Our U.S. Economy

I think that we need to speak today about the economy. Our economy is in a state of recession, whether the "experts" tell us that or not. The costs of our government have caused huge increases in prices of all of the commodities except housing. It is getting harder and harder for middle class people to retain their style of living, and it is getting easier and easier to tell the wealthy from the poor. With the increase in retail cost of fossil fuels, and now, most every other commodity, we need to look closely at our savings plans, our investment strategies, and our retirement future. This should include our housing as well. Do we really need that extra bath, that granite countertop, and that $35,000 kitchen upgrade? Depending on the rate of your mortgage, that $35,000 kitchen will cost anywhere between $200.00 and $300.00 per month for the next 15-40 years!
Now, how easy is it if one of the major breadwinners in your family would lose their income for whatever reason? At this time, large fortune 500 companies are downsizing, and many people are losing (in some cases) their only source of income! Monthly cash flow is definitely an issue for many of these unfortunate people. So, what is the way out? If you are in this position, or possibly could be, and are trying to avoid foreclosure, bankruptcy, and/or late payments, then you need to start by making some decisions on what your options are. The first thing you need to do is to write down all of the many options that you do have. Is renting out your house an option? Is selling your house and buying a smaller, less expensive house an option? Is converting your house into a multi unit an option? Is an additional source of income an option? Are there any changes that you can make to your spending, that will enable you to make mortgage payments a little easier; ie: take the bus or carpool to work instead of paying the high gas prices for your car. Can you do without the exotic coffee in the morning? Call your insurance agent and see if there are any changes that you would be able to make to impact your insurance premiums. If you are a smoker, would you be able to reduce the packs that you buy in a week? How about going out to eat? Is it a possibility for your family to sacrifice just one of those trips per month? Depending on the number of people in your family, and the types of restaurants that you like to go to, just this alone could save you $30.00-$60.00 a month! I know that in most of these areas, our family is as guilty as most everyone else is in the U.S. We have enjoyed a time of prosperity in the U.S. that was almost unheard of in the rest of the world. Now, as our U.S. economy is forcing us to face hardships and sacrifices, we are facing difficult financial issues that we are all unaccustomed to, and the idea of sacrifice, while very necessary, is also a little repugnant.