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Friday, July 19, 2019

It Is My Money And I Need It Now

It Is My Money And I Need It Now

“It is my money, and I need it now!”

TV is saturated with this commercial for people receiving a monthly payout or a future annuity who want to collect a lump sum of money now. 

This is a great idea if you placed a bad bet on the Super Bowl and a guy named Bruno wants a bunch of money or he is going to break your leg.

It is a great idea if you need a major car repair in order to get to work every day.

It is “Your money”, but do you really NEED it now, or do you just want it now?  Do you want to give up on a steady income or future retirement funds so you can get a riding lawn mower, or vacation in the Dominican Republic, or spend money like a big shot?

I don’t know how these deals work.  I assume the company factors the amount of money promised over a period of time and current interest rates, places a lump sum value on the payout and delivers that lump sum minus a large commission in exchange for those payouts.

It’s your money, and you are selling a big chunk of it because you WANT it now!

If you could reject Social Security and replace it with a personal investing program, you could retire in style when the time comes instead of receiving a pittance.  The problem with that plan is so many people will NEED/want that money now, and it will never make it to retirement.

Too many young people do not contribute to 401K plans, because they NEED/want that money now.

Build up equity in your home?  Reverse mortgage…it’s your money and you NEED/want it now.

We are saddled with debt these days.  We are bereft of savings.

When I graduated from college, I received a Visa card from my bank.  It was good for whatever money was in my account.  After a year I had a credit line of $300.

Today people graduate with massive student loans, and significant lines of credit.  Many use this credit to the max because “They NEED/want the money now.”

I wonder, is the high expense of College a function of the ease to pay for it through credit?  Are we going into debt to become “Relationship Experts” or “Historians of Diversity in America?”

Are credit cards maxed out because we NEED/want expensive vacations, fancy cars, the best of everything?

There are many people driving a Lexus, a BMW, or other high-end car at 2 or 3 hundred dollars a month more than a Honda?  How many of those people have debt and zero savings? How much nicer is that car that you pay through the nose even though you have debt and no savings?

It is easy to get credit; it is also very expensive to get it.  I suppose there is plenty of time to pay it back.

It will be your money someday, and you probably NEED/want it now!

Thanks to massive money spent on anti-smoking campaigns use of tobacco is rapidly declining.  It is no longer cool to smoke.  There is no longer peer pressure to smoke.  Couldn’t we also educate people about the scourge of debt?  We should make un-needed debt the same pariah that we have made smoking.

Maybe the Government will bail people out and simply pay for it further down the road.

I wonder where that money will come from?  If it is MY money, I want it now!


  1. I think hubby was telling me about some program someone was trying to introduce that would wipe out what everyone owned credit wise and they would have a clean slate. Problem with that is if they didn't change their attitudes, wouldn't they be in the same program in the future? Unless they had a way to get away from this mentality of having it now, they would continue to rack up debt that they could not pay and it would be a vicious cycle to cancel debt continually every so many years. I have to say we are "okay" for retirement but we could be "better" for retirement and some of it was then the "I want it now" philosophy of my youth. We'll be fine, I just wish we were a bit finer. Live and learn and try to teach the next generation who won't listen anyway.


  2. I, personally, am NOT saddled with debt. I owe nothing to nobody. I'm not rich either, drawing a social security pension and the most minimum amount allowed from my superannuation. it gets me through the fortnight with a bit to put aside for Christmas. I could cash out my superannuation account and have that money NOW, but I don't need it NOW and need is very different to want. I need that minimum amount of money to keep popping into my bank account each fortnight, that way it will last so much longer. I know of a friend's mother who wanted her money NOW, and cashed in her superannuation, which was quite a bit larger than mine and a year later she'd blown the lot and was flat broke. She now gets the same social security pension that I do, but she smokes, so her money doesn't go as far. Cigarettes here are hideously expensive.
    I really do wish there was a way to make the young people see that permanent debt is not a good way to live. They're one disaster away from being unable to meet payments, and then what?

  3. dear Joe i agree that life is getting complicated with each passing day and this is only because of our horrible attitude towards life and lifestyle

    we have forgotten difference between "NEED" and "WANT"
    hardly some years back life was peaceful and people were concerned only about NEEDS
    but now everything is about WANT
    i want luxurious life not because i need it but i have to show others that i have it
    what a pity we care more what other think about us rather than what we think about ourselves
    we don't respect our being anymore but it is material that seems to qualify us

  4. You raise so many issues here JoeH that to answer them all will become an essay in economics.

    Two points:

    1 We need to be more selective in choosing University education. There's no point getting into debt to get a Degree in the cooking time of spaghetti as compared to other kinds of pasta. Too many people are studying for worthless Degrees that will not get them a job.

    2 Sadly, debt is good for the economy. The more we borrow, the more we spend, the more we spend and buy, the more factories produce products, and the more people they keep in employment, in order that they too get into debt to buy more things to keep other people in employment. What will happen when automation and robotics take over all means of production is another matter.

    Sorry to have taken so long, JoeH. God bless.

  5. Amen brother Joel. We put money in the 401k even when we didn’t think we could afford it.
    When I got raises, a portion of the increase upped the amount we put into savings.
    When the company was reducing workforce, Ali was 59 1/2.
    Had we not saved and paid off the mortgage, retirement would not have been possible.
    I still work but that’s because I do what I love.
    I think your message in this post is an important one.

  6. There is not enough in the universe to satisfy all of our wants. My belief is that there is a spiritual reason behind that, but that's to be discussed when someone wants to bring up that topic, i won't hijack your arena, and you probably know where i would head with that anyway.

    We do need to reinstitute the ideas of working, earning, saving, and doing without until you can afford it.

  7. I don't owe but am in no way rich. I can buy pretty much what I want but that is only because I usually only want what I need and I pay for it each month in full. Hasn't always been that way. I wish we had courses in money management when I was a youngster. Not sure it would have helped but it couldn't have hurt.

  8. Wow great post. I wish we had put away more for retirement but we live nicely. However. This year has cost us dearly because of Jim's health issues. That's when I really wish we had saved more. No debt would be wonderful but there are set backs that we have to compensate for. I hate those commercials and mute them as fast as I can hit the button.

  9. My kids would always roll their eyes when I told them we couldn't afford things like smartphones (back in 2008), yearly trips to Disney World, or even take out pizza every weekend. Yes, we could 'afford' all those things, but we chose to save our money so that they could go to college debt-free. Hopefully now that most are own their own, they get it.

  10. I was taught to live BELOW my means so that I could save for that always on the horizon Rainy Day. We've had a few Rainy Days in our lives and thank goodness we had some cash saved up to cover it. It would be nice if there was some kind of course in our public and high schools to educate kids on the importance of budgetng and saving.

  11. That commercial drives me crazy. The only time you should take your money is if your time is almost up and you want to have one last blast. Other than that, you are best to save your money for a rainy day, because they always come.

  12. We live in a microwave society...have to have it super fast! Debt never sleeps and I tell my kids to put as much as they can..or even if they think they can't..into a pension plan especially when the company will match a percentage. If you're luck enough to live long, you'll not be sorry. My Mom is 93 and still lives comfortably on her pension and good investments from her youth. Even with my Dad passing early and his company didn't give widows the pension their husbands earned. She worked 3 jobs so she could continue to put away the same amount into her pension.

  13. I might be the only one who appreciates the creativity of those commercials, using different musical styles to say the same thing. I bet everyone remembers the name of the company. That said, they must be making a bundle off other people's long-term money, or they wouldn't be running those commercials all the time.

    My husband says it's funny how some people just can't afford to pay their utilities and kids' lunch charges and rent, but they have giant TVs, and every kid has a cell phone, and the parents smoke a carton of cigarettes a week.

  14. In some ways, it hasn't changed. It's always been about living LARGE, keeping up with the Joneses, and giving the impression you have more, than you really do. I lean toward minimalism the older I get. I'm content.

  15. You should go around to the junior high and high schools and teach this. People need to learn this as soon as they are able. It would make a huge difference in their lives.

  16. I agree with you about that commercial. It takes advantage of the same kinds of vulnerable people who run to buy gift cards and give the numbers to scammers claiming to be the IRS.
    Home equity lines of credit offer the same kind of immediate gratification - but you end up losing your house instead of just a fixed income. And then there are the spenders who take fabulous vacations and pay for them for years on credit cards. Banks refer to people who pay off monthly balances as "dead beats" - guess we'll have to live with that moniker!
    I agree with commenter, Victor. Around here, neighbors are saying plumbers won't even return calls. They're too busy. More young people (girls, too) should forsake a BA in "communications" and learn a trade that pays well and offers job security - like plumbing.

  17. In my first Corporate Life part of the job involved debt counseling folks whose Homes had gone into Foreclosure or Bankruptcy. It was shocking how many otherwise intelligent people had zero financial IQ. What they made was never the problem, it was what they kept... what they spent... I think in School, starting at pre-school, we should have Finances added as part of necessary curriculum. Every Human on the Planet must deal with a form of Currency... EVERY ONE... and yet so few have even the most basic understanding of responsible Stewardship and Financial intelligence. My elderly Mom thought the Guy on that Commercial was Hot {LMAO}... and that's all I can think about when I see the Commercial... it reminds me of her and how she'd get me to laughing about absurd Commercials.

  18. A lot of people are really stupid about money. Some of my husband's former bosses - accountants! - did not contribute the minimum amount to their 401K plan, even though the company would match it. But they drove BMWs. Who turns down a 5% raise to drive a fancy car?