Comments on: What if Everyone only got Paid once a Year? http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/ Blending simple and straightforward financial discussion with Biblical principles to assist normal people like us in being good stewards of our finances. This site includes tips for increasing income, reducing expenses, getting out of debt, saving, investing, and being content. Sat, 13 Mar 2010 15:15:14 -0700 http://wordpress.org/?v=abc hourly 1 By: John http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-112 John Fri, 05 Sep 2008 12:48:49 +0000 http://www.BorrowFromNone.com/?p=245#comment-112 @Tracy - very insightful comments and I agree with you about most of it. Though I agree our government is currently in a pretty bad state, I do not think it will ultimately lead to collapse. I feel that we do have a lot of smart people around and eventually one or more will step up and right the ship before it sinks. Now, if you ask if either of the current candidates running for President will be the man to do it, I doubt it. But eventually I think we will get it righted. Just my opinion and I only disagree with that one statement from your excellent comment. @Tracy – very insightful comments and I agree with you about most of it. Though I agree our government is currently in a pretty bad state, I do not think it will ultimately lead to collapse. I feel that we do have a lot of smart people around and eventually one or more will step up and right the ship before it sinks. Now, if you ask if either of the current candidates running for President will be the man to do it, I doubt it. But eventually I think we will get it righted. Just my opinion and I only disagree with that one statement from your excellent comment.

]]> By: Tracy http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-101 Tracy Sun, 31 Aug 2008 13:31:59 +0000 http://www.BorrowFromNone.com/?p=245#comment-101 I think James is correct, but that's a big part of where we have gone wrong. Think of a traditional cattle farmer; not in the sense of today's government-subsidized factory farm but the way it used to be, all the way back to biblical times: the farmer either inherited his land or homesteaded it, scrimped and saved to build a herd (nowadays we would have to do the same to get and pay off some land), and thenceforth took some calves to the sale every year. Meanwhile his herd grew year by year, because he kept the female calves and managed his herd. The bottom line though, is that the cattle farmer did actually get paid only once per year, and it behove him then to manage his assets wisely. He certainly didn't borrow more than he received, and if he was wise, he tried to save enough to recover from a bad year. He didn't over-extend himself, because he knew there was no possibility of a government bailout, nor had he ever heard of such a thing. So what should we do? I contend that we should start working towards becoming more like that farmer, because the government that is bailing people out of their own poor decisions is headed for collapse, and with it all those who rely on it. For a practical example of where to start, I would much rather have a cheap old single-wide mobile home on 5 acres of unrestricted land out in the country, than a typical 2000 square foot home on a half acre lot in a subdivision. The former can be had for $15,000 total, paid off in 5 or 10 years, and all the family's food can be grown there. One could even make a small living on it, once it is paid off. The latter probably costs $150,000 minimum, and can never produce a net profit. I think James is correct, but that’s a big part of where we have gone wrong.
Think of a traditional cattle farmer; not in the sense of today’s government-subsidized factory farm but the way it used to be, all the way back to biblical times: the farmer either inherited his land or homesteaded it, scrimped and saved to build a herd (nowadays we would have to do the same to get and pay off some land), and thenceforth took some calves to the sale every year. Meanwhile his herd grew year by year, because he kept the female calves and managed his herd.
The bottom line though, is that the cattle farmer did actually get paid only once per year, and it behove him then to manage his assets wisely. He certainly didn’t borrow more than he received, and if he was wise, he tried to save enough to recover from a bad year. He didn’t over-extend himself, because he knew there was no possibility of a government bailout, nor had he ever heard of such a thing.

So what should we do? I contend that we should start working towards becoming more like that farmer, because the government that is bailing people out of their own poor decisions is headed for collapse, and with it all those who rely on it.
For a practical example of where to start, I would much rather have a cheap old single-wide mobile home on 5 acres of unrestricted land out in the country, than a typical 2000 square foot home on a half acre lot in a subdivision. The former can be had for $15,000 total, paid off in 5 or 10 years, and all the family’s food can be grown there. One could even make a small living on it, once it is paid off.
The latter probably costs $150,000 minimum, and can never produce a net profit.

]]> By: John http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-73 John Mon, 25 Aug 2008 04:24:03 +0000 http://www.BorrowFromNone.com/?p=245#comment-73 Ashley, thanks for the comment. That's a good point - I hadn't thought of someone living on student loans as only getting paid twice a year. I think it's as close as we'll get to a good real-world example. As you mention, some do great with it while others struggle - that's probably the consensus of the other comments. Good luck in medical school! (My wife is a physician so I know it's a hard road but it obviously can be accomplished) Ashley, thanks for the comment. That’s a good point – I hadn’t thought of someone living on student loans as only getting paid twice a year. I think it’s as close as we’ll get to a good real-world example. As you mention, some do great with it while others struggle – that’s probably the consensus of the other comments.

Good luck in medical school! (My wife is a physician so I know it’s a hard road but it obviously can be accomplished)

]]> By: Ashley http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-72 Ashley Sun, 24 Aug 2008 14:38:49 +0000 http://www.BorrowFromNone.com/?p=245#comment-72 I'm in medical school, and we get "paid" twice a year when loans come out. Some end up looking for more loans before the next disbursement. Others have money left over and therefore borrow less the next year. It's not quite like only getting it once a year, but it is interesting how some people can't make it even 6 months on what they have. It's really only hard when unexpected medical bills or car repairs come up. I’m in medical school, and we get “paid” twice a year when loans come out. Some end up looking for more loans before the next disbursement. Others have money left over and therefore borrow less the next year. It’s not quite like only getting it once a year, but it is interesting how some people can’t make it even 6 months on what they have. It’s really only hard when unexpected medical bills or car repairs come up.

]]> By: The Happy Rock http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-69 The Happy Rock Sat, 23 Aug 2008 04:36:34 +0000 http://www.BorrowFromNone.com/?p=245#comment-69 Thanks for the link John. In the short term it would be utter failure, although I suspect longer term things would settle more into a similar pattern as we have now. Also it is interesting to think how negative this would be for companies. Thanks for the link John.

In the short term it would be utter failure, although I suspect longer term things would settle more into a similar pattern as we have now.

Also it is interesting to think how negative this would be for companies.

]]> By: ChristianPF http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-68 ChristianPF Fri, 22 Aug 2008 21:13:57 +0000 http://www.BorrowFromNone.com/?p=245#comment-68 Interesting question... I think there are nations in the world that could handle it just fine, but I don't think most of the US would be able to... I think it would be a mess.. ChristianPF's latest blog post...<a href="http://feeds.feedburner.com/~r/ChristianPF/~3/371851759/" rel="nofollow">Does your bag have holes? - Giveaway</a> Interesting question… I think there are nations in the world that could handle it just fine, but I don’t think most of the US would be able to… I think it would be a mess..

ChristianPF’s latest blog post…Does your bag have holes? – Giveaway

]]> By: DD http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-67 DD Fri, 22 Aug 2008 20:06:23 +0000 http://www.BorrowFromNone.com/?p=245#comment-67 Great Question! I agree that the first year would be a disaster. But I think things would improve in the future years. But I think it would eventually work out to about the same number of people having issues with debt and fiscal responsibility as we have now with multiple pay days. Great Question!

I agree that the first year would be a disaster. But I think things would improve in the future years.

But I think it would eventually work out to about the same number of people having issues with debt and fiscal responsibility as we have now with multiple pay days.

]]> By: John http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-65 John Fri, 22 Aug 2008 13:58:27 +0000 http://www.BorrowFromNone.com/?p=245#comment-65 James - welcome and thanks so much for stopping by. Let's see here... <b>cynical?</b> probably. <b>accurate:</b> definitely. Why does it seem that the responsible people always end up bailing out the irresponsible ones? I guess the easy answer is because irresponsible people vote too. That is probably definitely too cynical :) (can you say probably and definitely in the same sentence?) James – welcome and thanks so much for stopping by. Let’s see here…
cynical? probably.
accurate: definitely.

Why does it seem that the responsible people always end up bailing out the irresponsible ones? I guess the easy answer is because irresponsible people vote too. That is probably definitely too cynical :) (can you say probably and definitely in the same sentence?)

]]> By: James http://www.BorrowFromNone.com/2008/08/what-if-everyone-only-got-paid-once-a-year/comment-page-1/#comment-64 James Fri, 22 Aug 2008 12:35:27 +0000 http://www.BorrowFromNone.com/?p=245#comment-64 Thanks a bunch for the link. I've never been here before, and what do I find, but a very interesting and thought-provoking question. What do I think? I think we'd be seeing the biggest gov't bailout in history financed by the people who managed their money responsibly. Is that too cynical? Thanks a bunch for the link. I’ve never been here before, and what do I find, but a very interesting and thought-provoking question. What do I think? I think we’d be seeing the biggest gov’t bailout in history financed by the people who managed their money responsibly. Is that too cynical?

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