Living within your means

I have talked to many people who feel being on a budget is like having a straight jacket on and someone telling them what they can and can not buy with their hard earned money. That is not the case at all. Living on zero based budget is merely a tool that helps you to live within your means.

Living within your means is defined by the financial experts as saving some of your paycheck each month and having no debt. The Federal Reserve did a survey of consumer finances in 2001, and the survey showed that about 14.5% of Americans consistently spend more money than they make. These people are in pretty big trouble. That is one of the reasons why we are in the situation we are in now as consumers and as a nation. 26.3% of Americans spend as much as they make or more. According to studies many Americans actually spend $1.22 for every $1.00 we make. That means we are going in to debt an average of 20% for every pay check we make.

If you can find a good financial advisor who will guide you through a zero based budget process, it is really not bad at all. It is merely spending every dime you make on paper on purpose before the month begins. A budget removes the fear of being in the middle of the month and not knowing how you will get to the end of the month. A budget helps a married couple communicate better. A budget will cover every possible expense that would occur in time, so you are not borrowing from Peter to pay Paul. A budget is merely spending what you make and no more!

If you are in fear right now of getting through the next month and have debt up to your eyeballs the best thing you can do for yourself, your family and our economy is to get on a zero based budget TODAY! It's not too late. You have to start WHERE you are, no matter how bad you think it may be.

Guilty as charged!

Today I was reading weekly newsletter from my local senator and I came across something that shocked me. Now I am not sure why I would feel something from a Senator would NOT shock me, but in any case, I was really shocked this time. The government has decided that it is necessary to appoint a special commission called the "Financial Crisis Commission" that has until the end of next year to determine and examine the cause of our nations' financial crisis.

Now, I am not at all about pointing fingers, but I am shocked that it takes a committee of 10 men over 18 months to figure this one out. "What and who was the cause of our nation's financial crisis?".

Well, I am one person and I can tell everyone in a matter of 1 second without thinking twice about it and it costs tax payers nothing, that WE ARE ALL GUILTY! Yes, you, me and THEM. We all purchased things that we THOUGHT we needed to impress people we do not like with money we did not have. Including the United States government.

We are GUILTY! GUILTY! GUILTY!

One thing I will agree with the Senator on is that "it is imperative that we get an objective evaluation to find out what went right, what went wrong and what we must do to prevent it from happening again," but to try and figure out who done it, well that case is CLOSED!!!