CALCULATING THE COST OF LIVING By Fred Andrews Join me and calculate your cost, of living to acquire wealth as home equity…”Everybody should appreciate making this acquisition, regardless of country of origin or residence: gender, color, creed, race, or religious affiliation”. There is a cost for living, which stands in the way of our economic freedom. People have lived blindly, without calculating the cost unilaterally, only to discover that the calculated cost were wrong, because the cost for living is not a one size fits all. Consequently, cost of living calculations, with life and death implications, are routinely managed like governments: as budget-balancing acts. Budgets are basic spending management tools, and they are predicted on income projections and income receivables that are unrelated to cost. Here is where budgets have become a serious problem: Budgets are also used politically, as social financial and economical tools. “If you ever wondered why politicians are such lousy economic care takers, here is your answer”. Political “governments” construe budget balancing as economic righteousness, and that is bizarre. If you want to know how bizarre dig this: both budget shortfalls and surpluses increase cost of living. Consequently, the individual can ill afford to budget the cost of living. Besides, the cost of living is a market factor that reflects fluctuating changes; which calls for more or less capital that is also market based. To calculate the cost of living, we have to calculate the cost of debt and the cost of money to pay the debt. If this sounds like unfamiliar language, let me be the first to congratulate you for being awake!” Economists are well aware of these costs, agree with my calculations, and do nothing…As if to say, we are all in this together—mortgagee and mortgager—and that is just fine! The major costs of private and public debt must be calculated as mortgage debt, and must be calculated in the cost of living. Whether you buy a home, and pay a mortgage or not, your mortgage debt is assessed as the median home price, multiplied by three. If the high-end homes, excluding estates, is $1M, and the low end is $100K, the median is $450,000. The debt calculation is therefore $1,350,000: the cost of usury money matches your mortgage debt, and your cost calculation is now at a sub total of $$2,700,000. You would have to be earning at the average rate of net $90,000 a year for thirty years, just to pay for this sub-total cost of living. Let’s get together on my next post, to see the total cost. Go to bargainhuntersplus and tell me what is on your mind!
Posted on: Thu, 07 Nov 2013 10:37:14 +0000
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