Everything starts at home…everything. Many of the biggest issues facing people in our community grow from weak “home training” and no sense of personal economics. An individual and/or family should operate like a small business.
I personally love the idea or mindset of applying principles from the business, industrial, commerce and corporate worlds to home life..i.e. Risk/reward, cost benefit analysis. Investing, training, research, development, risk management, savings, financial foundation, marketing and human resources are all aspects of a sound, healthy family. Hey, some families might actually have a business plan or mission statement.
Investing= college cost, homeownership.
Training= etiquette, faith walk, nightly dinner table discussions and family updates.
Research= what are successful families doing, Do it Yourself home improvement, useful television.
Development= building stronger kids, parents who learn from others’ wisdom, family sacrifices for career opportunities.
Risk Management= nipping problems in the bud, surrounding family with positive people in heathy environments, particular about school.
Savings/Financial Foundation= untouchable nest egg, the retirement program at work, struggle-free living (living inside means, paying this month’s bills with money earned four months ago).
Marketing= human marketing is networking, being around positive constructive people who witness your solidness, dating people who enhance your life.
Human Resources= using the utmost care regarding who you bring into the small business (family members are new employees/partners.) New people come in after an exhaustive interview process and detailed research of history and experiences.
Home Ownership: The American dream is having a piece of God’s green earth; land, they aren’t making any more of it. Some people go from the cradle to the grave without developing a desire to own a home (well, grave would technically be owning land.)
A house is the second biggest investment for most people (children being the first in my opinion.) On Capitol Hill, housing was one of my issue areas but more importantly, I taught a first-time home buyers class as part of my duties with a south Georgia community development corporation. While a HUD-provided video explained the fundamentals to the participants, I knew this stuff from hearing my daddy constantly advocate for home ownership. He was a good agriculture teacher but his forgotten legacy was selling lots in our subdivision in the early 1970s. In retrospect, this housing development should have been Black-owned but the Lord knows it was progress for people to own their first house, their second greatest asset.
Daddy’s first rule was “when you rent, you are buying property for someone else.” His second rule would have been “with a stable income, buying a house is actually cheaper than renting and the place goes up in value.” When I was about 9 years old, my daddy pointed at a new Cadillac parked next to a shack and asked me what was wrong with that picture; talk about your teachable moments.
Many families in my subdivision are living in houses that were paid off 20 years ago. Others have moved to snazzier communities but the rent money from the “home house” is investment income. Oh, it’s not all rainbows and butterflies in the “Sub;” we have our “come on now” drama. Barbecuing in the front yard—come on now. Pulling a car engine with a tree in the front yard-come on now.
I like the idea of a person buying a duplex, living in one side and the rental money from the other side covers most of the note. That situation feels financially magical.
Means: We must live within our means because those who bite off more than they can chew will choke. One of my favorite movies is “It’s A Wonderful Life.” My man George Bailey was a hero for getting so many people into homes and wanting to see them actually make the final mortgage payment.
The recent housing crisis in America grew out of having fewer George Baileys. People were buying more house than they could afford. They were actually factoring in the future appreciation of the properties. In other words, they were counting their eggs before they hatched.
Struggle, Stretch, Strain: Yes, some people seriously believe that struggle will always be a part of life but that’s hogwash. You struggle when you put more on your plate than you can comfortably handle. As a result, these people are constantly stretching their money and that produces a financial and emotional strain.
Conspicuous Consumption/Bling: the slang term “bling” defines the shiny, flashy items that small-minded people want to make them feel better about themselves. Wiser folks, those less shallow, have spending habits and budgets that reflect a smart financial plan and personal determination. For example, a person making $10 an hour can purchase a $20 shirt, double their hourly wage. But, that same person wearing $90 shirts is foolish. I bet that person doesn’t have $1,000 in a saving account. Yes, reasonable people have a problem with folks in the public assistance office in Polo and Versace. We are talking about young parents who would put $3,000 rims on a $2,000 car that smokes like a chimney.
We need to stop making Michael Jeffery Jordan richer. Your child has Jordans sneakers but isn’t old enough to walk. Your teenager wears $200 Jordans but isn’t on the varsity; his crew wears them to play video games sports while watching you clean the house and wash the car. Oh, what about the adult with Jordans and a matching $30 Starter cap at the bus stop. $1000 cars can still be found but they wouldn’t be caught dead in a struggle buggy.
Lump Sum: First, most people should thank heaven for putting us around role models with knowledge and wisdom. Then, we should thank ourselves for being smart enough to listen. Struggling people who work every day might receive the Earned Interest Tax Credit. President Richard Nixon started the EITC because he felt working people in America shouldn’t be below the poverty line. So, this credit gives workers the amount taken for taxes during the year and adds enough money to the refund to bring that person or family up to the poverty line.
Smart families live below their means, avoid bling and put most of that EITC money away. After a few years of saving, those families have the income history, decent credit report and down payment for a house of their own. Hey, USDA, HUD and other governmental programs might get them into homes with little or no down payment.
http://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/ga
It warms the heart to think about people turning adversity into prosperity. From a better house in a community with better schools, the next generation of that family (the current kids) can go to college, move up in a job that requires technical school training or see the world in the military. A family that will hopefully never struggle, stretch and strain again.
Housing video links
Project Logic Ga 
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