The ONE Law You Should Be Breaking
There is a law all smart people break. Parkinson's law. Parkinson's law states that "work expands so as to fill the time available for its completion." It was first coined by C. Northcote Parkinson in the book Parkinson's Law: The Pursuit of Progress. A common derivation of that is "expenses rise to meet your level of income." Has that happened to you? It happened to me in 1991 and I'm particularly aware that it could happen to me again in 2005. In 1991 I took my BS in finance and started a carpet cleaning business...like most finance majors, of course! I learned the business for a couple months and was earning a whopping $200-$300 per week working for someone else. When I left that company and went out on my own, the ad I used FLOODED me with business. I had 15 calls by 10:30AM the day the small ad first ran. The answering service told me every "little old lady in Saratoga was calling". So almost immediately I went from making $200-$300 a week to making upwards of $1000 per week.
WOW...23 years old and making that much money WORKING FOR MYSELF was great fun...had a great boss! I don't remember what I spent all the money on other than one of those nationwide pagers but my spending
rose dramatically. But guess what? At $7.95 per room for carpet cleaning it doesn't take a math major to
figure out I was working very hard to earn $1000 a week. So, of course I got tired and lazy and slowed down.
My income level dropped to some level probably near $500 per week but my lifestyle didn't and you can figure
out the rest. If, while earning $1000 per week I was living like I made $400-$500 per week I would have been sitting pretty...
or whatever the male equivalent of sitting pretty is! :>) Recently in a workshop I had a woman relate her story. Her husband had been out of work because of injury for
about a year. They had been living on only her income for that time. Before his injury they had been living on two
incomes and usually had just enough money to meet all their expenses. The injury had her worried. How could they do it on one income? Somehow, THEY MADE IT. All the bills were paid on time. They didn't take any drastic measures like canceling
the cable or pulling apart the 2-ply toilet tissue to get 2 rolls out of every one. This gal was amazed and tremendously EXCITED because her husband was going back to work soon and she
was going to be able to put a large chunk of one entire income toward eliminating all their debt using my program. (Do you have it yet?) Two thousand dollars a month put under your mattress or towards paying off a debt is
$24,000 per year or $120,000 after 5 years. This family was forced to break Parkinson's law and you see how it dramatically improved their lives. The silver
lining in the cloud. Don't be forced to break the law...do it voluntarily starting today. If you are a two-income household pretend
that one of the incomes is now gone. If you are a one-income household advertise for a wealthy widow or
widower and then pretend that your income was slashed in half. Keep track of every penny you spend...write it down...put it in your Quicken, Microsoft Money or any spreadsheet
program...just get it on paper so you can see it. Be brutal about it and I'll bet you can live on half of what you now make. Take the "missing" half and pile it on
your debt. (you know which debt don't you?) Break Parkinson's law and you'll never be sorry! Leo J. Quinn, Jr. owner of http://www.LeoQuinn.com is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. He has a special offer for readers of this newsletter at http://www.1shoppingcart.com/app/adtrack.asp?AdID=132551
Related News
Six financial gifts that let you do more with less this season - MarketWatch
C& subsidiaries granted debt relief - 중앙데일리
C& subsidiaries granted debt relief중앙데일리, South Korea -10 hours agoCreditors yesterday agreed on a debt workout program requested by the companies. The market has closely watched the shipbuilding and construction arms of ... |
UPDATE 1-Pininfarina sees agreement with banks by end-2008 - Reuters
Home > News > World Bank Launches Facility to Prevent ... - World Bank Group
Togo qualifies for debt relief - afrol News
Togo qualifies for debt reliefafrol News, Lesotho -Dec 2, 2008afrol News, 2 December - Togo has been approved for debt relief under enhanced Heavily Indebted Poor Countries, after reaching a decision point under the ... |
Obama pledges relief to governors - The News Journal
Obama pledges relief to governorsThe News Journal, DE -9 hours ago"We don't believe economic problems that were in large measure created by too much debt will be solved by more debt," Sanford said Tuesday. ". ... |
Firms Seek More Action to Unfreeze Lending - Wall Street Journal
Firms Seek More Action to Unfreeze LendingWall Street Journal -6 hours agoSo far, the Treasury's Troubled Asset Relief Program, or TARP, and Fed programs to ease the financial crunch have focused on banks and, more recently, ... |
Andhra pays for fiscal profligacy, may be denied debt relief - Economic Times
HIPC: Togo Gets Debt Relief - THISDAY
HIPC: Togo Gets Debt ReliefTHISDAY, Nigeria -Nov 30, 2008The statement said that Togo would receive interim debt relief from certain creditors, but in order to qualify for irrevocable debt relief at the completion ... |
Know the Details of the Mortgage Forgiveness Debt Relief Act - RisMedia.com (press release)
|
|
 |
|
|
RELATED ARTICLES
Turning Bad Debts into Good Debts through Investing Fundamentals
If you've ever earned enough money to put some aside, like most people you've probably invested it with an eye toward security ? since, perhaps, you can't imagine yourself ever getting rich.
Should You Invest In Savings Or Payoff Your Debts?
I have faced this financial question 8 years ago and recently I have friends asked me this same question. I think I should write it up so that it may help some of you that having the same situation.
How to Get Money When You Are Broke
(Money You Don't Have to Pay Back)
Credit Counseling or Bankruptcy: Which is Best for You?
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including food, gas, rent, clothes, utility bills and more. At the same time, salaries, especially in the lower ranges, have utterly failed to keep pace. When you get to the place where you cannot pay your bills and have money left over for food and other necessities, there are some hard decisions that have to be faced. The options are credit counseling and debt management services, or bankruptcy. Both have their pros and cons, so which road to take depends largely on the individual and how severe his or her financial problems have grown.
Debt Relief with this Simple Formula
Is there a way to get out of debt without getting a second job or having to increase your income in some way? Can the average
person take his or her current income and pay off his or her bills in a matter of a few years, including the car and mortgage payments?
Help for the Single Mother with Managing Credit and Debt
Today's consumers benefit drastically from the usefulness of credit. Credit cards are especially useful for large purchases, emergency situations, making reservations, identification, and protection from fraud.
Unfortunately, millions of consumers abuse credit cards beyond their financial earnings. The use of credit results in costly interest payments and late fees, impulse buying, overextended lifestyles, and the unnecessary stress from harassing telephone calls from collectors.
How to Avoid Bankruptcy
Bankruptcy is a legal way to offer folks with high interest debt a fresh financial start in life. In case you are considering personal bankruptcy as an answer to your debt problems, you are not alone. Bankruptcy is on the up and up as consumer debt explodes. Additional reasons for turning to bankruptcy for credit card debt alleviation include medical costs and job loss.
Think for a Change
I'm not sure where it originated, but I've heard it repeated time and time again: Insanity is doing the same thing over and over and expecting different results. As much sense as that statement makes, we often find ourselves addressing the same issue with solutions that are little more than rearranged expressions of previously failed solutions. Why can't we develop new solutions to persistent problems? Because we refuse to think!
Craving For Financial Freedom
Have you ever felt trapped in a Rat Race and wished to retire quickly but rich?
How to Protect Yourself: Debt Collections
So you are getting collection calls? You're desk is full of unpaid bills. You dread answering the phone. You are having trouble sleeping at night because you are worrying about a bunch of bills. You feel depressed. Does any of this sound familiar? If it does then, maybe this article can help you.
Debt Getting You Down? - Make a List!
Debt is not much fun and when faced with it, people sometimes look for complicated debt solutions and often overlook the many simple ways that you can save money. Believe it or not, one of the simplest and most effective debt solutions is to get hold of a pen and a piece of paper and make a list. By this I mean that keeping a daily record of your expenditure can reveal some interesting facts about your spending and point you in the direction of how you can make easy savings right away. My Father first introduced me to this, showing me the little piece of paper that he kept in his wallet. But at the time I just rolled my eyes and ignored his advice ? big mistake. It was only a few years later when I wanted to try to seriously start saving money in order to make a dent in my mortgage loan. But this debt solution is not only useful for helping you to pay off a mortgage debt, but also credit cards and student loans and many other types of debt.
Bankruptcy - Your Fresh Start
Most American consumers are living too close to the edge. They are carrying too much credit card and mortgage debt and have too little in the way of savings. When the inevitable unexpected crisis comes along, they have little left to handle it and quickly slip into a critical financial state.
Debt Settlement : What You Need To Know
Debt Settlement companies work with your creditors to help you reduce your unsecured debts though arbitration and negations. The important thing to realize about Debt Settlement is that it is a different type of program than Consumer Credit Counseling or Debt Reduction. Traditionally, these types of programs work with your creditors to lower your interest rates. Debt Settlement companies work with your creditors to reduce your credit card and unsecured debt balances, sometimes by as much as 40-60%! While this type of program can be quite effective, there are some major issues that must also be considered.
Mr. Cheapies Frugal Budget Tips
So you feel like a hamster spinning your wheel? The faster you run, the faster the wheel spins. Just when you get a raise, you notice the price of hamster wheels jumps!
Selecting A Credit Counselor; Asking The Right Questions.
When you find yourself thinking about using a credit counseling service, you need to be very
careful. You need someone who will help you, not just some pushy sales associate who wants
only to sign you up for their service.
Utah, the Nation?s Bankruptcy Capital
Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt. Once it takes effect in October, 2005, the law will make it harder for those with problem debt to have their debt wiped away by the courts. Most will have to agree to a five-year repayment plan. In passing this new law, members of Congress suggested that our bankruptcy courts are filled with cases involving not ordinary citizens, but with reckless gamblers, shoppers, and drug abusers. Is that really the case?
Fast Track Out of Debt
You go to the mail box and scan - a couple fliers (nah), your magazine subscription (yes!) and bills (groan). Every month the bills show up and as you sigh and take out your check book you wonder if you will ever be free.
Debt Settlement -- Why the Critics Are Wrong
After October 17, 2005, a lot of people are going to become interested in debt settlement as an alternative to bankruptcy. That's the date the new bankruptcy law goes into effect, and it means a rude awakening for many consumers seeking a fresh start in bankruptcy court.
Debt Problems? You Can Negotiate With Your Creditors
It is always possible to negotiate with creditors ? even if they have already taken you to court to get a judgment or to garnish your wages.
What Is A FICO Score?
Your FICO score or credit score as it's commonly called is a very important calculation that can control whether or not you are eligible to receive credit and if eligible the terms you can receive credit under. Failure to understand the impact this score can have on you future purchasing power and lifestyle can be disastrous. This article will break down all the information you need to know regarding your FICO score.
|
