Self-Fulfilling Prophesies

As the election gets closer and closer, people are getting more and more worried.

Times are tough.

Some of our financial fluctuations are self-fulfilling prophesies.

The stock market is nervous. The media is blathering, The more the talking heads talk about recession, the more likely we are to fall into a recession.

People, stop jumping every time some talking head on TV says "boo!"

Don't be a sheeple.

Listen, I'm not saying to run out and spend your money like you used to. You can't afford it. In fact, you couldn't afford it back then either, but things were booming and you were full of optimism (and yourself) and thought things would be like this forever.

As my Pastor says, "If you don't like what's going on right now -- Change is coming!"

"And if everything is great, get ready -- Change is coming!!"

Our economy is like a huge ocean with tides. Sometimes it's up, sometimes it's down.

The media will doom and gloom you until you believe that things are all bad and they're never going to get better.

At that point, the prophesy fulfills itself.

So, Mom's advice today is to hang on. Tighten your belts, hang on for the ride. I foresee that by this time next year, things will be improving. You may have to make some sacrifices, like cut off the cable or the satellite dish, or go to dial-up instead of DSL, keep the same car for another couple of years, learn to cook, live in a smaller house, perhaps start all over again as a renter*, etc.

Times will get better.

Soon the talking heads will start blathering about how the financial markets are improving, that houses are selling, that the tide is again turning.

Soon the market will go up and the economy will be booming again.

(I hope gas drops below $2 a gallon first!)

Times will be good again.

But during the next swing upward, don't get so caught up in the hype. Don't forget this time. Save your money, plant a garden, buy a smaller house, drive a smaller car. Be frugal.

Don't let the self-fulfilling prophesies drag you down during the next cycle, the next wave of boom and bust.

Don't let the talking heads convince you that your life sucks.

Well, it might, but only you can change it!!

Use these tough times to improve your life.

It's another lesson. Learn from it.

Times are tough, yes, but I already see signs that we're pulling out of it. Houses are selling, gas prices are dropping darn near every day, banks are working with home-owners...

It's going to be OK.

Really.

(*If you lose your house and do a BK, in about three to four years you'll be able to buy again. It's NOT the end of the world to lose a house. You just have to get your financial house back in order, have three good credit lines, like a credit card with your bank, a small loan for a fridge or something, a small auto loan, and be current on everything. Note: I said SMALL!! And start saving your money. You should be able to qualify for an FHA loan. Been there, done that, and struggling right now to make my own mortgage payments, but it's going to be OK!!)