I am not a Degenerate!
Welcome back!
It comes as no surprise that times are hard, and seem to be getting harder. Many Americans are having to decide what bills they can afford to pay. While budgeting and careful planning may help, sometimes there is just a shortage of available funds to pay the monthlies. As, the cost of living seems to continue to rise, the dollar seems to be stretched further than ever.
When you have missed a payment or are late on a payment these days, creditors are quick to let you know it. While you are clearly do owe them, do not allow yourself to be tormented and harassed by creditors. You have rights and there are laws for your protection from harassing creditors.
Unfortunately, I have had to start making tough choices recently. I just do not have enough money to pay everything on time. I like many Americans am doing the very best that I can.
I was prompted to write this post by an event that happened this week. My husband and I live in a very nice community, which we usually do not have a problem with. Last week, I received a call from our town’s water department. My check had been returned. I was so embarrassed, it had merely been an accounting error on our side. I returned the call to the water department to let them know that I would fix this mess right away. In the same phone call, they said that they would not take a check from my household anymore, due to my irresponsibility. Instead of arguing with the woman on the phone, I told her I would drop off the payment at the end of the day.
Two days went by since I had re-paid my water bill. I thought all was fine, until I got a call from the water department. The woman left a message on my phone at 8 am. in the morning. Her message that was left on my phone was incredibly rude and demeaning. Apparently I had not paid the bill correctly, which was a simple miscommunication. In the message she went on to demean my character and my husband’s character. I was shocked at the brazenness of her call and I was angry.
Later that afternoon, I went into the water department to pay my bill and set the woman who had made the call strait. I told her that I am not a bad person due to an accounting error. Further more, I asked her if she treated everyone who had issues with their bills in this manner. I reminded her that we are in the grips of a very serious recession and that a little compassion for people’s struggles might be in order. The woman did not seem to even register what I had said, and her rude service continued through out my business there. As a bill payer/ customer, you do have rights and you should be heard.
I was utterly shocked by her rudeness. There was absolutely no call for it. My husband was appalled at the treatment I had received as well. He jokingly said, that I should tell them that I was going to dig a well, and that they could keep their city wanter. This was a tricky situation, where I as the customer was not heard. Because it is a city service, I just have to deal with her behavior. I told my husband that the whole situation reminds me of a Simpsons episode where, Homer insults the local garbage men and does not have pick up service for months, causing his rubbish to pile up in his yard.
While I was clearly in the wrong for my accounting error, I still deserver to be treated with dignity and respect.
Resources for Recent Layoffs
540,000 jobs were cut last month, and this month is looking to be worse. It is a scary time to be employed and unemployed right now. Strong stable companies are shedding jobs in an effort to help their bottom line. However, where does that leave the receiver of a pink slip?
Well, if you have recently received a pink slip you are not alone. I came across a statistic the other day that said 70% of Americans know someone who has been effected by the economic downturn or laid off. In looking at that stat, it is amazing to me to see how rampant this really is.
As I was searching the net for information to aid those who have been recently laid off, I came across this article on Mashable.com. They have an article that lists the best 30 websites for those who are jobless right now.
This database of websites is wonderful! It is very rare in the vast universe that is the internet, to find such a detailed and concise list. The database, has sites not only how to find a new job, but how to manage your money until you do.
Ben Parr, the author says,
“But the worst time to panic is when you are laid off and lose your main source of income. We live in a new and powerful era of communication, one where we can find support, gather news, and network without ever leaving our computers.”
I would encourage all to take a quick glance at his database. This is a wonderful resource. I hope that this helps to those of you who have recently recieved that dreaded pink slip
What To Do With Your Tax Return?
Tis’ the season of the long awaited tax return for those early filers out there. Those glorious checks that cheerfully find their way to your mailbox, unless you live in California. With dollar signs in the eyes of many, strict budgeting is need and it is needed fast.
In these difficult times, this additional money can really help make a difference in a person’s budget, if they spend it correctly. I have some very dear friends, who I love very much, who will have received about $3000. worth of tax refunds from Uncle Sam this year. As their money is starting to trickle in, so are the unneeded large purchases.
I am not a financial scholar, I have made my mistakes financially. When I see friends of mine making such large frivolous purchases, this makes me start to think about how others will be spending their return as well. Will the whole country be as irresponsible as my dear friends?
I will not be receiving a return this year. I am totally bummed, because I could really use the extra influx of cash, right about now. I am sure that most of the country could use an influx of cash right now as well. Even though I will not be receiving a return this year, I pondered that if I had, what would I do with the money. I do know that large unneeded purchases would not be happening.
How can people like my friends even think about shelling out large amounts of cash at a time like this. I do understand that spending stimulates the economy, but in these shaky times, when jobs are not guaranteed, doesn’t it make sense to not spend but save? I know that there are those out there who will not spend like money is going out of style.
There are those out there that need that money to stay afloat financially. Wether that tax return comes or not, financial responsibilities never stop. I hope that for those who really do need the checks right now, that they use it in a responsible manner.
Austerity and Our New President
Tonight our president came before the press and the American public. Finally some questions about what the stimulus entailed, how it would be put into practice, and how its sucess could be determined.
It was wonderful to see a strong message broadcast to a leary country. Obama ventured to Elkhart Indiana today to see one if the hardest hit towns by this economic recession. I have driven through this area within the past year and I have to say that the scene was deviststing. I was so pleased that our President took the time to go there to see the average American’s plight. Tonight he used these people as an example saying that Washington needed to stop positioning themselves for the next election and work for the people who depend on them.
I watched the entire confernce and a few things stood out to me. First of all the President Obama said,
“As we speak, similar scenes are playing out in cities and towns across the country. Last Monday, more than 1,000 men and women stood in line for 35 firefighter jobs in Miami. Last month, our economy lost 598,000 jobs, which is nearly the equivalent of losing every single job in the state of Maine. And if there’s anyone out there who still doesn’t believe this constitutes a full-blown crisis, I suggest speaking to one of the millions of Americans whose lives have been turned upside down because they don’t know where their next paycheck is coming from.”
I knew the unemployment rate was sky rocking but, it is truly alarming when one looks at the raw data. Large portions of the country have been insulated from what the rest of the country is going through, tonight those people got to see how badly things have become for their fellow Americans.
I also liked how President Obama closed his speech by saying,
“We find ourselves in a rare moment where the citizens of our country and all countries are watching and waiting for us to lead. It is a responsibility that this generation did not ask for, but one that we must accept for the sake of our future and our children’s.”
We as a country are at a history making juncture, it’s sink or swim time. I am optimistic at this point in time, I think that our country will band together and rise again, like we have out of every other depression and recession. This country is not a stranger to hard times, and we have always pulled through. So, lets not break that trend. Let’s help our neighbors where and when we can and stand up as a country to make it through.
Thought on the Six Truths of Personal Finance
I picked this up off the Consumerist today. They featured an article from The Street, which featured the 6 Unpleasant Truths about Personal Finance.
From the Article in summary they are:
1. You can’t have everything you want.
2. Financial institutions are not your friends.
3. Nobody is going to teach you personal finance.
4. You are your own worst enemy.
5. You need to stop watching TV.
6. Personal finance is easy.
These are some very insightful comments and many of them are some of the main philosophies behind this blog.
My wife and I have learned many of these together, probably the harshest reality of them all is discovering financial institutions are not your friend. It was difficult to wrap logic around the idea that they can treat their customers, the very people they rely on to exist, like such garbage.
I am definitely my own worst enemy and have succumbed to many materialistic sins in my day. After all, I own expensive Apple products and drive a newer car (worst mistake I ever made). But, after hitting ‘financial rock bottom‘ this past year, I realized what really mattered in life and how to take financial control of it. We are probably a month away from having the ship completely righted.
I would, perhaps add a couple items to the list of ‘harsh financial realities.’
7. You can live without it
8. Only worry about it if it will matter in 20 years
9. Credit Cards are, by nature, Evil.
10. Never by a brand new car. Ever.
11. You need a second job or second source of income
12. Don’t attempt to have kids unless you have maternity insurance and money put away.
Do you guys have any you ideas of what you think should be on the list of harsh financial truths?
Just Say No to Credit Cards
According to a recent story in US News, Americans are starting to turn their back on credit cards. Many are forsaking the plastic god that has been sustaining them and are beginning to draw down the rampant consumerism that has created the situation we’re in now.
It’s a shame that the credit crunch was needed at all to teach us that our habits were going to destroy us. Millions have had to suffer unnecessarily.
We’re pretty much against credit cards here at Austerity blog. Though, we aren’t opposed to all forms of debt. We have long believed, and have experienced for ourselves, that the credit card companies are not your friend.
They want you to spend as much money as possible and the minute you slip up, they have your balls in a vice. They laugh all the way to bank as you write that check that seems to get bigger and bigger every month.
While this contraction in spending and reduction in credit usage will, and is, harming the economy, I think that in the long run, the economy will be stronger. This entire society is based on debt and that is unsustainable as an economic system. The recent problems are proving that.
So, what’s the hapless consumer to do? Be responsible and always be prepared for an economic downturn. If you apply the principles of austerity during times of plenty, you’ll be prepared for the downtimes and the downtimes won’t seem so bad, because you are already used to living austerely.
Just Say No to Credit Cards.
That’s our official advice to everyone. I don’t care if you are one of those people that think they are using them responsibly and taking advantage of the credit card companies by their rewards systems. They are taking advantage of you. And when you slip up, they won’t hesitate to punish you.
Like most vices in life, credit cards should generally be avoided.
