I watched Jordan Spieth lose the Masters Golf tournament by taking a score of 7 strokes on hole No.12. Par requires 3 strokes. He hit a shot in the water. He hit a shot fat. He over-clubbed into a sand-trap. All on hole No.12. Hell, I can do that!
I see that the outstanding balance on all credit card debt stands at $638 billion (that is billion with a “b”). That calculates out to an average balance of $15,000 on all credit cards. Interest on credit card debt is around 20% per year (20-30%). With a balance of $15,ooo, at 20% interest you will pay $3,000 per year penalty. Really? Do you know how many hours you work for $3,000.
Burn the credit cards. Tell Ernie Von Slupps Ford dealership to find another sucker to finance his cars. Other than your house mortgage and possibly a car loan early in your life, pay cash for everything. Then get rid of the car loan. Then get rid of the mortgage. Then move to Mexico with your cash and retire in the Sun!
I have been told there is a “thing” called a Foo-Foo fund. It is a fund where cash is set aside to be spent on anything. It has nothing to do with budgets. It has nothing to do with retirement. You do not have to account for how the cash is spent. It is your money to be spent as you see fit. Money that goes into the Foo-Foo fund could be rebate money from a purchase, spare change from your pocket, bonus money from an incentive at work. You get the idea. Spending the Foo-Foo fund can range from stupid to extravagant. You don’t care because you don’t have to account for it. You could buy bon-bon cookies and eat them secretly. You might spend the money on better golf balls. You might buy that Rolex watch. Hey, you might even reach for a Chevy Suburban. All because of the Foo-Foo fund. Think big! Okay, okay I got carried away a little. I’d settle for an extra trip to our favorite restaurant, St. Anna.
The word Phoo Phoo, Foo Foo or Fu Fu is not unfamiliar to me. I have long had my FU money. It is money I have set aside so that if somebody pressures me financially, I have enough to say FU.
You can have a “Foo-Foo” in your life.
Love,
Dad