The "R" Word - Responsibility
Money makes the world go around. There’s no doubt about it. Getting money is difficult. Keeping it can be even more difficult. I’m going to try and help you do both – get it and keep it.
I’m Mike Parnos. I’ve been earning it, saving it, trading it, hoarding it, and pissing it away for the last 40+ years. One could say that I’ve learned what TO do by experiencing what NOT to do. These are the life lessons that we’re supposed to learn from. Some of us do, others do not. Hopefully, you’ll be able to learn from some of my mistakes.
I’ll be using this space to share my experiences, both good and bad, financial and otherwise. We’re going to have some fun and explore life as it relates to money – and vice versa. We’ll keep it all in perspective with a healthy dose of humor.
I take no prisoners. I accept no excuses. I will tell you “like it IS”, not how you “hope” it is or will be. Money is damn important. Don’t believe me? Just ask those who don’t have enough. I’ve been there and done that and I ain’t going back!
If you’re not ready to learn, go back to your comfort zone - Spike TV or the Home Shopping Network. I wouldn’t want you to miss a “Cops” episode. There are plenty of folks out there who do want to learn. Trying to manage your life without this information is like taking a knife to a gunfight. Your chances of survival are almost as good as me growing my hair back. There are many of you who will read these columns and be certain that they apply to everyone else in the world but you. You will be wrong.
To get started we have to make a few assumptions. Yes, I know assumptions are dangerous, but there has to be a foundation for what we do here. I’m going to assume that the vast majority of you work hard for your money. I’m going to assume you haven’t inherited a fortune or that you’re not an Obama bailout bonus baby. I’m also going to assume you have enough sense to come in out of the rain and that you look both ways before you cross the street.
My writings are not for those who have a financial death wish. You probably don’t think you do. However, as we take a closer look at some of the financial and personal choices you have made, you may get a real wake-up call.
I think you get the idea. Now, let’s get started. Damn the torpedoes and full speed ahead.
The R-Word
The first concept we need to explore is that nasty 14-letter R-word – “Responsibility.” Responsibility – do you take it? Or do you look for ways to avoid it? It’s tempting to give delegate your responsibilities. Mowing the lawn, maybe. Washing your car, perhaps. But, for goodness sakes, not to handle your money! When you delegate your responsibilities, you have a built in scapegoat – someone to blame when the task gets screwed up.
I’ve been a money manager. It’s a huge responsibility and a tough place to be. Why? When you make people money, they take it for granted. That’s what you’re supposed to do. However, if you happen to lose some of their money, watch out! It’s a “what have you done for me lately?” profession.
The world is full of people who will offer to handle your money for you. They’re like Shamwow salesmen, but talk faster. Unfortunately, people are gullible or greedy - or both. That’s the primary reason our economy is preparing its own bucket list. The lenders were greedy and the borrowers had a grasp of reality rivaled only by Nurse Betty.
The lenders made a zillion dollars (give or take a few million) selling mortgages to people they knew couldn’t afford to pay. The people were too lazy or stupid to understand their limitations and/or to read the small print. Now, the borrowers are back from their little trip to Fantasyland and find themselves in Forclosureland. Our economy is circling the bowl and we’re the ones having to pay for the life preservers.
Who does handle your money? Let’s assume you have some. Perhaps you earned, won it, found it, or robbed a liquor store. Personally, I don’t care. The point is that you have some. Now we have to keep it in the right hands – yours.
Well, you’ve made it down this far in the column. That’s encouraging. It means you have at least a passing interesting in learning. It’s a place to start. Today we’ve identified the enemy. The enemy is us. Are you ready to take responsibility? If so, I’ll meet you back here soon.
(Mike Parnos has been writing about personal finance and teaching stocks and option trading for 15 years. Mike is the author of "Option Profits: The Naked Truth." Mke also writes a highly successful options newsletter at www.Mike-Parnos.com.)
