Financial Crisis

We are in the throws of an economic disaster. We are making history. Our children and grandchildren will read about the economic crisis of the thirtieth century in their history books. America has entered into another depression.

And its condition is great. No one is safe. We are all affected by the turn of events and the declining value of the stock market.

The financial crisis has impacted my family from all facets. Job security, retirement funds, and bank accounts are draining.

A close family member has worked for a prestigious company for eight years. Last week the company terminated ten percent of their workforce. Thankfully, she was spared. However, she did have to take a significant pay cut. She is now living with eight hundred dollars less a month.

I recently received one 401k statement. To my disbelief, I had lost more than ten thousand dollars. In one account! I’m loosing money and I’m loosing it fast.

Granted, I’m only thirty-one years old and have time on my side. I know the stock market will come around and I will eventually get my money back and continue to make more. But the declining value of the stock market is nevertheless discouraging.

I have generated a plan to help minimize the negative effects of the economy. Some ideas are easy, but some will be hard to implement given my current lifestyle.

I will stop unconscious spending. I will become aware of the items put into my shopping cart and examine my needs versus wants. I need food, but I want the new pair of jeans. Strict disciplinary measures must be forced on my spending habits.

I will use coupons to reduce spending. I will clip coupons from the Sunday paper and take advantage of websites that offer discounts. One useful website I’ve found is

I will stop using credit cards. Credit cards encourage consumption. They distance the consumer from the act of placing hard earned cash in another’s hand. Most people don’t realize the money they’ve spent until the statement shows up in the mail.

I will limit my dining out. Yes, this does include my daily fix of caffeine at Starbucks. To help put more money back into my pocket, I must stop eating out and prepare healthy, delicious food and drink at home.

I will find a part-time job to supplement my income and make up for the deficit. This money will be put into a savings account used for emergency situations. Financial leader, Suze Orman, suggests every American have an emergency fund to last for eight months.

I will have faith in the stock market. I will not become scared but trust in the financial institution that has made America prosper. I will understand that this economic situation will last for a time and I will wait for it to turn around.

As history repeats itself, the economy will get worse before it gets better. But with the steps listed above I will be able to come out of the economic crisis with confidence and have better money management skills.