I Can Change

Why do we care about the national debt? Why should we? Does it even matter to me?
If action is not taken soon, when my generation reaches retirement age, we may not have any benefits to support us during our retirement. Will we be forced to work until we are 75, 80, until death? I hope not. I would like to be able to use these same benefits when I am eligible; therefore, this becomes a national and personal matter. So, it should matter to me.
Will our nation’s debt be so profound that we cannot continue to contribute to public needs? What is important to us?
Americans spend, spend, spend. Many spend more than they can afford. This has become easier because the opportunities to get credit cards are limitless. Loans have also been easier to obtain. There are many kinds of loans: student loans, mortgage loans, business loans, even loans for those with bad credit.
The price of living has gone up. Although the average household salary has gone up in recent years, basic living expenses have surpassed the increases in salary. It costs more to fill up your gas tank, go to the doctor, and even go to the grocery store. Add these basic costs in with other expenses, such as going to college and buying cars or houses, and this equals disaster. This money does not even count the extra spending of eating out, shopping for frivolous clothes and shoes, having the latest iPod or Blackberry phone, and many other wants. Many people must take out loans or put these expenses on credit cards because they cannot afford to pay these hefty prices all at once. We borrow because we spend. We are unable to pay back this money because we cannot afford it in the first place.
We can limit this national debt by limiting spending and having more control over borrowing. I believe that if we take the first step by controlling our own personal and business expenses, this will help our nation’s debt. Why make the minimum payment on your credit card or loan payment when you can afford to pay a little more? Why sacrifice your hard earnings on paying those high interest rates?
Social Security was created to help those able to retire to afford doing so. However, with the baby boomers reaching retirement and prices rising on basically everything, money will eventually run out. How do we stop this shortage so that my generation can benefit from it as well?
We are able to cut back on these benefits, but with expenses so high those who currently receive Social Security would not be able to live. One possible change to Social Security is to have stricter regulations on who benefits from this program. Do all retirees need Social Security to live? Another step that can be taken, starting with my generation is to save. Americans have little savings; we spend every dollar we can. Our money burns in our pockets and itches in our fingers until we spend it. We can put the little bit we are able to save in Roth IRAs and other accounts to start saving now for retirement. I personally, have done this because my parents started it for me. I have contributed to it, a little here and a little there and that will add up by the time I am able to retire. I believe that Americans need to be more educated about such things that can help us. I would not have known about it if my parents had not shown me. This money saved starting now, can give us a cushion for when we are able to retire; we won’t have to be fully reliable on a Social Security program that may not even exist by the time we are able retire.
What solution do we have? I, for one, am first to admit that I know little to nothing about our nation and its spending habits. However, with a little research and listening to the news now and then I realize we are potentially in deep trouble. How do we proceed to make this better? I do not know. It seems that I am left with more questions than answers. However, in my opinion, the only thing that I am able to do is to take responsibility for my finances. If I pay what I owe on my credit card each month to avoid high interest rates that could put more money back in my pocket to spend or save. If I choose to save, I could earn a positive interest rate and create funds for down the road. Why not open a Roth IRA account and put in that little bit of money into a personal retirement fund for myself? Person by person, changing spending and saving habits could potentially change how our local businesses, large corporations, local governments, state governments, and even national government choose to spend their money. Can this make a difference? It is worth a try.