We live in these times of uncertainty and as I sit here at my kitchen table I contemplate what the future will hold and have these conversations about numerous things that affect our lives. Most of it is about politics and how this country is on a path of resistance that most, in the back of their minds, know is happening but are not man enough to admit it because they would have to make the hard decisions.

I understand the public would not handle the truth if Obama told us that the future looks more gloom and doom than sunshine and roses and our Government is on a path of financial destruction. I don’t feel he would want the people to know the truth given the present government thinks it wise to bribe the public with more and that is why a majority vote. I sit here with a sense of unease because nothing is certain when it comes to letting others make my life better. That is why I have begun to understand that the only way I succeed and my family succeeds is if I make it happen. Not some government bureaucrat.

It has been better as I focus my time away from what the main stream media says and I study what is right for my future. As MSNBC and FOX fight over left or right principles I ignore it and focus on how to make money via options in the market or how oil and gas will make me wealthy and not just the people at the top. It is more productive since both of these media outlets are wrong. Most of America in my view is middle right to begin with.

All three of my kids are now sitting in the kitchen playing with a remote control car. What is their future going to be like? It looks as though we are leaving them with so much debt that they may never have the life that I had or my parents had. This is the first generation that may actually be worse off than their parents. This is scary!

A lot of these kids are spoiled and are not educated. More are dropping out than ever before and the ones who graduate from high school, some of these schools prison mills, never have the skills to get a basic job. Our colleges are getting worse and worse as those kids are coming out with massive debt and can’t find a job. What sense does that make. I just paid a $50,000 student loan and am fortunate to do so but I also saved money and invested in the right things to get that money. It felt good to pay this off but I wonder how some plan on paying off their $80,000 student loan without a job or any knowledge to do so. I have interviewed some and met many that have this debt and have absolutely no work ethic to start getting on the right path. Why do so many feel they are entitled to get a job when they have never gathered the skills to do so? It hurts me to think that this is so.

People and politicians are full of excuses and pointing fingers but in reality they have no idea what the real problems are. Everyone is reactive and most of the time it makes no sense. Do you think politicians whose districts have a 60% drop out rate are sending their kids to these same schools. I read about politicians all the time who’s districts get exponentially worse every year and they continuously get voted in. Why is this so? People keep voting them in and get what they deserve I guess.

The problem as I see it isn’t just the politicians. They do what they do and we elect them but home is where the real problem is. Where are the fathers? It’s not one culture or races problem. There are more white single mothers than black so it’s an American problem. We have so many households with single parents that it amazes me that some of these kids make it at all. No discipline exists in these communities and many feel, and are taught by our teachers, that they should get something because they are victims instead of someone saying to get out there and make it happen.

We have a cultural problem and the only way to deal with it is for parents to step up to the plate. My kid’s teacher said that parents drop off their kids and expect the teacher to raise the kids and often feel as though there is no discipline. Parents are supposed to set the base up and have their kids act accordingly and respect the teacher. I was shocked at how politically correct she was with me when we had out first meeting about my son. She was so scared about being honest with me that it was hard to really know how well or bad my son was doing. She said they are required to not “offend” parents so they have to be very careful. If your kid is an idiot or acts like one then you have a right to know and should discipline them accordingly and if you do know don’t blame the teacher.

The recent shootings are great examples. I pray for the families of Sandy Hook but I feel the blame is on the wrong issues. Dems have turned this into a drive to get rid of assault rifles or high capacity mags and are infringing on the 2nd amendment instead of focusing on the fact that this kid was mentally ill. So was the idiot who shot up the theater here in Colorado. This boy who I don’t want to name went into his mother’s safe and took those guns. He never even used the assault rifle because it was in his car. Almost all shootings like this have one thing in common: parents knew they were mentally ill and the shooter was on some type of anti-depressant.

Why was his mother not more proactive in getting him help and why the hell is she keeping guns where he could easily access them. I blame her! It’s not politically correct but we need to hold the people that know these things accountable and usually it’s the parents. Same with the Virginia Tech kid. His parents knew he wasn’t all there and politicians blamed the school and the counselors. Ya, that makes sense. Blame a counselor who has to keep track of a thousand kids. His parents should be held accountable. Why aren’t any politicians calling for that? There is a pattern with medications and these kids going crazy. I’m just saying! Being reactive never solves the problem and now I can’t even go buy 9mm rounds because people think the world is going to end and Obama is going to knock on their door and take our guns away.

These issues of the day that could be remedied with some common sense which no politician has. Why do we keep voting them in? It boggles my mind what direction this country is going in. More government is not better and both sides have expanded the government more and more as history moves forward. That is why I need to worry about my circle of influence. We all need to worry about our own circle of influence.

So what am I doing? I’m trying to learn everyday and make my life better in turn making other peoples lives better. The only way to fix things is to hold ourselves accountable for what we can influence. If you have kids and aren’t working then that is on you. There are jobs out there. I was laid off last year and had a job lined up before the layoffs happened. I’m not perfect but do what it takes to continue to better myself until the right job comes along.

When you get a job you have to do it better than anyone else and manipulate the environment so you learn and can move on. The problem I have seen with employment is that people are thinking of themselves as victims instead of doing something about it. You made a decision to rack up $80,000 in debt on school for a degree no one cares about so you figure out how to move forward. Don’t blame the government, mommy and daddy, or the guy who won’t hire you. I read the other day there are over 100,000 trucking jobs that pay as high as $100,000 a year but college graduates won’t take them because they want a job at a desk instead. Find a gateway job and show that boss that you can work hard and something will present itself.

I used to be upset about our situation until I realized that there are a lot of lazy people in this country who make excuses over and over for their current plight. I prayed about it and made it a priority to not be that person and it has paid off. There were times when my mortgage wasn’t being paid and I just remained patient and tried harder. Well some influential people saw this and eventually that paid off because now I have a pool of references to help me get a job if the situation presents itself. That is how I am presently employed. I saw that my past company was doing layoffs so my wife and I decided we wanted to use this opportunity to move somewhere that would be beneficial to us and the kids. So it happened. Not overnight but it happened.

This current market presents more opportunities than people give it credit for. The media plays like we are all victims and need help from the markets or government. Really! They just mess it up. If you listen to them then you will be worse off. I am not pessimistic but optimistic about what the future holds but the only way we are better off is if we the people take responsibility and quit waiting for others to do it for us.

Oil!  Man!  Is it hard to gauge what the problem is.  The prices are going up and the blame game is in full effect.  Why is the price going up?  Will any expert that isn’t trying to cater to some special interest give us an honest answer?

We definitely have a problem that won’t be fixed in the near term, or maybe ever, and with it being an election year there’s no honesty from either side.  Why is the price going up?  What causes it?  Who is involved? 

The questions are numerous but, depending who you read, you will get dozens of  answers that most likely make no sense.  The real answers are elusive because, frankly, most don’t know what they are or have an agenda and won’t report the truth.  The press has no idea.  They seem to print the best story that counters whatever party they hate.  So let’s try and see if maybe in the middle of all this fluff you might have an answer to work with.  But it takes some time and effort and I don’t have years but about an hour to do this. 

Why?

There are many resources to find this out, but again, it depends who you ask.  The IEA (International Energy Agency) says there are a number of reasons the price of gasoline is so high.  Supply-side risks, low global GDP growth, unplanned outages in non-OPEC nations, are some of the reasons they give.  Gaspricesexplained has a nice graph to show what all goes into the price. 

This is, of course from the energy industry, but the graph breaks down most of what goes into the price and most experts mention at least one or two of these reasons.  With their spin on it.

The election website of Obama states they have employed more strategies to drill here at home but CBS reported that, since oil is global, the increased drilling doesn’t help to bring down the price. The article had little solid info (it’s CBS) though and was apparently trying to shoot down political opposition efforts for more drilling at the same time Obama is bragging they have increased domestic drilling.  America is only 11% of the world’s supply of oil and the price supposedly wouldn’t go down if we increased it.  

What was even better was when Energy Secretary Chu stated that he should get an A for effort on gas prices.  A for effort?  I wouldn’t give any side an A for anything when it comes to gas prices.  I find it funny how in denial everyone in power is on this issue but you can’t blame the administration for trying.  The problem is the difficulty to pin the price of oil to one thing but in an election year they will try. 

What’s the point of listening to either side?  They are out of touch and in their own world.   

It could be that the number of refineries has diminished from 300 to 180.  That makes sense.  Wall Street Journal said it wasn’t a big reason for price increases but if you look at what has happened to refineries in the past few years maybe it would make more sense.  Keith Shaefer says the East Coast would save millions a year if they could have access to refineries instead of shipping from the west which should happen instead of the Keystone pipeline.  The Keystone pipeline may help by adding a few jobs but it doesn’t solve anything with the price of gas.  All of the refineries are run by the big oil, which wasn’t always the case, and if there was to be a market for new refineries the regulations and red tape are so tight and expensive that no one could afford to build one to make it worthwhile.  

What?           

           Speculation – The president says speculation has been the biggest problem but hat’s a smoke screen against big business and Wall Street.  Markets in all areas have speculation and this is the smallest part of the price.  There is a constant debate about speculation and Congress is always threatening action on it since its one of the easy targets for them and puts the blame on someone else.  

            Dollar Devaluation (Exchange rates and inflation)– You won’t see this mentioned in a lot of places but if you look at what the Federal Reserve is doing to the dollar and what most commodities are doing then it would make sense that the worse the dollar is the more expensive oil is.  This puts things like precious metals, oil, gas, and other commodities up in price.  Who says what about this.

           Demand – If there’s less demand then the price of oil will decrease.  It’s simple economics!  2008-2009 showed a decline in the demand and the price settled.  This seems like a logical step for the public but U.S. demand isn’t the only thing that drives the price.  Soon, China will have the largest demand on oil and will surpass the United States to become the biggest guzzler and they aren’t making efforts to curb this demand.

Another issue is that renewable energy and new technology could help curb demand but the only problem is the government’s efforts to do this have and will fail.  The only way to do this is for the private sector to make new technologies more feasible for the public by making it affordable.      

                        War – Even the talk of war with Iran boosts the price.  Iran is a big issue and is one of the main reasons for the high price of oil.  Anytime a conflict in the Middle East is discussed in the press the price goes up.  That in itself is a type of speculation but is in-arguably a big factor in today’s price of oil. 

Below is a couple of graphs showing the price of oil over the years and some of the events that influenced this price increase.  The website where these graphs come from is WTRG Economics.  It’s a great resource for the energy industry and has a lot of information.

Here are some other specific events affecting the price of oil from 1947 to 1981

Another graph shows the price from 1970-2011

Who?  

          Government (Fed) – Devaluing the currency is a big culprit of this.  This has to be one of the biggest issues with the price of oil but the media would never disclose it.  I see so many people talking that the government really doesn’t have that much influence because it is the world market that makes the biggest impact but our own financial system is in ruin and the devaluing of the currency makes it difficult to buy any commodities.  Just look at the price of gold and silver as well as oil.  A lot of the time it is the value of the currency rather than the actual price.  Jerry Robinson has a good 4 part series on this issue. 

            Oil Companies – What power do they have and have their profits really risen 10 fold?  It is a touchy subject and “Big Oil” is easy to blame for the current price of oil but I question how much they collude to keep the prices where they are.  It is not well publicized but they some believe that they have been the culprits of keeping the amount of refineries down and make sure that only so much is produced at home so they can import enough oil and later milk the public with their ability to drill here.  It sounds good to me but a lot of it is speculation. 

As far as profits go they are not ranked among the highest in profit margins.  The big five oil companies were rated #114 out of 215 of the top industries in the nation for profit margin.  That is never brought up, or reported, in the congressional hearings you always see on CSPAN about the windfall profits they have. 

The one thing that doesn’t make sense is all of the loop holes they get but that is with any large corporation that can lobby congress.  The best answer to that is to change the tax code but no politician has the balls to do that.  As long as the tax code remains as it is then the companies, not just oil, will get the loopholes.  I have tax loopholes as a Realtor so anyone who is in business has loopholes.  That is how it is designed.

            Public – If we made a statement in the cars we buy and habits we have maybe the price would change for the better but the public doesn’t even understand what is going on so how can they act appropiately.  An educated public is the last thing the leaders want.  Most people feel they are held hostage by oil when it should be the other way around.  How much power does the market really have?  Globally it has a lot of power but the U.S. doesn’t have the same influence as it once did and once the dollar is not the reserve currency the public will react when the prices go sky high  and most of the world doesn’t need the U.S.  

The best thing the public can do is to develop better technology and show the governemnt that they don’t need subsidies or stimulus to make it happen.  The public has the most power and the last thing the companies and government want is for some individual to develop something that would hurt the current system but that is the very that could buff the system. 

            OPEC – They love that we are dependent on them and make it a point to hold us hostage any way they can and it is only a matter of time until they look for alternative means to pay for oil.  They have too much power and we have only ourselves to thanks for that.  Anything they do affects the price of oil and you can be sure that whatever they do is manipulative.  Much of this manipulation is in retaliation to what we do and no matter what we do they aren’t going to like it so there will always be so why do we continue on the same path.  

The definition of insanity is what: Doing the same thing over and over again and expecting a different result.  Then why do we continue to do the same thing over and over again and expect a different result. 

Conclusion

The price of oil is a big issue that won’t go away and with the answers being so construed we find ourselves losing out in many ways.  The media either doesn’t know the truth or only relays what the big shots want and the politicians can’t be trusted to do the right thing.  The best thing that could happen would be for the private market to take over or provide some product that can’t be beaten by the oil interests.  It is a tall order I know but government has too many bureacratic interests to make happy to help the energy sector.  Look and Solyndra!  They may have good intentions but their efforts become so convoluted something gets messed up.

There are answers out there but you have to look through the smoke to get any of them.  That is why it’s so important for people to make the changes necessary for themselves and not rely on any administration to do it for them.  All of the issues discussed previously are ones I want answers to but it’s hard to know what the truth is.

What makes the most sense is that the OPEC nations have too much power and our own government is making it difficult through their monetary policy to do anything.  The price of oil is tied to all that we do but our prices are still low comparatively.  If we lose that luxury there will be uprisings and America is not immune to what we have seen in the Middle East. 

10 Alarming Statistics About Credit Card Debt in America

by FTMDaily.com on March 17, 2012

10 Alarming Statistics About Credit Card Debt in America

… and a New Debt Service to Get Out of Credit Card Debt

by Jennifer Robinson

Credit card debt is on the rise again, which is a dangerous trend for U.S. consumers. In 2011, Americans totaled $48 billion in new credit card debt, which is a 424 percent increase from 2010 and a 577 percent increase from 2009. This $48 billion includes consumer defaults, which reached $44.2 billion during 2011. The magnitude of consumer defaults indicates that U.S. consumers are having trouble managing their money and debt effectively.

Although this increase is alarming, it is slightly relieved by new information that the average household debt in February 2012 was $6,105, which is a decrease from the December 2011 average of $6,576.

Below are 10 alarming statistics about consumer debt in the United States.

1. Total U.S. revolving debt as of December 2011 was $801 billion (98 percent of revolving debt is credit card debt)

2. The average APR on credit cards is 12.78 percent

3. 1 in 50 households carry more than $20,000 in credit card debt

4. Credit card delinquency rates are 3.27 percent as of the 4th quarter 2011

5. The average household in America carries $6,105 in credit card debt

6. The total U.S. consumer debt as of December 2011 is $2.5 trillion

7. The average consumer carries 4 credit cards; 1 in 10 consumers has more than 10 credit cards

8. In 2010, 1 in every 160 Americans filed for bankruptcy

9. The average age at which a consumer under the age of 35 gets his first credit card is 20, whereas those individuals 65 and over got their first credit cards at age 40.

10. In 2008, half of all college undergraduates owned four or more credit cards

These statistics are shocking, especially in light of other economic statistics in the United States. Federal deficit spending again reached over $1 trillion in 2011, the national debt is over $15 trillion, and according to the government’s “official” numbers, the national unemployment rate remain high at 8.3 percent. (The “real” unemployment rate is much higher.)

The good news is that many individuals keep their debt in check and pay off credit cards every month. However, for individuals who have found themselves drowning in credit card debt, with fears of unemployment and inflation, the topic of debt is uncomfortable and scary.

Here at FTMDaily, we have partnered with the Christian Debt Coach, who provides a debt service that can help you find peace of mind by through money management and debt reduction.

The setting is tremendous as I sit here on Fort Myers Beach for a much needed vacation.  I forget how nice the beaches are in Florida.

My view from the beach

As I watch my children play I reminisce about the stupid things I’ve worried about over the past few months.  I mean, what are we all stressing about anyways?  I have many things to worry about, who doesn’t, and I won’t let these negative things get the best of me.  If I did I would be a mess and would not be productive.  Besides, my family helps take that away.

Many people spend their days worrying.  I know a lot of those people and all it does is depress them and others around them.  The thought of not having a good source of income is hard but there are people finding positions in this market. I know some who were let go from their positions and have since found employment.  I thought people couldn’t find positions in this economy?  I choose to look at what these people do rather than the many I know still unemployed.

Worry soon turns to frustration

We have record unemployment which, yes, proves the country is in a slump but Americans have come to a point where we are so content with the good life they had that many choose not to take a position that is “beneath them”.  People often choose to be on unemployment benefits for months rather than go out and find a job, any job, that will help and better their skills.  I know there are extenuating circumstances but that is not the norm.

What happened to the days when you took a position that was available and did the job better than anyone else and in return got promoted?  If you suck at your job then you should get let go.  I tell kids all the time to get a job, doesn’t matter which job, and do it the right way, show up on time, and work better than anyone else.  You then will have leverage when you want to proceed because people will trust your ability.

This will alleviate worries about being employed but what if the job doesn’t pay well?  Then save what little money you have and invest it the right way.  Cut back on the many things we are accustomed to.  I know many wealthy people who started companies with very little start up costs.  You just figure it out.

Money isn’t everything but most of our worries are about money and having it makes life easier and people who have it shouldn’t apologize for it.  It takes dedication, hard work, and smarts to get to a good position where your worries are on different things.

It’s the little things people stress about that inhibit their productive capabilities.

My company is having layoffs in April and vacation has reminded me that worrying about it is a waste of time.  It’s funny, but I am probably one of the few people that actually want to get laid off because I see the avenues it would open up.  If I keep or lose it there are opportunities that I didn’t have before and worrying about it just kept those options closed.

What am I trying to say?

Be positive because you never know what opportunity will jump out at you.  Or as they say at my company:  “Control the controllable”

What good comes out of worrying about the little things?  The bible helps me to control worrying and I’ve found that most religions have a way to cast out worrying because it brings people down and is unproductive.  Proverbs 12:25 says “worry weighs a person down; an encouraging word cheers a person up.”  How is that bad?

Try to always look at words that are uplifting and not words that work to bring you down.

“There is nothing that wastes the body like worry, and one who has any faith in God should be ashamed to worry about anything whatsoever.”
Mahatma Gandhi

Turn on the T.V. and see if they show anything positive.  After canceling our cable I found how little we actually need it.  The kids never even noticed.  Nothing good or productive came out of having so many channels to stare aimlessly at. Besides, all of the news channels just create more for me to worry about.  It’s a little thing I erased out of my life that helped me to focus on other things.  Saved $150 a month as well!

Jobs, money, kids, school, companies, power, freedom, politics!  What good is it to worry about things you have no control over.  I have control on what my kids or I do on a day to day basis.  That is what I choose to control.  Even in this economy I have control over the money in how I make and spend it.

You could help to get the vote out but why would you want to waste your time on the field we have now.  Vote locally where you have more control.  There won’t be any “hope and change” from almost anyone in the federal government, on either side, so why get so worked up when you have responsibilities at home to take care of.

Turning worries into productivity

Sara Blakely

Sara Blakely, the owner of Spanx who just became a Billionaire, learned how to tackle her worries and turned them into productivity.  Good for her!  If more people put effort into producing something rather than wanting something produced for them the country would turn around rather fast.  Sara Blakely didn’t grow her company by worrying about things people might produce for her.

Why is it that most press, leaders, and school tell us to want something rather than produce it?  They want us to be such good little workers and listen to the crap they are saying.  I choose not to!

Anyways!

Sara Blakely and others like her

She said the number one thing that motivated her was self help books that helped her to look at the big picture and not focus on the little things.  She said the number one thing was to keep her idea away from family and friends that would only say negative things about her early ideas.  Many successful people say they try and stay away from the negative people in their lives who may put bad thoughts in your head or inhibit how to succeed.  Those negative words could turn nothing into worrying about the little things and it would put a dent in your productivity.

Below are things I do to help control my worries:

1. Read anything positive (Bible, Seneca, Confucius, Tony Robbins, Steven Covey, etc…)
2. Work out or at least get some exercise (P90X, Insanity, Yoga)
3. Meditate (doesn’t matter on what but breath and take a break)
4. Talk with someone who is successful and learn something from them.
5. Work (Honest work helps to relieve stress)
6. Pray (It works for me)
7. Vacation (could be 1 day or 10 days but take one and if you have a family then bring the whole family)
8. Eat right (veggie drinks help me but just changing the diet a little has been proven to help)

Whatever you decide to do will help and the key is to do something that will force you into action.  People who sit at home and worry do nothing for themselves or the people around them.  It’s tough out there but it’s that way for everyone.  Below are some books I like on staying positive:

I went to the store the other day with the family and spent about $400 on groceries and was amazed at what little we bought for that amount.  It made me question what I’m seeing in the press about inflation. 

The Fed, or Ben Bernanke, says the inflation rate is around 2%  and that the goal of the Fed is to keep it at 2%.  Why is it that I bought a box of Cherrios for almost $7 when a year ago it was about $4.50.  That’s about 35% higher than last year.  How is that 2%?  Watch this clip of the recent hearing on the subject. 

I understand inflation to be“the overall general upward price movement of goods and services in an economy” (BLS) but what goods are they using because most products I buy (gas, rice, cereal, coffee, meat) have all risen dramatically over the years.  The Bison meat I regularly buy is now $15 when a year ago it was $8.87.  That is not the 2% I see reported. 

Here is a great chart comparing today’s BLS numbers to the methodologies of 1980 Shadow Stats:

The inflation rate would be above 10% using old methods which leaders change to fit their agendas.  People should be in an uproar about these increases. 

If you have seen this any differently let me know.  What?  Oh, you haven’t, okay.  Then let me continue.

What I get for $400 now is not what I got 1,2 or 3 years ago.  I have 3 children, 2 dogs and a cat to support.  The amount of money as a percentage of income spent on every day expenses has risen drastically and I’m sure you see it as the same.  This leaves me to ask what the hell is the government doing that pushes these prices up. 

Too much! Printing money! Entitlements!  Wars!  Whatever it is its not working and hasn’t for years. 

See for yourself

What they say and what I see is not the same thing.  I don’t care who is in office I see the same thing.  Government growing in order to fund this or fund that or pay for this or that and printing money to do it.  Whether its paying for wars or entitlement programs it is a crazy scheme that only hurts us simple people in the pocketbook. 

Inflation numbers are reported to appease those who don’t know any better.  I like to refer to these websites and compare what each is reporting and how they are reporting:

 Shadowstats, BLS, Federal Reserve, Cato Institute, Congressional Budget Office,  and Brookings Institute. 

There is something they aren’t telling us and what I recommend is that each and every person stop listening to what leaders are saying and get educated because what we see and hear is spun to show one side only.

Currency War

It’s a never ending currency war that causes this.  People should understand what leaders are doing and how they are doing it.  Over the years this is something I have been dedicated to. Not to write this blog but to help my family survive in the coming years the way I want to and not the way the government tells me to and if I can help my local community then so be it.  I am no expert but it is a hobby of mine and we need to understand what works. 

Why don’t they teach this to our children in schools.  Hmmmm!  Following the money is the key to seeing what politicians and leaders are up to.  

We should all understand what inflation is and how it affects us.  Maybe even anticipate inflation and invest correctly.  There are measures to bypass this but it’s not what leaders want since it would hurt their efforts to print money and inflate to compete globally.  Check out this book on that subject. 

Why is the interest rate on my savings account so low?  Because they don’t want us to save but need us to spend.  We are addicted to spending and leaders count on this to “help our economy” but since the spending is down they need to devalue our currency and try and grow exports.  Sounds complicated but really it’s not because the spending is what’s wrong.  There is no end to it but in our own households.  

My wife and I have spent valuable time asking ourselves what is important when it comes to our finances.  We have watched our spending closely but it’s difficult to keep it down with the kids school supplies and lunches and the dogs need food and every vet bill comes to $200.  There is no end unless you scrutinize every area of spending.

Sit down and evaluate all of your spending.  Get a program if you can.  I still use Microsoft Money from 2004.  They don’t make it anymore but it still works well for us.  Quicken makes a good software program and I recommend it.  Websites such as Mint, Budget Tracker, and Budget Pulse  are all good websites that are safe to use.  Every year we evaluate our spending the year before and 2011 was the first year where we saved more than spent.  Most spending in 2010 was paying debt and we finally did it which feels good. 

Stop Spending

These are different times and what I’m seeing everywhere is that Americans are upset because they are addicted to spending and now have to cut back.  Cutting back on purchasing is frustrating but we need to put it into perspective.  Look at what’s happening across the globe.  We don’t know what real cuts are and we have this luxury because of the United States reserve currency.  Other countries don’t have a reserve currency to fall back on but we are not immune to the austerity others are experiencing. 

Do you think the Arab spring happened just because they have corrupt leaders?  NO!  It’s just as much, if not more, that the price of bread has risen 10 fold as in Egypt’s case.  The press and government would rather you focus on the corrupt leader part even though for 50 years we have propped up these leaders only to tear them down. 

Plan

That won’t be the case for long.  Look at the numbers for yourself and see what the future holds.  Don’t believe what the politicians or press are telling you. They promise lots they can’t give and what it comes down to is that you need to focus on what’s important for you.  I am scared for my family which is why I have focused on what is important to us and not worry what others are doing.

I had friends hit it big a few years ago and it was difficult to see them fall hard and cut back on the lifestyle they were so accustomed.  I made the mistake of overextending as well until I finally said enough.  With the help of my wife of course!

The struggles I saw helped me to keep true to my family and what was important for the future I wanted and could control.  I saw people around me lose everything and if we all would have just kept money in the bank and spent less than we were making these past years would have been different.

I learned to go back to the basics.  The Bible says it, gurus say this, and successful people I came into contact with who did just fine in this depression say this. Spend less than you make no matter how hard it is, save 10%, and give 10% of everything you make.  It’s back to basics.

Below are some books I like on the subject

It is really up to each individual to see if these are reasons to rent or own but these days it looks like renting is the better option.  Our mortgage payment on the last house was less then our rent now but when you factor in taxes, interest, and maintenance it was about $600 more which we made back when the house was sold.  Take into consideration these simple things when purchasing and spread it out over 5 years to see which would be the best option.  We are planning on moving soon so it made no sense to own and we made a little money by selling anyways.

Rental Property

Look at rental properties because it will be a long time before rental properties are this low.  We are going to look for a property or two in the near future.  It is up to you to understand if owning rental property is for you but with the prices today it is a good opportunity to get into this as someone else could be paying the mortgage on the home while you collect the rents.     

Gary Shilling says there is too much inventory to have a recovery in 2012.  He thinks prices will continue to fall over the next 2 years.  So if you want cheap houses for rentals then go for it.  Prices are down 2.4% to $154,000 on average. 

I know many people buying up rental properties and it is something that people should look into as I believe this is key to having extra forms of income and this is a no brainer in a future that holds more renters than this country has seen in the past 30 years.  Plus, rental rates were up 3.75% in 2011. 

Take into consideration your area’s rental rates and home prices to see if this is a better option for you.

Conclusion

People have had a bad few years economically and real estate was at the center of this.  I have racked my brain to see what I did wrong financially and many things came to light making it hard to see but necessary to do.  At the heart of this is real estate decisions but the last purchase we made was the right one and the next will be as well.  Hopefully people will stop hearing what the mainstream press is saying and look at how they are individually and make the right changes because that is the only way people are going to get out of debt and make the proper decisions.

Below are some resources I have read that helped me to change my thinking.