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Today’s economy is fast changing and vulnerable to anything.   Which means that our situations also are the same.

We can have a job today and lose it tomorrow in a blink of an eye.

Which leads us to the following.  How can you make long end financial decisions?  Like acquiring a twenty year mortgage on a home, or financing a car on a five to six-year term?  Or invest your money in a market you can’t be sure will collapse like it did in 1929, and we get to live Black Tuesday all over again.

Probably what scares me the most is having enough food.  Having to go back to the times the soup lines were part of everyone’s life and not only for the homeless, isn’t something we want to go back to.

via Google Images

What can we do to prevent going back in history and having to live even a harsher reality?

My humble opinion is that we should give our spending habits a hard and long look.  How many things do we buy that we don’t need?  Is paying our bills a priority?  Is saving, even a small amount, important when our paychecks are deposited?

Back in the day (1920’s) I don’t know how spending habits worked, however today we should worry about our own habits.

I heard a speaker say once that today we should worry about “The Disbosable Generation”.   Who are they?

The generation that needs to work more, to consume more,  to go and dispose more.  It can also be called the Junk Generation. We pile and pile like horrible hoarders. 

That was over ten years ago and I still remember her words and implications it had.  After that I usually think twice when I buy something, thinking about where and how long I’ll be using it.

Many of the things we buy end up in the dumpster after a couple of months.  On the other hand, paying our debts or saving some money wouldn’t hurt.

Haven’t we all heard about “retail therapy”.  Good news is that is usually works, but it’s effects are short-lived.  We need to find alternative to solving the blues other than shopping.  That really is about your own choices and preferences.  For me taking a nice ride usually works.

via Google Images

Finally, I’m not so sure about putting all my money in a bank.  What would happen if the bank system collapses?  Some rush to talk about how the Department of Treasury insures up to $150 K, I don’t have that amount and doubt I will ever have it.  Yet, I’m sure nobody wants to lose their life long savings even if they don’t amount to $150 K.

What would happen if our government also crashes?  Everyone who can read or at least listen to the news knows all about the deficit situations in Washington.  A little worrying if you ask me.

Knowing exactly how much you can spend and how much you need to pay all your obligations is really important.

What works for me is a notebook, where all my bills are stapled and each month I have a payment schedule.  Each week when my husband’s paycheck is deposited I separate the amounts I need until my bill is due.  Since I’m visual, this is my life saver.  It guides me through the month so everything can get paid and my pantry is full.  I added a saving schedule now for the weeks I don’t have to pay anything.

I’ve said it before, our economists are warning people about changing our household’s spending patterns and setting up a budget and sticking to it.  They are our modern prophets!  We better begin listening or things are going to get tough down the road.

Mr.  Sequester is up and rolling and by 2015 we ALL are going to feel its hit.