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Tuesday, October 12, 2010

The Middle Class Act; Has the American Dream Become A Nightmare?


Craving "bling bling" and living above their means is why some middle-class Americans are now in financial ruin and living in poverty. Instead of admiring their manicured lawns or grilling steaks in the backyard, some are living out of their cars or sleeping on the floors of friends or family members.

It is true that America's economic downturn has a major negative effect on the middle-class lifestyle as stated in my first post, but some if not most of the turmoil can be blamed on their own personal financial choices. If a person was making at least $70000 a year for the last 5 or 10 years and was laid off last month, then why are they barely able to buy food next month? Did they not save any of their money? Did they need that huge house payment or new Tahoe? Why didn't they listen to the financial experts who say to save enough money for at least 6 months worth of living expenses?

In Dr. Phil's "Living Beyond Your Means" episode, he tells a financially strapped couple that, "The hardest thing to do is to admit that what you're doing is not working and be willing to change it." That's a major part of the problem. Most of these people are not willing to admit that they can't afford this lifestyle, which for the most part was an act to begin with. They don't want to give up anything.

Getting on a budget and living within your means will help to solve many of the financial problems facing the middle-class. To some this may be easier said than done, but if you put the well-being of your family and/or marriage first, the desire to achieve this common sense approach will become much more clearer and attainable. Nobody wants to see their kids hungry or having to sleep on someone else's floor. This thought alone should make most people spend their money wisely.

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