Personal Finance 101
neither a borrower nor lender be
The phrase above comes from Shakespeare’s Hamlet, and actually refers to never lend nor borrow from a friend, but I would expand that to include never lending to nor borrowing from a family member, partner, lover, or anyone else for that matter. Often you will never, ever see a single penny paid back to you. I would also expend that to say never, ever, ever stand as guarantor for anyone either. Because as guarantor you are jointly end severally liable for the whole debt, plus interest, plus charges ~ up to and including losing your home and everything else you own.
- Work out your monthly budget, with hard numbers. How much do you have coming in, and how much goes out, and on what? If you have more going out than you have coming in, then stop fucking wasting money on cigarettes, booze, gambling, drugs, vacations, sex, new clothes and shoes you don’t need…. Or get a higher paid honest job.
- Only ever borrow for two reason; #1 a mortgage to buy your home #2 to buy your car, if you must have a car. (actually student loans to pay for your education sometimes make a third reason) The only borrowing I have ever had, in my whole life, was a mortgage on my home.
- Pay off your debts just as soon as you possibly can, and only take out a loan if that is allowed in the documentation with no penalties. Don’t ever borrow from anyone other than highly respected, and properly regulated institutions. If you have never heard of them, don’t touch them with a barge pole.
- Never, ever, ever borrow on a credit card, for any reason whatsoever. Only buy something on your plastic if you can afford to pay for it in hard cash right there and then, and always pay off all your card debt in full every single month. The interest rates on credit cards are stupidly high. Anyone who says using a credit card / line of credit to consolidate your borrowing is a crook.
- On the other hand, I buy everything on plastic. I do that for 3 reasons #1 I get good points which I can use to get other things #2 because I pay off my card bills in full every month, I get 1 month’s free credit #3 if I have a dispute with the seller, then in the UK the card company will, at the end of the day, refund me in full in the seller will not, or cannot.
- Save for your retirement, however that works in your country and in your company. Save as much as you can afford for your retirement.
- Never ever trust anyone who tries to sell you any kind of financial product whatsoever. If it sounds too good to be true, then it is. If you don’t understand it, then it’s a scam. Never, ever believe anything you see on the internet ~ especially on YouTube. Everybody lies sometimes, sales people lie all the time. Often they believe their own lies, or they’re to badly educated to understand their own products. (That applies to all sales people.)
We had a mantra when I worked in Banking and Finance in The City of London; ‘My Word Is My Bond’. Sadly that no longer applies anywhere. The world of Savings, Loans, Credit Cards, Banking, Finance, The Stock Markets, Real Estate….. are today full of the ignorant, dishonest, liars, charlatans, confidence tricksters, and crooks.
We had another saying in the City of London caveat emptor; which is Latin for Let the Buyer Beware.
~
jack collier
jackcollier7@talktalk.net
Burgled
Lying, cheating, and stealing are next door neighbours.
Sometime earlier this week someone got into the garret and stole some of my stuff.
There was no damage to my door, so at first I thought I’d just lost my wallet and cash. That prompted me to spend a whole day searching for wallet / cash…..
But, I’d been robbed of my wallet with a couple of credit cards, my drivers licence, some other identity cards, and about £100 in cash. I also lost my cell phone, a couple of hundred US Dollars, about 5,000 Turkish Lire, a watch, and some other bits and pieces
I’ve spent all morning on the ‘phone sorting out my banks and reporting the theft to the police.
Even then I’m not finished restoring my life ~ for example I need a new cell phone.
~
jack collier
jackcollier7@talktalk.net
I feel sorry for Marmaduke, who was alone in the garret at the time of the robbery
Money ~ Trust Nobody
Even Banks and Credit Card Companies are Dishonest
There is a truism ~ everybody lies. These days, even the people you should be able to trust to help you look after your money will lie to you. Just three recent examples in the news;
- Thousands of staff at Wells Fargo Bank routinely created false customer accounts based on real customers’ email addresses. All told about 2 million fake accounts were created. These fake accounts were allegedly used by staff to meet their sales targets ~ and some 5,300 Well Fargo staff have been fired. Would that it were all ~ trust me, there is more nasty news to come on this one concerning customer charges and wrong-doings higher up in the bank.
- The great credit card scandal continues. Credit cards are a rip-off for everyone except the banks. Despite official interest rates being at an historic low, the interest charged on credit card balances continues to rise to usury levels. And, in Britain Mastercard is accused of setting punitive charges on retailers, resulting in an estimated overcharging of £14 billion between 1992 and 2008. Guess who ends up paying for all this ~ you do. Mastercard are being taken to court in a class action.
- Four ex-employees of Barclays Bank are facing long jail terms for manipulating LIBOR. You may think LIBOR, (London Inter Bank Offered Rate), has got nothing to do with you. As a matter of fact the interest costs of everything you have ever borrowed is based on Libor. If you can’t trust the financial markets, then who can you trust?
Not one of the companies and people you trust to manage your money are completely honest with you. When it comes to your money, trust nobody.
Complete honesty is much more than not cheating, stealing, and lying ~ although banks, insurance companies, pension providers, credit card companies, financial advisers, et al, do more than enough outright cheating, stealing, and lying. Complete honesty means not lying by omission, being straightforward, being open, telling you what you need to know, avoiding obfuscation… None of the financial companies and people you deal with abide by that definition of honesty.
If they wanted to be really honest, then they wouldn’t have you sign a legal agreement which included pages and pages of small print.
What should you do;
- Check your bank and credit card statements for unexpected items, especially unexpected charges.
- Don’t put all your eggs in one basket.
- If it looks to good to be true it is.
- If you don’t understand something, have it clearly explained until you do understand.
- Never pay for financial advice, never pay an up-front or annual fee for a credit card or bank account.
In high finance there is a concept called ‘counter-party risk’ ~ one of the assumptions in that concept is ‘buyer beware’, never assume that the person or company you are dealing with is telling you the truth, the whole truth, and nothing but the truth.
George Bailey would be horrified.
~
jackcollier7@talktalk.net
Travelling Without Misery
One of my friends is taking their first overseas trip in twenty-something years. That set me thinking a little.
I spent 30 years travelling to most places in Europe and North America, unluckily I also went to some more ‘off the map’ destinations ~ such as Ankara, Mexico City and Moscow. Most of these trips were ‘on business’ some were vacations, and some were both. I’ve been arrested, caught all kinds of 
unmentionable illnesses, been delayed at the airport for 72 hours, held on a non-moving aircraft for 8 hours, arrived at the wrong airport, returned to the wrong UK airport, been mugged by 3 Romanian girls in Rome, got ripped-off innumerable times, held at gunpoint in Nassau, worked / travelled / worked again for an entire week, lost my car at a London Airport, got utterly and completely lost in the middle of nowhere, lost my luggage innumerable times, been stuck in the dark in the Channel Tunnel for hours, and hours and hours….
Well you get the picture. Travel is often misery. International travel is often a lot worse than that.
There are some things one can do to alleviate one’s suffering. My ‘rules for travel’ are:
- Don’t go anywhere you don’t know anyone, or at least have a contact.
- Make certain all of your documentation is in order and in date. Passport, visa and driving licence are my starting point. Then check with the appropriate consulate, Foreign Office, State Department. This can usually be done on-line.
- Get all of the necessary injections.
- Book direct with the airline / hotel / car hire firm / travel insurance company, on-line or by telephone. Shop around. Check for deals and discounts. It costs me exactly nothing whatsoever to call a number in the USA using Google.
Do not use budget airlines, down-market hotels, or car rental firms that don’t have a desk at your destination airport. Book coach on a decent airline, standard room at a decent hotel / motel. Personally I always rent an upmarket car.- Study the geography so you know where you are going and where your layovers are. For example, transferring at Chicago ORD means you will be delayed.
- Pack no more than carry-on luggage, and check size and weight restrictions for that. (They have stores in most cities one can fly to.) Take some stuff which will allow you to look smart and clean at all times. In my case this is a shirt to change into during the journey, hand wipes, battery razor.
- Take at least twice as much money as you can possible imagine you will need. Check currency import regulations. Take at least 3 debit / credit cards, and know your PIN numbers.
- Plan on arriving a couple of hours early at airports / railway stations / ferry terminals.
- Have a fat book / tablet to keep you occupied during the interminable waiting.
- NEVER, EVER, EVER lose your temper with anyone ~ no matter how great the temptation.
- Keep your documentation, cash and credit cards very very safe at all times. Keep your carry-on bag with you at all times.
- Don’t pay for early boarding. This only means you will be at the back of the plane and getting off last. Getting on the plane last means that you get off first, (after First and Business Class travellers.)
- Don’t drink any booze during your journey.
- Try and sleep, go to the lavatory, stretch your legs in the aisle during the flight.
- Because you only have a carry-on bag and will be getting off the plane early you can probably stroll through customs and get to the car rental desk avoiding the crowds.
- Get a navigation system (sat nav), and check over your rental very, very carefully. Photograph any damage.
- If you haven’t rented a car, then take a taxi from the rank. Don’t use a gypsy cab, limo, or public transport. (except when arriving at a London Airport, when you should take the tube / surface train ~ better to rent a car)
- Learn your car before you get into the traffic. Set the sat nav. Know exactly where your hotel / friend / contact is located. Drive very, very carefully.
- Watch out for the 99% of the people you will meet who will try to rip you off.
- Do not expect anyone to be helpful, efficient, or polite. Be pleasantly surprised if they are.
- Attempt to speak the local language. Even in the States, US English is different from English English. Learn the local customs, and do it Fast.
- When the shit hits the fan, and it will, be polite and helpful. Do Not lose your temper.
- Have a nice day.
As it goes, all of the above is common sense, but so many times I have seen people get into very, very serious trouble for breaking any one, (worse more than one), of the above guidelines / rules. Sleeping on the beach isn’t the worst than can happen to you.
jack collier
jackcollier7@talktalk.net
