Personal Responsibility: Making Wise Choices Regardless Of The Financial Forecast
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The last couple of months have been a complete roller coaster ride in terms of the economy.
Over the weekend I had the pleasure of pumping gas at $2.19 per gallon. I was in unleaded heaven as I looked up at the final cost of a full tank of gas: $27.27. If this were a Mastercard commercial I’d have to say that this moment was ‘Priceless’!
But what the heck is going on here? Just a month ago, that exact same liquid, from the exact same pump was costing me over $4/gal. How in the world did the price of gasoline drop, almost by half, in a months time? Did Exxon start shopping at Walmart? Was this a watered down version of the same fuel? I’m sure there is a logical explanation of some kind, but to the every day consumer, IT JUST DOESN’T MAKE ANY SENSE!
There’s no doubt that these are some very uncertain financial times. Big companies that seemed indestructible have crumbled like a house of cards. The stock market has been making records of the negative kind while consumers are holding tight to their hard earned cash, which is having a negative effect on businesses of all kinds. So we can all understand why many people have been suffering from a little bit of financial anxiety.
So when I was able to get gas on the cheap, it was if someone had lifted the burden just a little bit. It was a glimmer of hope that maybe things were starting to improve. But the fact is, we are a long way off from the kind of positive progress we all hope for. Just as the gas goes down, something else will inevitably go up. This will be an up hill battle as we try to ‘fix’ this broken machine that we call the economy.
The ‘go with the flow’ mentality.
As a society, we have a tendency to ‘go with the flow’. When the money’s rolling in and everybody’s ‘feel’n lucky’, the heard mentality says to go for the gusto. Buy the new car, upgrade your house, purchase that flat screen TV at no interest and live just beyond your means; on a good day. We are constantly bombarded by commercials that tell us we need MORE! The ‘Joneses’ are next door and they have some things that you don’t, which you plan to ‘remedy’. The money’s coming in and your only concern is where to siphon the funds. Life is good!
But unfortunately, with every few days of sun, you are most certainly going to see some rain. And when the water starts to flow, you better be prepared or you going to get wet.
If you’ve watched the news lately, you know that many people are now losing their homes, businesses and sometimes the shirt off their backs. Heck, you may be one of them. But even if you’re not, I can assume that many of you are at least ‘feeling it’ a little. I know I have recently felt the ‘sting’ of this bad turn of events. But how much of this ‘economic anxiety’ is our OWN faults?
Personal responsibility.
Let me start by stating that this is in NO WAY a political post. I have no desire to ‘debate the issues’ on my blog and am not promoting a red or blue opinion. I am just here to state some facts of life as I see them from my red headed noggin’.
Ok, let’s slow down here for a minute. That sentence above, “…how much of this ‘economic anxiety’ is our OWN faults?”, is not my attempt to point fingers or bring up who did what, concerning this corporate crash or that financial flop. I’m instead focusing on a much smaller level of responsibility that starts and ends with the individual.
Let’s take another look at the gas issue. The fact is, I had no control over the prices at the pump, but I did choose which car to buy. If I bought a vehicle that only got 10mpg I would certainly be feeling it more than I am, having purchased a compact car. So my level of financial anxiety is less than that of ‘Joe SUV’ down the street.
OK, so now we’re at the point where some of you are thinking, “I have a family of 5 and we NEED a bigger car to get around.” You’re absolutely right. In your case, you may be forced to purchase a ‘thirsty’ car that has the room you require. But what about some of the other choices you’ve made that are now coming back to bite you on the butt?
My point is that many of us (I’m raising my hand as we speak) have made way too many bad decisions that seemed fine when the money was flowing, but now looks to be less than responsible. But unfortunately I’m seeing all too many fingers being pointed in every direction accept the one that matters most.
One argument I hear a lot is, “How were we to know that things were going to get this bad?” Well, the short answer is…we didn’t. Or, at least most of us didn’t. But the two thoughts that come to mind are:
- No matter how good things look, we should always be prepared for the worst. If you don’t have a monetary cushion (once again, my hand is raised), you will eventually get caught with your pants down.
- Look at the housing bubble. As one of the biggest burdens on our economy right now, the housing crisis could be seen from miles away. I remember, just from listening to the regular old radio a few years ago, hearing many voices shouting that this ‘bubble’ was going to pop. And that when it did, everything and everyone would be effected. Unfortunately, most of us chose to ignore this warning (hand raised one more time).
Making better choices in the future.
I want you all to know that as I type these words I am thinking about myself and the poor decisions I have made in the past. I’ve really seen this economic crisis as the kick in the pants that I needed to get my non-frugal butt in gear. But I suspect that some, if not many of you can relate to the fact that we as consumers have been driving blindly for the years leading up to this recession. And it’s now more important than ever that we do more than just ‘get through this’, but instead change the way we view and use money.
So let me encourage you to take advantage of the ‘heat from the flames’ as you use this ‘tight time’ to adjust your finances. Try to make LASTING changes that won’t instantly adjust as things loosen up. Figure out what choices you’ve made in the past that are now leaving you the most anxious, and decide what you will change to prepare for the next roller coaster ride that most definitely lies ahead.
But whatever you do, don’t waste another minute pointing a finger as you try to make sense of this ‘mess’. There are certainly those to blame, as there always are, but the most impact you will make as you push ahead, will come from your own actions as you take personal responsibility for your future.
11 Responses to “Personal Responsibility: Making Wise Choices Regardless Of The Financial Forecast”
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Eric,
Just subscribed to your RSS feed and am now following you on Twitter. Loving the blog so far.
I am embarrassed about it… but I truly do not understand economics. I don’t understand them when things are going well. I don’t understand when things are going horrible, as they are now apparently. I need to read an economics for dummies book or something, hehe.
I am actually unemployed right now. I am not affected by the crisis too much though because I have no degree and can only get entry level jobs, which are always abundant. Also, I have not invested any money yet. Also, I don’t have much in my savings account yet!
I just hope that the people who have worked their behinds off do not get screwed over in the end. I hate when bad things happen to good people.
I am definitely trying to be more frugal these days though… regardless of the economy.
- Jack Rugile
Simple Sapien
Simple Sapien´s last blog post..Simple Challenge #3: Show Your Appreciation
Great post Eric! I believe that there is no use worrying over things that are outside our circle of influence. Worrying about things that we have no control of only adds up to our stress level which is what we don’t want. How we are living now is the conscious results of what choices we had made during the past and pointing fingers or finding a scape goat doesn’t really help in anyway.
What we can do is to learn to make wiser decision and live consciously.
Cheers
Vincent
Personal Development Blogger
Vincent´s last blog post..How Changing Your Beliefs Can Bring You Success Part 1
“But I suspect that some, if not many of you can relate to the fact that we as consumers have been driving blindly for the years leading up to this recession”
If not driving blindly, at least riding in the passenger seat with someone who IS driving blindly.
I’m not going to get all political either. I hope. I believe some of us have been riding with the media who have a tendency to drive us where ever we go (I’ll raise my hand here). It’s not healthy. I’ve tried over the last couple of weeks to NOT watch the news. I may not be in the know, but it seems the less I know the better off I am.
I’ve used this phrase before. The economy right now, I think, is in the middle of an economic warm boot. Getting all refreshed and starting over. I agree with you in that, we also need to have a personal economic warm boot and re-evaluate our finances. If everything works out, once the economy has completed it’s reboot, we will have too and we will be ready to pickup with the economy and boom again.
Great post Eric! Very well thought out.
Scott´s last blog post..Motivationallessness
What we are seeing now is called market correction. Everything is cyclical. We are not witnessing anything at the present, that we haven’t witnessed many times throughout history. It really is about personal responsibility. The people who have no worries in regard to their mortgages right now, are likely those who played it safe and didn’t buy property they couldn’t afford, just because the rate was low. Things will get better, they always do, but we need to understand how each and every one of us is a part of the entire organism.
Writer Dad´s last blog post..Let’s Get Our Kids Drunk! or Happy Halloween!
Great post Eric! You comment regarding “how much of this ‘economic anxiety’ is our OWN faults?” is one that needs to be asked and answered by each of us.
I actually post on my blog an article today entitled “The Economy of Greed” and it partly tackles that issue of keeping up with the Jones’.
At the end of the day we all need to make better personal choices. Several months ago the lease on my Jeep was up and while I miss driving it, I don’t miss the full costs. I also changed work locations and now either walk or ride my bike into work. Small changes to be sure, but they’ve had a big impact of my pocket book and my health.
After reading Writer Dad’s comment, I don’t really have anything to add. I agree 100% with everything he said.
Personally, I’m ignoring the whole thing.
I enjoyed reading this post today Eric, and think you spelled the cycle out clearly. I just had a person who is a political scientist explain to me why the gas prices are falling and it made sense – we consumers are buying less gas – so OPEC could not get what they wanted for their barrels of the stuff – supply and demand…each driver in the world made a difference and so we influenced the market. Citizens did it and made the difference!
I think being older makes it easier for me to see how I have ridden out these cycles before, but I would surely hate to be retiring right now – I will need to stay working until there is a stronger recovery.
One of the things that makes me happiest about this downturn and this US election cycle is that I think younger folks got a reality check about civic responsibility. I think the US skipped a generation on the output for that value. One of my daughter’s graduating class is known as the largest group of Volunteers since WWII, my youngest child’s graduating class is known for being the most selfish and meanest kids to each other – I have heard one sociologist call them the “BLING” generation and another call them the “Paris wannabes”.
Wake up calls are good – think of all the possibilities!
Patricia´s last blog post..Hats Off to The Ladies of The Club
@Simple Sapien: I’m glad you are enjoying the content and I appreciate the vote of confidence.
“I am embarrassed about it… but I truly do not understand economics.”
Don’t worry, I don’t think a lot of us really know what we’re talking about half the time, anyway.
@Vincent: Well said. Thanks for you input!
@Scott: I think we’re certainly ‘rebooting’, I just hope that the operating system that comes back up is as strong as we’ve had in years past.
@Sean: Well said, Sean. As Vered said, “…I don’t really have anything to add.”
@Neil: Those small changes add up. That’s great that your walking and biking to work. Good for you!
@Vered: “Personally, I’m ignoring the whole thing.”
I think there’s a lot to be said for this mentality. It certainly helps keep the stress levels down.
@Patricia: I’m glad you enjoyed it. Thanks for sharing this useful information! Our market is built on supply and demand, so it makes sense that our gas prices would follow the same ‘rule’.
I think our younger generations are a mixed bunch. I sure hope they are moving in the direction you’re talking about. Eric.
Hi Eric,
This is a great post. I wish our politicians would talk more about personal responsibility. I like how Obama said in the final debate that parents should take more responsibility for their children’s education. It would be a good start.
As Jack said, Im adding your RSS and adding you on Twitter. I am including links for both your blogs on my blog. I think we are both on the same path and I hope we can work together more in the future.
Cheers,
Jeremy
Jeremy Day´s last blog post..11 Little Steps to Better Health
Hi Eric
Good post and yes I understand the points you where making.
Here in Australia we pay a lot more for fuel. We pay per litre rather than per gallon and If you convert it all over we pay equivalent of about $5US per gallon. On top of that we earn a lot less too. So fuel is a big expense for some people.
Despite this other habits have not changed. People still drive their petrol guzzling cars to work and still live the same lifestyle they were living when fuel was a lot cheaper. Something has to give soon.
I don’t understand economics but I sense that Australia is heading for financial trouble (independent of the US or the rest of the world) if we keep going the way we are going.
Leanne Magraith | Forever Change´s last blog post..Chocolate, Pizza, Ice Cream, Wine and the Comfort Zone
@Jeremy: I hope that ALL of our leaders will be responsible and expect the same from us.
“As Jack said, Im adding your RSS and adding you on Twitter. I am including links for both your blogs on my blog. I think we are both on the same path and I hope we can work together more in the future.”
I appreciate this and would love to be a part of your blogging success and vise versa.
@Leanne: I lived in London for a short time in the late 90′s and was shocked at how expensive ‘petrol’ was (as you said, by the litre). It sounds like, from what you’re saying, Australia could be right behind the US, which is a little scary.
Thanks for sharing you comments. It’s great to hear from different perspectives around the world. Eric.