Thoughts On Finance

Everyone understands that finances are tight and therefore many people are cutting back.  This does not necessarily mean to not buy presents for people but to be wise in what you buy.  Don’t overspend and try to keep gift giving simple.

In the past, I have always overextended for Christmas, coming out of the day in a hole and then spending most of January trying to get out of it.  I really thought that was normal, but this year, I stuck to a budget, and I can honestly say that I feel better going into Christmas than ever before.  I know that I still have a dime left and that I will be in good financial shape in the New Year.

People tend to over spend at Christmas, so that they can give to others, however, I can honestly say that I would not want a gift from anyone who was putting themselves in a hole to come up with a present for me.  I would much prefer a card or some cookies instead.  That would make me happier, and I am sure that no one on your list wants you to go into hock, just to present a cool present to them at the holidays.

Do yourself a favor, limit the gift giving to simple things, and what you will find is that you will enjoy the holidays much more than you ever have before.  I know I will.

The current economy is meaning big savings for consumers.  This has a lot of people watching the stores for ads and sale days, and waiting to buy the items they want on sale.  This is a great idea, but watch out, because the stores know that you are looking to save money, and they are all juggling their sales so quickly, while altering their prices, that a savings may not really be a savings at all.

Let me sight an example.  Recently I received an e-mail from a popular clothing store that usually charges a lot for their clothing.  The sale e-mail said it was 30% off of everything, including clearance stuff, which we all know is unheard of.  Also, shipping was free over $100.00 so I took advantage of the sale and placed an order for some great items.  One of the things I bought was boys shirts, which were on sale for 2 for $30.00 and then I got an additional 30% off, which made these shirts about $10 a piece.  I placed my order and not 24 hours later, I received an e-mail telling me that they now had everything 50% off, so I really thought I had been had.  I went back online to look at these shirts that I had purchased the day before, and they were now priced at $34.50 per shirt and so with 50% they would cost me $17.25 per shirt, a good $7 more than I had spent.  I was relieved, but this just goes to show you that a sale, may or may not really be a sale.

It is important to shop around and even re-shop the same stores over and over again to insure that the deal you are getting is really a deal.  Realize the consumers are looking for the deals, and so the stores may make you think that you are getting one, even when you aren’t.  Shop wisely and you will see that there really are some great deals out there, but don’t be fooled by the make-believe deals that some stores are putting out.

We all know that the financial status of the country and the world, is grim at best.  In these trying economic times it is important to remember that there are people who are worse off than you are, and it is definitely a time for giving.  Giving is not just something that you do for others, but also for yourself.  With so many people falling on tough times, it is important that as we go through this holiday season we remember that things could be worse.  If you are lucky enough to have friends and family to spend the holidays with and you have a few gifts under the tree, then be sure to give back.  You never know when you will need help, so giving can be a very important thing.  We all hope that if we are ever hit hard enough that there will be someone willing to lend a hand.  Just think about all the people who will be unemployed this holiday season, without work, struggling to pay their bills and completely unable to buy any sort of presents for their children.  Think of all the soldiers and their families who will have to celebrate the season without their loved ones.  Think about all those who have lost a loved one, in the war or otherwise who will never spend another holiday with that special someone.

This year, buy a few less gifts for your loved ones, and instead donate to a charitable organization that will help out those who are in real need this holiday season.  It is not too late.  Give a little or give a lot, but definitely give.  After all, giving is really what the true spirit behind Christmas really is, and although it may mean forgoing something you really want, your heart will be warmer on Christmas knowing that you made someone else’s day a little brighter.

There has been a lot of press given lately to the fact that the major auto manufacturers, General Motors, Ford and Chrysler are asking for a 34 Billion dollar bailout for their companies.  As are many average Americans, I sit and wonder why it is the average American’s are struggling but the big companies can get help, and we sit completely helpless, waiting and hoping for things to turn around.

Unfortunately, I have learned that the main reasons that these bailouts are necessary is to save the overall economy of the country.  I did see that with the banking and credit industry, however it didn’t make as much sense to me when it came to the auto industry.  Sure, I could see that it was going to put the people in the auto industry out of work, which obviously would cause great economic hardship, especially in areas of the country like Michigan who rely on the auto industry to support most of the other businesses in the communities, however, I was really unaware of the ripple effect that the destruction of this industry would have across the country.  The fact that I didn’t consider and really was completely unaware of, was the fact that the US auto manufacturers are the biggest purchasers of American-made steel, aluminum, iron, copper, electronics and plastics. The decline of the American auto companies is one of, if not the most important, areas where our economy is struggling.

Expert financial analysts predict that allowing the US Auto Industry to fold would be one of the biggest hits to this country’s financial state that has ever occurred.  They feel that in order to keep the economy even remotely stable it is going to take a bail out of significant proportions of the US auto manufacturer’s.