Economic Recovery Plan

[steve_decker]

I'm very curious to see if the trend I'm noticing in the "real" world exists within the Tubenet community. It seems as though nearly everyone I encounter has decided to create their own economic recovery plan and is working diligently to rid themselves of debt and actually save some money.

Anyone here doing the same?

If so, what strategy are you using?

In my household, we're following Dave Ramsey's plan and all is going well thus far.

[TubaRay]

Personally, I'm not giving any credibility to any proposed "stimulus" plan. My plan is to pay off my debts on my own as I'm the one responsible for them. I also plan on not creating any new debts until the old ones are paid off, so no more Ebay for me for a while. If I do actually get a check to to a stimulus plan, 100% of it will go towards paying off my debts.

This may not prove to be the best strategy.

[cjk]

... It seems as though nearly everyone I encounter has decided to create their own economic recovery plan and is working diligently to rid themselves of debt and actually save some money.

Anyone here doing the same?

If so, what strategy are you using?

In my household, we're following Dave Ramsey's plan and all is going well thus far.

Why is a strategy required?

Don't buy stuff you can't afford.
Live comfortably below your means.
Hope for the best, but prepare for the worst.

It's all common sense.

[steve_decker]

... It seems as though nearly everyone I encounter has decided to create their own economic recovery plan and is working diligently to rid themselves of debt and actually save some money.

Anyone here doing the same?

If so, what strategy are you using?

In my household, we're following Dave Ramsey's plan and all is going well thus far.

Why is a strategy required?

Don't buy stuff you can't afford.
Live comfortably below your means.
Hope for the best, but prepare for the worst.

It's all common sense.

If it were truly all common sense, then we wouldn't have financial crises at any level. In terms of personal finance, "don't buy stuff you can't afford" is certainly easier in theory than in practicality. For those of us that did not follow that nugget of common sense from the time we had any purchasing power, usually some sort of strategy is required to recover from the times that we did buy stuff that we could not afford. Similarly, whether its stuffing cash in a mattress or burying it in the backyard, I think everyone has some strategy when it comes to managing money. I truly enjoy hearing how people, evidently like yourself, that have made it through life with no debt whatsoever have handled such things as a home purchase, raising well-balanced kids, etc. manage money.

[steve_decker]

Rather than swords, bullets, and cannon - since that time - the union has employed economics.

Happy Presidents Day!

Which is a much more effective approach than brute force. It's just a slow and subtle fade that, while noticed by some, is accepted by the general public.

[cjk]

My father in law made a comment the other day which initially I found funny, but then later replayed in my head and found to be significantly more insightful. He said, "This recession isn't too bad if you have a job."

While some of my responses below *might* seem harsh, I'm really not intending to pick on you.

... It seems as though nearly everyone I encounter has decided to create their own economic recovery plan and is working diligently to rid themselves of debt and actually save some money.

Anyone here doing the same?

If so, what strategy are you using?

In my household, we're following Dave Ramsey's plan and all is going well thus far.

Why is a strategy required?

Don't buy stuff you can't afford.
Live comfortably below your means.
Hope for the best, but prepare for the worst.

It's all common sense.

If it were truly all common sense, then we wouldn't have financial crises at any level. In terms of personal finance, "don't buy stuff you can't afford" is certainly easier in theory than in practicality.

Not really. It's only hard if you make it hard. "Don't buy stuff you can't afford" really only requires discipline and high school arithmetic.

The older I get, the more I'm able to see "shades of gray" in the world. Maybe I'm curmudgeonly, but,

"Too hard" more often than not means "I don't want to"

and,

"Can't afford" more often than not means "not willing to work hard enough to get".


(perhaps slightly off topic:)
The single most important thing a person can do is to be able to analyze his or her own problems, to be able to look into the mirror and see yourself for who you are, and to dispense with the excuses. This and be applicable to tuba playing, personal finances, or whatever personal problem you might face. (maybe some folks will see that as more than one thing, but whatever, you get the point)

This is not easy. For example, right now, I am fat. I get no exercise. This is *my* fault and no one else's. I am not fat because my 3 month old son takes up time I could use to exercise. I am not fat because restaurant X and Y have unhealthy menus. I am fat because I made myself fat by being lazy and making poor decisions. I am at fault. I have to fix this myself. If I am to fix the problem, I have to change my habits and better use my time.

For those of us that did not follow that nugget of common sense from the time we had any purchasing power, usually some sort of strategy is required to recover from the times that we did buy stuff that we could not afford. Similarly, whether its stuffing cash in a mattress or burying it in the backyard, I think everyone has some strategy when it comes to managing money. I truly enjoy hearing how people, evidently like yourself, that have made it through life with no debt whatsoever have handled such things as a home purchase, raising well-balanced kids, etc. manage money.

I'll sometimes say to my wife that I "need" XYZ. Her response to me me is often, "need, that's a funny little word".

It seems that as time has marched on, the word "need" is used where "want" should be more and more and more.

No debt whatsoever? Nope. Right now, I have a mortgage.

In the past, I have borrowed money to buy a car that I wanted. I was 26, dumb, wanted the car, and had just paid off all my student loans.

I had student loans as well. I paid those off as soon as possible after I finished my degrees. It took me three years.

... It seems as though nearly everyone I encounter has decided to create their own economic recovery plan and is working diligently to rid themselves of debt and actually save some money.

Do you realize that to stimulate the economy, IE, for it to "recover", people need to be spending money? Do you realize that by "saving" money, you're prolonging the recession?

Please note that I'm not implying that you're wrong to do be doing that.

[steve_decker]

While some of my responses below *might* seem harsh, I'm really not intending to pick on you.


Not really. It's only hard if you make it hard. "Don't buy stuff you can't afford" really only requires discipline and high school arithmetic.

The older I get, the more I'm able to see "shades of gray" in the world. Maybe I'm curmudgeonly, but,

"Too hard" more often than not means "I don't want to"

and,

"Can't afford" more often than not means "not willing to work hard enough to get".





Do you realize that to stimulate the economy, IE, for it to "recover", people need to be spending money? Do you realize that by "saving" money, you're prolonging the recession?

Please note that I'm not implying that you're wrong to do be doing that.

Not even remotely harsh. Your comments would only be harsh to those who fail to recognize that carrying a debt load is a problem. That being said, there are many good and viable approaches/strategies to getting out of debt efficiently and that was my frame of reference. In terms of your differentiation on "too hard" and "can't afford", I'm right there with you... now. I wasn't of that mindset a few years ago when I was still drinking the kool-aid and thinking credit was something I could leverage instead of it being a lever against me.

Saving the money and prolonging the recession. I nearly spit out my milk when I read that article a week or so ago. It will certainly work against the quick fix our so-called Congressional representatives are forcing upon us BUT (and this was the other point of my post) if all the people that claim to be ridding themselves of debt and saving truly do so, we'll see a true and solid economic boom within 5-10 years that will likely last a century or so. At 33, I'm young enough to take those odds and dump all I can into the 401k and IRA.

[TubaRay]

A truly great post, above, CJK. Very well put. Especially the part about "too hard" and "can't afford."