Story of a boy named Grease.

A long, long time ago, there were many families in a large piece of land. Of the many, seventeen of them got together. There were brothers who loved, cared and shared amongst each other. These brothers united and formed a huge piece of property and named it “Euro” as a symbol of unity and strength.

The elder amongst them are BMW, French fries and Shoe. All of them are hardworking, smart and intelligent. However in a large family, they do have difference in their characters. As in many families the eldest are normally conservative while the younger are more adventurous.

Conservative in the sense that they manage their cash flow and balance sheet well while the younger siblings are adventurous, and like most of the adventurous they overspent, blow up credit cards, more credits, rolled over more credits until a point the credit reached full limit.

The prominent and younger brothers are nick named PIGS, namely P, I, Grease and S. Being adventurous, they spend and max their credit to the limit – their cash flow and balance sheet is in a mess.

Up to a point when the loan sharks notice that PIGS would have a credit status issue, Grease was prominent. Add on to insult, the credit bureau lowered the credit ratings and some even downgraded Grease to a rubbish dump status.

Well, last year when most people sell in May and go away, the loan sharks and gamblers were watching the show. Adding to insult, they even side bet that Grease would fall.

When news got around, the elder of the brothers namely BMW and French fries got together and met with the rest of their siblings. They decided to pool a sum of money to bailout Grease. With the sum of money, the credit cards debt lowered but was not fully paid. Grease was thus saved and the dust rested. However, Grease was left to manage his Cash flow with the assistance of their cousin, I am friend.

In the wink of an eye, another year had passed. And again, in May, most people would go on vacation. French fires was busy with a friend called Mena while BMW went to have a meeting with Lincoln.

The speculators were wondering how Grease was doing. Looking at his cash flow and balance sheet, they speculated Grease is in trouble, again. The dust once rested was blown all over, not over by a small wind but probably the perfect storm, Grease is again in trouble.

Again, BMW and French fries came to hear about Grease. They had a meeting and tried to come up with a solution. The drama extended as somehow they had their differences. Finally, BMW gave in and they had family unity.

At the moment, speculators rejoiced! And the rest is history.

Thoughts for the day: The solution is not the bailout. As in all personal finance, the issue at risk is the cash flow, income & expense and how budgets are being adhered to. No matter what the size of the bailout, if the current issue of budgeting and cash flow is not improving as planned, we have to come to reality a bailout is not the desired solution, but a temporary solution. A bailout would just roll over the issue. Then, what’s next?

What happens to Grease will be your personal opinion. Likewise, the solution to all debt problems are budgeting, cash flow analysis and timely execution of your plan. There is no other solution. If you have a problem with budgeting, please engage a coach for assistance.

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