$100 Example
Tuesday, October 27th, 2009
I have spent the last few months watching what it happening in our government and in our economy with great concern and fascination. I hold a degree in political science with a minor in History. I have also traveled to 3 European Countries as well as Russia [both Moscow and Central Siberia]. I have seen how other people live. I have lived in other countries as a citizen of my socioeconomic class would [lower middle class for much of my life]. I recognize many of the dangers people are marching towards out of fear of “what if”.
I received this email forward today and it gives an incredible example of what it happening. It is simple to understand but profound in its impact. I wanted to share it with you as we prepare to revive The Balanced Life with a new format. I do not pretend to be an accountant, financial expert or wealth management professional. I am a person who was living my life frugally, saving for the future and building a business and career. Then within 6 months time we added to our family through adoption, my husband was diagnosed with cancer and all of our income dried up. Actually, those things happened within 7 months, 1 week and 6 days of each other.
Over the next 4 years we had 7 full months of unemployment [with ZERO income] and then 3 years of underemployment where our income was about 1/2 of our bills. We saw our total income reduced by 60% of what it was, and we are still at that level. We manage each month by my writing projects. We store up during high months and draw from reserves in low months.
I understand where many people are now, because I’ve been there or I am there. That is why I made this website. I had to pull back to decide how I could best help and encourage people during these unique times. I am not Dave Ramsey, Dr. Phil, Oprah or Suze Orman. I don’t wear $3,000 suits and acrylic nails and presume to know what you’re going through. I am a regular person who was on the way up when life happened. Just like you, I have had to change my lifestyle and adjust my expectations. I’ve wondered what I did wrong to ‘deserve’ all of this.
The bottom line, however, is all of that doesn’t matter. I am where I am and you are where you are. The only way to get out of it is to have some changes. So, read this short story below and try to recognize your part in this system. How can you improve it? How can you grow as a result of it.
Shaking your fist at the storm won’t make your life better. Tearing down other boats won’t either. You need to focus on making YOUR sail the right size, shape and strength to ride out the storm and get across the lake.
$100 Example
It’s a slow day in a small Vermont town and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit. A rich tourist drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
As soon as he walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.
The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
The pig farmer takes the $100 and heads off to pay his bill to his supplier, .the Farmer’s Co-op
The guy at the Farmer’s Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her “services” on credit.
The hooker rushes to the hotel and pays off her room bill with the hotel owner.
The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything.
At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves town.
No one produced anything. No one earned anything. However, the whole town is now out of debt and now looks to the future with a lot more optimism.
And that, ladies and gentlemen, is how the United States Government is conducting business today.