10 Immutable Laws Of Money

Tyler Durden's picture

Via Lance Roberts of Street Talk Live,

Money – we all want it, but few of us are willing to sacrifice to get it. Those that have it generally don't understand it, and those that don't have it come up with excuses why they can't get it. If this sounds confusing – it is.

For all that we have accomplished in the United States in the last 200+ years we have failed miserably at teaching our children the basics of money management. I am not talking about stock and bond portfolios but rather the basics of spending less than you make, understanding of credit, and how to balance a check a book.

We are inundated daily with credit card commercials that show how great life can be – just charge it. We are enticed to buy things that we don't really need though the use of zero percent financing – but only while it lasts. We are motivated to consume anything and everything in pursuit of the American dream but no one ever talks about the consequences of our actions.

The Secret To Wealth

I could literally be kicked out of the financial community for divulging the one secret that has been so closely guarded by the credit card companies, the mortgage companies, the banks and WallStreet for so many years. This secret, of course, is the true road to wealth and happiness. It is irrefutable, undeniable and absolutely achievable. If you implement this one secret in your life – you will be rich and you won't be able to stop it.

The Secret: Spend Less Than You Make

That's right. This is the one secret that no one wants you to know because the more you save – the less the credit card companies make.  The more you save the less in fees that Wall Street makes.  The more you save the wealthier you get.

The 10 Laws Of Money

1) Money Doesn't Grow On Trees

My father used to always tell me several things – all of which I am beginning to find out weren't exactly true – such as; "When I was your age I had to walk uphill to school in the snow – both ways!", "I could go to a double feature and eat all the popcorn and soda I wanted for a nickel and have change left over!" and, of course, my personal favorite; "Where do you think that comes from – money doesn't grow on trees!"

What my father was trying to teach me was to respect the effort that goes into making money in the first place. My whole life my father worked two jobs, and sometimes three, to support me and make sure that I had everything I needed – not always everything I wanted – but always what I needed. As a young boy, of course, I didn't fully understand the impact of what he was trying to teach me until I got a family of my own.

People generally work very hard for their money but then squander it by making bad financial decisions. You must learn respect for the money you make and one of the best ways to do this is by using an "envelope system" for a few months.

The "envelope system" is easy. Simply cash your paycheck and put all the money into envelopes for rent/mortgage, car notes, food, utilities, entertainment, etc. Then go ahead and begin living your life. What the envelope system will show you is where you are squandering your money and help you focus on the areas of financial distress so that you can cure the problem.

Oh, by the way, there is no borrowing from one envelope to cover a shortfall in another, when the envelope is empty then you are out of luck until next month...so make sure you don't spend too much of your "food" money eating out.

2) Wants Always Exceed Needs

It is always surprises me when I council people on financial planning the shear look of horror that comes across their faces when I mention the word "budget".  It is almost as if I have just asked for them to amputate both arms.

However, a budget is the only way to achieve financial success in your life - you have to spend less than you make.  I hear all the time; "You don't understand – I needed a new car", "...we needed a bigger house" or "...we just have to have our annual vacation."

The difference between a "want" and a "need" can sometimes be small and insignificant, but, most of the time they are on different planets. Did these people need a new car – maybe, but they could have bought a 2-year old car that looks great and saved 30% on depreciation. Did they really need a bigger house or could they have gotten by in the one they are already in. These are all the questions that you have to ask yourself.

  • FOOD

These are your needs – everything is a "want". Keeping the "wants" under control is a huge first step in your financial wealth.  So, before you buy something tomorrow – stop and think about it – is it a "want" or a "need".

Your Life Is Worth 60%

In planning your life, and spanning the gap between "wants" and "needs", build a budget after analyzing your spending patterns keep your committed expenses at or below 60% of your gross income. That's right – that leaves 40% of your gross income just hanging out in the wind, but more on that in a moment.

Now, 60% is not a magic number but it is a realistic goal to work toward and, at any rate, it's a good place to start. However, once you start using this method, you really won't need to track your expenses because your checking account balance will generally be equal to the amount of money you can spend. The key is keeping a lid on those committed expenses.

What About The Remaining 40%?

That 40% is what you paid yourself, and your family, with first. Let's look at an easy example:

Joe makes $100,000 per year and is in a 25% tax bracket. Once he is paid, $17,500 goes into his company retirement plan, pretax, OR 17.5% of our 40% goal.  Joe is already almost halfway to his goal.


Joe then deposits $458.33 per month, ($5,500 annually) into a Roth IRA for himself and an additional $458.33 each month into a Roth IRA for his wife.   Since these are AFTER-TAX investments we need to adjust upward by adding the taxes back in which would value the total of the $11,000 in  annual contributions at $13,750.  So far Joe has already saved 31.25% of his goal of 40%.


Joe then deposits $730 into an investment account each month, via automatic deposit, which is an additional $8,760 a year making up the balance of the savings goal.


Joe then has a final net paycheck he deposited into his bank account which is equivalent to 60% of his gross pay after all  deductions. Each month Joe spends everything in his bank account. He doesn't have to worry about saving anything because it has already been done and Joe learns not to miss the money piling into his savings accounts because he never got to see it in the first place.

The real secret to building a budget that really works isn't tracking what you spend any more than counting calories is the secret to losing weight.  The key is creating a sustainable structure for your finances, one that balances spending and income, and leaves enough room to handle the unexpected.

3) The Poor Are Debtors

This is a simple rule – "You can not borrow your way to wealth...period."  You will never see a late night infomercial on how to build your way to wealth by swapping debt between low interest credit cards.

For a lot of people, part of the difficulty in reducing committed expenses comes from the need to make big monthly credit card payments. If you're carrying a substantial amount of non-mortgage debt, I'd suggest using the 20% that would otherwise go to retirement and long-term saving to aggressively pay down your debt -- but only after you cut up those cards.

Every dollar in interest that you don't pay is just like getting a guaranteed risk-free, and tax-free, return on your money equal to the interest rate on the debt. When your debts are paid off -- and it won't take long using 20% of your gross income -- immediately redirect that money back into savings.

Here are 15 signs that indicate you are not managing your financial life correctly and are hindering yourself from becoming wealthy:

1) Your credit card balances are rising while your income is decreasing.

2) You are only paying the minimum amounts required on your accounts, or maybe even less than the minimums.

3) You're juggling bills. For example, you apply for another credit card and use cash advances from it to pay an existing card.

4) You have more credit cards than a successful gambler has poker chips.

5) You are at or perilously near the limit on each of your credit cards.

6) You consistently charge more each month than you make in payments.

7) You are working overtime to keep up with your credit card payments.

8) You don't know how much you owe and really don't want to find out.

9) You have received phone calls or letters about delinquent bill payments.

10) You are using your credit card to buy necessities like food or gasoline.

11) Your credit cards are no longer used for the sake of convenience, but because you don't have money.

12) You are dipping into savings or your IRA to pay your monthly bills.

13) You are hiding the true cost of your purchases from your spouse.

14) You're playing the card game by signing up for every credit card that sends you an unsolicited offer.

15) You have just lost your job, or are fearful that you are about to, and are concerned about how you will pay all your bills.

The first step in becoming wealthy is to quit using credit cards – of any type, for any reason.

The Credit Card Rollup Solution

If you want to get rid of your credit card debt – no matter how large – the following method will work in no time. You just have to get serious about doing it.

Step 1) Sit down and cut up all of your credit cards – ALL OF THEM.

Step 2) List the balances for each card from LARGEST to SMALLEST and the minimum payment for each.

Step 3) Pay the minimums for each card on the list and 5 times the minimum for the smallest card balance.

Step 4) Repeat each month.  Don't worry about paying off the debt with the highest interest rate first. This approach gives you some quick wins. It's like losing five pounds in the first week of a diet.

Step 5) When the smallest credit card has been paid off ROLLUP all the money you WERE paying on the smallest credit card and apply all of it to the next card on the list INCLUDING the minimum payment you were already making on the previous card.  By the time that you get to your last credit card – which will be the one with the highest balance you will be putting huge chunks of money on the card each month. Before you know it – you will be debt free.

Step 6) When you are finally free of all of your credit cards – reward yourself. Take the next two months of payments you were using to pay off your last credit card and buy yourself something.

Step 7) After you reward yourself – it is time to get back to saving. ALL OF THE MONEY that you used to pay towards the credit cards – now goes into savings. You have a lot of ground to make up and this is a good way to get there.

4) Moral & Physical Hazards Don't Apply

I remember watching "Fear Factor" and realizing that people will do anything for "quick and easy money""Sure, Joe, I will eat those South American Hissing Cock Roaches for $50,000."  Yet, these same individuals won't do the financially smart things, and sacrifice their "wants," in order to save that same $50,000.

In America we have been raised to be financially lazy. We are unwilling to do what is necessary to become rich yet we will play the lottery, which is nothing more than a poor man's tax, in hopes of becoming a millionaire. Yet the sad statistic is that 80% of lottery winners are broke again within 10 years because of bad financial management.

Like David Letterman, I should start a segment on "Streettalk with Lance Roberts" called "Financially Stupid Human Tricks" and highlight some of the things that we are enticed to do by lenders in the name of "financial management" such as;

Borrow From Your 401(K)

Companies don't have to offer a loan feature with their 401(k) retirement plans, but according to the Employee Benefit Research Institute, most of them do. Eighty-three percent of American workers covered by 401(k) plans can borrow against their accounts, and about two in five participants have an outstanding loan.

People who borrow from their workplace retirement funds, meanwhile, love to think it's a smart move, since when they repay the loan they're essentially paying interest to themselves rather than to a credit-card company or other lender.

This is true, but 401(k) borrowers also could be putting their retirements at risk. If they lose their jobs or get fired, the loan must be repaid, typically within 60 days. If that's not possible, and often it's not since people who lose their jobs don't tend to have a lot of cash sitting around, the outstanding loan balance is taxed and penalized as a premature distribution. That can equate to a penalty of up to 40% or more, depending on your tax bracket, in taxes and penalties in addition to the amount that you borrowed.

It gets worse, since you can't put that money back. Whatever the money your borrowed might have earned in future years is gone forever. If you had borrowed $7000, the average outstanding loan balance, and assume an 8% return, that loan could cost you more than $75,000 in future retirement funds.

Never touch your 401(k) plan – like your home equity.  If you screw everything else up in life you will have a roof over your head and food to eat.

Stretch To Buy A House

Beware, homebuyers. Everyone around you is conspiring against your financial best interests.

Your real estate agent wants you to buy the most expensive house you can: the higher the price tag, the bigger their commission.  Why do you think they always show you a house that can't afford first?  This is because when they show you the house you CAN afford – you will only remember all the nice things that were in the house you couldn't afford. The next thing you know you are stretching to buy a home way out of your price range.

Your friends, and family also may get into the act, telling you it's okay to stretch for that mortgage, since rates are so cheap and your income will eventually rise.  Maybe, maybe not, but anyone who's been house-poor knows the emotional, psychological and financial stress of stretching too far.

Buying too much house should mean giving up other things you want: vacations, eating out, a college fund for your kids, a sufficient retirement kitty. However, what it means to most, intentional or not, is piling on ever more debt, as you borrow to try to maintain your lifestyle.

5) The Best Things In Life Are Free

Too often we equate spending time with a loved one, or with our family, with going somewhere and doing something that can quite quickly become very expensive. However, isn't the purpose of the outing just to spend time communicating and interacting with those that we care about the most?

Learn to be creative. Board games at home, sports in the front yard, water balloon fights, $0.99 cent movie rentals and homemade popcorn, theme nights such as "Stay up as late as you can" or "Slumber party" – it really doesn't matter what you do, you can still have a lot of fun and in a lot of cases – it won't cost you a dime.

Laugh At Your Neighbors' Overspending - Petty? Yes! Helpful? Definitely!

After all, trying to keep up with the Joneses may be what got you into financial trouble in the first place. Realizing that the Joneses aren't as well off as they seem -- and are struggling with debt-related stress as well -- can make keeping up with them a little less attractive.

The average family of four has $100,000 of debt between mortgages, credit cards, car loans, etc. That means that 50% of all families have even more than that in debt. Currently, consumer debt, not including mortgage debt, is at historic highs while personal incomes fail to increase fast enough to cover the shortfall.

So, using your neighbors financial stupidity as a measuring stick for your own successful money management is a great way to keep you on track for your goals. Go ahead, deride the neighbors for financing everything they buy or feeling superior for winning a better mortgage rate, thanks to lower debt loads.

Never underestimate the power of bagging on someone to make yourself feel better – just not to their face. You do still want to be invited to dinner every now and then.

Remember that your peace of mind is, ultimately, what living frugally is all about. You are living today for what you want tomorrow. So, whether you're paying off debt, saving more or simply living within your means, you're trying to avoid the fear and stress that plague people who aren't in control of their spending. Remembering that can help you avoid burnout, stick to your plan and get you to your goal that much quicker.

6) Money Can't Buy Happiness

That ole' cliché is only spoken by those that don't have money and are unwilling to go get it. It is true, however, that "Money can't buy happiness" but it sure can buy a whole lot of whatever comes in second.

7) There Is No Such Thing As Five Easy Payments

Don't get sucked in by finance schemes. To many times people try and rationalize that they will use this credit card or that financing plan because it has zero percent interest. It doesn't matter. If you can't afford to pay cash for the item immediately, on the spot, then you have no business buying it.  Most likely it is a "want" anyway.

Debt is debt in all shapes, forms, and fashions.  Ultimately, it is the fine print that traps you and pushes you further away from attaining your financial goals.

8) A Wad In Your Pocket Is Better Than Your Pants In Wad

Unfortunately, 50% of all marriages in America end in divorce. The number one reason is financial distress. We all want the good things in life and we generally make emotional decisions versus logical ones. If you want to get out of debt, and be free of the financial stress that comes along with it, here are seven radical realities to get your pants out of a wad and put a wad in your pocket.

Reduce Housing Costs. Do you really need a pool in the backyard? Do you really need two extra bedrooms that are being use to store clutter and junk? People generally buy way more house than they need. Reducing your monthly mortgage payments by dropping the size of your house can put a lot more cash into your pocket.


Drop A Car, Gas, Maintenance, and Payments -- imagine the money you could save if you gave up one household car, or found other ways to commute and run errands. Or trade in your car on a two or three year old car to reduce your monthly car notes.


Get (Another) Job. You don't have to work nights and weekends forever, but if a part-time job gave you an extra $300 a month, that's $3,600 you can put toward debt this year.


Quit Your Vice. Your indulgences can add up fast. Giving up your smoking habit can save you thousands of dollars a year. Eating out can add up fast too – so brown bag your lunch and start cooking at home. It isn't convenient – but it's the financial smart thing to do.


Live moderately. Shifting priorities, and locations, can help downsize your lifestyle. .


Let the kids go public. According to the Council for American Private Education, the average cost of private elementary and high school is about $4,689 a year. You are already paying for public school in your annual school taxes – might as well get some bang for your buck. Don't think your child will learn as well as they would in a private school? How about taking some time out of your schedule to work with them at home – it's free and you will create a lot more with your child than just a smart kid.


Tap Your Crap. Garage sells, EBAY and a host of other avenues these days offer you outlets to get rid of all that crap you have accumulated over the years – and it may just generate a few extra bucks towards paying off debt.

I understand your initial reactions to most of this but once you start adopting some these guidelines you will begin to discover other avenues to begin to live within your means and begin to take the steps required to live a happy and wealthier life.

9) Dress For Success

All too often I see people driving expensive cars, dressing in $1000 outfits and wearing enough jewelry to make Mr. T jealous – yet they don't have a penny saved to their name and enough debt to declare themselves a federal deficit.

If you ask those who've already become millionaires what their lives are like, you might be surprised. I highly recommend the book, "The Millionaire Mind," by Dr. Thomas J. Stanley, author of the best seller "The Millionaire Next Door."  He surveyed nearly 1,000 of the nation's millionaires, and what he found may surprise you.

First, he sorted out those who were "balance-sheet" millionaires and those who simply lived an affluent lifestyle while burdened with debt. Balance-sheet millionaires tended to own their homes without a mortgage, while those who merely lived a wealthy lifestyle carried jumbo loans. Millionaires with assets between $2 million and $5 million live, on average, in homes that are valued at $355,000 (based on the Internal Revenue Service database figures).

The millionaires in his survey tend to have started businesses, and have built their wealth by finding a profitable niche. They tend to love what they do and are motivated by building the business, not by building wealth.

They live comfortable lifestyles, but are not wasteful. In a fascinating example, most of the millionaires in the survey report they buy expensive shoes, but almost all have them resoled. For the most part, they remain married to supportive and responsible spouses who run economically productive households -- from clipping coupons to buying household supplies in bulk.  Bottom line: They spend less than they earn.

When it comes to investments, these millionaires look to the stock market primarily as a place to grow capital once their businesses have matured. They are not speculators in the markets, rarely visit a casino and almost never buy lottery tickets. Of course, you might figure that they don't need to speculate, since they're already wealthy. But perhaps these stable qualities are the reason they got wealthy in the first place.

However, if you put a pair of pantyhose on your head and ask for money – that generally works as well.

10) Live Like No One Else Today

As Dave Ramsey often states:  "If you live like no one else today – you will be able to live like no one else tomorrow."  Rich is good. Retiring that way is easy. You just have to commit to a lifestyle of being financially smart and of being a good saver. This, of course, will cause you to be a sworn enemy of the credit card companies, a villain to the banks and ultimately ostracized by the "Jones'" for not keeping up with them.

But in the end it will be you that is laughing all the way to the bank with a wad of cash in your pocket, an emergency fund in the bank, a steady income from your investments to live on and not a worry in the world.  Now, wasn't the sacrifice in the beginning worth it?

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CH1's picture

PROBLEM: The State takes every last scrap of surplus they can.

Living on 60% of what remains after that robbery is all but impossible for many people.

Thrift worked in 1910 - it's a LOT harder now.

Stackers's picture

Money does not buy happiness. But it is a wonderful stress reliever.

RuiNsPro's picture

Money has to be hard. Any soft money is a tool used by the issuers to rob the users.

BKbroiler's picture

Good article.  It's amazing how many people live so far beyond their means.  I have a good frined of mine who literally pays 7X as much rent as I did before buying and is contstantly broke and borrowing money.  I had to catch a ton of flack from my own family for refusing to buy any house that I couldn't pay for in cash.  Fuck debt.  6 figures, no debt, (small) owned home, in my 30's.  life is good.

Fedaykinx's picture

right on.  i went debt free over a year ago, modest house and two economical vehicles.  pay off the plastic every month.  buy food in bulk and process my own as much as i can.  i have positioned myself in a manner that i consider fairly well hedged against both inflation and deflation.  life is indeed good, so far as it goes.  if i could unplug from the world completely it would be even better, but alas.

markovchainey's picture

Rock on BKBroiler...that's the happy situation we should all be trying for.

Personally, I think this author is nuts...17.5% into your 401(k)...LAME.

donsluck's picture

As long as that 401k is focused on PMs, not so lame.

All Risk No Reward's picture

Quite palying with the false narrative.

Let me list the real top 10 properties of "money":

1. Money is debt

2. Money is debt

3. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

4. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

5. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

6. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

7. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

8. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

9. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

10. Money is debt that exceeds society's ability to repay it because criminals collect interest and hoard it.

Actually, the mechanics are bit more complicated than a top 10 list can support, so they are graphed out here:

Debt Money Tyranny


mkkby's picture

Staying out of debt is one way to go.  The other is GO MASSIVELY INTO DEBT and make a high risk/reward investment.  If you lose, default.  Fuck the bankers.  Just don't get student loans.

All Risk No Reward's picture

A 401k is lame because it is a contract with a criminal, broke government that is always devising ways to rip off the gullible who think making deals with the government is a good idea.

You don't possess a 401k PM account - and lack of possession will become a problem at some point.

amusedobserver's picture

In addition to the fallacy of the "paying yourself back" justification you always hear, he should have added that you're really paying taxes twice on the money you borrow from your 401K.  You're not borrowing from yourself, you're borrowing from the 401K Plan.  Say you borrow $1,000 and you're in the 25% bracket.  Look at the cash flows:

1.  Put $1,000 into the plan with pre-tax dollars:  No Tax.

2.  Borrow $1,000 from plan:  No Tax

3.  Pay back $1,000 with after-tax dollars.  Amount needed to earn to pay back loan:  $1,250.   Taxes paid: $250

4.  Retire and take out $1,000 and get taxed on it.  Taxes paid:  $250    Amount you have left:  $750

5.  Total taxes paid $500 and you get $750 net.

So by borrowing from your 401K you get to pay income tax at the millionaire's rate of 40%.  At least you get something to brag about.

monkeyboy's picture

So what is this - Rich Dad, Zerohedge Dad?

NotApplicable's picture

I was thinking Suze Ormon, conventional ignorance at it's finest.

Anybody who thinks this article "can't stop you from becoming rich" does not understand central banking.

"Saving" money is only possible within a sound currency regime. What we have today, is but a system of theft, and idiots like this author promote it out of ignorance (hopefully).

ultraticum's picture

Also, owning your own home is a huge myth:  they can arbitrarily quintuple your real estate taxes over a period of just 10 years . . . . I know - it happened to me.  You may THINK you own your own home (even debt free), but you LEASE IT FROM THE COUNTY AT ARBITRARY RENT.  DON'T FORGET THAT.

donsluck's picture

Not so in California. I know, everyone hates California.

RockyRacoon's picture

Hold on there a second.  This article is good advice for many people.  Some really don't have a clue as to how to quit the credit habit.  Really, it's true.  I've met some and we all know others.  The majority of the article was about how to shed debt, and that's always good advice.   Don't be so harsh.  One must attain peace of mind before one can begin to build a future.

All Risk No Reward's picture

Money is debt - society can't shed debt without collapsing the money supply.

This is Debt Money Tyranny in action.


Debt slaves borrow their money supply from debt slave masters.

The Gates Foundation is one of the biggest debt slave operations on the planet.


There is no way to pay back that debt because the money required is being held onto by the Gates Foundation.

The Matrix is child's play - real life is many times more Machiavellian.

RebelDevil's picture

This article also implies "Never take out student loans!"

So let me get this straight: If I am unlikely to make more than $50K per year without a college education, and my parents can't pay for my college education, and since tuition is anywhere from $15K-$40K per year (+ $10K R&B), then If I don't get straight A's in high school, then I'm fucked!?

I love this article, but as long as tuition costs an arm and a leg, keeping yourself out of big debt is extremely difficult.

Hive Raid's picture

Could've just said BTFD and got a five star trophy for his mantel.

This advice is so 90s. The era has ended. True though about saving, but as half the population makes shit it doesn't add up to much. What's the point of living in poverty just to have a few bucks when you're old and can't enjoy it?

I guess ZH posts these things just so people can rip on them.

fonzannoon's picture

joe makes 100k a year and has no expenses?

Whiteshadowmovement's picture

Lol, i love how this article noted successful people tend to "almost" never buy lotto tickets...

Much of the rest of it read like a mix between that SNL sketch w/ steve martin: "Dont buy stuff you cant afford" and that guy who used to do those infomercials in his clown suit of qyestion marks yelling about all the free money his book will unlock:



+1 this if you remember this guy... I vote for him as next president

fonzannoon's picture

And in the naked light I saw
Ten thousand junkers, maybe more
People junking without speaking....

Whiteshadowmovement's picture

lol, fuck 'em...


tell me this guy doesnt crack you the fuck up...I miss this guy, he was way ahead of his time:


"$15,000 to write a novel!"

"$9,000 to take a computers calss!"

fonzannoon's picture

I am going to see if that number still works.

Whiteshadowmovement's picture

"Call him, you have nothing to lose! And a whole new life to gain!!!"


"...and those who know about the programs are the ones who get the money!!!

"I got $25,000 from the Federal Government"

"I got $30,000 from the government!"

"...but I was able to get monies (sic) for my business to buy equipment"

Al Gorerhythm's picture

This article is wrong on so many levels that it is hard to know where to start. This writer has absolutely no clue what he is talking about when it comes to money. His topic doesn't touch on a single role of money; he talks about human behavior, not the properties of money.

Problem: as you suggesti s a taxation issue. The issue is, how you are taxed? Other than the obvious direct theft by government Fractional Reserve rights (counterfeiting rights) which have been bestowed upon modern banks, therby diluting your savings, is another hidden tax.: Inflation is a tax on your savings. The government has legislated these rights into existence and the judiciary have given them protection, allowing the practice to continue un-opposed. Legal sanction to counterfeit your savings. That is; a law for them and a law for you.

Recind fractional reserve banking laws. End the Fed.

fonzannoon's picture

This article cherry picks on so many levels it is not worth the effort debunking it.

donsluck's picture

Whining won't help you. You have to play the cards you have.

Al Gorerhythm's picture

Go ahead, bury your head in the sand. They'll just use your exposed ass a a bike rack.

StandardDeviant's picture

While telling people to get rid of credit card debt is all well and good, you're right that he misses out a detail or two.

Also, there's this common error:

The average family of four has $100,000 of debt between mortgages, credit cards, car loans, etc. That means that 50% of all families have even more than that in debt.

No, not necessarily.  He's thinking of the median -- the middle value in a sorted series.  Now, technically the median is a type of average; but when you say "average", most people are thinking of the mean.  (If nine families had only $10,000 of debt each, and one had $910,000, the mean is still $100,000, but the median is $10,000.)

A minor point, but it suggests a degree of innumeracy which is a bit worrying coming from someone who's presuming to give out financial advice.

TheGardener's picture

Very good suggestions for slaves! Thrift for a single male means 90% of earnings saved or he better grow weed and lay back.

Counting taxes as needs instead of wants gave it away,
sheeple herding instructions. If you pay taxes you are doing something wrong, only VICES are taxed, so slow down.

Stares straight ahead's picture

Last night dragon lady served me up a dirty sanchez....

My Days Are Getting Fewer's picture

When the going gets tough, the tough get going.

Imminent Crucible's picture

When the going gets tough, the tough get FREEBIES.

The author makes it all SO HARD: Be frugal, spend less than you make, drive a clunker, don't borrow money from Guido and Vincenzo, don't eat out at expensive restaurants, have beans and rice three times a week and those are the ONLY MEALS YOU ARE ALLOWED! How much fun is that?

I have a suggestion: Lose your job, sit on your assets at home, drink beer and collect 99 weeks of unemployment, sign up for EBT & SNAP benefits, apply for SSDI (get a good lawyer!) and have Doritos and Grolsch for supper as often as you like. Need to talk to your lazy unemployed welfare bum friends? Get an Obama Phone--it's your birthright as a Poor Person By Choice. Don't forget to vote for more free T-bones and Supreme 5-Cheese Pizzas with Sausage, Pepperoni and Anchovies.

If you need cash for lottery tickets, go to the store and spend all your SNAP benefits for Delmonico steaks. Sell these around your neighborhood for half price and Voila! You can win the lottery and buy as much cigarettes and liquor as your lifestyle requires.

If this doesn't work out, you can get an Obama Student Loan and go back to school to learn how to turn Sudafed into popular recreational compounds that people will pay you handsomely for. All it takes is a little drive and persistence.  And a lot of sheep willing to pay for your lifestyle.

moonstears's picture

lmao crucible, good stuff, man.

Diogenes's picture

"PROBLEM: The State takes every last scrap of surplus they can.

Living on 60% of what remains after that robbery is all but impossible for many people.

Thrift worked in 1910 - it's a LOT harder now."


Bull hockey. Try living like a typical middle class 1910 family and see what you save (no car, no air conditioning, no TV, no radio, no eating out unless invited to a relative's for Sunday dinner, rented house or apartment, plenty of good food to eat (no junk food) and warm clothes to wear, buy only clothes and furniture built to last).

CH1's picture

Bull hockey. Try living like a typical middle class 1910 family and see what you save (no car, no air conditioning, no TV, no radio, no eating out unless invited to a relative's for Sunday dinner, rented house or apartment, plenty of good food to eat (no junk food) and warm clothes to wear, buy only clothes and furniture built to last).

Wow, you really need to read some history. Real history, that is, not school books or political bullshit. Maybe some old newspapers would be a good start.

Here's a helpful exercies: Make a list of things that were invented between 1870 and 1910.

Vooter's picture

"Here's a helpful exercies: Make a list of things that were invented between 1870 and 1910."

Well, in 1910, there were only 5.07 automobiles per 1,000 people. The first primitive radio broadcasting station was built in 1909, and the first radio programming didn't appear until 1916. And the first residential air conditioner didn't hit the market until 1928. So, he's right--in 1910, automobiles, air conditioning, radio and obviously TV were NOT a part of the typical middle-class American family home.

Dre4dwolf's picture

lol wallstreeters who sit at the feeding troph of printed fiat telling the sheeple to save and live within their means.


the real secret to wealth:

Bribe everyone you can

Get insider information

Be a banker

Get friends in washington to throw over-priced contracts your way

Get friends in washington to pass laws that will put your competition out of business

Get the State to pay your expenses and let you keep the profits.

Fire as many people as possible

Exploit the people you keep

Step on the heads of those beneath you

Keep your mouth shut

Collect interest first, then collect collateral when they have nothing left to pay the principal.

and the GOLDEN RULE, Never Pay Taxes EVER.

Seasmoke's picture

Joe Kennedy approves this post

Dre4dwolf's picture

Its just such a joke when they tell people to sit there and behave like good little sheep and to save for a rainy day, when they make it rain shit every fucking day.


Titanium shit proof umbrellas are fucking expensive and the smell is starting to get really bad.





My favorite part :Get another job to pay down your debts HAHAHAHAHA WHAT A FUCKING MORON, IF YOUR BROKE YOU HAVE NOTHING TO LOSE WHY PAY DEBTS? they aren't even real debts everyfucking time you swipe a credit card new fiat is fractionally created out of nothing, if its made of nothing I owe fucking nothing!

Solon the Destroyer's picture

The main themes of the article are true whether you are living in a Fiat world or a Gold world:

Wealth comes from savings.

Over-spending consumes wealth.

I can't see why any true old-school Liberal, or Gold bug, or Austrian, or Libertarian would have any issue with the themes of this article.

And sitting around whining about the present state of the world and how difficult it is to work on the two themes I have reiterated above only demonstrates to everyone that blows through here the lack of personal accountability in that whiner's life.

The world is what it is.  Sure we can work to change it, and do, but in the meantime find a way to save wealth and protect your future and your family.  And preferably save and preserve that wealth in Gold coins.

But just sittin' around and whinin' about the evils that envelop us will only end in personal misery.

NotApplicable's picture

What is so hard to understand the impossibility of saving wealth by saving dollars? You hold dollars, you get robbed by Benron, who loans the to the fed critters to spend against you.

This stuff is NOT hard to understand. Fiat is crime. Which is something understood by any true old-school Liberal, or Gold bug, or Austrian, or Libertarian.

Solon the Destroyer's picture

Where do you see me saying "save in fiat currencies"?  .

And before you can save in PMs, you have to spend less than what you earn.

You're right this stuff is NOT hard to understand. Except by you apparently.

NotApplicable's picture

Now why you gotta get all uppity!

I'd say that the fiat view is expressed "within the themes of the article" you said we all should understand.

So, what you just did, was to ignore the underlying premise of the article, claim how great it was despite this incoherence, then wonder why the rest of us are so damned dumb in complaining about it.

In other words, it's a typical "half-baked" idea that is presented a wholly coherent. Remember, the author stated that this idea cannot stop you from becoming rich.

Just because the author makes some good points in no way excuses his ignorance in giving out such dangerous advice. Anyone who saves dollars is unwittingly aiding and abetting the enemy, the CBs.

If you think I've blown it out of proportion, just wait until all of those petrodollar holders send the paper crap back over here. Then we'll see the regime have to scramble as their crime unfolds.

RockyRacoon's picture

I stated above that there are people who can benefit from the credit reducing suggestions.  Yeah, there is a BIG problem with fiat currency, government/industry/banking raping of the economy, and all that stuff.  But regular folks who (ignorantly) find themselves drowning in debt can't do anything to improve their lot in life.  The suggestions could work if implemented rigorously.  THEN they can tackle the systemic problems as you lay out.

Casey Stengel's picture

The purpose of the article was to show you how you can save enough fiat dollars to buy some PM's. I followed  his advice about debt for the last 20 years and now I own the farm and rental properties. It really helped that I have a wife who bought into this lifestyle also. We set financial goals and acheived them.

Dre4dwolf's picture

Save a penny to buy gum, walk to store, gum now costs 2 pennies, go back home, work save two pennies, walk back to store, gum now costs 3 pennies, go back home save, go back to store now 4 pennies.


Eventually the rat stuck in the maze will figure out saving pennies is not the way to go.


You can save gold, You can save silver.

Save Fiat? its not worth it.


Rich people don't save money, they get into shit-loads of debt and get bailouts, thats the secret to wealth.

Pareto's picture

I agree.  There are a million events and privelages working against savers that this author never mentions, but, that most ZH'ers have.  But, its still, nevertheless, true.  In the end, however that turns out, you can't retire if you don't have any fucking money/assets to retire on.  Plain and simple.  All the shinannigans in the world do not change this fact, though, they make it harder for people to save.

For me its pretty straightforward.  I had the benefit (if i can call it that) of watching somebody really close to me, die a popper - not because he never worked, he worked all the time - but, because he never saved.  I think he knew what he was supposed to do, but, could never execute.  I really don't think he understood how to manage his money, yet he knew there is never a free lunch.

The point is, when you stop working, in the absence of any retirement savings, your life style is rapidly and severely diminished.  Yes government takes too much (yeah i'm working on fixing that by sheltering some of my income), yes the government prints too much and debases the currency and punishes savers by stealth (yeah i'm working on that too - diversifying to PMs), and yes shit costs too much (yeah i'm working on that too - wife knows price spreads on a jar of peanut butter better than traders at COMEX on gold).  But, at the end of the day, if all I do is bitch about it, and then just go on pretending that its all going to be ok "hey kid you won the big one" type thing, then this action too will have consequences.

There is a ton of shit I want to do, or, would like to do in my life, for sure.  Damn it, everybody ought to be able to experience those things, whatever those things happen to be.  But, I can tell you what I don't EVER want to experience, and that is wondering how my rent is going to be paid, food is going to be paid, etc., when I am 85 and nobody gives a fuck about me.  That, more than anything scares the absolute shit out of me most....more than anything.  So even though there's the government with their foot on your neck, doesn't entitle one with the right to say "fuck it".  Because when your 85, nobody's going to give a shit about you, your past, your obstacles, etc.  Your retirement, in the end after all is said and done, is your problem and only your problem.  cheers ZH'ers.