Really, there is little that you can do to influence today’s troublesome world economic problems. You did not cause them, but, instead, you are a victim of them."
Yet, there are things that you can do to help ease the burden of making a living today. Often, this revolves around self-control. How so?
In difficult economic times, stern measures should be taken. A family’s needs should be carefully reassessed. Is the family living within its income?
If not, then non-essentials can be cut out, or at least reduced. True, one’s neighbor may have, say, an expensive color television set.
But if this is going to put the family deeper in debt problems, why not wait until it can be afforded?
Expensive entertainment and luxury foods, as well as costly liquors, can be curtailed with no loss.
Smoking should be eliminated; this not only will save a great deal of money over the course of a year, but may save one’s very life!
For those who gamble, it would be well to ask themselves how gambling establishments, such as racetracks and betting “parlors,” exist.
They can exist only because gambling is a losing proposition for the overwhelming majority of people.
If it was not, then the gambling establishments could not make their huge profits. So self-control here could save large sums of money that could be better spent, or saved for future purchases.
The key to saving money is to lower one’s desires and expectations so that they realistically conform to income. It does no good to dwell constantly on what would be nice to have.
Instead, consider what you can afford without going into debt.
True, some difficulties today are not caused by having less disposable income. It is simply that prices are so high that your income does not meet the expenses.
But on the other hand, spending unwisely on things that you really don't need will only make your situation worse.
There is great encouragement to borrow money these days. Money lenders are everywhere. But why? Because money lenders make a good profit.
True, the cost of 6 or 7 or 8 percent for borrowing money may not seem high. But in actuality that comes to about double or triple over the life of the loan.
Why? Because you do not have the use of all the money all that time, but must begin paying it back almost immediately.
Another major problem is the use of credit cards. More and more people use them for purchases, including food. But credit cards should be used as if they were dangerous weapons. It is easy to buy things when you do not have to pay cash. But trying to pay for hasty, unnecessary credit-card purchases can cause money hardships later.
If at all possible, save money in advance for purchases instead of borrowing. This not only prevents debt and large interest payments, but, if put in a bank, would collect interest.
This are some of the things you can do to protect yourself financially at present. But there is nothing you can do to help the present economic system to recover. Why not? Because any recovery it makes in the near future may be only temporary.
Even many observers of the world scene feel that something drastic must happen. For example, one author states:
What we are seeing today is not simply an economic upheaval, but something far deeper, something that cannot be understood within the framework of conventional economics. This is why increasingly mystified economists complain that ‘the old rules don't work any longer.’ What we are seeing is the general crisis of industrialism . . . What is happening, no more, no less, is the breakdown of industrial civilization on the planet.”
Pessimistic predictions about the world economy are many times dismissed as “lunatic.” But, when they happen, people begin taking them seriously.”
Because of uncertainty of what is to come in the future, you would do well not to put undue trust in economic forecasts.
Yes, most economists feel that the bad recession of the recent past is over. Yet, much of the improvement is being financed by borrowed money.
Pumping billions of borrowed dollars into an economy does improve conditions, temporarily. But the debt load becomes heavier and heavier.
Some have expressed concern that it may be like the heroin addict who must have more and more of the drug until his system can no longer take it and then collapses.
So take the above suggestions seriously, to minimize on the effects of future recessions on you and your family.