Where do we go from here? The problems with the economy are well known, less well known are solutions. But there is an old saying which states that the solution to a problem is found in the statement of the problem itself. In this instance we may look to the term Consumer Economy for the solution to our economic problems. If the corporations that have this country is a stranglehold are able to do so with their deep pockets, we only have to realize where this money comes from.
Us.
Well, you, because I have my own ways of dealing with the problem. For one thing, I never buy retail. I don't own a house. I don't have a cell phone. I don't watch television, don't even own one. I don't spend what I don't have. And I'm doing my part to deal with the present state of the economy in the best way, a way that the big corporations just hate.
I save money.
For about twenty years I got around on a bicycle and public transportation. There were cars available to me, through friends, when I needed one, which was only occasional. Through all that time I managed about 3,000 miles a year bicycling ( last year 3,623 miles ) and scored a double: not only did I save a pile of money but my health, strength, and stamina improved so greatly that today, less than five months shy of seventy years old, I am at the peak of physical well-being. I work out at a gym three times a week with people half my age, and they know I'm an older man, but they don't realize how old! I smilingly give the "bird" to big pharma, one of the biggest drains on the resources of older persons.
How about name brand suits? Want to spend big bucks for quality apparel? I don't. And I stay pretty well dressed for pennies on the dollar. How, you ask? One of my friends owns a dry cleaning establishment and he gets stuck with his share of clothes that people leave over the thirty day pick-up time; he shows me what he has and I just pay the cleaning bill. Voila! Designer suits for $15.00, and nobody knows the difference.
Last month I bought a car and financed it through my credit union. The seller was a criminal lawyer, a personal friend, who inherited it from his mother. " She only drove it back and forth to the liquor store, " he told me. A 1999 Toyota Camry with only 57,000 miles on it. For $5,000 I didn't buy it so much as stole it, as I can turn around a sell it for a thousand dollars more. And I have the money to pay the loan off, but why bother? The interest I earn on my savings ( 3½% ) and the interest on the loan ( 5% ) it's just as easy to let it ride.
Yes, the answer to our economic problems lies with us. Consumers. Spend less, buy wisely, and be patient. In the hole with credit cards? Who put you there? It wasn't the nasty ol' credit card companies, they just handed you the means to go broke but it was you who turned these on yourself. Stop doing it!
You see, we actually have two economies; when one fails, the other kicks in. It's the second-hand, cash money, under-the-radar business that people engage in. Once my girlfirend had an accident and put a huge dent in the right rear fender of her Monte Carlo. It looked like hell, but it would have cost a couple hundred dollars to repair. One day a Hispanic fellow knocked at the door and offered to " bondo " the damage for eighty dollars. I said OK and he had it done in just over an hour: a little paint and it was good as new.
So be patient and keep you eyes open. The bargains are out there just waiting for you to take advantage of them. Don't listen to Financial Advisors, they don't care if you win or lose, as long as they get their fees. Don't turn your money over to anyone to manage for you, you will only lose in the long run. Pay down what credit card debt you have, minus the fees and late charges - and take your time. So you're credit report looks bad; so what? Isn't it easy credit that got you into the hole in the first place? Stop feeding the dog that bites you.
In the next installment I will show you how to get out of debt without borrowing money using actual figures from people I have helped do just that.
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