This is way behind the forward thinking folks on this forum, but I found it worth posting. This is taken from a book "Dr Jack Hyles on Finances" published in 1989. Dr Hyles was a Baptist Minister from Hammond, IN. This is from his chapter on Financial Troubles:
How to know if your in financial trouble:
1. You don't know how much debt you owe and are afraid to add it up.
2. You only pay the minimum each month on your credit card bills.
3. You increase your credit limits on your credit cards.
4. You increase the number of your credit cards.
5. You pay credit card payments with other credit cards.
6. You write post dated checks.
7. You have no savings plan whatsoever.
8. You cannot live six months without a salary.
9. You have no retirement plan whatsoever.
10. You are more than one month behind on any bill.
11. You have no health insurance.
12. Your life insurance is less than five times your annual income.
13. Your mortgage payment or rent is more than 35% of your take home pay.
14. You pay your recurring bills with other than regular income.
15. You have considered filing for bankruptcy.
This book is pretty generic/simple to all of the forum members. Remember, however, the "many millions" of the population" out there who have no clue. None of us ERE'ers would be involved in any of the above list whatsoever. The interesting thing is that millions are exactly in these troubles. The ministers have to write a book to help them.
When you read his entire book, in it's "old fashion" language of financial advice, you end up with some wisdom from it.
And remember the copyright on it is 1989, way before a lot of the ups and downs we have currently. This was written back when talking financial help to the common person was not in fashion.
I will post a few other things on this later. I tried to find this book listed anywhere on the internet and Dr Hyles website.
However it is no longer listed as available.
Dr Jack Hyles on Finances
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jacob
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Like self-help books, solutions date back decades (maybe centuries?). It concerns me that the missing link, so to speak, is not the method, but the discipline to stick to the method.
I wonder whether being in dire straits is a conscientious choice of simply valuing the present higher and independence lower.
I talked a bit about present value in a recent blog post. I don't recall writing about whether interdependent personalities have a higher acceptance of debt.
I wonder whether being in dire straits is a conscientious choice of simply valuing the present higher and independence lower.
I talked a bit about present value in a recent blog post. I don't recall writing about whether interdependent personalities have a higher acceptance of debt.
The very best I can come up with is that the book is no longer available anywhere.
It is a rather small book, 133 pages. If anyone on the forum would like to read it, I would be happy to mail my copy to you.
You would enjoy it from a nostalgic standpoint. It is, of course, peppered with quite a bit of Baptist doctrine. It is also replete with good old fashioned tried and true financial advice!!
It is a rather small book, 133 pages. If anyone on the forum would like to read it, I would be happy to mail my copy to you.
You would enjoy it from a nostalgic standpoint. It is, of course, peppered with quite a bit of Baptist doctrine. It is also replete with good old fashioned tried and true financial advice!!
It's funny that some of the 15 things are pretty much definite signs that you're in serious trouble, #15 for example. Others are just suggestive that you may want to reconsider some points of what otherwise may be a reasonable plan #12, #11, and #8. Okay, #8 sneaks in because if you're just starting to figure things out you may not yet have 6 months of salary, but could otherwise be pretty responsible.
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jacob
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The lack of emergency funds is one of those unseen dangers; the accident that hasn't happened yet.
Actually, in the book I was talking about on the blog yesterday, A Man In Full, the main character ends up in prison due to a series of cascading failures ... a few of which involves not getting a quarter back in change which then disallows an important phone call which triggers a higher fee ...
Actually, in the book I was talking about on the blog yesterday, A Man In Full, the main character ends up in prison due to a series of cascading failures ... a few of which involves not getting a quarter back in change which then disallows an important phone call which triggers a higher fee ...
@ Mo and Dude
What I want you to appreciate about this, is that 20 years ago, people just didn't think about this stuff. In the 80's, I did not think "finances". It just wasn't considered as a problem. I had a "doable" mortgage, carried a car loan, other things. In my case I never got into any trouble, not that I was trying to, or not trying to. I had to my benefit a frugal and cautious wife.
I guess things just went well. I will never forget wife saying to me "Interest on a credit card is madness". Lights come on. Yep she is right. That's the way it went. From then on, no more CC interest. I don't think in those times people even worried about their money. I never heard anyone talk finances unless they were trying to buy something big. All you heard then was the "interest rate" on loans. You never heard of "defaults", at least in my arena.
Today the list above seems elementary. You would think "who does not know these things?" But the chickens came home to roost in the latter part of the last decade. Now lots of people are gulping down a financial crap-sandwich.
What I want you to appreciate about this, is that 20 years ago, people just didn't think about this stuff. In the 80's, I did not think "finances". It just wasn't considered as a problem. I had a "doable" mortgage, carried a car loan, other things. In my case I never got into any trouble, not that I was trying to, or not trying to. I had to my benefit a frugal and cautious wife.
I guess things just went well. I will never forget wife saying to me "Interest on a credit card is madness". Lights come on. Yep she is right. That's the way it went. From then on, no more CC interest. I don't think in those times people even worried about their money. I never heard anyone talk finances unless they were trying to buy something big. All you heard then was the "interest rate" on loans. You never heard of "defaults", at least in my arena.
Today the list above seems elementary. You would think "who does not know these things?" But the chickens came home to roost in the latter part of the last decade. Now lots of people are gulping down a financial crap-sandwich.
Many of his books are available for free online, but I haven't found this one.
One site offering them contained this FAQ: "Is it legal to put these books online? Aren't they copyrighted?
Answer: Jack Hyles does not copyright his work and therefore they can be freely distributed. Hyles stated on a regular basis that he wants his work to be distributed to as wide an audience as possible. This web site serves as a means to that end."
So it MIGHT be legal to scan and distribute as a PDF.
(disclaimer: it may not be legal to distribute, check book for copyright message, ask your lawyer, etc.)
I've mailed one of the sites, asking for this particular book.
One site offering them contained this FAQ: "Is it legal to put these books online? Aren't they copyrighted?
Answer: Jack Hyles does not copyright his work and therefore they can be freely distributed. Hyles stated on a regular basis that he wants his work to be distributed to as wide an audience as possible. This web site serves as a means to that end."
So it MIGHT be legal to scan and distribute as a PDF.
(disclaimer: it may not be legal to distribute, check book for copyright message, ask your lawyer, etc.)
I've mailed one of the sites, asking for this particular book.
@HSpencer, I think I see what you are saying. As you know, there are still many people who would read such a list today and learn a lot from it.
From reading these forums, I sometimes get the feeling that everyone knows how to handle personal finances. When I feel like this, I look out into the parking lot at my employees cars and realize that 3/4 of them have nicer cars than me, despite earning far less. And I have a pretty nice car (okay, it's a Camry, but it seems nice to me-- the bumper isn't held on with duct tape like my prior car).
From reading these forums, I sometimes get the feeling that everyone knows how to handle personal finances. When I feel like this, I look out into the parking lot at my employees cars and realize that 3/4 of them have nicer cars than me, despite earning far less. And I have a pretty nice car (okay, it's a Camry, but it seems nice to me-- the bumper isn't held on with duct tape like my prior car).
@ MO
The car or truck may be the worst financial offender we have.
People will take out a 5 year loan, on a rapidly depreciating asset, while rolling into that loan the remaining balance owed on their last car. A study showed that the average negative equity on car loans in 2008 was $4,600.00. I posted a comment on another thread that the depreciation hit on the first year of a 2010 Tahoe was $11,500.00. So if someone was in that scenario, the loss of the first year Tahoe buy would be over 16K, and nothing was yet paid on the Tahoe. Is it no wonder the negative equity has nearly shut down the auto industry and sales? Not to mention the financial ruin of the car buyer? The price of a Chevrolet Tahoe has now reached $51,000 for a non-hybrid model. Hybrids reach into the 60K ranges.
Can one have a nice car or truck? Sure, with a little common sense thinking. Not an impulse buy at the dealer.
I can hear it now:
"Have a seat and a cup of coffee. Let me talk to my manager. We sure want to put you in one!"
The car or truck may be the worst financial offender we have.
People will take out a 5 year loan, on a rapidly depreciating asset, while rolling into that loan the remaining balance owed on their last car. A study showed that the average negative equity on car loans in 2008 was $4,600.00. I posted a comment on another thread that the depreciation hit on the first year of a 2010 Tahoe was $11,500.00. So if someone was in that scenario, the loss of the first year Tahoe buy would be over 16K, and nothing was yet paid on the Tahoe. Is it no wonder the negative equity has nearly shut down the auto industry and sales? Not to mention the financial ruin of the car buyer? The price of a Chevrolet Tahoe has now reached $51,000 for a non-hybrid model. Hybrids reach into the 60K ranges.
Can one have a nice car or truck? Sure, with a little common sense thinking. Not an impulse buy at the dealer.
I can hear it now:
"Have a seat and a cup of coffee. Let me talk to my manager. We sure want to put you in one!"
@HSpencer,
That's a point in Terhorst's book about retiring at age 35. Basically that cars can quietly suck up a lot of money.
Similar to your point about people not talking about the pertinent details of personal finance-- with the car, most people have never considered the total cost of car ownership as a means to achieve personal transportation. Fees, maintenance, fuel, insurance, loan interest, depreciation-- all are taken out separately, thus far too many people fail to see how much they are spending.
That's a point in Terhorst's book about retiring at age 35. Basically that cars can quietly suck up a lot of money.
Similar to your point about people not talking about the pertinent details of personal finance-- with the car, most people have never considered the total cost of car ownership as a means to achieve personal transportation. Fees, maintenance, fuel, insurance, loan interest, depreciation-- all are taken out separately, thus far too many people fail to see how much they are spending.