$22,000 Cat!

Meet Timmy, the $22,000 Cat! OK, his name isn't Timmy, at least I don't know if it is Timmy. But if I bought a $22,000 Cat that's what I would call him...

Actually, that is a pretty boring name for a Cat that costs more then my last car. Heck I couldn't even ride Timmy to work. I think he is too small. Actually by pound he is REALLY expensive. You would think for $22,000 that he would grow big long teeth like the cats in 10,000BC and you could ride him.

Wait got it...I shall name him Lord Kitty von Timmy...that's better....

OK...what the heck am I talking about. Apparently a special cat breeder has come up with a special hybrid Cat that is so special that you can get it (if you are lucky) for the bargain price of $22,000. Yes I have typed that about 45 times now in this post as I still can't believe it.

This is exactly why some people Hate America. People around the world work for a dollar a day, and we have designer cats.

Then I started thinking...what are my $22,000 cats? My "must have" Broad band Internet? My "saw-sharpening" Golf? Whining that I didn't get upgraded on my recent flight?

Point is we are lucky to live in a country where our toughest decision is what to eat for lunch rather than IF we eat today.

Personal Finance by Micheal Scott of The Office...

I am a big fan of The Office, both the British and Us versions. There is one episode from this season that is sticking in my brain as I sit and hear many of my fellow office workers talk about budgets and getting their finances in order and start managing their money better.

In the episode Micheal realizes that he is running out of money. His finances in shambles he overhears that some people's finances got so bad that they had to declare bankruptcy. Believing that this is an actual declaration ala Ye Olde Town Crier (not to be confused with Jon Cryer) Michael address the room and yells, "I am bankrupt, I am declaring bankruptcy!" Luckily Oscar takes pity on Michael and decides that he will take a look at Michael's finances and see if he can help him out.

The next scene show Michael looking at an Excel chart like the one in the picture. save that it is three instead of five columns.

Oscar: Micheal, this first small column is what you spend on your needs. You know the basic necessities of live like shelter, food, etc..

Oscar (points to next column, twice as big): Micheal this column is what you spend on things you don't really need, like dining out, etc..

Oscar (points to third column, well larger than the other two combined!): ...and this column is what you spend on things that nobody needs, like backup Magic Sets...

The point is many of us, especially those of us struggling with our finances, have a hard time discerning between our Needs, Wants and Desires. We don't lay these out like a hierarchy that they are, we run to what feels better, rather than what is better for us. Like the kid ( mine!) who is always full until Ice Cream is available!

Here is the Life and Liberty guide:

• Needs - Don't get these and you...well die. Air, food water, shelter. The basic needs of life. Not I Need to be seen in a 535i BMW...not really the same at all.
• Wants - Things that make our life more comfortable, a refined need if you will. I want to eat pizza, it is good. Food sustains; pizza is a preference of a type of food.
• Desires - I desire to eat pizza from Wolfgang Puck's in Las Vegas, then see a show and retire to my suite for a massage...

Now it is OK to desire all of the better things in life; trips, fashionable clothes, Mont Blanc Pens, awesome watches (both my desires). But not at the expense of your other lower level priorities.

In other words a trip to Europe is a desire, contributing to my IRA so I don't eat Dog Food when I am 70 is a Want, much less making sure I have my own shelter (a Need).

So when you are budgeting and managing your money, really think about where in the priority chain the purchase of Your backup Magic Set is...