental waste? By planning ahead.

I have a rough budget that I follow, and yes I factored in this current cost. What is going to happen is the following. First, each Sunday I will sit down and plan out what I am going to eat each day for lunch. Seriously, I am writing down a list for Monday-Friday. One of those day will be a day where I eat out. The reason for this is social/networking. The current job I have is through networking and staying in contact with old coworkers and friends. Next, I will take that list to the grocery store and buy what I need. Finally, I will post on here about it on Saturday as a way of accountability to see if I stuck to my budget. For the moment, I am scheduling $30.00 for lunch money through the week.

This is part of the battle. Identifying where my week areas are and fixing them one at a time. I know there are plenty more, but this is the next step. Once this is under control, I will improve another area. Keep in mind, I am still paying down debt so every improvement is speeding that process along.

-Kevin

What about meeting a girl? Is this a setup at dinner? Are you out at a club? some of these situation can make some guys feel obligated to pay. My simple answer, don’t. Before I get into why, let me lay out two possible scenarios:

• You are going out to dinner with a group of friends. They are inviting a girl they want you to ‘meet’ to come along. You sit next to her and talk a lot throughout the meal. The ticket comes and some people are paired up and some aren’t. Do you grab her tab? No, this is not a date. You did not ask her out, at least not yet. Avoid the temptation to impress by paying for her dinner.
• You are out at a club or a bar with your friends. After mingling around you cross eyes with a beauty and go up and start talking. She finishes her drink and looks at you. Do you buy her a drink? Please don’t. Again, you are not out on a date. this is not being cheap, this is being smart.

Lets assume for a minute that it is the guys responsibility to pay on a date. Neither of these situations is a date. These are meetings. First off, you can’t afford to pay for a drink for every girl that winks at you at a bar. It is not your responsibility. And if you are afraid that you will come off as too cheap for her, you probably are. Donald Trump probably is.

The point is, if a girl is actually in to you. She does not care whether you buy her a drink or not. Or even pays for her dinner during a meet up. The ones that do, are probably not the girls you want to mess with. Ask some of you female friends. I will bet most of them have taken drinks from guys they have no intention of ever seeing again.

The girl who is expecting diamonds will never be satisfied. The ones who don’t will be forever grateful.

-Kevin

• Andrea at Fools and Sages has some nice thoughts on Credit Card Debt falling in August.
• Kevin at No Debt Plan discusses paying down debt vs investing in the down market.
• MoneyNing made some changes and saved $100.00 a month.
• The Frugal Dad lists some additions to the Bailout Plan voted in by Congress.
• JD at Get Rich Slowly brings up an interesting topic of turning your passion into your career.
• DR of Dough Roller says we should use our financial regrets to move forward.

-Kevin

Less certain about “emergency fund”, but my wife likes the idea. With the dollar losing value every day, and interest rates so long, it seems like the wrong thing to invest in. Wouldn’t it be better dumping that money into my mortgage, or some other sort of investment (Gold is popular…)

He is correct, as an investment vehicle there are better plays out there than a savings account that will earn 3.0% to 3.5%. However, an emergency fund is NOT an investment vehicle. yes, you should keep it in an interest bearing account. Yes, it should make SOME money. However, that is not the purpose of the emergency fund. Its purpose is be liquid cash available in case you lose your job. Or if your car breaks down. It is good to get some return on what ever account you use for the fund. Just don’t get caught up in it too much for this one part of personal finance. The important part is being responsible and being prepared.

-Kevin

If you go to the link above, it is an interactive chart. However, I just took a screen shot to show something. If you look, you will notice that every downturn is small and short followed by long periods of growth. Yes, this economy is bad at the moment. However, it is not the end of the world. We will see another period of growth soon.

What these short periods of recessions tell us is that we need to be prepared. Clearly screaming at us that an emergency fund is needed. As well as being diversified with our investments. As you get closer to retirement age, you should be moving away from stocks. All too often we get complacent in the periods of prosperity, only to panic at any hiccup. Plan ahead and you will be just fine.

-Kevin

1. Debt: I have a little under $5,000.00 in credit card debt. This amount is going down quickly, and barring any bad decisions I should have it gone within six months.
2. Emergency Fund: I currently have $1,000.00 in a savings account. This is a great start, (considering where I came from), however I want to get it to three months of living expenses or about $5100.00.

These two are my main goals to get myself on track. Great progress has been made in reducing my overall debt in the past year. I was at around $10,000.00 in credit card debt. Once these two goals are met, I will continue to grow my emergency fund until it is six months of my expenses, work on increasing my 401k contributions to 10%, and save money for a down payment on a house.

Several things are changing in the next couple of months. My roommate just got engaged, so I am going to have to find a new place to live. There are several apartments around that are reasonable, although I am also looking for a possible roommate as well to save a little money. The emergency fund estimate listed above is assuming I don’t find a suitable roommate.

So tay tuned next month to see how I am doing.

-Kevin