Thoughts on Debt

This holiday season, as you pack the presents under the tree, listen to Christmas songs, and spend time with family, please think of those who are less fortunate.  With financial struggles plaguing the economy and the world, there are many people suffering and I know first hand that the holidays can be an extremely depressing time if you don’t have any money.

I am not the type of person who needs a lot to be happy, but I am a giver.  You know a person who gets joy out of doing and giving to others.  There is absolutely no enjoyment for me in a holiday where I can’t financially afford not to give.  Being financially strapped can make you feel worthless and desperate.  It can occur without warning and of no fault of your own.

This year, I am not in this circumstance, but I know someone who is and I truly feel for them.  I realize that there is nothing worse than being poor at Christmas time.  Worrying about every dime you spend, going through stores and seeing people spending, and you worrying where your next meal is going to come from and when or if you are ever going to feel whole again.  I am one of the lucky ones, on the rebound, catching up again, and making it work.  This was not by luck, but by hard work.  It is hard to feel motivated when you feel down all the time, but keep holding on to the hope of the future.  You will come through and you will make it work.  And if you know someone who has fallen on some financially difficult times this holiday season, then please reach out to them, and try to do something to make their holiday a little brighter.  It will not only brighten their holiday, but it will make you feel really glad that you did something for someone else this holiday season.

Many people find themselves in hard financial times and are wondering what they can do to dig themselves out of the hole they are in. Well, the key to it all is devising a budget and sticking to it. Many of us believe that we are already living on a budget, however, unless your budget includes a savings, then it is really not a budget. A budget is not scrimping and living paycheck to paycheck paying whatever bills you can each week, it is much more than that. It is a financial plan, the foundation by which you determine how much you can afford to spend on the extras. Built into your budget must be a savings plan that will allow you to put no less than 5% of your income aside for emergencies. I personally prefer a two savings plan, where you divide your savings into 2 separate accounts, one for true savings and one for savings for special things that you would like to do like a vacation, or for a special item you want like a new TV. This is a good way to be able to reward your hard work saving and feel a benefit from it. It will make you feel less deprived in the long run if you reap some benefit from the savings.

In order to create a budget your monthly income must exceed your monthly expenditures. For instance, you can not budget your money if your monthly expenses are $3000 per month and your monthly income is $2400, this will not budget out. If after writing down your expenditures for a month and your income, you find yourself in this boat then it is time to trim the fat off your regular monthly spending and if you still can’t get your expense low enough then it may be time to consider picking up an extra job. The fact is that a budget is a plan by which you spend, and without one you are free falling into a life of poverty.

Keeping your life in balance will allow you the peace and harmony that you seek from life. Having enough money to pay the bills with a little left over will allow you to sleep better at night without worry. Take the time to work out your budget and you will see how easy it is to keep your finances under control.

Officially now in a recession, and looking down the path at a possible depression makes a lot of the nation’s elderly reflect back on their younger days.  One man spoke of his experiences from being a child during the Great Depression.  He told of the bread lines and the pan handling.  He said that people would go door to door looking for food, and no matter how hard the times were, his mother would always provide food for anyone that asked.  He said if someone came to the door needing food, his mother would prepare them a sandwich and usually they would eat it right there.  When they would leave they would put a mark on the curb, letting others that came by in need know that this house provided him with food.  He says that the tough financial times of his youth made it extremely difficult for him to spend any money, even after the Great Depression was over.  Now he worries for his kids and grandkids as he can see the trend moving towards another Great Depression, and wonders about the impact that this will have on the future of his family.

Although, our government is working very diligently trying to avoid another Great Depression, I am afraid that it is only a matter of time before the bread lines begin to form.  With more and more people facing unemployment and no new jobs on the horizon, we can only hope as we move forward that the changing political climate, can bring some new hope to our failing economy.

Many people are faced with debt and are doing what they can to get there heads above water.  With the economic trials people just can’t afford to spend the way they used to.  Hanging on and trying to put aside a few dollars here and there has become near impossible, so how do you address this, especially with the holidays quickly approaching.  Honestly, the best way to approach this is to try and buy now.  I know that sounds difficult to do, but for many people who are in this spot, what happens is you hold off on spending the money for the holidays until the very last minute.  Unfortunately, what happens in this case, is that you wind up spending way more this way on everything and leave yourself in a financial hole.  Last minute shopping leaves you settling for what is left and paying full price.  Spending a little bit each week towards Christmas is a great way to chop through that Christmas list in a hurry, while coming up with some really cute and creative ideas.

Look on the internet and try to come up with cute homemade ideas for holiday gifts.  For instance, the older relatives in the family always love something with a picture on it, or artwork done by their grandkids, so put some thought into it.  Make a picture collage, Holiday Ornaments, or a tee shirt with the kids hand prints.  All of these gifts will provide treasured memories for the family for years to come, and even better yet, they can be made for under $10 each. Make gifts for the neighbors and teachers at school. Try some homemade cookies in a cute cookie tin.  It is a great way to let people know that you are thinking about them this holiday season, without spending a fortune.

Being creative and smart will help you to shop the sales and clearances, get some great inexpensive ideas, and in the long run not only reduce your amount of holiday debt, but also reduce your stress going into the holidays.

You do realize that we practically live in a virtual world, don’t you? The fact is nothing is what it seems and what you are being told is probably not the truth, so let’s look at the facts— The crude oil prices are dropping rapidly and the price on gas at the pump has come down some.  Did you know that it can take about 3-4 months for the pumps to have a decrease from a drop in the oil prices today.  Also, did you know that part of the reason for the increase in gas prices, aside from the economy and the war, is that the demand for gasoline has been rising and the supply has not.  The United States has not built even one oil refinery since 1976 which is 32 years of ignoring that we need more oil and not taking any action.  Also, in fairness to the average gas station, they make very little money on their gasoline sales and rake in a much bigger profit from keeping their gas prices competitively low, to encourage you to come to them and buy something to drink, cigarettes, lottery tickets and so forth.  It is the mini marts themselves that bring in the revenue in these places and not so much on the gas.

I still personally see a big difference from region to region on gas prices and in my travels this past weekend found gasoline prices that ranged from the highest price I saw at $3.39 per gallon for regular unleaded to $2.95 per gallon.  A savings of .44 per gallon is not laughing matter.  Especially when you consider, I didn’t go on a massive country wide trip, I only drove down the highway about an hour and that is how much the gas prices varied on a short drive.  I don’t care what they say in the news, I know that some of this must be price gouging, I don’t mind when the prices vary a little but when I can drive to the next town over and spend .20 less per gallon, something is rotten in Denmark!