October 27th, 2008
Do You Need a Debt Wake-Up Call?
The economy is in turmoil right now, and Gallup polls are suggesting that 90 percent of U.S. citizens are dissatisfied with the current state of the economy. Is it time for a personal debt wake up call? There is not a whole lot that you can do as an individual consumer to solve the country’s financial crisis, but there is plenty that you can do about the state of your very own personal economy. Making a difference on a small scale can add up when everyone does a little bit to improve their own personal financial health.
Do you need a debt wake up call?
Do you need to get back to the basics when it comes to personal budget planning, personal finance and creating a healthy financial outlook in general? If you are disgusted at the skyrocketing debt and all of the wasteful spending that is going on, now is a perfect time to explore your own financial health and well-being.
Here is the secret to financial success, plain and simple:
Live within your means, get and stay out of debt, and put some money away for a rainy day. Yes, it really is this simple.
Despite this, for the past few years we have lost sight of this basic formula for financial success just like Uncle Sam has. We have all fallen victim to concepts like keeping up with the Joneses, and keeping up with our own fantasies as well, allowing us to thrive on money that was not really ours by taking out loans and applying for credit cards. This allowed us to buy larger homes and enjoy exotic summer vacations, but our debt ran just as wildly as our whims did. Living within our own means became an ancient and archaic concept.
If you are going to get anything at all out of this financial panic occurring this year and especially over the past few months, then this is what you should take from the credit crunch and your debt wake up call: Life happens. There is no way to avoid it, or to prevent it. Be prepared rather than allowing yourself to be surprised by the catastrophes that can occur when you are caught unaware. Debt is not a necessary part of life, and saving is rewarding, not a drag. If you want comfort in tumultuous times such as what we are currently experiencing, you need to have a healthy financial situation. If you’re hurting in the current credit crunch, it is because you were not prepared for bad things to happen. People with good credit ratings, healthy finances and no debt are sitting pretty right now, why aren’t you?
It does not take much to change your personal fortune when it comes to financial health and credit. You can get a job just as soon as lose one. You can get new credit, default on old credit, get an interest rate increase or find a huge bill that you cannot afford. Suddenly easy payments are not quite so easy to make, and debt mounts faster than you can get up out of it. Prepare yourself, be strong, save every dollar that you can, and improve your financial health and you will weather the next financial storm even better than the Joneses.
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