Be Ready When the Hard Times Return

I can recall, while growing up, of stories told about “The Great Depression.” Of course, these stories always involved a warning: be careful how much you spend and what you spend on, because someday you may need that money to survive.

So naturally, I have to wonder about the yo-yo performance of the stock market recently. Fear and greed may be what moves the market, but in general it is a strong forecast of what lay ahead for the economy. Right now, it is telling us that uncertainty lay ahead; it may be telling us that another difficult time, even a recession, is in the near future. This would be devastating to the national economy and to thousands of families, probably the same ones who suffered through the last recession.

How do we get ready if the hard times return? One of the most prudent steps we can take is to reduce or eliminate our personal debt.

Julie Crawshaw of MoneyNews.com has recently written that the “Misery Index”, the unemployment rate plus the inflation rate, is at a 28 year high. It is 62 % higher than when President Obama took office.
Mort Zuckerman, who writes for U.S. News and World Report, has expressed concern that Mr. Obama’s stimulus plan has backfired against the President. Every job gained since 2000 has been wiped out in the past three years – over 7 million. Zuckerman argues that from the moment the Obama administration has come into office there has been no net increase in full-time jobs, only in part-time jobs.

Then when Congress politicizes the nature of debt (debt is almost always bad, don’t they know that?) and raises the debt ceiling (the amount of debt the country may legally have – who do you think will pay for it?) we have to wonder just how long the republic will endure. Some things are simply out of our hands, and this economy is one of them. Is it all smoke and mirrors? This has to end sometime, and when it does there will be a lot of pain.

As I consider these articles and recall the stories told by grandparents and parents, I think of the Biblical admonition, “Owe no man anything, except to love one another” (Romans 13:8).

I really don’t know what would happen if another “depression” hit the country. I know that particular word would not be used by either government or media for fear of inducing riots in the streets. But I have come to believe that such a terrible episode is within the realm of distinct possibility.

Neither you nor I can live like the Federal government. No business can operate this way and remain solvent.

I encourage you to become personally disciplined in the use of money, and especially credit. Learn to control your impulses when shopping and learn to resist the temptation to impress others with what you have rather than who you are. Work toward becoming debt-free. Owe no man anything, except courtesy and politeness.

Do you need help in this area? There are several sources to assist you in developing a discipline as regards money. One of the better ones is www.mastermoney.org. Go here; learn from the experts, and …

be ready when the hard times return.