The smart people in charge over at the Peter G. Peterson Foundation, whose mission it is to bring Americans together to find sensible, sustainable solutions that transcend age, party lines and ideological divides in order to achieve real results, have just created a fun way to express our frustration at continued non-solutions in government. Or at least that's my standpoint...

It's Called Fiscal Haiku.

Here is the one I submitted:

leaders tax and spend
no deficits they pretend
give future away

Message: It’s important that we talk about finances — whether they're our own or our government's. The new website, FiscalHaiku.com, showcases citizens’ creative opinions on our nation's and our personal economic situations. Whether you're concerned about the increase in foreign debt, foreclosures, or your own retirement, Fiscal Haiku is a place to share and express your thoughts on our monetary struggles.

Read, rate, and submit a Fiscal Haiku today.

Here are some of my favorites:

unsustainable
It is definitely clear
The fatal cliff near

Entrepreneurs
hold the KEY to our Future
economic growth

Those who have power
have little regard for us
til last voting hour!

Become the answer
Not the problem we all face
Get off of your butt

I'm not represented
By those who have been presented
To govern us all

national defense
without long-term solvency
equals defenseless

Remember 5, 7, 5. What ones did you submit?

If you follow just about any "general public" financial guru, you know that they devote significant air time or book pages on just how important it is to have an emergency fund consisting of cash reserves.

On the flip side, more "advanced financial experts" and some wealthy individuals approach emergencies in unique ways, lumping in access to emergency cash via short term debt instruments like HELOCs or credit cards (as to keep maximum amount of money fully invested).

So what is the correct way to plan for financial emergencies? Where is the best place to keep emergency cash? Is debt the best option in an emergency, or an option at all? How do I minimize taxes? How much do I need?

You can probably guess that there is no one right answer. Each individual or family has specific needs and specific philosophies, but there is a wrong answer: not planning at all.

To help organize our thoughts and to learn about the different ways to approach financial hiccups, Lez and I have written a series of posts on the topic. Here is our first discussion:

How does one create a plan that is right for them?
It starts with a few questions.

1. What is your financial philosophy?

"If a man is proud of his wealth, he should not be praised until it is known how he employs it." ~ Socrates

I'm not asking whether or not money exists; or if a firm is bailed out, does that automatically mean it shouldn't be able to reward employees for good performance?
I am talking about your aversion towards debt.

Obviously proper levels and forms of insurance play a large part in risk reduction, but eventually expensive problems will occur. This is where the question comes in: If you have the luxury of time before an emergency, how do you approach your financial preparations?

The reason we ask this question is because an emergency is just that, an emergency, something that hopefully doesn't happen often.

Many people have access to one form of debt or another if they need to pay for something large and unexpected. It's hard to fathom for some of us, but don't forget debt is normal, and if managed wisely debt can be used as a tool. It doesn't mean you have to like it.

Saved cash in a "safe" investment form is money that is not being risked in an effort to earn more money. Some might say this is exactly the point, but this balance often hinges on your philosophy.


Have an opinion? let us know in the comment section....

Next post we will talk about how much to have on hand, if savings is the right choice for you?

When will we ever learn? Read this headline:

Voters reject spending limits, OK Ohio casinos
CHICAGO (Reuters) - Voters in the states of Maine and Washington on Tuesday rejected measures to limit spending, while Ohio's ailing economy swayed residents to approve casino gambling.

Since you are smarter than me, you may have only needed to reread that once.


Here is a little more about the measures: