Wednesday, March 18, 2009

Is there a BALANCE for all of this???

Can we really balance a recession with no money or a job? We hear on the news that we need to "increase consumer confidence". So that simply means we need to spend money, but what do you do when you don't have any money to spend?

Increasing consumer confidence doesn't have to mean keeping up with the Jones or does it? In my opinion it doesn't. The CCI(Consumer Confidence Index is based on 5,000 households surveys on their spending.) so when you hear CCI you may want to take it with a grain of salt.

To spend money doesn't mean you have to spend outside of your means, it doesn't mean you have to go out and buy a new car and it sure doesn't mean you have to run out and purchase a house you can not afford. The first thing you need to do is change your spending habits and start some saving habits. Live on the dreaded B-word..a BUDGET!!!! Or if you don't like that word call it your VISION.
1. Write down all your bills on paper.
2. Write down every dime you have and decide which bills can be paid. Pay your tithes, then take care of housing, lights, and food first.
Now stop do I have money left over for anything?
3. Put something in savings. It is great to save the same amount each week, but if your pay fluctuates on the negative side you should save what you are able to save.
4. If and only IF you have something left can you really balance the recession with consumer confidence. SPENDING!!!

Do I agree we need to increase our spending? As someone who has been out of full-time work for the past 15 months, I can't say I agree you should be spending. Spending is good for the economy, but spending may not be good for your home.

When ECONOMISTS say spend money to increase CCI I don't honestly think they are talking to families that are unemployed (both earners) and in foreclosure. I would like to hope they are talking to people who are able to spend and are getting the "money in the mattress" mentality. Just remember you have to make your money decision based on your house! People trying to keep up with the economy and the Jones is what has the US in the "recession" that we are in today. Do what you can do!

Leave the Jones Alone.
Signing off for now-

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