Friday, May 23, 2008

Estate and truth

Yesterday, E_S_T_A_T_E was used within the context of 7oops7 and the financial musings, especially of the personal issues. ‘S’ is for saving which is what experts say that we ought to do first, namely pay yourself. So, let’s go through these in a little more detail which can be expanded upon through time.

By the way, this is a linear stream, for the most part, though various combinations, and even permutations, would be very interesting to think about. For now, think of moving left to right from E to E.

Too, most like to think that their Earnings are theirs to keep. Well, we would all like that. Given the inevitability of the extractions, how do we make the best of the situation is one question to ponder.

So, here we go.

  • E – Earn, however one wants that is legitimately pursued. So, what that entails is (and has been) subject to a whole lot of discussion. Let’s put it this way; there are moral/ethical issues, to boot.
  • S – Save, and doing so in a pre-tax method is one benefit that the IRS (and Congress) has given us in the USA. That is, maximizing the tax-deferred helps make this equation work. So, savings are the first extraction.
  • T – Tithe, and benefit. Well, for those who wonder about this, you can join T and A together under Alms, if you like. That is, consider what outside of yourself is important that you would like to fund, such as giving to the skeptical societies, et al. Otherwise, there are all sorts of theological and philosophical discussion that has been related to this that could occupy us for a long time. Just consider that the ‘T’ has tax implications, too, within a limit.
  • A – Alms, which can be several things, such as helping the lesser fortunate. Again, all sorts of sides can be taken here. The emphasis that we see in business and society about contributing via some type of service comes into play here; it’s easier sometimes to just write the check.
  • T – Tax, pay it and relax. You see, the infrastructure comes about via this, plus much more. Again, much to discuss; we’ll pay only slight attention to the IRS tax code which is always interesting to read.
  • E – Enjoy what is left. Now, the wise actually will only spend part of what is left assuming that such is possible. Well, again much needs to be discussed, however any accumulation of debt would really be negative Savings. As well, notice that the Tithe comes after the Save which implies that debt management is paramount for the individual. Actually, be debt free, except for certain crucial types, is not an unworthy goal.
So, there you have it. These may apply, as well, to business, perhaps arguably to the smaller types. Yet, the shenanigans that have emerged with the unloosening of moral and other cloths is problematic, in the least, and downright stupid, quite frankly.

Elsewhere, quasi-empiricism is mentioned as being apropos here. Think of this little E_S_T_A_T_E chain as being one basis that might be considered a necessity, of many, for proper economy and thought.

Modified: 05/26/2008

1 comment:

Anonymous said...

Musings on the Memorial Day weekend.

Somehow a vicious cycle got started that ended up piling up debt on those who were the most vulnerable.

Debt can be an asset to an individual in potential only; that is, having a credit line to use when needed is very much part of proper cash flow. But, use of this potential needs to have a plan for payback as well as good reason for the debt.

Without limits being applied, debt can become an every-growing threat that can loom over your, and your progenies', life even getting to where only a miracle can save the situation. Especially is this so given the usurious types that have arisen lately in the western world.

A business can benefit from applying leverage, if lucky; there is no counterpart for this with the individual. Even the housing bubble did not prove otherwise.

Methinks, the old feudal lords and their henchmen have reincarnated as bankers and other lenders and want to leverage consumers to be under eternal debt. Any whose genetic ancestors were paupers and servants stand the chance to become once again entrapped in endless servitude.

Freedom doesn't mean much without the means to sustain oneself. Avoiding debt is one lesson to be taught early. There are others.

That the 'fat cats' seem to favor their own is not what America is, or ought to be, about. Playing into the plastic game really was stupid.

Which leads to the question: just how much of the economy ought to be associated with consumer expenditures?

It is so sickening that wonderful idea behind Fannie Mae, Freddie Mac, and Sallie Mae has been ruined through greed. And, no one has been held accountable!!