Penny Smart Dollar Stupid – shared Sense Verses a Redneck Approach
Laugh at the Jeff Foxworthy jokes all you want, but don’t be one of the redneck’s he speaks of. Think in terms of Einstein verses Bubba. Einstein lets the strength of compound interest work for him and Bubba buys beer using his credit card, increasing the debt each month, never paying off the balance. The bass boat Bubba bought is nice, but the investments Einstein bought allow him to later have a yacht.
Bubba wasted a tank complete of gas in his truck to save twenty dollars, driving from store to store, however it takes over thirty dollars to fill his tank. Einstein researched the best prices online and then had his buy shipped to his front door. Less time, no gas, and less money are a few of the ways Einstein beat Bubba.
Bubba looks at petty cash much differently than Einstein. Bubba buys fifteen dollars worth of video rentals every week. That’s sixty dollars a month. Einstein puts sixty dollars into an automatic investment that purchases stock for him.
Bubba believes in entitlement programs and that the government or perhaps his kids will take care of him when he’s old. Einstein believes that capitalism and free enterprise is the answer to getting ahead financially and a sound plan of action.
Bubba is an impulse buyer. Einstein is a saver and investor. Bubba is going into debt with a new truck payment, boat payment, a mortgage, and credit card payments. Einstein used his credit card to put cash into his brokerage account by a cash improvement, and then purchased stock at a bargain, only to sell it after it went up, and then paid the card balance before it was due. He used other people’s money or his credit to buy a worthwhile investment. already if the stock didn’t go up, he can sell and nevertheless pay off the card. The upside was far better than the downside. Einstein understood much.
Bubba watches a lot of television and surfs the net for fun. Einstein builds a business empire and loves what he does.
Which one are you?
© 2007 – AJ Dowell