MuddyPuddles

I ran my first marathon in 1994.  I decided to run my second and final (running) marathon in 2001 when I was 50 years young.  These are both high points in my life.  For the first one, I trained in large part by running down the highways and the back roads.  By the time I ran the second one, I had to train on the “rubberized” track at the school.  It cushioned my steps for the sake of my knees.  I also, in both cases had good shoes that not only cushioned my steps but caused my feet to land properly as well.  (If your shoes allow your feet to land a little bit crooked, it eventually causes problems with your tendons which causes you great pain.)  I’ve heard of a fellow who ran a marathon barefooted.  I don’t see how he did it.  He’s definitely the exception rather than the rule.  We can all run barefooted for a little while.  But it would be foolish for us to attempt to do so for long.  Not only would it be foolish, but it would be obviously foolish.  We’ve got to have a cushion.  It doesn’t have to be much, but it needs to be there if we hope to get far.  We understand this when it comes to running, but it seems like so many people just don’t get it when it comes to finances. 
I have several rent houses and have dealt with tenants for 28 years.  Through the years I’ve counseled the tenants when possible---usually to no avail---about financial strategies.  The main thing that I’ve preached to them is that they really need a financial cushion.  It doesn’t have to be much (the bigger the better), but it’s got to be something.  To not have a cushion is a 100% GUARANTEE of great difficulties ahead.  I’ve noticed the problem mostly around Christmas time.  Quite a few people who haven’t paid their rent around the end of the year tell me that they had to use their money to buy gifts for their children.  I usually tell them that it’s a shame that we had no warning that there was going to be a Christmas this year so that we could have been setting aside some money for it.  I go ahead and warn them that I’m pretty sure there is going to be a Christmas from now on at the end of each year---usually around the 25^th of December.  This knowledge is going to save them a lot of grief in the coming years, I’m sure.  If I give them a three day notice to vacate the premises during this time this year they think I am a very unkind fellow---even if I have allowed them to live in the house for free for the past month.  I guess I just don’t understand what a nice fellow should do.  Perhaps I should pay their rent for them (and the other 5 families as well) and not evict them until February (at which time they shall still be mad at me for being so cruel (Isn’t that near “Presidents Day”?).  This will only cost me a few thousand dollars every year.  I should gladly be willing to pay that, since it’s Christmas and all.  I’ll consider it. 
I also warn them that at some point their car is going to break down and they or someone in their family is going to get sick and need medical attention or they are going to get laid off from their job.  They seem to understand what I’m saying at the time, but when their income tax refund comes in (a few weeks early for a $200 fee, which is obviously worth it to them) they decide that they deserve the new, large, flat screen television set.  After all, that’s what the commercial they saw, while watching TV on their old set, told them.  Who needs a cushion anyway.  If everything goes as planned, their income will just barely cover all of their known expenses (not counting Christmas.  But that’s almost a year away.  Things will be better by then.)

Besides, what does it hurt to be late on paying your bills (except hurting your credit which causes you to have to pay higher interest rates on loans, which causes you to buy older junker cars, which causes you to miss work sometimes (because it will break down) which causes you to get less raises and more layoffs and causes your checks to bounce which causes high bank charges and getting your electricity and water cut off (for non-payment) which requires larger deposits to get them turned back on and also causes you to have to wait in line all day for inferior medical help because you can’t afford insurance or a doctor and you can’t qualify for the lower priced car insurance so you pay high monthly insurance when you can and you avoid the cops when you can’t which all causes you to lose sleep at night.  In short, you get into a downward spiral that is really difficult to get out of---all because you didn’t build in a cushion. 
With a cushion, you can get better interest rates, buy in bulk to save money, have more dependable cars, make it to work more consistently, avoid late charges and penalties, sleep better at night and buy gifts for your children’s Christmas.  It’s a difficult choice.  If you make the wrong one at least you’ll have a nice TV to watch during those sleepless nights.  Then you’ll also be able to know how to sue someone to get the money you deserve because those ambulance chasers are who pays for all the late night commercials.  I think I’ll sleep on my decision and get back to you later.  God Bless.  Dennis