We are devoting our column this month to a problem we have called, for the lack of a better name, “feeding the beast.” This isn't a new problem but it has been exacerbated due to the downturn of our economy. Since writing our book, “Debt-Free On Any Income,” we have had the privilege of speaking to a variety of people. We loved them all even though not all agreed with us.
Recently, we have had quite a few talks with people who have found themselves in what they consider desperate circumstances. After our economy took a downturn, many realized just how wide the range and how large the scope of their own problem. We speak of the seductive lure of materialism. This problem was addressed by the prophet, Mormon, many centuries ago: “Behold, I speak unto you as if ye were present, and yet ye are not. But behold, Jesus Christ hath shown you unto me, and I know your doing. . . .For behold, ye do love money, and your substance, and your fine apparel, and the adorning of your churches, [ and your houses ]1, more than ye love the poor and the needy, and the sick and the afflicted.”
Today many people are feeling trapped and even a bit frightened. They face a mountain of bills each month and they feel they have lost all sense of security. They wonder if they will become the next victim of a shaky economy. They are, indeed, staring into the gaping jaws of a hungry beast.
How could so many have become its prey? It was easy. We have all been lead down a seductive path. We have fallen prey to a culture where spending is the norm. Even our political leaders urged us to “Spend! Spend! Spend!” “Spend for the good of the country! Don't take use our stimulus money to pay down your debts! Don't hoard it by putting it into savings!”
For decades we could not turn on the TV or tune in the radio or pick up the mail without being enticed to take out another credit card and spend more. We couldn't speak to a friend without talk turning to some wonderful sale at the local market or talk about the latest fashion, automobile, or home furnishing purchase they had made. Even if you are part of the elite group who has no debt, you may not be immune from the pain caused by this beast. If you are not its prey, your neighbors, your friends, even your beloved children may be. Slowly, almost imperceptibly, a great many of us have become slaves to the beast. We fear that if we can not keep him fed and happy, he will turn and devour us.
Nearly every day since last September's stock market crash, we have heard stories about outrageous indiscretions of corporate bosses, financiers, and Wall Street tycoons. We can stand aghast at all these corporate follies, but these foibles alone have not caused our present morass. We have all played a part.
Are you aware that the current consumer debt level in the United States is $2.57 trillion dollars and do you know that it rises exponentially every year? In 2007 it was $2.46 trillion, and in 2006 it was 2.398 trillion. At the peak of our economic bubble, just a little over a year ago, the Federal Reserve reported that we were spending 14.3 percent of our after tax income simply on the service of our debts. Is it any wonder that almost half, forty-three percent, of American families spend more than they earn each year!
Servitude to the beast is so embarrassing that most suffer in silence. Because of this we are little aware of the size and the scope of our problem. Those who serve the beast are just ordinary people. From all outward appearances they have no real financial problems. These people pay their bills on time and look affluent. No one sees the mostly quiet beast in their home until a sudden reverses of fortunes exposes its slimy underbelly. Its victims are surprised. They might not have even been particularly wasteful nor irresponsible. They were simply lured by the siren's song.
There is another insiduous side to this beast. Recently, we spoke to a man fresh out of prison. We asked him what he thought was the biggest reason people ended up behind bars. His answer was immediate and it surprised us. “Stuff!” he said. “Everyone is obsessed with buying stuff. No one knows they do it! Mothers and fathers both go off to work so they can afford more stuff and children are left alone and sometimes they get into trouble. That's not an excuse, it's just an observation. I sure wish people would wake up and realize that what children need isn't the newest or the best, they just need Mom and Dad.”
The beast has lied to us. We can't come out of a morass by spending our way out of it. We can't change society's dynamic by throwing even more money at it. The only way to slay the beast is to starve it. But talk is cheap! In the coming months we shall write columns designed to helping you to live on less. We hope you will find some suggestions to take you through these tough times. Our columns may be hard hitting, but they will also be chock-full of how-to's and savings tips.
In the coming months we shall talk about owning a home without it owning you, about saving energy and trimming your utility budget, about how to keep your car from driving you to the poor house, and about saving money on clothes, medical needs, and even Christmas. We shall explore the world of insurance, talk about finding waste in your budget, about financial infidelity, and about having fun with your family on a shoestring. We shall also talk about surviving unemployment and underemployment as well as other current topics as need arises.
We hope you will send us your feedback. Together we will weather this storm. No one's situation is hopeless. We can conquer this beast. We will remember the “Stripling Warriors” who obeyed their mothers and did not doubt. Not one of them lost their lives in battle and neither will you in this battle to control your finances. Just keep your faith strong and your hope bright. There is always a way.
Next month we shall begin a discussion with: “The High Cost of Eating Out.” If you would like to send along comments and suggestions for next month's article, address them to editorial@meridianmagazine.com and put Shamo in the subject line. In the meantime, keep your head high and your chin up. You will conquer the beast!
Notes
1 The Italics are our own addition
