What’s Going On?
Recently I conducted a class on our National economy and how it relates to your Personal Economy. Long story short, Don’t Panic.
First, we are not in a recession- by definition, a recession doesn’t happen until the Gross Domestic Product (GDP) numbers—how you measure the number of goods made and sold in the USA—goes down for six consecutive months. We are in a slow economy, not a recession. Don’t let the talking heads drive you crazy.
What we have to realize is that the national economy does not work in our best interest…
The national economy is based on our (citizens) spending and generating more personal debt (and interest payments), not saving or frugal living. Lower gas prices and interest rates are enticements to spend, bolstering ‘their’ bottom line, not ‘ours’.
We have to take control of our personal economies- live off less than you make, use cash, remove credit cards from your life, save and give.
Something to think about. If interest rates on cars was 200% would it matter to you if you only bought cash cars? If Credit Card interest rates went up to 90% would it matter if you didn’t have a credit card?
Your thoughts are welcomed.