Many of us blame the flawed systems of banks, housing, and the government itself for the recession and unemployment. When the government decides to help businesses, we judge it immediately by saying that it’s a business-laden system and not people-loving.
Where is smart spending here?
The government gives benefits to businesses because the businesses create jobs. How is this strategy flawed? As businesses lay off people, current employees are burdened with the work of others. When owners see that the business can function well enough with less people, they stop hiring replacements because it’s unnecessary! The cycle of unemployment and recession goes on.
Lesson: Do your best to make your job important.
How is the bank and housing system flawed? In simple terms… When we have good credit, we get loans. When things go bad, we use credit cards more leading to more debt. Failure to pay debts leads to bankruptcy giving us bad credit. As a result, we cannot get loans anymore. This happens to businesses and citizens alike. The cycle of unemployment and recession goes on.
Lesson: Smart spending – spend only what you have and what you can pay for.
There is no perfect system that prevents the recession and unemployment. Yes, the system is flawed but are we not flawed too? We all became comfortable in our used-to-be-consistent paychecks and magic credit cards that gets us what we want, need, and unnecessary luxuries.
Unemployment and recession taught us to learn smart spending. Smart spending is using our money on things that are worth it. Why waste $90 over a shirt when you can get one for $15 that’s also durable? We have learned to depend our satisfaction on the security of our possessions. Why not take satisfaction from smart spending?
Unemployment and recession takes all of that away. The discomfort makes us practice smart spending again and avoid wasted purchases. Out of the recession and unemployment comes out a lesson for everyone: your paychecks doesn’t last forever, do your best in all that you do, practice smart spending and invest your money where it grows.