Monday, October 13, 2008

Americans learning to budget

Some good things may come out of the economy crisis. Reuters reported on Tuesday the U.S. Federal Reserve reported that outstanding consumer credit fell $7.9 billion in August, the first shrinkage in that measure since January 1998. It seems saving and living within your means is finally reaching people's ears. I know I'm being forced to rethink how I spend my money. I could keep going like I was and not be in debt but then I also wouldn't be saving for whatever surprises may come.

What does that mean for our economy though. Our current state depends Americans to spend everything they make and not save at all. Prices will rise as demand drops and that should make things even tougher. At some point it will have to stabilize and hopefully we'll start living like our parents did. They didn't have everything now and had to work years to get to the comfortable lifestyle they are at now.

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