Economy is taking it's toll.... what are YOU doing about it?

[Shelby&Seymour]

Originally Posted by C C Kent

WE started getting out of debt a couple of years ago when my next door neighbor introduced me to Dave Ramsey by loaning me his book "Total Money Makeover." I love to read so I cracked it open and didn't stop until I finished it. I was surprised because I thought I was a good money manager until I read this book.

This slowdown has hit us like everyone else but we have no monthly payments (consumer debt) so we just don't eat out, drive less, and we're OK. The company I work for has been bought out and my pay was cut by 25%. My wifes job depends on the building trade and it's almost non-existent right now so our income has been slashed. The tuition for our daughter is paid up through this semester (again no debt) and I have about half of next semester in an envelope. We save money for things in separate envelopes and we don't buy anything until the money is there. Freakish huh?

We live in flyover country and the wages here are notoriously low, but gas, groceries, and housing is not equally low so we're constantly pressed to be efficient. I felt like we got a raise when we did our first budget, where we sat down and spent every dime...on paper...on purpose, before the month began. Thank God my neighbor loaned me the book two years ago.

Times are tough right now, but learning how to survive in tough times will be a blessing in the end because you can learn how to thrive when things improve. Your income is your best wealth building tool, anything you purchase and pay interest on is like inviting a parasite to attach itself to your paycheck. Even though our income has declined during this time we have managed to lay back three months of expenses in a savings account and pay off everything but our house. We're not special, and it wasn't easy, but we did it.

If the average American carried little or no consumer debt, like thirty years ago when you had to actually qualify for a loan, this slowdown...recession...depression...whatever it is, would not be happening. It's time for us as Americans to COWBOY UP BABY!! Share ideas, encourage each other, expect more from ourselves.....you know....all the things that made us the greatest nation ever in the history of the planet. Let's put our houses in order and then demand the same from our leaders. Let's shrug off the thinking that got us here and look to tried and true, self reliant, personal responsibility to guide our lives. Let's stop whining for the government to give us things and just get them for ourselves. Our grandparents were right, waste not want not, save for a rainy day, if you don't have the money...don't buy it. So be of good cheer, your circumstances don't determine who you are, your decisions do.

Absolutely!! .......

[labrown]

Originally Posted by Shelby&Seymour

Absolutely!! .......

I second that.

[wemple2]

This is a very informative thread...I've learned a lot...and hopefully, I will save a lot. I was never one for wasteful spending, but it's getting to where a person can barely afford the essentials. The almighty dollar doesn't go as far as it used to. But I refuse to buy anything on credit at this point in time. I remember my dad always said if you don't have the cash to buy it...you don't need it. He never had a credit card is all his 81years...I want to be just like my dad!!!

[Shelby&Seymour]

......... don't for get about those washable peepads!!! We really like ours and Shelby & Seymour do too!! We try to go outside as much as we can for "pee breaks", but when it isn't possible, the pee pads work nicely. Those packages of disosable peepads aren't getting any cheaper either!! We purchased our washables from Little Bit (I am not sure, but I think that she is still selling them). Not only do they work.... but pretty, too!

[cesar49]

i guess its a good time to pick up real estate bargains... plus all the businesses going under selling merchandise for 75% off
or sending to auction
no need to buy new
and gas is coming down

[Ashley V]

Originally Posted by cesar49

i guess its a good time to pick up real estate bargains... plus all the businesses going under selling merchandise for 75% off
or sending to auction
no need to buy new
and gas is coming down

Our Costco in a nearby town is $2.89 a gallon!!!

Unforunately though, I think gas will rise again, after the elections.

[Shelby&Seymour]

Originally Posted by Ashley V

Our Costco in a nearby town is $2.89 a gallon!!!

Unforunately though, I think gas will rise again, after the elections.

I hope that you are wrong, Ashley..... but I have heard talk of that also.

[C C Kent]

Originally Posted by Ashley V

Our Costco in a nearby town is $2.89 a gallon!!!

Unforunately though, I think gas will rise again, after the elections.

Ashley V this is not aimed at you, I hear this a lot.

I'm curious where this thought comes from? I hear it said that gas will go up or down before or after an election and I'm just wondering about the reasoning? Is there a person or group of people that control the price of gas? And do they have a preferred candidate? If so which candidate do they favor? If George Bush Likes high gas prices why wouldn't he have caused them to be high in the first six years of his term while he had republican control of the house and senate? If Barack Obama can control gas prices why would he let them slide now when higher prices would likely help him push his change message just before the election? If John McCain brought them down he really ought to take credit for it. If there are a few nameless faceless "Oil Barons" that control the price and there is no conclusive pattern to relate to which party, ideology, or political personality they prefer...they are not wielding the power effectively.

I'm no expert but let's throw this against the wall and see if it sticks.

The futures market has billions of dollars flowing from one sector to another looking for high returns with the least risk. Until a couple of years ago there were republicans in the house and senate. They weren't doing what they were elected to do but they were still there, and we know they are more likely than democrats to push legislation to drill for more oil. This knowledge puts some pressure on the market to keep oil prices at a level that gives high returns without triggering thoughts of increasing supplies. Later "we the people" got tired of republicans misusing the power they were given and kicked their sorry butts to the curb. Now we have democrats in the house and senate. Go check your calendar and you will see that the price increases began soon after this event...why? Because the oil industry and the futures traders, unlike most of the general public, understand that if the party in control of the house and senate are steadfastly opposed to increasing domestic supplies of oil, the market can be driven to new heights without risk of repercussion. The oil producing nations around the world began to make threats against supplies, which always drives the futures market higher. Iran, Russia, Venezuela, and others began beating their chests and challenging the world because their oil revenues were through the roof. We hit four bucks and didn't even slow down. Had it not been for the sub-prime meltdown we were headed for somewhere in the seven dollar range per gallon before Americans could react and reduce demand sufficiently to cause prices to fall. Trillions of dollars of paper value have now evaporated, confidence is currently in the tank and cornering the market on anything is very high risk, so we see oil dipping under 80 bucks per barrel. If any one person or group could control the prices.....this would never happen.

If we could switch to a corn based fuel tomorrow how long would it be before we're cursing "Big Corn?"

Fossil fuel is the engine of our economy. There is no alternative to fossil fuel at this time, and we have more fossil fuel available than any other nation on the planet. If we choose to sit on it and not use it....we deserve to be ripped off every time we fill up. Regardless of who is in the Whitehouse, if we don't educate ourselves to the point that we realize when we are being sold out....we have chosen ignorance...we have side stepped personal responsibility, and we owe our children an apology.

[Shelby&Seymour]

Originally Posted by C C Kent

Fossil fuel is the engine of our economy. There is no alternative to fossil fuel at this time, and we have more fossil fuel available than any other nation on the planet. If we choose to sit on it and not use it....we deserve to be ripped off every time we fill up. Regardless of who is in the Whitehouse, if we don't educate ourselves to the point that we realize when we are being sold out....we have chosen ignorance...we have side stepped personal responsibility, and we owe our children an apology.

This IS a very good point, but from what I understand, it would take YEARS to accomplish getting our sources "tapped"........ if what I have heard is true.

[Little Bit]

Originally Posted by Shelby&Seymour

......... don't for get about those washable peepads!!! We really like ours and Shelby & Seymour do too!! We try to go outside as much as we can for "pee breaks", but when it isn't possible, the pee pads work nicely. Those packages of disosable peepads aren't getting any cheaper either!! We purchased our washables from Little Bit (I am not sure, but I think that she is still selling them). Not only do they work.... but pretty, too!

Thanks for the recommendation! Yes, I am still selling them. They have saved me a ton of money since I stopped using the disposable ones!

[C C Kent]

Originally Posted by Shelby&Seymour

This IS a very good point, but from what I understand, it would take YEARS to accomplish getting our sources "tapped"........ if what I have heard is true.

While it's true that it would take some time to get the first barrel of oil it would only take a matter of hours for the news that congress has approved drilling to be spread around the world. The market reacts quickly to risk. If there is a certainty that more product is coming the prices will reflect that. If all we accomplish is keeping the price in the $2 range for the next decade while the resource is brought to market....at least it's not $4.

If we had begun drilling ten years ago when the effort began we would already have the resource in the market...the fact that it will take a while is no reason to delay any longer. We may be ten years form bringing the product to market but we may be fifty years from replacing it, which should we focus on?

Even if we didn't need oil for our cars and trucks we can't do without it. Are we prepared to do without air travel? We're nowhere near any type of energy source that will give us the ability to fly. Most of the basic needs of our economy are tied to oil and the petroleum products derived from oil. Sterile packaging, plastics for our healthcare system come from petroleum, what will replace them? The oil based compounds that we make tires from? How about the base products that go into road construction and repair? What will we build roads from?

If we are to remain a super power, we must face the facts about energy. Without a steady supply of cheap energy our economy will stagnate, look around the world, the evidence of this is everywhere.

Consider this solution, we open offshore drilling (we have the best safety and cleanup record in the world) and ANWAR. The resulting effect on the oil future market is immediate and substantial. Secondly we begin opening coal reserves to reduce the price of electricity with the understanding that we are going to begin building nuclear (nucular if your reading this W) power plants. The beauty of nuclear power is that since it's difficult to bring the reactor up and down it's helpful to find ways to use the extra energy during off peak times...this makes hydrogen energy much more feasible. Right now it takes more petroleum energy to produce hydrogen than we get from the hydrogen. If we have a very cheap energy source we can devote to separating hydrogen and oxygen....viola! Endlessly renewable energy from water.

If we let party affiliation and willful ignorance work to keep us bickering about who did what we'll lose our standard of living, and possibly our freedom. There are common sense answers staring us in the face. If you have a party hold their feet to the fire and expect results...if you don't get them....kick their sorry butts to the curb.

[Breezeaway]

Heres a tip for some of you who will have some free time, the census will be starting soon. There should be jobs in your areas available. They pay good and pay gas milege. You can work up to 40 hrs a week and I think they are paying around 12 -16 an hour. I just took the test last week for a supervisor and made a 97. I have worked for them in the 1990 and 2000 census. It is a good job for a short period for someone looking for work. Just go here and look under your regional employment area, the last people they hire are enumerators and those can work any hours you want a day or weekend. Just get your name on the list.
U.S. Census Bureau

[PANAMA69]

Originally Posted by red98vett

HOW ? Can you tell more ?

I send her a e-mail, asking her for details

[AMD]

Originally Posted by C C Kent

WE started getting out of debt a couple of years ago when my next door neighbor introduced me to Dave Ramsey by loaning me his book "Total Money Makeover." I love to read so I cracked it open and didn't stop until I finished it. I was surprised because I thought I was a good money manager until I read this book.

<snip>

Thank you C C Kent! Great post!
I just ordered that book from the Library..can't wait to read it.

[C C Kent]

Originally Posted by AMD

[F]Thank you C C Kent! Great post!
I just ordered that book from the Library..can't wait to read it.[/FONT]

Good for you, I'm anxious to hear your opinion. If you can find Dave's radio show to listen to it's very helpful and motivating. If you go to his website you can listen to portions of his show for encouragement. On Fridays he has people call in and tell their stories, then they get to yell "I'M DEBT FREEEEE!" I never get tired of hearing that. Get gazelle intense and get out of debt, if you need encouragement I'll be happy to help any time you need me. Friends don't let friends pay interest.