Risk vs. Reward...The Brain...And Why We Borrow Until It Hurts

<p><a href="http://www.washingtonpost.com/wp-dyn/content/article/2008/03/21/AR2008032103817.html?g=1&sid=ST2008032203014%5B/url%5D"&gt;http://www.washingtonpost.com/wp-dyn/content/article/2008/03/21/AR2008032103817.html?g=1&sid=ST2008032203014&lt;/a&gt;&lt;/p>

<p>Reading about 50-somethings moving back to their parents homes due to financial desperation--big college debts might not be a great idea right now. I think parents and kids need to get a grip about debt in this climate. And I also think some have a good plan for dealing with debt. I just think it's good to have a hedge relating to illness, job loss or whatever.</p>

<p>My rules about debt. If you can't pay off your credit card every month you are spending too much. If you can't afford to buy a car with a 30 month car loan, then you can't afford the car. If you cannot afford to buy a house with a 20 year mortgage, then you cannot afford that house.</p>

<p>These rules have made life quite simple and stress free for me and my family.</p>