Mar 242009

Fortunately, like lemmings to the sea, there are plenty of great examples around us in our friends and neighbors as to how to model the “Ultimate American Consumer.” In case it escapes you, here is a simple ‘How To’ guide that can serve as a great roadmap to this continued process. Enjoy!

• Always spend right at the level of your after tax earnings. Having surplus dollars is troublesome for most because it’s difficult to know exactly what to do with them.
• Avoid having 3, 6 or even 12 months of basic living expenses tucked into a liquid account such as a money market or CD.
• Repeatedly purchase, preferably on credit, items that rapidly depreciate such as cars and consumer goods. Why pay all cash for something when you can use other people’s money (OPM)?
• Be sure to maintain at least $7-12,000 of revolving credit card debt and preferably ‘store credit cards’ and be sure not to read the monthly statements.
• In the event that revolving debt gets to be somewhat of a burden, be sure to take out a home equity line of credit (HELOC) to alleviate the monthly payments
• Look for and take advantage of ‘get rich quick’ opportunities that offer simple and easy wealth accumulation plans with little effort. Leave the hard work to all the ‘drubs’ who don’t know any better.
• Spend at least half of your allowable IRA contribution each year on Christmas and holidays (preferably on credit)
• If you have an investment or asset plan, be sure not to review it too often as this can be tedious, boring and rather dull. Once every 6-10 years should be fine
• If possible, avoid the toilsome task of creating asset accumulation strategies in favor of more dinners out with friends and fun vacations. After all, you only go around once
• Be sure to invest in insurance and protect yourself from disability, death, dismemberment, accident, ill health and be sure to insure your pets as well!
• Be sure only to buy new automobiles due their quality and reliability over used vehicles. Used vehicles can cost as much as $150/month in long term average maintenance.
• Avoid regular financial plan setting and goals progress
• If you have a home mortgage, be sure to refinance every couple of years to capitalize on low rates. Ideally you could own your house for 20 years and still have 20-25 years remaining on whatever debt is there at the time
• Avoid having financial coaches and truly objective advisors assisting you with your money plans

By following this plan, you’ll have every opportunity to engage in being the “Ultimate American Consumer” with all of the rank privilege that is conferred by that term. If, on the other hand, you want out of this, call Eric Johnson for guidance at 941.713.9307.

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