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Show QA Lakeside Review North, Wednesday, Aug. 3, 1983 Financial Well-Bein- g Eroded Only five out of every 100 Americans are financially independent at age 6S because, generally, people do not know how to manage their money, a personal finance expert said. Dr. Clyde J. Cooley said that the biggest deterrent to proper management of finances is the high number of people who are borrowing for consumer goods. Cooley, an associate professor in the Weber State College department of marketing and finance, notes that out of those 100 Americans age 65 and older, 23 must continue working for their support while the other 72 depend on family and friends. We teach people how to make money, but not how to manage it, he said. Cooley explained that a borrow and buy mania has swept the country, converting almost I everyone to the notion that it is better to borrow money for con- sumer items than to save and' pay cash. He said, Debt is not bad if it ! causes your money to grow, but consumer ; goods grow to a new zero of worth and money bor- t rowed for consumer goods is not productive. It erodes the net t worth. Homes are good investments, he said, because they grow in value and the owner will end up with more, but a boat, for exam-- $ pie, decreases in value and, if it is bought on credit, erodes the ' persons financial net worth. t Cooley said, The idea is to increase your net worth, not the other way around. He pointed out that if some-- 1 one borrows $500 for one year at 18 percent the total net loss would be $35. If, instead of bor- rowing, the person put the same amount in monthly payments into a 10 percent savings account at the end of the year and after taxes they would be $65.84 cents ahead. Project that for 45 years, assuming the person was 20 years old when he started and saved the same amount every year, the total net worth at age 65 would be $47,000 compared to a loss of $25,000 if the same amount were borrowed. Excess Merchandise will be stacked outside during this Giant Sale!! . SELLOUT OF EXCESS INVENTORY) and Warehouse Stock Clearance includes odd pieces, last years floor sample models, discontinued styles and colors. Prices have been cut for instant clearance to make room for our in coming new merchandise. Slightly marred or scratched O) pieces have been marked down even' more drastically and will be sold as Hurry for best selections, all items subject to prior sale. This gigantic Floor Sample , is. J We Have A Vast Selection Of Sofas and Loveseats Drastically Reduced. 1 , Sofa Prices Start At $ ffionnncEG j : All floor sample, overstock, mismatch bedding is on sale! -, Cooley said, People say, 1 ; ; FULL Choose From Full or Queen Size in Traditional, Contemporary or Transid and a tional, ter off borrowing and buying. The professor said that the simplist way to avoid debt is to one-of-a-kin- simply say no to borrowing. Dont be ashamed to say you cant afford it and dont be em- - ' . barrassed if you have orange t crates for furniture. Consumer t debt is just not wise. He said it is lethal to obli- j gate income through time pay- ments before the money is I received. Not only does it put the consumer in a tight spot j should the monthly income be reduced or cut, but it also adds to a growing national debt. I Cooley noted, The govern-- j ment is only responsible for 25 percent of the natipnal debt. The rest of it is because you and I ' i ! borrow and buy when we dont h yet have the money. He added, If you want to be one of the five who are financially independent at age 65 do not borrow and buy. Credit cards, charge accounts, theyre all there to lure people into the 1 lethal habit of credit buying. Sets On Sale! We have many styles to choose from. From small 5 pc. sets to large 9 pc. sets!! few-of-a-ki- nd. Prices Start At Prices Start At , k ! 1 Deputy Clerk Is Appointed FARMINGTON Bountiful resident Bart Orchard was sworn in as a deputy county clerk by Davis County Clerk Michael in last weeks county Alphin , commission meeting. Orchard will be the clerk assigned to the county court and to record all I daily proceedings there. He has had two years of bank-- ; . ing experience with Utah Bank and Trust and is presently study-in- g business administration at I Utah Technical College. Orchard will be replacing Pat ; Apgood who resigned when Rodney Walker was in office. . Walker, who recently resigned I from the county clerk position, ; chose to let his successor select a . deputy of his own choice. QUEEN SET KING SET srame $31,000." He added, Its pretty hard to convince me that people are bet--, ! SET All Beautyrest one-tim- ; 5 YEARS WARRANTY TWIN SET If I save, the price will just go up. So lets assume then that the price of a $6,000 car goes up 10 percent in one year. By saving the monthly payment you still come out $218 ahead and if you e invest that savings in a 10 percent savings account by the time you are 65 the accumu-- ; lated amount would be ; DDDCZ3 - |
