Personal finance is a broad term used to cover many topics that deal with your money. Personal finance topics include credit cards, car or auto loans, personal loans, the difference between banks and credit unions, proper debt management and the most over looked topic of all… personal money management.

money and compassYour credit rating is one of the most important factors in your financial life because various institutions use it to judge your credit worthiness. Your credit rating is mostly used by banks when you apply for a loan, however landlords and even employers may check it to assess your “character” reference.


Eventually, you will most likely want to buy a car and house. Most people don’t have the money needed for a lump sum purchase, so you’ll probably want to get a loan. The loan available to you will depend on your current financial situation, and your credit rating will be assessed.
A bad credit rating often results in the refusal of a loan or loans with higher interest rates and more restrictions. High credit ratings mean lower interest rates and more options, so work to maintain a good, clean credit score to give your personal finance the best chance possible. And remember that you are responsible for your own financial success. Take steps now to take control of your personal finance planning to ensure you are well set up for your retirement. The best time to start is… you guessed it…  NOW!




I believe in the beginning banks had to hold in gold (a tangible asset) the amount that they were allowed to loan out and still made healthy profits from the interest charged. At some later time coins were created which still had intrinsic value and then paper money as it was far easier to transport. Paper money has no intrinsic value, however it does have an agreed upon value which eventually fails due to inflation. Whilst gold value does change with demand it will always have intrinsic value. It is physical – there will always be a demand for it.

As time went on the demand for paper money as an exchange, rather than bartering, became greater and greater and so banks were ‘allowed’ to loan out more cash money than they had gold backing. To the point now where most banking institutions only need 3% gold backing the cash they can loan.


My understanding too is that the Reserve Banks of Western civilizations are not Government owned, but privately owned and as such Governments have to ask permission for more cash, offering Government bonds in exchange (paper for paper), but the Reserve Banks charge interest on the paper they produce. the rat race
These Reserve Banks were created because of the financial incompetence of our Governments. And now we are all slaves to not only the financial institutions that we beg and plead for a loan, but in addition the loans that our Governments have taken from our respective Reserve banks. This is partly why we contribute so much in taxes – to pay for Government debt.

So who owns these Reserve banks? Old money – families who come from extreme wealth and have ensured that they will continue to have extreme wealth. They do this by creating cycles of boom and bust. We are all players (slaves) in their game. Just quietly, if you Google “History of the US reserve bank” you’ll get a good idea of which families and why they did it. And yet, most people think that the Reserve bank is owned by the government. I encourage you to dig deeper.


Money is just an exchange of energy that we’ve all agreed upon. It is not good, nor bad and if you happen to accumulate a lot of it, it will show more of who you really are. Greedy or generous, thrifty or a spender – no judgement.

We can use money and financial institutions to create wealth for ourselves, but it is essential to be clear on what it means to borrow money by means of a personal loan and how to protect yourself from possible negative outcomes, such as finding yourself in a position where you have to sell property at the wrong time, etc.
Take care with your investing strategies and due your best due diligence before committing yourself to a long term investment. In fact my favorite way of investing is with residential property. I like to make sure that the deal makes money on the way in (usually by being undervalued or ripe for renovations), while I hold it and a bonus is if it has grown in value when I’m ready to sell!
Do you have any comments about our monetary system?

Warm regards,


Personal loans are loans that can be either secured or unsecured, but most commonly are unsecured. Personal loans are used for unspecified purposes, unlike mortgages or car loans, which are made for specific purposes.
The proceeds from a housing loan or car loan are usually paid directly to the seller of the property or vehicle. The proceeds from a personal loan are given to the borrower and he or she may use the funds in any way that they wish. Sometimes a personal loan that is not secured is called a signature loan.
A personal loan is different from a credit card, store card, or gas card balance in that a repayment schedule is set up at the time the loan is taken out. Regular (usually monthly) payments are required, and the loan is for a fixed period of time. Credit cards, etc. have a minimum payment requirement, but a personal loan has a specific periodic monthly payment.Plane

Ordinarily, personal loans are made by banks to people who have an excellent credit score and an unblemished (or nearly unblemished) credit history. The interest rate on a personal loan is usually slightly higher than the interest rate on a secured loan as the bank or lender is taking the risk.


However, sometimes people who have bad credit or no credit can still get an unsecured personal loan. Lenders view these potential borrowers as people who are trying to re-establish a good credit rating and, although they do not have personal property available to use as collateral, they do have a job, and the financial capacity to repay the debt.


The interest rate on an unsecured personal loan will be high. The borrower will have to prove that they have a job and they can be reasonably expected to make the set monthly payments.
The advantage of an unsecured personal loan is that it gives the borrower an opportunity to repair their damaged credit rating.
However, the disadvantage of having a debt is that you have a debt! Debt can and usually does keep you small and poor. It allows you to live – albeit temporarily – beyond your means. You need to seriously consider why it is that you want to put yourself in this situation. A personal loan usually means an additional commitment…. Yes, every month…. The same as a mortgage. So please, please, please ask yourself this question. “Is this spending (including the interest owing) going to increase or decrease my long-term financial position?” Then you can make an informed decision about going ahead with your personal loan. Ultimately you are responsible for your financial future. It’s the choices that we make today that have the greatest impact on our money situation at a later date.
If you want to become wealthy as quickly as possible and create your desired lifestyle you need to replace the income you have from your job (Just Over Broke) with income that comes to you from minimal continued contribution from you – such as passive income, compound interest, smart investing, real estate investing and more… but we’ll talk more about that later.
Just don’t go into debt without a really, really, really, REALLY, really good reason.

Thank you,