The Economic Answer: Live Below Your Means

There has been a huge amount of coverage on the ongoing and ever deepening levels of the current economic crisis. It appears that a sort of domino effect is taking place. First the homeowners that can't afford to pay their monthly mortgages, then the lenders and real estate industry, followed by the residential contractors... And now it has hit the banks and even the hugest of lending institutions. Where will it end? What do the government bail-outs mean? How will they affect the average working citizen of the United States? Will our taxes go up? What does it mean? I, like many others will continue to follow the news as it happens to learn the answers to these unanswered questions.

Our food costs more, our gasoline is outrageous and small businesses are struggling to continue on. Many have actually closed or at best cut out benefits and laid off 1/2 or more of their employees to continue on. So what does all this seemingly "negative" news mean? No matter what state we are in, we have to face something as Americans that we haven't faced in many years. We have to make tough decisions to begin to live below our means. I constantly hear car commercials tempting all in ear and/or eye shot to save on gas by turning in their SUV or Van and buying a smaller more gas efficient vehicle. They offer to so very kindly take that "gas guzzler" off of our hands. Oh how kind of them??? They are selling cars... Bottom line and that is all they are interested in. It astounds me that people will actually fall for their "invitation". Buy a new car, pay more for their car payment (or pay a car payment), pay more for insurance, even property taxes in most states is more on a newer vehicle and when all is said and done they are paying maybe $300 to $500 more per month and yet somehow they justify it because they are saving on gas? It makes no sense... I heard someone recently say they were paying the $200 for 1 & 1/2 week's groceries and the same amount of money used to last 2 weeks. She said she couldn't pay all her bills because everything costs more now. What she didn't say was that they have changed what they buy... They haven't and therein lies the problem. Far too many people live in big houses they can't afford and/or drive expensive cars they can't afford and on and on. If we don't make changes we are going to be in big trouble as a nation. I have heard that fewer people are going out to eat and doing so less often and as a result many restaurants are hurting, some have closed. These are necessary changes. Even after the economy recovers (which some economists are predicting to be into 2010) we would be much better off as a nation if we begin to live below our means. How about living in smaller, more affordable homes? Consider repairing the paid off vehicle and putting monies aside for maintenance instead of buying a new vehicle? Possibly learning to make just as healthy (maybe more healthy as vegis are typically far less expensive than meat/protein) but more cost effective meals? There are so many things one can do to change the demands on their income... But are they willing to do make those changes? I think many Americans are finally coming to the point that they/we realize that it is necessary to make some hard choices if we are going to weather what may come in the next couple years.

In the meantime, let's not forget that although we have to deal with what may come, there are many millionaires that are made during the downturns. What is the difference? They refuse to stop doing the things that promote success. Don't give up on your dreams, don't stop working or quit your job, but do keep feeding your dreams and the positive thoughts and plans that keep us motivated to accomplish extraordinary things. As we make the hard choices to live on less, let's choose to exercise those things that fuel us in the positive ways: Physical activity, reading, spending time with family and friends, and living with joy and anticipation of the good to come in the things that truly matter. As you take a look at your income and outgoing Moines and make some hard but wise decisions to live below your means, don't forget to smile and love and live. Go to the park, grill the burgers and hot dogs instead of the steaks but grill! Living on less doesn't mean doing nothing and living in depression, it means choosing well and learning to live well and congratulate yourself for making those wise choices. After all, living well is not about big homes and expensive cars. Are there some here in America they may possibly have forgotten that truth? Let's all choose well and live much more and better as as a result.