What Has the World Come To?

With all the chaos and destruction of the American economy I have to sit back and think: "What did you expect?" This is what consumerism and capitalism is all about...caniving as much as possible to gain a hefty profit, and never facing consequences for poor financial management practices. In addition, the government is now suggesting a 700 billion dollar bailout of some of the wealthiest companies, which are partially to blame for the housing crisis to begin with! Oh, and they are thinking about limiting CEO's severance packages to not exceed multi-millions of dollars. Great! These companies get a huge reward for corrupt business practices! I guess that is what capitalism is all about, right! And the American public is so brainwashed to believe that it may actually help them, when in reality it is still only making the rich richer. If a small company goes under no one even notices or cares. They are not offered a bailout to prevent them from facing the consequences of poor business choices. However, billionaires stand to loose millions, so we better help those poor people out, we wouldn't want them to loose one of their 10 houses!

The real problem is that our country has been spoiled for the last 40 or so years. We consume and consume, and expect to keep consuming at the same or greater rates forever...and we all live happily ever after! I pray this will come as a huge wake up call to our society. People who couldn't even save up enough money for a 5% down payment on a house actually thought they could afford it, just because someone gave them the money? What did they think would happen if they lost their job, were out of work for a few weeks, etc; when they had no savings to begin with? Now, the American people expect free handouts, just like the huge corporate giants to prevent them from feeling the discomfort of their irresponsible actions.
Has anyone heard of common sense???? I guess not in this era. I go to the grocery store and the clerks have to use calculators to complete simple math computations. When I tell them the answer they don't believe me and have to check their handy calculator. Half the time they don't even know how to get a percentage from the calculator. When I went to purchase my car a few years back I did about 30 hours of research and I was amazed that I knew more about the car than the actual sales people!
People just assume that everyone has their best interest in mind, but they forget we live in a capitalist society where everyone is out to make money at any ones expense. I see families every day who live off drugs from pharmaceutical companies that only make them sicker so they have to take more drugs; or people who trusted their doctor and spent tens of thousands to only be worse off in the end. Manufactures who make sub-standard products and pay off the FDA to allow them to use generic terms such as "natural", "fragrance", "spices", "corn syrup" etc to cover up their dirty little secrets to make us fatter and consume more of their junk food.
In addition, people have gotten by for so long by using credit and refinancing, they don't even know what the concepts of "budget" or "living within your means" mean anymore. I know several people who blew their government checks on crap...the strip club, more stuff, etc. I did not hear a single person say, "hmmm, I guess I'll put that towards my debt". Why??? Because you deserve it? Keep telling yourself that when you are out on the street wondering how you got into that situation. I don't have an ounce of pity for people who are unwilling to help themselves. They would rather have a pity party and invite everyone to join in to help support their sorry ass. I am not talking about the FEW instances of financial tragedy. I am talking to those people who have to have the latest "Coach" purse or work out clothes that say "Juicy" on their ass! Who cares, you look stupid. "Juicy" reminds me of getting sick in a foreign country, but go ahead and keep advertising to the world what a moron you are and that you spent too much on something.
What happened to not purchasing anything unless you had the money (not credit) to buy it? The only loans I've ever taken out were for my house and part of my college tuition. One year after graduating I paid off all my student loans. Our parents didn't give us any help with our college and we have NEVER received a free handout from anyone. Four years after buying our house we only owe less than 1/3 of our initial loan and should be mortgage free in 1 year! I could pay off my house right now, but I have a "safety net": extra money, in the case something happens, so one does not loose their house, car, or everything (I also think people forgot the concept of a safety net). I have enough saved to live off for an entire year if we were both to loose our jobs. We will not touch this money for any items we want. It is for EMERGENCIES only!!! Why, or how people may ask?
A few easy steps to get out of debt and stay out of debt:

1. Use a budget...always! Make it realistic and if you are in debt, it isn't the time to splurge on luxury items like $300 purses, $1000 televisions, or $50 dinners. How can you save or cut back if you don't know where the money is going? Buying just 2-$5 cups of coffee per week means $520 per year!!! 2 packs of cigarettes per week will cost over $1000 each year. The little things add up!
2. Cut out unnecessary items until you are out of debt, even then, consider living off less. It is a lot easier to live off less and not have to cut back in financial emergencies, than living off more and trying to cut back after growing accustomed to luxury items.
3. Don't buy anything unless you can pay cash.
4. Build up a safety net to cover 3 months of expenses...at the very minimum!
5. Use coupons and buy items when they are on sale or clearance. (click for awesome, free coupon website that tells you when and where to use coupons to even make money on free items) I haven't paid for toilet paper, hair care, toothpaste/brushes, deodorant, lotions etc. in over a year, I've probably made money. I have way more than I need, so I give to charity. You can easily save over $1200 per year doing this.
6. Stock up when everyday items are on sale.
7. Don't be disillusioned by the word "sale". Sale doesn't always mean a great deal. Thus, do research on prices to find out when items truly are on sale.
8. Don't buy it if you don't need it, just because it is on sale.
9. Downsize. Just because the bank approves you for a certain amount, doesn't mean you have to max it out. The average 30 year home loan ends up costing home buyers 3x the initial purchase price. So, if you bought a house for 200k, then you really spent 600k on the house. Making even 5 extra payments per year can save you tens of thousands of dollars in the long run. Even if you are not in debt, why not downsize and give more to charity.
10. Make your own cleaning and beauty products. Save yourself a hefty chunk of change, use healthier products, and decrease your environmental footprint. I love this site and personally use several of the recipes.
11. Don't use credit cards unless you can honestly pay off the entire balance every month. Most people don't take using credit cards seriously and often pay more than 20% interest. That means that if you purchased a $300 purse and only make minimum payments you will actually have paid more than $360 for that purse. I use cash back credit cards and make about $1500 or more per year, BUT...I pay off the ENTIRE balance EVERY MONTH! If you don't, it doesn't work and you loose money.
12. Pay down the debt with the highest interest rate first. Transfering debt to a 0% interest card may seem like a great idea, but do the math. They usually charge 3% right off the top, which may end up costing more in the long run.

I have several friends reading books now that stress these same principals. I am amazed at their astonishment, because they had no clue! This seems like common sense to me, but I am amazed at how many people really have no clue. I thought switching to organic would mean tripling my food and personal care budgets, but I have found ways to make it work for the same amount or less. I am more than happy to help anyone who is willing to help themselves, just ask. I don't think we are "immune" to financial problems, but we certainly can withstand significantly more than most Americans in lieu of trouble. I am greatful every day for everything I have, and certainly don't take it for granted. We aren't rich by any standard and look the same as most Americans, we even make about the same as the majority of the middle class. However, we are not struggling to pay our bills and manage live on about 40% of our income. We have everything we need. More stuff only brings more responsiblity and takes more time to maintain.