Why are we in a recession, an economic downtrend, or a “term of your choice”? Well, many reasons, but most have to do with debt in one form or another. And, the number one cause behind this, be it individuals or even our government, is that most of us simply live longer than we could afford and we have for a long time! How much better it would be if we lived as many of our former relatives lived; below your means, saving some money for a “rainy day” or possibly emergencies (that is, the unexpected in whatever form it may appear).

What happened in the last 2 or 3 decades that has gotten us here?

In the 1950s and 1960s, credit cards became more and more the norm and their popularity continually increased. In the 1980s, people got used to buying when it suited them on their credit cards (whether they could “afford” it or not). They paid the interest to have it all “now.” The problem is that most of the time it was borrowed against expected future earnings. As life “happened” and the unexpected happened, that is: car repairs, loss of income from work, or unexpected expenses in any way, plus the fact that many people jumped to find the job that suited them, or for whatever reason. , they did not earn as much as they spent. In many cases, the gap between earnings and expenses grew larger and larger until the gap became a cannon. Years of buying cars, houses and many “things” in loans and credit cards have caught up with us. Even the US government has ridiculous debt compared to the 1980s. I recently heard that much of the US debt has been underwritten (bought / invested) by foreign entities and countries, including a large part of the Middle East! That annoys me!

Today, there is a ton of news about cycling to work, spending less, and living differently. I am convinced that as difficult as the economy is for many of us, either from the effects of the layoffs of companies downsizing or closing, or the loss of homes due to the oversized mortgages they previously committed to, or the rise in prices. With everything from gas to food, many have had to make big changes. We as a nation speak, walk, and spend differently for the most part. For many years, most of us have lived week to week. When the economy goes haywire, it wreaks havoc on everyone who lives too tight to begin with, or worse still, mired in debt.

Personally, I believe that if we allow it, this can be a wake-up call for us as individuals, as well as for our government leaders. Often times, people only change when they have no other choice or their concerns outweigh their “live in the moment” mentality. Statistics confirm that many of us currently do not spend so frivolously. And I suspect that credit cards are primarily used for survival (as a substitute for lack of savings) rather than “stuff.” Today, far fewer people are buying new cars or homes. When I see and hear all the huge car and home sales and other high-value items, it reminds me that being debt free today is a daunting gift. Today can be the day of change, of foresight, of wisdom. I really hope we all learn from these crucial moments that seem to have engulfed us in the final months of 2007 and have deepened in severity throughout 2009 so far. Is it difficult … absolutely! But I do believe that we all can and need to learn the important lessons and long-term benefits of living within and below our means.

All that said, those who were thought to be a bit out of the way of society in their thinking and / or possibly laughed at for their frugality and voluntary simplicity (from simple choices to older folks off the grid) now they can get some respect. for those choices (if not some envy)! I also believe that those of us who know how to live well in a simple way; for example knowing how to camp and cook the simple way and even those who have downsized to live in an RV (hopefully paid for) are often ahead of the line in their / our abilities to live well in tough economic times . Suddenly knowing how to live well in a small motor home or van no longer seems so strange and ridiculous to the social masses. Personally, I am very grateful to be (continually learning) and preparing to live or live as simply as necessary, while still enjoying the comforts that are personally important to me. I think it is a gift to have that mentality. I am empowered by the lessons learned from having traveled the US a few years ago in a small pick-up truck in my then mid-size Dodge Dakota truck. I’m glad I was a camper and know how to live more easily if necessary.

I admit that I am a gadget girl, and I love my laptop and tech gadgets, and while I confess I would have a hard time without my laptop for a long time, I can grill over an open fire, happily spend time reading a book, you know? Enough about using an inverter and emergency power supply to help me when needed, and if I had to, I could just use a simple portable potty without having a nervous breakdown over it. Those of you who are freethinkers and have always enjoyed the freedom of alternative life ideas, I think you are better in these times. For those of you who have cringed at the thought of living without your $ 7 cup of coffee in the morning, or traveling without staying in a $ 100 a night hotel, relearning and making some adjustments may be necessary. in the path. But that’s okay, you’re brilliant and you can learn to do things more frugally and simply if you need to, right?

Yes America is changing … so again maybe most of the hard times will go away soon and once again it all goes back to spending numbness and you go deeper and deeper into debt without much thought. I hope things improve soon, but I hope that we do not go back to living beyond our means and everything that has brought us here. Sadly I suspect that as creatures of habit, once the immediate pain has subsided, many of the not most will revert to their old ways of life far beyond their means. But you or me? No … not me, I made that decision months ago and luckily I am now debt free. I may not own a home like you do, or a new vehicle, but I have a paid GMC 97 Safari truck and I’m fine and very thankful that I don’t have a ton of debt weighing me down.

The economy is tough in other countries too, but here in the United States we’ve been ripe for this for quite some time. It’s a rude awakening for most of us. Whether it’s taking care of our individual homes or running businesses, things are challenging these days for many of us, not most of us! But we can learn and live and ultimately be better because of the lessons it gives us.

Live within your means = Good choice! ~ Living below your means = A wise choice !!!