| Skip College & Today's Economy |
| Date: |
Oct 8, 2008 |
From: |
Linda |
| Location: |
San Francisco, CA |
Age: |
37 |
| Question: |
My gal pals and I have just finished reading the excellent "Skip College..." e-book and find it particularly relevant to today's economy. We've been hearing many stories on the radio about small business people who took out loans (or borrowed on their credit cards!) to start their businesses, and are now stuck deep in debt with seemingly no way to dig out. Becuase they did not organize and fund their businesses with an eye to privacy principles and potential financial consequences of small business ownership, many of people and their families are on the hook personally for their business debts. Not that we feel that anyone should shirk their debts, but, there are many perfectly legal strategies for individuals to insulate themselves from business debts. The first principle, as Mr. Luna espouses, is not to go into debt to start your business in the first place! Anyway, Mr. Luna, we are wondering if you would be willing to share with us some of your thoughts on the current economic situation, and how those of us who are coming late to the principles you teach in "Skip College..." might re-position ourselves - mid career so to speak - to put those ideas in place.
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| Answer: |
For years, I have advised readers--on this site and in print-- to:
1. Stay out of the stock market.
2. Rent rather than buy (unless you can easily pay cash for your home).
3. Keep a cash reserve of at least $10,000.
4. Never borrow. Pay cash or do without.
Since I practice what I teach, the current meltdown does not affect me. It also does not affect any of you readers who have followed my advice. For those who did not, my only suggestion is to work your way out of debt and put the principles of "Skip College" into practice.
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