Living Within Your Means or Even Better Below Your Means!

Why are we in a recession, economic downtrend, or "term of your choosing"? Well, many reasons, but most of it has to do with debt in some form or another. And, the #1 cause behind it whether it be individuals or even our government, is that most of us simply lived bigger than we could afford to & have done so for a very long time! How much better would it be if we lived as many of our relatives of the yesteryears lived; below their means, saving some monies for a "rainy day" or possibly emergencies (ie: the unexpected in whatever form it appears).

What happened in the last 2 to 3 decades that has led us here?

In the 50s and 60s credit cards became more and more the norm and continually increased in popularity. By the 80s people became accustomed to buying when it suited them on their credit cards (whether they could "afford it" or not). They paid the interest to have it all "now". The problem is most of the time it was borrowed against future earnings expected. As life "happened" and the unexpected took place ie: car repairs, lost earnings at work, or unexpected expenses in any form, in addition to the fact that many people hopped around to find the work that suited them, or for whatever the reason, weren't earning as much as they were spending. In many cases that gap between earnings and expenses just kept becoming bigger and bigger until the gap became a canyon. Years of buying vehicles, homes and lots of "stuff" on credit loans and credit cards have caught up with us. Even the U.S. government has a ridiculous amount of debt compared to the 80s. I heard recently that much of the U.S. debt has been underwritten (purchased/invested in) by foreign entities and countries, including a huge portion to the Middle East! That is disturbing to me!

Today, there are scads of news stories about riding bicycles to work, spending less, and living differently. I am convinced that as difficult as the economy is on many of us, whether it be from the affects of lay-offs from companies downsizing or closing down, or homes being lost due to the too big mortgages previously committed to, or the prices up up and away on everything from gas to food, many have had to make some big changes. We as a nation are talking, walking, and spending differently for the most part. For many years most of us have been living week to week. When the economy goes haywire, that wreaks havoc on all that are living too tightly to begin with, or, worse steeped in debt.

I personally believe that if we allow it to, this can be a wake-up call for us as individuals as well as our government leaders. Often people only change when they have no other choice or their concerns outweigh their "live for the moment" mentality. The statistics confirm that many of us are currently not spending as frivolously. And the credit cards I suspect are being used mostly for survival (as a substitue for lack of savings) instead of "stuff". Far less people are buying new vehicles or homes these days. When I see and hear all the huge sales on vehicles and homes and other big ticket items, it reminds me that to be debt free today is a gift of huge proportions. Today can be the day for change, for forethought, for wisdom. I truly hope we all learn from these pivotal times that appears to have enveloped us in the latter months of 2007 and deepened in severity through 2009 thus far. Is it tough... absolutely! But I do believe we all can and need to learn the important lessons and long term benefits of living within and below our means.

All that said, those that may have been thought to be a bit off the societal paths in their thinking and/or possibly laughed at for their frugality and voluntary simplicity (from simple choices to the major off the grid folks) may now get some respect for those choices (if not some envy)! I also believe that those of us who know how to live well in simple ways; for example knowing how to camp and cook simply and even those who have downsized to live in an RV (hopefully paid for) are often ahead of the line in their/our abilities to live well in tough economic times. Suddenly knowing how to live well in a small RV or a van doesn't seem nearly as odd and ludicrous to the societal masses anymore. I am personally, so thankful to be (continually learning) and preparing to van dwell or live as simply as becomes necessary, while still enjoying the comforts that are personally important to me. I think it is a gift to be of that mindset. I feel empowered by the lessons learned by having traveled across the USA a few years ago in a small pick-up camper on my then Dodge Dakota mid-sized truck. I am glad I have been a camper and know how to live more simply if necessary. I am admittedly a gadget girl, and love my laptop and techy gadgets, and although I confess I would have a hard time without my laptop for very long, I can grill over an open fire, happily pass the time by reading a book, know just enough about using an inverter and emergency power source to get me by when needed, and if I had to I could use a simple porta potty without having a nervous breakdown over it. Those of you who are free thinkers and always enjoyed the freedom of alternative living ideas, I believe are better for it in these times. For those of you who have cringed at the thought of living without your morning $7 cup of coffee, or traveling without staying in a $100 per night hotel, there may be be some relearning and adjustments necessary along the way. But that's OK, you are bright and you can learn to do things more frugally and simpler if need be, right?

Yep, America is changing... then again maybe the bulk of the tough times will soon go away and once again everything will go back to the numbness of spending and going deeper and deeper into debt without much thought. I hope things getter better soon but I hope we don't go back to our living beyond our means and all that has brought us here. I saddley suspect being creatures of habit, that once the immediate pain has subsided many of not most will go right back to their old ways of living far beyond their means. But will you or I? No... not I, I made that choice months ago and thankfully am now debt free. I may not own a home as you do, or a new vehicle, but I have a paid for 97 GMC Safari Van and am doing OK and am very grateful not to have a bunch of debt weighing me down.

The economy is rough in other countries as well, but here in America we have been ripe for this for quite some time now. It is a rude awakening for most of us. Whether it be taking care of our individual households or running companies, things are challenging these days for many of not most of us! But we can learn and live and be ultimately better for the lessons from it.

Living within your means = Good Choice! ~ Living below your means = Wise Choice!!!