Thursday, February 26, 2009

What will solve the financial issues facing America (and the world)? It seems that overspending, spending more than what we have (debt), got us into this situation. Some people bought more house than they could afford. Some people have increased unsecured credit through over spending on credit cards and buying too much stuff on credit that they really can’t afford. Very few people have any reserves because their debt to income ratio is off the charts and leaves nothing left over. So why are we buying the belief that spending more is the fix?

I suspect that our financial situation will continue unless we change us. It’s time to stop spending like there are no repercussions, like we will never have to pay it back. I know that portions of industry will collapse if we do not continue to purchase at the rate we have been, but that’s just the point. We have to stop and allow our economy to reset. It will be painful, but to continue on the plan of “keep spending” when most families economic foundations look like a house of cards will only prolong and intensify the inevitable.

It’s time to stop spending and let the companies fail that need to fail. It’s time for us to stop buying and become content. It’s time to value financial security instead of financial insanity. It’s time to pay a person who acts and a person who plays a game for a living an appropriate wage. It’s time for all of us to knock ourselves down a notch or two and live within our means. It’s time for us to set an example that our government so desperately needs to follow.