Stanley Johnson (1 of 5)

Every now and then I write what amounts to a magazine article about something that most of my readers couldn't care less about (i.e., it has nothing to do with Justin Alexander). Yet and still, I proceed unfazed and defiantly make no apologies ( hey it's our blog :oP )... but I will at least remind you that you can always change the channel to something more interesting. Otherwise, read on... and let's figure out what I'm babbling about this time.

I'm not advocating Lending Tree (I don't think the answer to debt is to take on more debt) but that has to be one of my all-time favorite commercials. I think I love it because of how authentic a picture it paints of the Average American Family. It's hilarious, but only because it rings of so much truth. And it's also the essence of what I'll be yapping about for the next 4 entries or so. [Justin will be back in January].

Next month, V and I will be going through Financial Peace University (FPU) for the second time as part of Dave Ramsey's most recent brainchild called Momentum. This time we'll be serving as group facilitators, which means we have an entirely different level of accountability in store for us. According to the website, the course is designed to be "a life-changing program that teaches you how to make the right decisions with your money. You'll be empowered with the practical skills and confidence needed to achieve your financial goals and experience true financial peace!". This is a program that our church sponsors every year in hopes of transforming the financial livelihood of the congregation and anyone else who is willing to listen.

The problem is, we are so entrenched in the American way that most of us couldn't even imagine being debt free. For a lot of people, asking them to imagine being debt free is as absurd a statement as saying "imagine being President of the United States". It's possible, but overwhelmingly unlikely. But picture this for a moment... no car payment, no credit card payments, no bill collectors, no student loans, no mortgage... nothing. And so every two weeks when your paycheck comes, you are just left to sit there and try to figure out "what am I going to do with all of this money?". Imagine being able to buy everything with cash without having to leverage your financial future every time you make a major purchase. Picture being able to write a check to a friend or family in need without blinking an eye or expecting anything in return. The truth is, I think we are all givers at heart... it's just that most of us are in such a financial bind that the things we wish we could do are often suffocated by the monthly bill collector.

And the irony is that as much as we all want some, the subject of money is so taboo for the majority of us. Most of us guard our salary information like it was Fort Knox. And we most definitely hide our debt-to-income information like doggy bones buried in the back yard. After all, how proud would John and Jane Doe be of the Chevy Tahoe parked in their circular driveway with the boat hitch attached if everyone really knew how much of a struggle it was for them to keep it? I've always believed that our inability to work together, share information, and discuss our financial situations has been the death of us (and conversely it is also why sects of the Jewish, Indian, and Native American population have been so successful in America). When it comes to our money, not acting in a communal fashion strips away 99% of our accountability and allows us to operate in a financial vacuum, void of judgement and (worse of all) sound advice.

How many times in life have you been about to do something incredibly stooopid, only to (thankfully!) be stopped by someone who cared and had better judgement from their outside perspective? I bet that the answer is "a whole bunch of times!" From little stuff like hitting the reply button on email while emotion still has the best of you... to bigger things like advice on which house to buy, which job to take, etc. But yet, in everyday financial decisions that can impact not only ourselves but generations to come, we make whimsical decisions at the drop of a hat before anyone can tell us about the extent that we've most obviously lost our minds.

Some things to think about...

• The average household has 6.0 bank credit cards, 8.3 retail credit cards, 2.4 debit cards for a total of 16.7 cards.

• The average credit card interest rate is 14.71%

• About 20% of all credit cards are "maxed out" by their owners.

• 70% of Americans live paycheck to paycheck.

• Excluding mortgage, the average household debt for our age (30's) and income bracket (50K - 100K) is $35,510.

• Approximately 35 million Americans pay only the required minimum (as low as 2 percent) of their balance each month.

• The August 2007 issue of Kiplinger's Personal Finance magazine reports that American families owe $9,900, on average, in credit-card debt. They pay $1,500 in interest annually.

• According to different sources, the average American is spending somewhere between 10% and 25% more than they make each month.

• Only 44% of Americans are preparing for retirement.

So what are you doing with your money to make sure that you and your family are not part of those statistics? Maybe it's time to reevaluate your financial situation and get a grip on things before it's too late. This is exactly what V and I intend to do over the next 36 months, and of all of our dedicated readers out there (our webstats say that there are at least 2 dozen of you) we hope that at least one of you makes plans to join us in our crusade against financial bondage. Stick around for more details.

To Be Continued...