Living Beyond Your NEEDS

Now, we've all heard the term "living beyond your means" but I think it's more important to evaluate your needs rather than your means. I've been doing a lot of thinking about this topic lately, and I've come to the decision that this problem has been a large contributor to the dismal state of our economy. People are running out and buying a big expensive house, buying a nice new car every few years, throwing money around because they can, or THINK they can afford it.

What's wrong with saving? When did saving become such a faux pas? Just because you can afford a big house doesn't mean you need one. What happens if you lose your job? What happens if you get sick and can't go to work? What happens if, for some horrible reason, you are no longer around to make that money and pay off that mortgage? What happens to your family then? They're stuck with a huge deficit and no, or very little, income.

I really don't know why people who have small families think they need all the room that a larger house provides them. All it provides you is extra dead space which you're forced to fill with more things. Doesn't make sense to me. It actually seems a little snobbish. People have begun using their possessions to show others that they are better than them, that they can afford more because they're more successful. Not only does that attitude get people into the messes they will eventually find themselves in, living in a house they thought they could afford, but no longer can, but it also leads them to classify themselves differently and divide them from others.

It's sad to hear about people losing their homes, and it's easy to blame it on the mortgage companies (who do have a bit of blood on their hands), but when it comes down to it, who signed the contract for that loan? Who told the mortgage company they could handle it? In most situations, the reason people are losing their homes is because they bit off more than they could chew. It's irresponsible and although it's sad, it could have been prevented if people had been more fiscally aware of their needs rather than trying to establish a status symbol to show off to the outside world.

Now I do understand that there are unforeseen circumstances that come up in life, but that leads me back to one of my first points. When did saving become such a bad thing? If you put aside money for an emergency, you'll be able to dig into that money when those unplanned events pop up. But the only way you'll be able to put money into that "rainy day fund" is by focusing on your needs, rather than your means or your wants. We all need to be saving, so we don't find ourselves in a situation we can't dig our way out of.

~~Steps off of soap box~~

And that's what I'm thinking about today.