Saturday, April 18, 2009

the matrix

So I know this business. It runs at a deficit. It's a noble place, doing good in the community and helping those less fortunate. But, it runs in the in red like our Carolina soil.

And it preaches for people to live within their means. And it teaches families how create a budget and stick to it. And it praises those who become and stay debt free. Great stuff, right?

Only, the business doesn't follow those rules. The business has large debt and doesn't work within a prudent budget. The business is above the rules, not because it's "holier than thou," but because it does God's work: aiding the poor and stregthening the weak. It takes money to do that.

So, I'm left wondering...can it really preach a Dave Ramsey lifestyle to its customers when the business itself can't do better than most households in America?

What would you say to the business owner?

I asked one time and I got a cryptic answer about how the business is not making the money it should based on the matrix of similarly sized businesses. The customers just need to buy more. Hmmm, I didn't know it worked that way.

With that logic, if I buy a bigger house with a bigger mortgage, but my household income stays the same, then I need to go to my employer and say, I need more money. You need to pay me more becuase I should be making more based on the matrix of similarly educated individuals. The matrix says I should be making more than I do, so you need to pay me that because that's where I set my budget.

My employer is going to look at me like I'm sporting a pink mohawk. What I get is what I get based on the job I have here, not what another widget worker in Cincinnati or down the street is making.

What this business earns it what it earns. It doesn't matter what the matrix says it SHOULD earn, it earns what it earns.

Instead of basing their budget on real-life intake, they base their budget on a matrix that clearly doesn't apply. They spend what the widget factory on the next block spends, even though the other factory generates more income.

People who use this business are encouraged to base their budget on their current household income, but the business itself designs its own budget based on a matrix of identical companies? Huh?

Honestly, the whole thing confuses me. I think I'll go consult the matrix.

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