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Optimism – The Solution to a Depression

The real estate market is picking up all thanks to the optimism of everyone out there looking for a home to buy. There is always demand, even in a down market, but we all prefer a healthy optimistic market.

A rebound is exactly what we have all been waiting for. Along with it come the benefits of a steady, healthy, and growing economy. Let us not forget the economy has always been growing, but now it is growing at a better rate.

What caused all the financial problems? There is no one responsible factor, but rather a combination of issues all leading to the perfect start of a meltdown.Plan

But, perhaps it has lead to a better future for all of us. While a lot of people will suffer the consequences of their damages credit ratings for years, if we all take the lessons to heart, we can prevent another catastrophe during our lifetime.

Lesson one: We all need a savings base on which we can personally rely on. Many financial planners will say to have in a savings account cash equal to at least six month’s worth of salary. But for many, that may seem an impossible amount. Start with a week, then a month, and then eventually you can reach the goal. Set a goal, and work towards it.

Lesson two: Live with a budget. Spending money you don’t have, (i.e. credit card), is very easy. Challenge yourself to pay cash only for one week. As you get accustomed to spending only what you have, you will realize that it becomes impossible to spend what you don’t have.

Lesson tree: Pay off bad debt, control your good debt.

Anyone that pays over 18% on a credit card is giving their money away. It is true that at times there are no other choices, but if you must use credit cards, you can use them wisely. Any credit card that has a zero balance provides at least a one billing cycle to payoff the account in full with $0.00 in interest. If that is what you are doing, then you are using your credit card wisely. If you are paying $400, but spending $800 in the month, you won’t get far, and it will all lead to trouble.

Lesson four: You can never plan for the unknown. Enjoy your life, with responsibility, and take care of yourself and your family. There is no better way that learning to become financially responsible. You may have thought it was something easy to do, but it is not, although it can be learned by anyone.

Lesson five: Plan for tomorrow.