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The vast majority of us have taken a huge hit to our retirement accounts, and this is a direct result of poor money management on the corporate level. This, however, is no reason for "monkey see, monkey do" practices that lead to similar results at home. With a little thought, most of us are capable of making the best of the assets at hand. It's a matter of common sense, and often enough asking and answering simple questions regarding purchases and the positioning of money is all that is required. The old adage "honesty is the best policy" applies to all aspects of life, and it is imperative that each of us maintains this honesty with himself. Let's begin by looking at bills and debts.

As we all know, there are good and bad purchases. The question is simple: do I need that? The process of answering the question can be manyfold. For example, closing one's eyes and picturing a specific item in the corner of the garage gathering dust in a matter of months may suffice. Anything that is neither a necessity nor a long term source of enjoyment should be avoided, or, perhaps, I should say, "If you don't need it, don't buy it!" Forget about vanity and keeping up with the Joneses: buying a Hummer to make a one-hundred mile daily commute is one problem that is going to create another, particularly with today's gasoline prices. We're all intelligent creatures, and if something sounds stupid, it usually is.

What if the answer to the aforementioned question is yes? Cars break down, and so do refrigerators, air conditioners and the like. There are numerous items that we can't live without, but it's the way they are purchased that gets us into trouble. Yes, I'm talking about credit card debt, and I recommend paying in cash as often as humanly possible. Did you know that ninety-million Americans carry a credit card balance of $8000? At a relatively standard 19% rate, it would take three-hundred sixty months to clear this debt while making minimum payments, and the earliest payments would be in the neighborhood of $200 each. Over that thirty year period, the debtor will pay a staggering $11,615 in interest. Think about it: after taxes, that's two (maybe three) days of work every month dedicated to making as small of a payment as the credit card company allows, and far too many of us pay off one credit card with another. In this case, one hand dirties the other!

So, what should my priorities be this month? First and foremost, we should pay our bills on time, and one way of doing

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