I just checked my part time job 401K balance, even though I knew I shouldn't have and am a bit upset. Last week I was about $20.00 shy of $3000.00 and now I am at $2,731.91. That does not make me happy.... which brings me to my thoughts on the credit crunch.
This is all OUR Fault. The Bible says that you reap what you sow and what is done in darkness will come into light. Many of us were buying houses that were buying houses that we couldn't afford, and then we trusted the advice Realtors and mortgage brokers gave us without educating ourselves. We, including myself were using credit cards like they were cash and leaving above and beyond our means. Very few of us were saving money, and the nations savings rate as a whole is less then 1%. We put certain people on a pedestal (CEO's and wall street workers) and and expected them to act holier than us, when in fact they are just like the rest of us.
The damage is already done, so what can we do now. I do believe we need some type of bailout, and since I'm not an economist I don't know what kind is best but I do know what I can do for myself and my family.
1. Save at least 10% or more of my income, this is a must!
2. Get rid of all bad debt, ( really don't have any but $700.00 on a home depot card)
3. Aggressively pay off current debt ( car loan, student loans)
4. Live within my means
5. Continue my education so I can be more marketable and get a better paying job.
I think that's it. What do you think we as Americans can do to protect ourselves during these turbulent times.
Until next time, think prosperous thoughts