Monday, September 22, 2008

Fasten your seatbelts, it's gonna get bumpy....

So how many of you have been following the BAILOUT news? How can you not? I won't bore you with my opinion or my advice. But I will tell you that I am gonna do: As a family, we tightened our belts in a big way last year. Aggressively paying down debt. Not adding more debt (as much as possible.)

When the housing bubble started to slowly fizzle around here locally in Loudoun County, which has the highest median income in the US, things started to get ugly pretty quickly. There is a nice subdivision that is directly behind Micaela's old school. EVERYONE lives there. Except for me. We couldn't really afford those houses. Well, we could have, but it would have been painful. I am SO glad that we bought a house within our means. I know of several families who've lost their homes. It's a subdivision where keeping up with The Joneses can be very important.

Every once in a while, I would look with some envy in my heart at those houses, thinking that their lives must be easier than mine. They have more space, more room, more of everything. Well, they have more debt, too.

Admittedly, I have made financial missteps, spent money when I should have been saving. Haven't we all? But about 18 months ago, I started to really worry. In addition to scrapbooking and photography blogs, I read the financial news. (My fave is, Love them! Which leads me to this article:

It spells out what the BAILOUT means to us. What is going to do to our bottom line. And let me just say: I am SO glad that we didn't go for the bigger house, the newer cars, the never-ending pursuit of the Joneses.

On my penny, it says: "In God we trust". I am trusting God to guide me in what I need. No more frivolous spending. No more extras. No more goodies. My house is cluttered with goodies. I have been getting back to basics for a while. I am just cranking it up a notch or two.

I have a feeling things are gonna to get worse before they get better.
I am glad that I am frugal.
I am glad that I know how to make most things from scratch.
I will be using my clothesline more.
I will be utilizing my food storage more effectively.
I will commit to making bread more often.
I will use my library more frequently.
I will do more surveys to earn myself Target gift cards for those lil things to spoil myself with.
I will educate other women on how to REALLY save money with their couponing and power buying....
I will allow God to guide me back to basics.


Jessica said...

Economics wasn't my strong hold in High School. I understand inflation and what that will do as far as driving up the cost of goods but does this mean that we could be headed for another depression? I am curious. I hope not. In this day in age I don't see people working together like they did back then. I am going to have to do my research. I never watch the news. Guess I should more often huh? I don't own a home but I have a significant amount of debt with no collateral. My fear would be a demand to pay back in full or high interest rates! Just thinking about all of this scares the beans out of me. We have been really trying to pay things down. I hope it is soon enough though! YIKES!

Linda said...

Government should not be involved in business. It's a bit "Big Brother" to me...and like you, I'm glad we don't have debt and are more frugal than most. Because you're right, it's gonna get worse before it gets better. Now you just need to learn to SEW so you can make your own clothing, too! ;-p

Anonymous said...

i work in trust and is so scary! And trust me you are so much saner than half those people in those big ol houses...i know cuz I work with a lot of those folks :)

Berry Patch said...

"Perhaps the most pernicious part of this bailout, however, is the way it punishes the innocent to reward the guilty for taking on excess risks they couldn't handle."

That really jumped at me in the article. While I don't typically follow all the details, I continually shake my head over this. It just seems to WRONG to have the government bail out corporations. Bad precedence!!!

We too have little debt. In fact, for the last 2 years we have been following Dave Ramsey's method & paying it off. We'll be debt-free by next December. Then we'll start saving to build a house - no mortgage. yeah!

Suzanne..I can't find your e-mail. I AM interested in those books you mentioned to me.

Jessica said...

Linda- believe it or not. I was actually really disappointed with the fact that it cost almost as much if not more to make our own clothes now. It didn't use to be that way but these days material and notions are OUTRAGEOUS in price. I find it cheaper to buy my daughter a dress from Target for 6.98 then to make one myself. That is a shame. I remember when my mother would make really beautiful clothes for me for way less. Not anymore. I honestly wonder why that is? Strange.