The Cowtown Chronicles

Everyone’s favorite time of year! (Well, everyone who’s an accountant who makes the bulk of their income at this time of year, at least.)

There’s a comment thread on the MSN Money discussion boards about “The Most Ridiculous Tax You Pay.” Here’s mine –

The most ridiculous tax I pay is subsidizing other people’s children (in the form of NOT getting tax credits that couples with children are entitled to) because we choose not to have any. We give up a greater percentage of our income because we can’t claim all the same deductions and credits. That, of course, doesn’t even begin to account for all of my tax money that goes to public schools, children’s healthcare programs, etc. etc. etc..

Is that fair?

Jenna and I had a really interesting discussion about blogging and what’s the point of it all, and so on. I wasn’t able to really explain why I do it. Part of the appeal for me is that it is the closest thing to a personal journal that I’ve ever kept, albeit a very public personal journal. There’s also the ego stroking slant: the thought that there are people who visit this site and read what I’m writing definitely makes it worth doing, even if there’s not really any money in it.

I think the main reason, though, is that this site has become kind of my (very public) personal accountability zone. I post my goals and ideas, and then I count on everyone who reads it to hold me to the grand declarations that I make, if not through actual accountability, then at least through the humiliation I feel when I go back through all the goals I’ve set and not accomplished.

Here’s an update on where I am regarding a few of the goals I set for this year.

I haven’t lost any weight that I know of yet. I also haven’t been trying very hard, either. The “trying” piece starts tomorrow. I’m going to go slow and build up to what one might call a “workout.” I think I’ll jog a bit with the dog, then maybe go for a bike ride if the weather isn’t terrible.

I’ve done pretty good about posting more regularly.

The emergency fund is non-existent. I had to buy books for school and haven’t started getting my GI Bill funds yet. That will have to wait until next month.

Credit cards are still there, too. We should be able to pay one of them off by March. I’ll keep you updated.

Life is good so far, so at least I’ve got that one right!

Here’s the house around the corner from my happy place. I know this is totally random, but I’m kinda playing with my new blogging software and want to see what all it can do.

“The Freshmen” by The Verve Pipe from the album Villains (1996, 4:30)

Editor’s Note: This is one in an infrequently recurring series on personal finance and my plan for getting ours in order. I am not a financial planner, but I think this is common sense advice that anyone can follow, no matter your financial situation. Don’t sue me if you try it and it backfires.

It’s important to understand that nearly everyone in the United States has debt of some kind. You’re not alone. And if you’re overwhelmed by the amount of debt you’re carrying, you’re also not the only one out there.

Think about your debt. Do you have a credit card? Several credit cards? Student loans? Loans for other things, like cars or a boat? Do you own your house outright, or is it mortgaged? Now think about the people you know. That guy down the street with two really nice SUVs and the 58″ plasma – do you think he paid cash for all of that? If so, good for him, but chances are he didn’t.

Debt is neither good nor bad. That sounds really touchy-feely, but it’s true. Buying things on credit gives us the opportunity to live a good life and enjoy things that you wouldn’t be able to pay cash for all at once. There’s no way I could have come up with the money to buy my house with cash, at least not within the next 10 years. For one, I don’t have the kind of discipline that would make me able to save for that long, but also, the availability of a mortgage makes it unnecessary.

Having said that, however, while the availability of debt may be convenient, it’s not always a good thing. It’s VERY easy to overextend yourself with so much debt that it gets out of control.

I see some forms of debt as not as bad as others. Student loans and mortgages, in my opinion, are not as damaging financially as consumer debt. Consumer debt is debt that you take on to pay for STUFF. (I don’t consider your house to be part of that STUFF, since you need to have a place to live.) Student loans truly are an investment in your career and future. Study after study shows that a college degree is the ONLY trait that separates high earning people from low earning people. Family status or situation, whether you were from a single-parent or nuclear family, none of that matters when it comes to your lifetime earning potential. As I stated before, while real estate is NOT a guaranteed money-making investment, you need to have a place to live anyway, and it’s nice to own your own house.

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