When I recently saw the President of the Pay Day Lender's Association crawl out from under his rock on TV the other day and lecture the viewing audience to "Never borrow more than you can repay in a short period," I got sick to my stomach. I knew he was smelling blood!
He, the leader of the most rapacious, unethical group of financial bandits, making loans at interest rates of over 100% annualized to our service men and other middle class Americans; giving this kind of advice is like Dracula advising hemophiliacs on giving blood!
He was clearly reacting to the increased desperation of the middle class American worker, falling further behind because of stagnant wages, rapidly rising mortage, gasoline, education, child care and health care costs.
If you don't take action to protect yourself and your family, now, from this increasingly predatory economy we live in; you will go right into bankruptcy, foreclosure or both, along with millions of your fellow middle class Americans.
Most of you are letting the government take 30-50% of your hard earned income in taxes every pay day, while granting the corporations and the wealthy ever more unconscionable and unfair tax breaks.
Exxon/Mobile makes $9 Billion in profits in 3 months of the year.
In this same year, one and a half million American middle class families will go bankrupt. This is because they do not have $300/mo more income, which according to a Harvard researcher; Elizabeth Warren, is all that is needed for them to avoid bankruptcy!
There is no way the average family's wages are going to keep pace with the skyrocketing cost of living in the near future, even with two jobs says Warren.
According to the Bureau of Labor Statistics, 90% of those reaching retirement age will not be able to retire without the help of government, friends or family.
Over 60% of American families are struggling with debt and have little or no cash reserves, which means they live from pay check to pay check.
Nearly all middle class families are spending 100% of their income or more on taxes and debts, including mortgage, auto, student loan and credit card debt.
Over 2 million families are likely to lose their homes to foreclosure in the next few years because they were suckered into taking "Sub-Prime" loans with low intitial payments which families could not pay when the loans reset a couple of years later.
Warren projects that 1 out of 7 two income, middle class families with children will go bankrupt by the end of this decade. The number is 1 out of 6 for single parent families.
What is the answer? I don't think it is feasible for families to take on more jobs and still have a semblance of a normal family life.
The head of the Pay Day Lender's Association wants to lend a helping hand, at 240% annual interest, of course.
Fortunately, there is another way. American workers can take back 10-25% of their hard earned pay check that they routinely let the government confiscate in income taxes.
They can start a home based business and take advantage of the same tax system the corporations and the wealthy use.
You didn't know there were two tax systems in this country?
The tax system for the corporations and the wealthy allows them to pay little to no income taxes, averaging around only 4-5%. You know too well what your tax system takes from you.
How would you like to be able to slash your income taxes and increase your take home pay by 10-25%, every pay day, starting now?
You must have or start a home based business. It must be run with the intent of making a profit, worked at least 20 hours per week and you must not co-mingle personal and business funds.
Once you have a home based business, you can learn how to redirect the money you are presently spending on supporting your family's lifestyle into ordinary and necessary expenses to run your business.
Think about a simple trip to the mall on Saturday with your family to shop for a pair of shoes for your son. Tax deductible? A business expense? Clearly not.
However, what if you were to pick up a box of blank CD's or a new ink cartridge for your business computer? Bingo! That trip has become a business trip! You can now write off the mileage to and from the mall, irrespective of the fact that you bought your son his shoes.
Come to think of it, how would you like to make the purchase of your son's new shoes a business deduction too? Impossible? Nope. Instead of giving him an allowance, give him a pay check! That's right, put him and other family members on the payroll.
The IRS says that if the job is legit, the wages suitable for the work done and an actual pay check is cut, there is no problem with hiring family. In fact, they have given the green light to having children as young as 7 years of age, employed in family businesses.
All of these new found write offs add up to huge tax deductions, which means more take home pay from your current job or self employment.
As we have seen, an Extra Pay Check of $500-$1,000 every month for your family can make the difference between financial survival and financial disaster.
The key is to have a qualified home based business and the knowledge of how to take the available deductions.