When you keep coming back for more. Dec. 3rd, 2006

I had to take out a personal loan for the first time in my life yesterday.  It seems I messed up some thing in my bank account on my Bermuda trip.  Luckily, when I got home my statement was waiting for me.  I looked through it and I can't find the error, but I thought I had 400 more than I do.  So I took out a loan to give me a cushion.  I had the money to pay all my bills until January, but I like to stay a month ahead of the game.  I was never good at saving when I was younger, but since I turned 27 and started a retirement account I have began to arduous journey to make a million in principle, so I can live off of the interest.  If everything stays on course, that should be in about 12 years; 15 at the most.  I figure if I can collect a minimum 4% on a million, then I can live comfortably off of the 40,000 dollar annual interest.  Now, I know I am not a big fan of money.  It comes and it goes, and too many people base their living on the amount of money they have.  I know how to get by broke or rich.  I have said it before; I have lived both ways.  In 2001 and 2002, I spent 200,000 dollars.  I was living it up then.  But anyway, the loan I took out wasn't much, and it will be paid off by January, but the cushion between now and January is what I needed.  Next year is going to be good financially.  I can see that already.  This year was better than last, and last year was better than '04.  So, as long as I keep my head straight I think my 12 year plan is in order.  Now I could have borrowed from my retirement money, but the amount of money I would have lost in interest would have been far more than the interest I am paying on this loan.  So, I am losing money, I am just not gaining as much.  Anyway, I just figured I would blog this little tidbit of info, because it is the first time in my life I had to take out a loan from a financial institution that didn't involve school.  With the holidays coming up, I wanted to make sure I had enough cash flow to not be in the position I was in.  In 2004, it was bad around Christmas.  2005 was better in December, but this year I want it to be really good.  So, it takes money to make money as they say, but I still wouldn't mind if the world went back to the barter system.  At least then; honest working Americans would get an honest wage for honest work.  That is a topic for another day though.  Well, I have rehearsal in a few hours so I had better get ready.  Hope everyone is having a great day, and I will catch all of you on the flip side.

Later
Kenny