Matters of Interest

We would like to think that the worst is over. Certainly, we have seen a lot of trouble; but the residual of the current problems that are racking the market will be with us for a long time.

More than many know, we have modeled our finances after Biblical principals. Specifically, there was a time when every seven years, debtors were forgiven their obligations, and essentially given a clean slate.

The American homeowner has achieved this "Year of Jubilee" by means of selling their homes, and using the equity to pay off their consumer debt, make a down payment on another (larger) home, and repeat the cycle.

A typical first-time homebuyer owns their home for 3 years- the average move-up buyer? You may have guessed: 7 years.

So, what of our market today with no equity in homes and consumer debt rising? No Jubilee.

My goal as a financial planner is to build a comprehensive plan to equity, debt, and risk in the form of a balanced budget for my clients. The balance in the budget is not simply income/outgo (critical first stop!); but also short term/long term. We should enjoy (some woth more moderation) the lives we live today- but not to the exclusion of a sound retirement tomorrow.

In the coming years, in keeping up with the Jones we may find ourselves in the wrong neighborhood.

Watch for my 7 Step Program to Financial Recovery, coming to a blog near you soon.