As America prospered, so did businesses and their employees. Enterprising individuals from all walks of life entered into business ventures, and many created success for their efforts. Those unfortunate enough to fail, worked though their losses and often entered other business ventures.
In many cases, private venture capitalist supplied the cash and credits in addition to banks and investment firms. Lending institutions and private venture capitalist stepped forward offering start up and operating capital in return for a portion of the company in addition to "ROI", Return On Investment. In many instances, offers were eagerly accepted.
Ordinary Americans built upon the “can do attitude and independent spirit.” Men and women possessing a burning desire to be self sufficient and independent clawed their way into higher income brackets allowing them to honestly say, “I got mine.” However, many also descended into a national, “I want it now” syndrome.
How do we get out of this mess?
Fast forward 50 or so years from the 1950’s, add the Korean War, the Vietnam War, the Cold War, the Iraq War and many other lesser publicized “police actions". Also add a few stock market crashes and finally, a banking system built on a devalued dollar and climbing inflation – many American consumers find themselves in debt over their heads and facing financial ruin on a national scale.
Debt is not a fact of life. Financially responsible consumers do not feel obligated to purchase everything they see advertised. It requires practical and logical thinking when it comes to deciding what is needed, what’s wanted and possible purchases that can wait. Having a good credit score only indicates a history of making payments. It does not insure future income will be available to make current or future payments.
Too many Americans have allowed a high FICO score, and a well trained sales person to help them build a house of financial cards. When payments are late or cannot be made at all, the house of cards, come tumbling down. When that happens, the consumer is buried and many lose everything they’ve been making payments on, as well as what they own.
One of the fastest ways to dig out of debt is to stop spending money on frivolous things. Rather than stopping at the gourmet coffee shop, and paying $5, with a credit card, for coffee – pay cash. A more practical approach could be, make coffee at home and pack a thermos.
Does a person really have to buy a lunch, in order to eat? No. It is considerably less expensive to take a microwaveable dish to work and "nuke it", or pack a sandwich and salad. Is it necessary to car pool? No, but if it can be done without incurring addition expense, it may be wise to do so.
These are just a few ideas designed to reduce the amount of money exhausted in areas that could be reduced. When savings are realized, put the money on an outstanding bill. Constantly paying additional payments on the smallest bill will eliminate it very quickly and save a lot of money from interest payments.
Taking control of personal finances is a personal matter. It requires a willingness to change the way money is handled. It also requires a change of attitude toward money and finances. Recognizing the difference between “I want” and “I need” is one of the first steps in putting money, debt and life in their proper perspectives.
Does capitalism work? Yes it does. The past 100 years of growth in the United States is living proof of that however, uncontrolled debt and spending on the part of the government and consumers can turn capitalism into communism without firing a single shot.
Reference:
Dave Ramsey Radio Show: daveramsey.com
The Outhouse Report: theouthousereport.com
Living a better life: www.betterbudgeting.com/budgetformsfree.htm
Larry M O'Neal - In 2005, I started writing as a hobby. Over a period of three years, I produced a full length manuscript, and self published; "See You at ...
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