As it stands now this is not a political blog, and I want to keep it that way. However, with the upcoming election, coupled with recent events (bailout, mortgage crisis) and the state of our economy, I feel it is important to address this issue. It seems that so many people are putting all of their faith into electing a President that they feel will fly down from the sky with his Presidential cape and leotards to save the day. Why is that? Do people really believe that Washington is going to come to the rescue? Do you really think that is where the answers are going to be found?
If so, I’ve got news for you. It’s not true. Regardless of who gets elected in November, you are still going to have debt. If the Economy was booming you would still have debt. If the Economy is horrible, yep you guessed it, your financial situation is still the same. Your debt is the problem, not Washington. Until you get your financial situation under control nothing is going to make your life any easier when it comes to your finances. Maybe it is time you sit back and reflect upon your decisions and ask yourself a few questions.
- Do I have a budget?
- Is there anything that I can cut from my expenses each month?
- Do I have adequate savings?
- Do I rely on my Credit Cards during an Emergency?
- If I lost my job today, would I be okay?
- Are my priorities truly in order?
- If something were to happen to me (God forbid), would my family be okay?
- Is debt the center of my finances?
- CAN I DO BETTER WITH MY MONEY?
Let’s break it down shall we. If you had a budget, cut your expenses to necessities, had adequate savings, didn’t rely on your credit cards to bail you out, knew what your priorities really were, and didn’t consider debt to be your savior – the state of the economy wouldn’t put such a strain on your wallet, would it? You would not only feel safe and prepared, you would be able to use your income to make your financial situation EVEN better! Think about it! A recession is like a BIG sale and the perfect time to invest wisely.
According to a recent report on consumer debt released by the Federal Reserve, this country owes an out-of-control 2.5 Trillion dollars. This is INSANE! Here’s some context for you.
Unbelievable right? Now add another trillion and a half and recalculate. This crisis is huge, and until Americans start to realize how dumb debt really is, I am afraid we have more troubling times ahead. My point is this. Don’t wait on Washington to fix what you yourself can fix RIGHT NOW! Don’t believe for one second that any person elected into office is going to make your life complete. Step up to the plate and fix your own economy. Stop borrowing money, put yourself on a budget, spend less than you make and save as much as you can along the way. If you are not doing these things then you have no right to complain about living paycheck to paycheck.
There is NO EXCUSE as to why we in America shouldn’t be able to achieve wealth. After looking at the “Ben & Arthur Invests” example that illustrates compound interest perfectly, I am convinced that those that do not acquire wealth in this country really don’t want it unless it is given to them by those that do. Look at the chart for yourself; am I wrong? If you think so, I would absolutely love to hear from you…leave your comments below.