Consumerism, Reality, and Debt
After watching
cosmos.bcst.yahoo.com/up/player/popup/?rn=49750&cl=3892900&ch=61492&src=news I decided it was time to make my opinions known on this subject of American consumerism and its affect on debt. Many Americans spend more than they earn, have large debt, and live well beyond their means. People like Dave Ramsey or this family have shown us how we can live frugal, cheap, meaningful lives.
I call bullshit.
I don’t think it is possible for the average American to enjoy life by being extremely frugal. Time is money, and spending hours planning meals, scouting for coupons, and going to the grocery store once a month is just plain stupid. I, unlike this family, like to enjoy wine, whiskey, firearms, and the independence of owning a car of my choosing and driving it whenever I feel like it. On the one hand these things cost money, perhaps more money than most of us make and we end up in debt and have to constrain ourselves. On the other hand we can be frugal but we are constrained about what we can and cannot do as our life passes us by. We wait and hope that one day; we will finally achieve financial freedom and live the life we always dream about. This theory is very much like Christianity, work hard and suffer in this life so that things will be okay in the next.
I don’t think so.
I don’t know what will happen tomorrow and I believe in living in the now. That said I don’t waste my salary on hookers & blow and I always save 10% but I don’t flip out about debt (at least not unsecured loans). Many of these financial gurus give ridiculous advice about paying off your debt as quickly as possible so you can achieve “financial freedom”. I don’t know if these guys get a check from Chase from saying that but its total bullshit and I will explain.
The first rule is to always pay yourself first. No matter what, save at least 10%, this should be like a religious doctrine. Screw credit card companies, creditors, bills, pay yourself 10% off the top. That is what you get for busting your ass for the man from sun up to sun down every day. The best advice is to put that into an IRA were you can’t touch it easily and if you do you get hefty fines. Don’t put that into a savings account where you can “point and click” and get the money for an “emergency” like a really good sale. This money is for you, not some company that turns out plastic crap. The second rule is to moderate spending on consumable items and non-durable goods. For example, alcohol is a consumable item. Sure it may give us all reason for living or NOT chocking out that asshole in the cubicle next to use, but everything in moderation. Same goes for non-durable goods. If the item you are buying has absolutely no value after 5 or so years then do you really need it, can you resell it if you had to? For example my hobbies tend to be expensive but I really don’t worry about it. Firearms don’t depreciate in value much; in fact they may even appreciate many cases. Video game consoles, designer clothes, electronics all eventually break, get outdated, or get destroyed. In 5 to 10 years that crap you bought that was made in china is now worth nothing. Keep this in mind when you make your purchases. Its better to buy jewelry than designer clothes, at least one retains their value long after you purchased it. Third, the only real debt that should concern you is secured loans. Such as your car and your house (assuming you own one). Pay those bills first. Some people always stress about credit cards, and to this I say, “Why are you stressing about an unsecured loan?” The beauty of an unsecured loan is that you can just walk away from it. Lets say you have $30,000 bucks in credit card debt and one day you just say, “Fuck it, I’m not paying it”. Well guess what, it’s not your problem anymore. Sure the creditors will call you ever day, harass you, and threaten you but they have no legal right to and they can’t get their money back, all they can do is give you a nasty credit score. So my question to you is how much is a credit score worth? If it will take you roughly 10 years to pay off $30,000 in debt and a bad credit score only last for 10 years then…fuck ‘em! They took the risk thinking you could pay them back, its their problem. Now for those of you who are squeamish and believe you should “pay as agreed” and keep your word, good for you! This is just a realistic option, of course you credit will be thrashed and you can’t buy a house or a car but how could you if you have a bunch of debt in the first place? Understand, it’s a lose-lose situation. However it’s important to realize why and how you got into debt in the first place. Consumer spending might be a sign of other problem but sometimes honest people end up in debt due to medical emergencies or legitimate problems, not just “The Sale of the Century!”.
So in closing, pay yourself first, pay secured loans second, and unsecured loans last. Moderate your spending but an occasional drink at the bar, that latest Opeth CD and a cruise in your car will keep you sane and energized enough to continue on without being mentally bogged down. There is no need to go to extremes to save money, doing all your shopping at Costco and buying a fuel efficient Prius is no way to go through life.
posted in Carnage and Culture | 3 Comments





