Ed McMahon and Lessons in Home Economics

What you heard from Ed McMahon lately?

If you've been following the news, You May have heard about his recent appearance on CNN's Larry King Live, when a professional celebrity sidekick / emcee / pitchman, along with his wife, Pamela, was on with Larry to discuss Among other things, its financial woes. It appears that McMahon has found $ 644,000 in arrears to nearly 5 million U.S. dollars of mortgage loans pressed against his Beverly Hills home. While McMahon cited three main reasons why he is in such dire straits ... economy, poor health, and personal mismanagement ... a few things, "he says of McMahon and his wife were, I thought, in particular to say.

At one point, when asked how these types of problems can befall a millionaire, McMahon's wife Pamela said, "We keep our eyes on the ball. We made a mistake. It's embarrassing to say the least, and it is said, because you know, Ed's worked his whole entire life. "As far as McMahon himself, he said:" If you spend more money than you do, you know what happens ."

Yup, Ed, I do not. As it was a difficult time understanding is when he states that the Maxim in a way that suggests that you've known it all along, why did you violate it?

Ed can point to the economy and poor health, but I do not buy any of these reasons for his troubles. economy, for one thing, only a factor if a millionaire a millionaire is a millionaire living beyond its means. Same with "poor health," unless your ill health proved to form a long, protracted struggle against life-threatening illness, mega-rich man would not pass on this basis, either. That's when Ed alluded to the financial carelessness I think that hits the nail dead-on.

My long held view of the foreclosure "crisis " is not popular in America that accepts the rights and avoiding personal responsibility. And good luck to blame the victim here. It is not entirely fair or accurate ... there are those who are facing foreclosure after the start of genuine accident, and I actually know a few of these souls in person ... But almost always, it seems to me that it has the right, just like any other reasonably objective observer with at least half a brain. In this way, Ed is no different than anyone else. Like many in this country, Ed apparently feels that "deserves" to live a certain way or have some things ... But life as a consumer is not about deservedness, it's about being able to afford what you want, with the consumer desire tempered by prudence and rainy day plan ... profile that should be infinitely easier to achieve for a man who has earned millions, but the rest of us.

In one sense, it is easy to feel sorry for a friendly, familiar 85-year-old face framed by the collar and facing foreclosure. However, when the 85-year-old person belongs to Ed McMahon, who has seen more money during his lifetime than anyone I've ever known put together, compassion becomes a little harder to find.

There is a financial lesson here that goes along with a tongue-lashing of personal responsibility. Unfortunately, this financial lesson, although simple, it seems so difficult to learn much, because it crosses swords with three contemporary American society, the greatest evils: a sense of right, an instinctive desire for gratification, and the rejection of personal responsibility. Financial planning is a lot more about planning than it is about money, and most functional part of a good plan is a part where you actually stick to it. I and others who work in the business of money management can help people all day long with good ideas, but in the end, an important part B, succeeding with a plan to actually follow it. Ed McMahon is on the verge of foreclosure for the same reason as so many others, millionaires or not, because when he had to decide between "less " and "more", he chose the "more ."

In my experience in the financial services business, far too many people with whom I dealt with individually were only interested in how far they can stretch their income to buy this or that ... whether it is a house, car, or anything else. Until more Americans made ​​180 degrees away from these types of financial wrongheadedness, this problem will only continue to grow ... What will the misery that never appears as his faithful companion. trash on the responsibility for the foreclosure crisis is rightly placed solely on the feet of so-called predatory lenders is just that, rubbish. It is an integral part of this mess is simply overblown by people wanting to look elsewhere, except in your mirrors, for the culprit.

As far as my dear Ed, here's hoping it is still not too old of a dog finally learn some new tricks. What about you?