Be prepared
We are currently living in some very troubling times. Our Country's economy and the world economy are in a shambles. We are poised at a precipice, teetering back and forth, with ours, as well as our children's futures at stake. There is much uncertainty about...well, everything.
There is no quick fix for the situation we are in. Our public debt is 97.2% of GDP. Right now there is $40,643 of debt for every U.S. citizen. But not all citizens are taxpayers; the debt load per taxpayer is a whopping $114,537. I try to look at things from a common sense point of view and common sense tells me that there is no way that we can continue at this pace and there is no way we can keep pushing repayment of this debt into the future. Each of us needs to look at our own situation and be prepared for the worst, especially financially. Here are some suggestions on where to begin:
First and foremost, you should start building an emergency cash reserve of 3 - 6 months living expenses. In addition to the financial stability it will provide in the event of a sudden job loss or other catastrophic event, it will help to foster a sense of security and peace-of-mind. Next, look at your own debt situation. Pay off your credit cards and quit charging on them. Pay off car loans and other consumer debt. Force yourself to live within your means. Vow to do what is necessary to get as debt free as possible.
Just these two actions alone will drastically improve your family's ability to survive the inevitable consequences of our current nation financial situation. Taxes are going to increase; they have to, and not just on the Federal level. Many state and local governments are in dire financial straits and will have no choice but to increase taxes and fees. As taxes and fees, or whatever euphemistic term they use to make them more palatable to us, increase the cost of all goods and services will increase. Your hard-earned dollars are going to have to stretch farther and farther.
There are some who think we can get through this without much pain. I hope they are right but I choose for myself and my family to be "prepared for the worst". I hope you do too!
