Spending beyond my means -

Rich Habits - 1B

https://www.cato.org/blog/marching-federal-debt-crisis

This kept coming to me, so I better write about it

Yesterday I wrote about “Living within your means”.  Save 20% of your income, don’t use debt (or use it sparingly), and more.

BUT - I needed to add a comment. (To myself)

DON’T BE TOO CHEAP, KAREN!!!

Yes, I can be too cheap!!!  I was happy last week when I got my electric bill.  It was the lowest it has ever been since I moved into my apartment 20 months ago.  Now, my apartment is fairly small - one bedroom.  Back in late February when the days were warming up, I turned my heating/cooling system off.  During the days, I would open the curtains and let the sunlight in to warm the apartment.  In April, we had a few days over 90, and again now.  I didn’t turn on the air conditioning - so my electric bill (it is an all-electric apartment) was low.  But, now, summer is here - and I will have to cool off my place!!!  

I have a goal (LMG) to be able to endow additional scholarships at Dakota State University when I die.  So, each dollar I save now can go for the next generation of students!!!  Now that is a nice goal - helping students get a great education!!!  (And, I’m just trading my own comfort for theirs!!!)  Okay, that is being too cheap Karen!!!!!

I drive an efficient car (2012 Nissan Versa) - and I get about 38 miles per gallon.  There have been some weeks where I’ve gotten 40+ MPG.  

And, I “paid” for that good mileage!!!  (Don’t be too cheap Karen).  I used to shift into neutral and coast to stop signs and stop lights - get that mileage up.  Well, that was hard on the transmission - and I paid for that when I needed a new transmission last January!!!!  (Yup - not too smart Karen!!!)

My closet is full of clothes donated to me - and bought at thrift shops!!  (Karen, you can go shopping - really - retail therapy is good!!!)

Yes, I don’t have television - most of the reason for that is I don’t watch TV that much - and I don’t want to see the news about COVID-19 (and now about the riots).  But, hey, that is saving me money - not to pay for cable TV!!!  

*****

Let’s take a detour in the other direction - spending beyond your income.  

The government is a master at spending beyond their income.  Our current budget deficit is $984,000,000,000 (billions) - our current debt is: $125,000,000,000 (that is 125 TRILLION).  We spend about 9% of the federal budget paying interest on the money we (the USA) borrowed.  Gee, that 9% could go for schools, roads, national infrastructure issues.

A lot of that debt payments go to China (and others) who buy up our debt.  Who knows, at what point will China say “Hey pay-up or else?”   

When you throw in problems - like stimulus checks to all Americans to keep the economy going in the COVID-19 crisis - and what will most likely be a sluggish economy for a while (that is, less income because more are not working), our debt will continue to rise and our deficit will also grow.  

It is a difficult tightrope to walk - keep the economy going but attempt to service the debt so it doesn’t get much larger.  

A quote attributed to Ben Franklin is, “The only two sure things are death and taxes.”  I will die sometime in the next 50 years - and I will not be paying taxes - but my children and grandchildren and great-grandchildren will be paying until they die!!!  

*****

Well - two thoughts - don’t be too cheap Karen (hmm - if it is getting stuffy in my apartment, time to turn on the air conditioning); and the government not able to live within its means,  

I can control only one of these things - and a few dollars spent on ‘creature comfort’ might keep my body happy - and maybe won’t impact DSU too badly!!!

Hugs!!!

Karen