The New Dawn (2)

We left off talking briefly with my views/the current heading in U.S. Politics and the National budget crisis.   In this part, I would like to explain what I think we need to do as citizens and individual households.  It’s important, I feel, that when you are demanding a group (such as the Government) to balance their budget, that yours is under control first and foremost.  Stones and glass houses and all that.

As a nation we eat, drink, and breathe debt.  The credit card debt per household is $15,799, with nearly 610 million credit cards in circulation (http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php).  That’s a lot of debt.  This doesn’t cover the other types of credit like mortgages, student loans, bank/Credit union lines of credit, etc.  That’s a lot of debt, and for many people, they don’t have a strategy to get out on their own.  Minimum payments don’t get you out, statistically, they only drive you further in.

Some debt is good, some debt is bad.  Traditionally, owning a home and having a mortgage weren’t necessarily bad things.  In this market having a mortgage is akin to being under a guillotine.  Will the market drop further?  I know many people who have bought a house crica 2007-2008 who ended up gravely in the hole because of housing values just dropping.  Couple that with a handy (for the bank) adjustable rate mortgage and you can be in over your head soon after you’ve signed.  That’s not to say that buying a house is bad, but like any debt, it’s time to really reevaluate how much you can sustainably spend.

We’ve gotten into the trap of buying “same as cash!” from retailers for using a retailer branded credit card.  Done wisely, this can actually save money for you in the long run.  Being able to buy something on sale (Black Friday specials) can save you money coupled with no interest for x months.  It’s important to remember that you will be charged interest if you don’t pay it off in that time.  Ideally, pay it down/off very quickly, and avoid the temptation to charge charge charge.

I might have fallen down a rabbit hole there.  Back on track.  Getting out of debt can see insurmountable, especially difficult if you’re on one income (like us for the moment), or on a fixed income (unemployment, retired, etc).  Deep breaths.  Here’s some tips to get you started.

1) Write out your current debts.  Include information like interest rates, payment dates, and current minimum payments.

2)  Do your Budget.  How much are you bringing in?  How much is going for bills?  It’s important to include expenditures like gas, food, and your monthly allotment for fun (whatever it might be).  I almost always forget about food/gas.

3) If you’re able to make your minimums, great! you’re treading water, your feet can touch the bottom of the lake.  If you aren’t able to make your minimums, it might be worth talking to one of the many non-profit debt counseling agencies.  These agencies work as a middle man between you and your debt holders, often working out deals to lower your interest, and lower your monthly payment with the goal of getting you out of debt.

4)No new Debt!  George Bush (senior) had the saying No New Taxes!.  Well, we need no new debt.  This applies to both you the individual, and to the country.   You can’t swim to shore if the lake is constantly rising.  Try not to use your credit cards as much as possible, saving them truly for times of Emergencies.  At one point I kept my credit card in the freeze, in an 80z block of ice.  Yes, I literally froze it.  I had to think long and hard on what I needed it for before I could use it.

Debt isn’t inherently bad.  Miss managing it is.  It’s hard to get by in our modern society without any credit, as my wife can attest.  It can be hard to get an apartment, even a job, if you have no credit or poor credit.  A sound financial future is where you, me, and this country needs to be headed if we really want to make it through the next couple of decades.

 

The New Dawn (Part 1)

I would like to start with a heavy dose of full disclosure.  Beforehand, I should probably say that this grunt is going to be one involving politics, economics, and how they’ve incestuously intermarried.

I used to be a die-hard democrat and uber liberal.  It’s how my parents were, and I followed in their foot steps.  Flash forward to my now burgeoning self-awareness and my own studies on economics, social shifts, and politics.  I’m more of a moderationist now.  Left is left of center, right is right of center.  We need to be a centered, focused nation.

One of my friends is quick to point out that as a nation, we spend more than we make.  Thus, we charge the leftovers.  We pay the interest, not the principal, to stay in ‘good’ standing.  If you are I were to do what the country does, well, it’s impossible.  The country is asking to extended their credit limit from their credit card company, and has done so many times in the past.

You have probably figured out how insanely stupid this is as a business practice (as the Government is the largest employer, spender, recruiter, let’s treat it as such).  From a household perspective, you have three options.

A) You begin spending less than you’re bringing in.  This allows you to stabilize your debt, and begin paying down your bills.  We need to do this, as our level of debt is not sustainable and partially the cause of such a weak dollar.  My wife and I have had to do this after I lost my job.  It wasn’t easy to tighten the proverbial belt, give up in part the lavish (from our perspective) life style we have lived.  Thrift shop and buy bulk foods, and focus on buying more durable products where at all possible.  The republicans are happy to cut spending (except military spending apparently, which I’d like to say is 1.4 trillion for the 11-12 calender year).  I’m ambivalent on budget cutting.  I can see where somethings could be cut (we need to build more sustainable and durable infrastructure rather than the crap the Wildish company makes).

B) You make more money.  We all wish we could just say this and have it magically happen (yes I do understand that positive self motivation has positive results on your career/job/etc).  The Government could raise taxes to exceed what their spending, covering their liabilities and still paying down the debt.  They could also save money for a rainy day (Social Security was not meant to be this fund).  Most people don’t want to raise taxes, and I get that–it’s a hard sell.  Yes, I’m taking more of your money.  There is the argument that the tax system is currently disproportionate, and I don’t want to belabor that point.  But I will say this–more money in the hands of 99.5% of the country makes more sense than more money for .5%.

C)  The last option is a combination of the two.  We raise some taxes, and cut spending.   This is perhaps just as hard a sell as raising taxes in general.  Who’s getting taxed? The rich, the poor, corporations?  (I would like to point out the example that GE netted 14 billion, and managed to get a tax kicker of 2 billion.  Sign ME up for that!).  What programs get cut? How much, etc.

The end result needs to be that we make a sustainable budget.  And not just ‘hey, look, the books are zeroed’ but paying down the debt.  This would do wonders to the global market place.  People would see the US managing fiances how they should be, debt would DECREASE, and the dollar would hopefully start to recover.

In my next part of this series I will discuss finances on a more personal level, what each of us needs to do (and demand) for the this country to turn around and bail itself out.

What’s wrong with your…education/experience/life?!

So, I sit here pondering many things.  This is the life, I say to myself while I watch Spartacus on my big screen tv.  Relatively speaking my wife and I want for just about nothing.   And it’s in this moment that I’m either selfish, a pessimist, depressive are all of the above: it’s the ‘just about’ that I have a problem with.   No house, no baby, no new car.  Instead, renting month to month, prognosis for a little one is so far in the future it makes me question if its worth it, and a car that “aging” would be a nice word.   Or maybe, I just ask for a lot.

I’m a man of caveats, and let me say that  I know somewhere some third world person is dying and or is dead from disease/hunger/etc.  God I hope they find comfort and can rise above the filth us as the first world have caused and/or provided  them.

I do not inherently dislike my job.  On the contrary, I meet many good people, craft wondrous things, and generally propser.  I work as a carpenter with my father and brother.  Most of the time we get along.  But it gets hard when your boss is ‘dad’ and your coworker is the guy you tried to off with a frying pan at the age of 2 (true story).   Everything is fine until the seeds of doubt start to bloom-how long can I keep doing this?  It’s physically demanding on a good day, and down right excruciating on others.  Again, re:family matters.  And lastly, what happens when there isn’t work?

Lo, you might be thinking “what is this semi-skilled man jabbering about?!”  Well, yes, I am quite skilled.  But I’m also well educated.  Graduated with a double major of Psychology and Sociology with a minor in math and chemistry (funny story).  And what does that mean?

It meas, to all those who have considered Psychology as a field of study or employ be prepared to push drugs (and take them) and shoot for a Doctorate program.  Failing that, go for as masters.   Failing that, well, come see me and we’ll kvetch about it as that’s the particular brand of screwed I’m in.

Furthermore, I’ve yet to meet the recruiter or Hiring manager that takes “four years of consistent backbreaking work for the family business” seriously.  News flash, (insert expletive) in the suit-had I better options when I graduated school and spent four months unemployed looking for work I most likely wouldn’t be here complaining about it or you (duh).

Four years of expensive (and very, very tedious study) and four years of “unacceptable” employment (by America’s standards) are leaving  me feeling that (4+4=what now?)  I’ve wasted 8 years of my life.   The only other experience, as far as work goes that was paid, was working in a deli on campus for a year and a half.  Consistent with my luck, said employer might as well be dead to the world.

I desire strongly to be a productive member of society.  I feel I have a lot to offer so many people, in so many fields.  Sadly, no one cares (that I’ve met) that your are a genius, quick learner, and can and will do anything to prosper both yourself and the company you work for (I’ve spent time working in literal crap fixing sewer systems, angry customers make me lol).  It seems to much to ask to be compensated for that learning.

Hell, right now I just want to work in a bookstore (Yes, this means you Barnes and Nobles, I’m very awesome and should be hired IMMEDIATELY).  Most likely I’m considering some form of “continuing” education to add a couple of more skills to the mix.  Notably, computer programming and security.  Going back for a phd in psychology is something I still want to do, but at the very young age of 25 is not something I’m willing to make the sacrifice.   I think that’s enough out of this Grunt for now.