Have you ever thought deeply about the recession? What brought insurance companies to a point where they defaulted? They are meant to cover losses so what made them lose?
Upbringing and Counselling
We all tell our children and family that stealing is bad and being honest is good, but how many of us teach the kids that staying within our resources is the best? We ought to tell our family and children that having lots of money to spend is great, but spending 900 bucks when you have 1,000 is even greater! What is the point? Well, you won't have the habit of spending more than you should. Secondly, you would always have a spare 100 bucks for the unforeseen.
What is the Unforeseen?
Accidents, unexpected guests, parties or any other occasion that falls but you don't expect to receive your paycheck for another few days. What most people do is that they take payday loans on as much as 350% interest rate. That is paying 350 more for every one dollar that you don't pay on time. Have you ever thought that if you don't have hundred bucks now, where would the next 350 come from?
Looking Above and Ignoring Below
When you keep looking towards at the best friend who just bought a new car and the brother who always has grands to spend on leisure; you forget that there are people around you who are succumbing to mortgage installments. You're talking about new cars when they don't even have a car. You want leisure trips when those people don't earn enough to afford commuting costs. Doing that would never satisfy you. You got to strive to maintain your living standards but hoping for betterment all the time will turn you into a machine that is constantly worrying about producing more.
Be Within your Covers
If it is freezing and you stretch so much that you keep your feet out of the sheet, you would catch cold. So what do you do? You stretch the sheet and fold yourself a bit that you fit under it. the analogy is that the sheet is yor finances and you are the expenses. A little bit of discomfort today can save you from a lot of discomfort tomorrow. When you start depending on credit "every" month, it means that you are a good length out of your sheet!
So it boils down to the fact that when people forgot counselling and kept looking above them, they came well out of their sheets. They had to borrow when they knew they don't earn enough to return it. Their defaults on loans led to an increasing pressure on companies that insured the loans. We all know what happened next.
So, be thankful that you have two arms and two feet. Be thankful that you have a family and pretty kids. So what if you don't have a cool car now? For the car, are you going to ruin your family life for the future? Think about it!