File this under things I’ve never heard of.
The state of Michigan has announced it plans to take over the city of Detroit due to massive cash flow and financial issues for the city. The city government has 10 days to appeal (which I am assuming they will do), but the state seems pressed to take over operations. In the event the state takes over they will put an emergency manager in place who has the authority to make drastic changes for the city to include voiding contracts with unions.
While the takeover isn’t official, it underlines the point that we all need to manage our finances.
Despite a comeback in the auto industry after the Great Recession the financial situation within Detroit has not improved. The city has issued new debt to cover its obligations, and we all know how swiping our credit card to pay for things we can’t afford works out.
Avoid spending more than you earn — like Detroit did — with some of these tips:
myFICO Blog | Easy Ways to Start Investing – Our contribution on starting to invest.
Wise Bread | Is Building an Emergency Fund Always a Good Idea?
Taking Charge | No money boo-boos for Honey Boo Boo: She’s a trust fund baby
The Chicago Financial Planner | E*Trade’s Fee Commercials – Informative or Misleading?
Balance Junkie | Air Miles Rewards: Are Air Miles Rewards a Good Deal?
Financial Highway | Advantages of Renting a Home Instead of Owning
Frugal Confessions | Avoiding the Financial Failure of Not Changing Spending Habits to Reflect New Reality
Get Rich Slowly | The Sneaky Sales Strategies of Your Local Grocery Store
The College Investor | A Random View on Taxes: Paying Your Fair Share
See Debt Run | Raising Money for a Down Payment on a Home
Retire by 40 | Should annuities be part of your retirement plan?
Free From Broke was featured in the following carnivals in the last two weeks:
Carnival of Passive Investing #27 – Frugal Rules
Festival of Frugality #377 – Is Summer Here Yet?
Carnival of Wealth, Snow in Tucson Edition | Control Your Cash: Making Money Make Sense
Carnival of Wealth, Africans Are Inferior Edition | Control Your Cash: Making Money Make Sense
The Money Mail Carnival Fifteenth Edition | One Smart Dollar
Finance Carnival for Young Adults Money Life and More Edition — Money Life and More
Yakezie Carnival: Back on the bandwagon | NZ Muse
The College Investor says
Thanks for the mention this week!
Glen Craig says
Roger @ The Chicago Financial Planner says
Thanks for including my post. Was in the Detroit suburbs a number of years ago for one of my kid’s skating events, route home on the interstate took us on a bridge overlooking downtown Detroit, frightening scene to say the least. I hope they can breath some new life into the city.
Glen Craig says
It’s crazy when you think about it. But at least we know things could change. I remember NYC not being quite the city it is today. Where I went to high school in Brooklyn you didn’t want to be on the trains after dark (sometimes during the day even). Kids would get robbed outside the school. Now the area is thriving. Hopefully Detroit can find it’s way back.
Lance @ Money Life and More says
Thanks for linking to the carnival! I appreciate it 🙂
Glen Craig says
Least we can do Lance. Thanks for hosting it.