People are so hungry for attention that when they receive it, they may not like what it looks like in reality. The media is always looking for people that they can build a story around. What the media’s point is, is not clear many times. When reading newspaper stories, we are led to believe that this represents the present state of things, when in reality, it may be about those on the margin. It is difficult to quantify the numbers so that we can imagine the magnitude of a problem.
We are living in the year 2008 of our Lord and our knowledge of how to live is not very advanced. There is nothing we can do about the past, but to learn from our mistakes. There comes a time when it is foolish to keep making the same mistakes over and over again. Making a mistake one time is acceptable, to keep repeating it is contemptible and yet this is what happens on a daily basis in our country.
Being frugal is the key to keeping your finances under control. The starting point of frugality is recognizing that we live in a world of scarcity and that each and everyone of us is living on a fixed income no matter how much money we make, with inflation, our incomes become even more fixed. This being the case, it requires us to have a budget in place. We must know our sources of income and what we spend our money on. This is where accounting comes in. You cannot control your spending unless you now what you spend your money on. Once you identify what your spending is then you can control your spending.
There was a recent AP story called "CLEANING OUT, CASHING IN, More Americans unloading prized belongings to make ends meet." Those who are unloading their prized possessions are distressed sellers. Those who have been frugal with their money will be able to buy these goods at bargain prices. It is wise to look for distressed sellers. All that they care about is getting some cash. They are cash strapped. They are desperate. This is the wrong position to be in.
One example from this story represents the opposite of being frugal. Christine Hadley is a 53 year old registered nurse from Reading, Pennsylvania. She says that she was a clotheshorse and liked splurging on Dooney & Bourke handbags. She was living with a boyfriend who left her and she has had trouble finding a job. Apparently, she is unemployed. She was forced to sell over 80 items to pay her unpaid bills.
Hadley says "I need the money for essentials—to pay my bills and to eat." What world was she living in prior to this one? It does not matter if times are good or bad, anyone that was living like she was is just one payday away from being bankrupt and homeless. Not that age is the important thing, but at 53 years old, she should have learned a few things by now. She was living beyond her means and now she has been forced by reality to sell her possession for her previous overspending.
She needs money for essentials and just to eat. This woman has been foolish with her money and in my mind, it is embarrassing for others to know just how foolish she has been. The question will be, will she learn from this experience or will she continue the same pattern once she finds another job? Old habits are hard to break. I predict that she will return to the same patterns of overspending. She was buying the clothes and handbags as an emotional release. Unless she gets her emotions under control, she will be doing the same thing over. She needs to learn to look at her financial situation objectively, not emotionally.
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