Published: August 27, 2008 11:02 am            

Shopping is not a sport

Seventy percent of the families in our country are living from paycheck to paycheck or worse, according to news sources. Credit cards maxed out, utilities turned off, automobiles reprocessed, house payments in arrears with many being reprocessed. So, “What to do”? Is the federal government (taxpayers) supposed to bail them out?

What’s the problem? My Daddy called it living above one’s means. People use credit, which compounds their problem. Rule No. 1: Interest paid out is money lost while interest collected is money earned. The difference may be the most important part of managing the family budget.

So, what was bought on the credit? If you take the advice of Suzy Orman and her TV money management discussions or any other money adviser, you will hear about Wants vs. Needs. The ticket to financial disaster is buying wants on the credit when you cannot afford needs.

Then, some chronic credit shoppers and money mismanagers want a taxpayer bail out! Why should they? Why should those who manage their resources and save for the future be required to bail out the irresponsible?

Most members of our country are very generous. We support our churches and community as well as individuals having unexpected hardships. In fact, we may well be the most generous people on earth. However, most of us have an important requirement. We prefer our donations be directed to a cause of our choosing. When government determines that for us, we are seldom thrilled, especially when it’s a gift we believe undeserved.

An excellent example of “Government helping the needy,” according to news reports, is for the federal government to lower interest rates. Rejoice! Rejoice! There is one tiny problem with lowering interest rates.

There are millions of people, many beyond their working years, who have managed to put away a few dollars to draw a modest interest badly needed to survive the world of medical bills, taxes, insurance and hiring things done they are now physically unable to do.

As interest rates lower, many people who helped make things work for many years must delete some items from their lifestyle. However, it helps bail out those who are in financial trouble for mismanagement. In effect, thousands of people who managed their resources are forced to forfeit for the benefit of those who mismanage their resources. How does that fit in the right or wrong classification?

If everyone could learn spending self-control, a few bucks would be squirreled away for that little emergency that is sure to happen. Unfortunately, it’s easy to convince ourselves that our wants are really needs.

Worse still is to convince ourselves of the standard lie, we deserve it, when we haven’t earned it.

Spending is not a sport, thus the person who collects the most stuff is not the winner. If it were a sport, those responsible for themselves who provide some assistance to the less fortunate would hold the winning hand.

Just something to think about.

Thanks to those serving and those who have served in military services for protecting our freedom.

Ott Johnson is a Perkins writer.

        

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