Don’t keep up with the Jones’: They are Broke
Friday, February 29th, 2008Turn on the news and you will hear sad tales of how people are losing their homes because they bit off a little more than they could chew financially. Isn’t it just amazing that our countries GDP is based upon consumer spending. For years Americans have been spending more than they make. Big SUV’s in the driveway, huge Flat-Screen TV’s, vacations, all bought with credit. We know of many people who took out “debt consolidation” Home Equity Loans (HELOC’s), convinced their home price would continue to rise, and unconcerned about repayment.
Now that the price of borrowing is too expensive, shopping has taken a nosedive. Fortunately, our family realized long ago that things don’t bring us hapiness or security. Rather, having no debt and having a nice cushion in the bank account affords us to sleep well most nights.
Soon after Rich and I married, we realized we were traveling down a path of long work hours and little quality of home life. Long hours at the office meant we saw more of our bosses than each other, and we didn’t like it. Like many of our friends we were becoming victims of “stuffitis.” We yearned for less stress and a simpler life, but really thought we were destined to be in the rat race until we turned 65. We started to accumulate debt, like so many young couples. Once we had Morgan, I became a stay-at-home-mom, and our income was cut by one-third. (more…)
