What Would You Do If There Was Another Great Depression ?

The words, "another great depression" are spoken more and more lately. In general conversation, on the news and even from the pulpit. Its hard to imagine that such a thing could happen again, but the trend is there....the similarities between then and now a bit frightening. We could all chose the route of being an ostrich and sticking our heads in the sand and repeating to ourselves some sort of mantra, " I will not stress out by listening to the news, I will not stress out by listening to the news" and yes, that might protect you from stressing out but it sure won't show you the areas of the financial world to watch out for and look for places to make improvement in your own situation.

Last thing I read this morning was that the credit card industry is next to fall. That is scary with so many people owing so much money due to their plastic habit, and not knowing the simple fact that our grandparents knew, "you don't buy unless you have the money to". Sure there are emergencies and times of difficulty that we could not have planned for, but just buying because you want something, regardless of how much money you have or in these cases, how much you DON'T have or just spending on a whim, without thinking it through. Wondering, later if that money could be applied to an existing debt or to savings rather than to purchase it and have it become just "stuff"

that will later be put in storage, or be carted off to a thrift store or sold at a yard sale. As of April of this year, Americans total credit card debt is about $951.7 billion . Nearly a trillion dollars spent that people couldn't pay off when the bills came in.

So hearing on the news that credit card companies may be the next to fall is helpful, it tells folks NOT to get any more in credit card debt and do all you can to pay off your balances. Cut up all the cards you don't NEED ! The other day in line at the store, the woman in front of me was paying. Her credit card was denied, so she pulled out another, it was denied too and she proceeded to go through a stack of cards an inch thick until she found one that worked....what was she buying....Halloween costumes and a new fall tablecloth !

We have worked hard to live debt free and by debt free I mean it. No house payment, a mortgage is a debt. No car payment, car payments are a debt and no credit card debt either. Of course we are not young folk just starting out, so we have had time to reach these goals, but young folk can work towards this goal instead of keep spending more and more and digging a deeper whole that is almost impossible to climb out of. One time many years ago, Emery and I wrote down every single cent we spent for a month. Even if we bought a package of gum we wrote it down. We wanted to "plug up the leaks" on our spending. It was shocking to us. We had no idea there were so many little things we purchased, almost mindlessly, and when we added them up over a months time, it was a good chunk of change. A magazine here, a little toy under $5 there, a stop at Taco Bell just for a snack. A new gadget that promised to save time or make a better pie. A new kind of cleaning tool or new cleanser. It was shocking.

At our age, we are seeing friends that no longer have children at home, decide to buy a bigger, more fancy house, or take trips that they really can't afford and suddenly they are drowning once again in debt. They find themselves with no peace of mind.
Melissa and James are two of the finest examples I know of careful spenders. They are going to go far in life. They are to be admired as young people that keep their eye on their goals and live to reach them. No foolishness in their spending. I am so proud of them.
Melanie and Casi haven't been able to take a moments breath since the day they were married in order to even think about saving. God love them, they have had over 20 hospital stays to deal with in the 25 months they have been married. Love sustains them and they live very humbly. Young people can live without caving into peer pressure or the ads shoved in their face about what "you must have this or that in order to feel good about yourself or appear successful. "

Don't bury your head in the sand about today's financial situation. That doesn't mean you have to dwell on them either. Just arm yourself with knowledge and work to build up the weak areas of your situation. Prepare in case, and if nothing ever gets worse than it is now, you haven't lost a thing, you are just in a better position to do more later.

Cut costs, plug up the leaks, understand the difference of want and need. Don't feed depression with buying more. Don't think about what the commercials or ads tell you you have to have and don't try to live like someone that has more means than you do, you never know if that very person you are trying to be like, is on the brink of destruction because they are trying to live like someone with more means than they have .