Thursday, March 01, 2007

finance talk radio

Radio Host: "Hi! We're here on Finance Talk Radio to address your questions about how you should or shouldn't be spending your money. First caller."
Caller #1: "Yeah, I am having problems with money."
Radio Host: "What sort of problems?"
Caller #1: "I don't ever seem to have enough. Really, I don't know how this is happening. I'm making decent money, I'm smart, people like me. It's just that after I put my two week Mediterranean cruise on my credit card I don't have enough credit to pay next month's lease on my Porche."
Radio Host: "Don't spend what you don't have."
(Click)

Radio Host: "Caller number two, what's your problem?"
Caller #2: "I keep getting overdraft fees from the bank."
Radio Host: "What do you do for a living?"
Caller #2: "Well, I don't really do anything for money, but I'm in this band—"
Radio Host: "You have to make money to spend money."
(Click)

Radio Host: "Caller number three, what can we do for you?"
Caller #3: "I cosigned for my ex-boyfriend's car loan and now—"
Radio Host: "Don't be a doormat."
(Click)

Radio Host: "Finally, caller number four, why are you calling in?"
Caller #4: "I'm a widow with two small kids and a low paying job—"
Radio Host: "Oops! It looks like we got disconnected!"
Caller #4: "No, I'm still h—"
(Click)

Radio Host: "Okay, who's the bozo who let someone with a real problem through the switchboard?!"

12 comments:

Achtung BB said...

Funny. Where did you get this from?

shakedust said...

I needed an idea for a post last night and I had thought about the concept a few weeks ago.

This post comes out of the fact that I like finance shows and articles, but I usually feel like the people writing the article or running the show are being careful to only present scenarios with obvious answers.

It's easy to correct people with a high latte factor (people who needlessly spend small amounts of money multiple times throughout a month). A lot of financial "experts" seem to spend all their time on the idiots and avoid the harder situations where there are fewer straightforward answers. This irritates me, because a true expert should not do this.

It also irritates me because it encourages some people to think that anyone who is in dire financial straights is only there because they did stupid stuff to get there.

T said...

:) Enjoyable read. I agree no one ever wants to tackle the real problems. Like, now that I have all this stuff, where do I put it? I need more space! :)

f o r r e s t said...

Your back on this.

You should listen to Dave Ramsey on 710, because he does not meet your fictious secnarios-if they exist as you say. He tackles problems by people who make a lot of money or very little. Bad money management is bad regardless of your income.

BTW, talk radio uses real people names. FM dj radios stations uses caller #4. Maybe that is why you are getting bad financial advice.

shakedust said...

I'll probably be on this again some day as well. This is the first I pushed it into blogland, though.

I'm not saying that he falls into this model, because I do see exceptions to the rule on occasion. I don't listen to the radio much, but it made for the best medium for my ficticious scenario.

One quesiton, though, is why do you make the comment about bad money management? Part of the point is that a lot of people are financially screwed due to things other than bad money management. Do people who are good money managers who happen to have fallen into bad times make it onto Ramsey's show frequently? If so, then I applaud him.

The caller number stuff was to purposely make it generic. I wasn't inventive enough last night to come up with fake names.

Unknown said...

The problem is that there aren't any easy answers to the people who are working their tails off but not making much money, probably due to a lack of in-demand skills. The best they can hope for is to work hard, try to keep expenses down, and try to improve their knowledge/skills. It's the "provide a better life for my kids than I have" approach.

It does work, but it's not fun.

Unknown said...

I forgot to mention something. You can improve your lot in life faster by living wherever you can make the most money possible (probably in a high cost-of-living location) and do anything and everything to keep your expenses bare to the bone (sharing houses, never eating out, etc). If you can do this for a year or two, and you can make an extra $500-1000/mo, that might put you $15-20k ahead of where you would otherwise have been.

f o r r e s t said...

Here are a couple of thoughts to follow up your last comment:

People who are screwed finacially due to things other than money...have more problems than just money. They need more fixes than just money. They may need some mental fixes, relational fixes, physical fixes, etc. Obviously, a show on money can't fix the persons other problems...that's Dr. Laura. :)

People who are good money managers who fall onto hard times, either a) are not on the shows, because they have made the necessary sacrifices to survive the hard times and have no need to call in or b)do call in and learn that to make it through these hard times they may need to sacrifice this and sell this and come up with a plan to get their feet back on the ground.

Also,I don't know if this is true or not, but I hear people who listen to talk radio generally have a higher intelligence level than those who listen to FM music radio. (Not my words or conclusion, but I've heard it said many times.) If that is true, just maybe, the callers to these shows are ahead of the game - so to speak.

shakedust said...

Joel,

Actually that is a good idea for the person who is struggling. If a person can figure out where wages outpace the cost of living or where social services are the best, moving could work.

My opinion, though, is that most of the people in this situation are either responsible for a family or have some sort of handicap. Both of these would create some added expenses to a move that would need to be recouped.

Forrest,

A money expert who only understands money should not work with personal finance because even good money managers are influenced by the things you mention.

I think you are close with your list, but I deeply disagree with something the list implies. I think that there are people for which, even if they make incredibly deep sacrifices, they will still not be able to make it. Your list implies that anyone, if they make enough sacrifices, can have a balanced budget. Unfortunately, life does not always work that way.

f o r r e s t said...

"A money expert who only understands money should not work with personal finance because even good money managers are influenced by the things you mention."

I don't know what this means or how it applies to my comment about talk radio. Please excuse me if I interchanged the word finances for money. Please take the context of what is be discussed and not the literal differences of words. I am not getting an MBA.

"I think you are close with your list, but I deeply disagree with something the list implies. I think that there are people for which, even if they make incredibly deep sacrifices, they will still not be able to make it. Your list implies that anyone, if they make enough sacrifices, can have a balanced budget. Unfortunately, life does not always work that way."

You are reading the list wrong. You asked about people who are good with money, who fall onto hard times and if they make it onto the shows. I gave you my answer - no because of (A) and yes because of (B). (B) is not meant to be an easy fix, but I believe these people have the tools or can learn what they need to do to get back on their feet. It's not easy and it may take years but it can be done. Much of this process is what Joel mentioned in his comments. Remember these are the people who are good with money.

Those who aren't that is a whole different story.

BTW, I am not saying I am good with money.

shakedust said...

Ah, I misinterpreted. Thanks for helping me understand that.

roamingwriter said...

I like the Dave Ramsey show and there was another guy with a book, or maybe it was him. A zero debt guy I liked his philosophies even if I haven't quite achieved zero debt line.