Saturday, August 27, 2011

Economic Survival - The Slow Downward Spiral

The current economic situation doesn't look very promising especially when you consider the unwillingness of most politicians to deal with the situation. This is due mainly to their fear of losing votes in their next bid for re-election. Maybe they just don't see this slow downward spiral that our economy is taking or simply choose to ignore it. In either case, it's going to cause a lot of difficulties for anyone who hasn't taken some sort of action ahead of time to deal with what is headed our direction.

There are some simple things about money that some may fail to realize if they aren't paying attention. My first observation that comes from "real world" experience is that you can't spend your way out of debt. If you spend money you don't have , you are going to go further into debt. This is pretty simple when you think about it.

My second "real world" observation is that their are only two ways to reduce your debt. You are going to have to make more money or spend less. For the average person, this can create a real hardship because you are going to have to make some sacrifices. Whether it's sacrificing your personal time by working an extra job or doing without a few extras that make life a little easier, it's going to take some tough choices on your part.

Unlike the government, most people can't just print extra money when it's needed or tax their neighbor to raise additional funds.

Unfortunately, our current economic situation reminds me of a sink full of water and the plug has been pulled. There is going to be a slow downward spiral that takes a while but in the end there is going to be this huge "sucking sound" as it all goes away.

Staying above the water line!


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