The Economy From A Close-Up View

I was just reading an RV Newsletter and one of the featured reports was about the long-time owner of a large multi-location RV dealership in CA. Of his 8 locations, 2 closed earlier this year and he is currently liquidating all his inventory to close the final 6. Prior to that story, I read one about a number of primarily large motorhome manufacturers that are closing their doors and the effect that will have on current owner's warranties. It is everywhere... the reports pour in... Many companies that up to the second half of last year were strong and profitable, now have layed off half of their staff in the last few months and currently are barely hanging on. Many of these business owners that have been in business for many years are now just hoping to make it through the end of the year without having to close down!

I sit here on a Saturday morning reading my online newsletter and once again am stunned by the broad scope of the declining economy. I am the manager of a southern-based, national professional pre-tax planning firm. We have a marketing department to invite business owners to receive a free consultation regarding how utilizing the IRS tax law code through pre-tax planning will greatly benefit them and their business. The truth is that in this down economy it can help people tremendously as it not only saves them tax dollars but increases their net worth. Whoops... got side-tracked lol... So the point was that we call on hundreds of business owners every week to offer our complimentary consultation and information What we have found is that in the last quarter of 2007 and ongoing this year, many businesses that formerly were very strong and profitable are barely hanging on right now. Many of them have layed off up to 90% of their employees. We hear the stories every day. It is staggering... business that formerly were paying over $300,000 in annual federal income taxes, now their profits down by 75% or more. We hear the same stories often from small companies to very large companies... I continue to be stunned by how wide spread and devastating it is across the United States. Although mortgage lenders, real estate, title companies and builders are typically the hardest hit, it has affected all kinds of businesses regardless of size or type. It is very sad and disconcerting to see so many people hurting and struggling to keep the companies going that they have invested themselves into, most often for many years.

It has hurt us as a company as well. Because even though the fact is that our services would help these companies, we can't help them unless the remain a company with a strong enough anchor to keep going (paying at least $40,000 in annual federal income taxes). As an adult that has a close-up view to the economy, I have never seen anything like it... It is truly sobering.

Altough I believe the economy will become much stronger within the next year, I am personally preparing for whatever may come. I believe in NOT living in the biggest home that I can sorta kinda afford and/or driving a vehicle I can barely afford to insure, much less pay the monthly payments on. I say that because I am surrounded by people who do just that. Most of the people where I work (and others I know as well) pay far more for rent or a mortgage than I do. I choose to rent a portion of a home (bedroom and bath with run of the home) in a nice community for 1/2 of what it would cost me to rent an apartment. I drive a 97 GMC Safari van and keep it maintained instead of making payments on a newer vehicle. That alone helps me to save monies and have the ability to give when many are struggling just to keep their monthly bills paid. I think we have gotten to a point as a society that we are in a kind of stupor about what we really need. I know far more people that cry and struggle and stress to pay the mortgages on their big homes and loans on their late model vehicles than those who don't. With gas prices astronomical and food costs way up, it is a tough pendelum to live by! Jobs keep going down - costs of living continue to rise!

In the USA the norm has been to have newer, bigger or multiple for so many years. Suddenly, there has been a screeching halt for many... it had to happen at some point... it is pretty devastating to see so many people hurting. There are ways to reduce living expenses dramatically but many people either don't know how to or have been so far removed from that thinking that they just keep trying to maintain what they once barely could and now wasting what resources they have to try and keep their world as it was, for a while longer.

I believe that some of the unconventional and not widely understood ways of living that also reduce living costs greatly is more important now to consider that any time in my 50 years. Particularly a single or couple can easily save major monies living part or full time in a small RV or van or doing a number of other things to greatly reduce expenses. Maybe even more of the mainstream will begin to see the beauty and enjoyment of a simpler less encumbered lifestyle. I personally enjoy my laptop, a nice personal DVD/CD player and a small flat screened TV as well as my beloved Kindle (Amazon.com reading device)... I am not without my comforts... But I can afford the few choices I make because I am not paying for the big house and late model car. I love the freedom that preparing for an even simpler life (vandwelling) allows me. I always know that no matter what happens I will have a roof over my head and am developing alternative ways to make enough income to subsidize my minimal needs.

I recently have seen several news stories about people who were "forced" to leave their homes and live in their motor homes or vans. The reporters refer to them many times as homeless... no they aren't... they just have a smaller, simpler home! There will always be seasons that incur emergencies, tough times and/or difficulties in life. Whether we choose to live simply long term or intermittenly, in most cases we can drastically reduce our living costs. Fruther, it is when we choose to own our lives and make the best of our situations whether we choose it or it is thrust on us that defines the difference between a victim mindset and a visionary...

Blessings, Brenda of www.lordandcurtiss.ws