Merry Christmas!

2008 has been a very "exciting" year, to say the least! From the economic downturn that has plagued millions of people throughout the world to a Presidential election in the US like the world has never seen, things have been all over the place. As we wrap up 2008 and head into 2009, here's hoping things are "fine"!

The Bad Economy Hits the Vacation Industry

The Big Three and the Big Bailout

It's no surprise to most people that the US economy is going through some trying times... The stock market has been a crazy roller coaster, seeing some of the largest 1-day rises and drops ever over the past few months. The mortgage crisis. Jobless claims are at something like a 26-year high. Businesses are closing. Gas prices had shot up over $4 earlier in the year, which was a HUGE blow to the Big Three automakers, GM, Chrysler, and Ford. Auto sales declined greatly, affecting much more than just the auto industry. The economy has gotten hit pretty much across the board, taking with it millions of older Americans' retirement dreams with it.

The Big Three automakers want a bailout. The leaders of each came to Washington to ask for a handout. Each flew in a private jet and that became a big sticking point. These companies wanted money, saying that they could not sustain themselves without a bailout. They said they were "too big to fail". The failure of any one would be devestating to an already ailing economy and the failure of all 3 would be far worse! Yet, while not able to survive, they all had the means to fly their private jets into Washington. GM told Congress they won't have they money to pay their bills by the end of the month, while Chrysler can survive until at least early next year. Ford is not as bad off.

So, a $14 billion bailout stalled in Congress. After the bank and mortgage bailout, can the government continue these? I am trying to save up the money for a plane ticket to Washington, where I will be requesting my own mortgage bailout. I am only going to be requesting $13 million, so a drop in the bucket like that should pass quickly.

The bailout has people split on what would be best. It is most definitely true that a failure of one, two, or all 3 Detroit automakers would be devestating, especially to what is already one of the poorest cities in the nation. The repercussions would be massive and would create another wave throughout the nation's economy. Joblessness is already at some of the highest levels seen in the past few decades. Could the economy even sustain such a blow at this time? It's tough to say...

On the opposite side of the coin is not bailing out Detroit. Can we really give more public funds to private corporations with little in return, but the promise of spending it? This isn't the first bailout for Detroit's automakers. Is it the last? Shouldn't we have very strict requirements that go with the money, instead of just handing it over? The automakers have not shown that they are even in touch with the people and what people want in a car. Foreign automakers, such as Honda, Toyota, and Volkswagen, have developed much smaller and more efficient cars, while Detroit has been plugging along at the same pattern. Shouldn't we require that they develop more efficient cars and greener technologies? If they are just going to take the money and use it to continue to stay the course, how many more bailouts are the American people going to be asked to shoulder before enough is enough?

It's a tough issue to muddle through and it's tough to know what the right move is going to be. I'm torn in both directions. I think a bailout would be a positive in that it will save millions of jobs and not allow another collapse to our economy. I also think that perhaps we should let them fail. They're going to fail. It's just a matter of when. How long must we postpone this debacle, when foreign automakers could come in and pick up the pieces of a shattered domestic auto industry and create jobs that are geared towards the future?

Living on the Cheap

Ok, here's a quick break from the political scene for a change...

If there's one thing I've learned, having earned single-digit hourly wages for 90% of my earning career, it's how to really live on the cheap. I've gained a pretty good insight on how to make things seem pretty luxurious on the budget that most would look at as pretty stifling. I learned long ago how to make ends meet and then some while only pulling in pennies.

I'd like to think I live pretty comfortably, based on how others live. I'd like to think I even have the options of many luxuries at the same time. In my current situation, I'm able to cut costs like crazy. My work pays for a bus pass for me for free! I also bike to work. That eliminates ALL travel costs, aside from plane travel. It also covers a lot of working out, cutting gym costs.

The next biggest cost, outside of travel, are dining. Now I won't say I don't eat out at restaurants, but when I don't, it costs me typically less than dollars. I don't buy things that aren't on sale about 90% of the time. When I go to the grocery, I have things I want to buy, but then I put them up against prices. I always want cottage cheese, but only buy when it's on sale. I rarely have meat at the house because it's just kind of expensive. I always buy tomato soup because aside from being a super-cheap meal, it's also high in lycopene, which is a super-health "additive". It also turns dinner into a $0.59 meal if I have tomato soup for dinner! $2.59 allows a luxurious soup in a freshly baked sourdough bread bowl! Doctor it with a couple spices and it's delish! I found chicken drumsticks for $0.89/lb. and that equated to $4 for 14 big drumsticks! That made me dinner of oven-baked "fried" chicken and lunch and breakfast the next day for under $2! Now, that's a bargain! The night before, I'd thrown a big handful of potatoes in the oven for baked potatoes. That cost about $1. That has brought my food costs to about $5 for a few days of eating, not considering spices and such that I've already paid for. I typically paid $3.95 for a salad for lunch, which is dirt cheap, but paying a dollar more for 3-4 days of eating, breakfast-dinner is fantastic!! I stopped paying for the already cheap salad at work because I also realized that I can have lunch for the week for about the same as a salad! There's so many other ways to save like I'll buy frozen veggies when they're $1/lb. They have all the nutrients and are so easy to prepare. Food is so easy on a budget if you just focus...

Going out? I am usually ready to hit up all the cheapest spots, but I've been shown, by my sister Lu and Dad, how easy it is to hit up happy hour specials that are often cheaper than all my dive bars and even cheaper than Than Brothers! You can hit up these spots with food and drinks for prices usually reflective of an entree or two!

There are so many other ways to save BIG time, spending less than everybody while living like the best of the best. There's places to get suits on the cheap (I love to dress up), shoes at a discount, and live like a King on a pauper's budget. You just need to pay attention to what's going out. While it's nice to see all of the savings, there's still nothing better than splurging once in a while and with all the savings you'll deserve it!