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During the recent presidential campaign, The recurring theme was our economy, and understandably so. Each candidate had ideas and philosophies as to how he would fix the economic crisis. I'm not an economist, and I haven't the desire to add my 2 cents...I haven't got it to spend anyway. But something has occured to me that will be disappointing for some: No president can ever successfully create a long-standing, stable economic climate in the U.S. None. Why? Because I believe we can never stabilize the economy on a national level unless it is dealt with on an individual level. So now your next question is "how in the world is my family's spending choices going to affect America's economy?" Allow me to paint an overly simplistic picture (because, as I said, I'm not an economist, merely a homeschool mom trying to figure out what's in the freezer for tomorrow's dinner). Family #1: Wife drives to the mall in her middle class $340/mo sedan for a little shopping therapy as an alternative to sending the kids to military camp. She finds a pair of jeans, perhaps some shoes, and a skirt. To round out the evening she grabs a coffee at Starbucks. Therapy sessions occur every three or four weeks, averaging about $100 each time. Husband works demanding hours and collapses at the end of each day in his easy chair to unwind in front of his $50/month cable network programming. He eats some leftovers from yesterday's dinner out, where the food bill came to $65. They eat out roughly twice a month, not including occasional fast food trips or pizza delivery. The three children, temporarily spared from military camp, are enrolled in basketball camp instead. They are involved in several sports throughout the year. Let's see...that's three pairs of cleats, uniforms, socks, shin guards, and sports fees. Hmmm...ignorance is bliss. The list of expenses incurred for one thing or another is almost never ending. Several Christmas presents, vacations and Girl Scout cookies later, this family has spent somewhat within their means, but it's getting harder and harder to keep a low credit card balance with a 23% interest rate. Then the car they still owe three year's worth of payments on breaks down and requires a costly repair. A month later, the hot water heater has to be replaced, and the refrigerator is making funny noises. The paycheck can cover some of these things, but the credit card absorbs the rest. Within a few years, this family finds itself $80,000 in debt. The husband gets laid off and it has become clear that they will not be able to make the monthly payments on their home. Unfortunately, many families across the U.S. are experiencing the same financial crisis, and the banks are not getting their money in mortgage payments. Lending becomes too risky for financial institutions. People become unable to sell the homes they need to get out of. You see where this is going. Family #2: Husband and wife sit down every four weeks and discuss the spending needs for that month (groceries, clothing, entertainment, household repairs, etc.) They have a written budget unique for that month which addresses their needs. The wife reminds the husband of a large tax bill that will be coming due in four weeks. They decided to put off purchasing some patio chairs until after the tax bill is paid, even though it means not having them available for their daughter's backyard birthday party. They opt to borrow some chairs from neighbors and family, even though they won't all match. Trips are deferred, sports are pared down, and the cars are a bit beat up and high on miles, but are few months away from being paid off. They live in a modest home, save on groceries by shopping at a discount mart, and shamelessly appear in the Goodwill store to find a replacement for their son's worn-out tennis shoes. It's slim pickin's right now, but they are managing to add about a hundred or so into savings with every paycheck, without fail. There is temptation to spend what has not been written into that month's budget, but the numbers don't lie, and they know that once their foolishly obtained credit card has been paid off and they have a substatial amount in savings, they'll be able to afford a more reliable car that they can pay for in CASH. In the meantime, they have factored about $50/month in car repair bills for what they consider to be the inevitable. If they manage to dodge the bullet that month, they roll over that amount into the next month and keep the duct tape handy. It's already holding the back bumper on. They look at that car lined up in the church parking lot in between the SUV's and sportscars and laugh to themselves. It looks pretty funny there out of place, but they just keep repeating their motto to themselves: "If you live like no one else, someday you will live like no one else." That quote comes from Dave Ramsey, talk show host and financial guru who went from riches to rags to riches before learning the principles he teaches today in his TV and radio segments, as well as in his book "Total Money Makeover." Go to the library and get it...now. Ryan and I are just beginning this journey. We are realizing our mistakes and our goal is to be debt free (except for the house) in about a year and half, Lord willing. It's gonna be tough, and it won't be fun, but we're in it together. We don't want to be another failure statistic, and we don't want to be forced into depending on the government, however good it may be, for our needs. We have dreams of the kind of house we want to live in someday, and the vacations we will be able to take, if God allows. Whatever we accomplish financially, we want it to be by our own hand, through hard work, resourcefulness and a lot of temporary self-denial. Yes, we do still give to worthy causes (church, etc.) and we place faith in the Lord that He will provide for our needs, while keeping in perpsective that it is our responsibility to work with what He has already given us. And it starts with the little things. Perhaps Dean Alfange put it best: An American Creed I do not choose to be a common man. It is my right to be uncommon-if I can. I seek opportunity not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I want to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole. I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat. It is my heritage to stand erect, proud and unafraid; to think and act for myself, enjoy the benefit of my creations and to face the world boldly and say, "This I have done." So go ahead and tell the president, "thanks, but no thanks. I think I've got it covered." And hold your head up high.
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