Archive for November 12th, 2008

Credit Crunch

November 12, 2008

“The secret to obtaining wealth is to live well within your means.”

I don’t remember who said this, but I remember reading it many years ago.  I suspect that there are many problems in our economy today that were created by people who try to live beyond their means. 

People want things that they do not have the money to buy, so they use credit.  Buy now, pay later.  The problem is that sooner or later, the debt, which will grow substantially,  will have to be paid.  Living on credit is like living in a house of cards, sooner or later, a breeze is going to come up and the house will come crashing down.

That’s what is going on in our economy right now.  The house of cards is coming down all around us.  The government is trying to prop up the house of cards, but there is a pretty strong breeze.

We will have to pick up the pieces and try to build a stronger economy on something other than the unreliable foundation of credit. Individuals, families, and businesses should learn to make more prudent decisions about their spending habits. 

More savings, less credit. 

Buy now, pay now. 

Save some for the future.