Mar 20 2009
Economic Hard Times Are Often Our Own Fault
Those of us who have lived through previous hard times, deep recessions, the Great Depression and even wars, have come to realize that our economy is cyclical. There is no avoiding it.
Just as we study the circle of life from birth to death and rebirth, the World’s economies are constantly undergoing corrections.
The current correction is pretty severe, and the consequences are more widespread than most governments have experienced in recent decades; but it is important to remember that THIS IS NOTHING NEW.
Although these “ups and downs” are normal, they are not consistent or regular, i.e., we can anticipate the cycles but we have no way of TIMING them.
The BEST THING that we as individuals can do is be prepared.
The axioms of generations past should not be forgotten. “Preparing for a rainy day” or “Saving up for a rainy day” has long been the standard that our forefathers preached. Benjamin Franklin was a great one for being prepared. I think the Boy Scouts have a motto about being prepared.
We become victims of our own shortsightedness. Those who claim they can hardly make ends meet seem to always have money for booze, cigarettes, video games, cell phones, dvd’s and dining out! Why is this?
There are those who constantly live beyond their means because they just can’t stand the idea of not having the latest “things” or the “best” of something, or going to all the special events and concerts. Their credit cards are maxed out and yet they apply for more cards. The perceived need to keep up with everyone else has become our greatest financial vulnerability.
We have failed ourselves and our offspring when we neglect to manage our finances and teach our kids how to properly manage theirs.
Too many of today’s adults grew up in an age of “instant gratification,” whereas those of us in our 50’s and older learned about delayed gratification. For many of us, the “Layaway Plan” was how we financed our “special” things, and we only took possession of the object when it was completely paid for.
Yeah, I say, let’s bring back the Layaway Plan!
