Fiscally Responsible America

I have to admit that I fit in the category of not being as fiscally responsible as I should. I am not tightening the spending habits of myself or our household to a point where it may feel like it is limiting, and we are spending more than we should, and that leads us to live paycheck to paycheck.

I was alarmed to read the following article and see the percentage of Americans that are living paycheck to paycheck, and am really concerned.

http://www.theworkbuzz.com/current-affairs/are-savings-accounts-a-thing-of-the-past/?cobrand=msn&siteid=cbmsnmnbuzz

Just in the last year it has risen 16%, that is a huge number of Americans that are new, to having to live paycheck to paycheck. I fall into this category, but we have been working our way out of being unemployed for a number of months last year and earlier this year. We have been talking about it and looking for opportunities to implement it, and as I sometimes do, not think about it when I have time to work out the plan and implement it. Well, for me anyway... now is the time. I look at this article and realize that if over 3/4 of the US is living paycheck to paycheck and our Gov is more in debt and spending more than they bring in every single minute of every day, then we are definitely headed for a financial meltdown that could really cause everyone to suffer. I know that there is talk in Washington about fixing the deficit, (not certain how that will be accomplished) but I do know that it could mean higher taxes. If they raise taxes to help offset the budget free fall, and most Americans are living paycheck to paycheck then where is the extra going to come from?

I see it a couple of ways..

1. Those living paycheck to paycheck will start spending less and get more and more under the poverty line. When they do that it in turns slows spending at retailers and other services which (we have seen over the past few years) directly effects that stock market and causes mass panic in and around the economy, causing companies to layoff and tighten their belts. This could be cause of more people on unemployment and will have a harder time finding work.
   
2. People will have to lower their expenses (not that this is a bad thing) but they will stop buying bigger homes and nicer cars. Both the Housing and Auto industries are embattled already and will take further hits, causing more widespread issues in the economy. These are two of the industries that Obama tried to fix in dolling out over 700Billion. Nice to have all that money go to waste... NOT!

I am going to try and do my part in getting our own financial prowess fit, trim, and ready for the storms ahead. It will not be easy, or pleasant to think more about saving than what is it that I could get with this extra each month, but it will much better for our family, and I think in some very very small way, will help the country. If we all were working at this (which I am sure many many are) then we would ease the financial roller coaster that we are all on. I know that most of the people in that 77% are so deep right now, or have had situations out of their control that have gotten them there. I do know that in some cases there was things they could have done before the downturn of the economy this last time that would have lessened the impact. I hope that each of us can take the time to get financially fit for the rough times ahead and that starts with me.