Megan McGinnis' Blog–Get Connected!

How Much is Enough?

Four flat screen TVs, 3 cars, a 3500 square foot home for 2 people and a dog, including an eight hundred square foot kitchen with custom granite counter tops in which no one cooks: is this the American Dream Home or is it the American Debt Problem?  Do you know anyone who fits this profile?  It’s not uncommon in America today.  We have collectively as consumers amassed personal debt that out numbers the GNP of many small countries, and I don’t mean just mortgage debt.  We used our houses as ATMs as we shopped the super stores for our toys.  We have seen companies wiped out like Merrill Lynch and AIG due to greed.  The business ethics of corporations are reflected back in the eyes of the consumers.   Our national burden is equally gigantic as the government attempts to fix the problem.   We are living in a morally bankrupt and financially bankrupt society.  And yet the line in my local Starbucks is still out the door.  Does this mean that we haven’t learned our lesson?

I know this has been talked about before but not by me so I’m feeling the need to chat a bit about it here today.  Look at the number of mega-stores there are with the same items: Lowes vs. Home Depot; Sam’s Club vs. Costco; Best Buy vs. Circuit City; Staples vs. Office Depot vs. Office Max, Linens & Things vs.  Bed Bath & Beyond; Barnes & Noble vs. Borders.  Yes, I know some of those companies are no longer in business and I say it’s a good thing.

Have you been in one of these stores?  Of course you have unless you live in no-man’s land and in that case you will travel 50 miles, once a week, to the nearest big box store so that you too can restock your warehouse.  There are plenty of products to choose from in one of these mega-stores.  Why do we need so many to go to?  Do you have that much time on your hands that you will comparison shop for a trash can or a super-sized bag of bagels?  If you do, for goodness sakes get a new hobby!  There are plenty of productive things you could be doing, like reading a book with your kid.  This won’t increase your debt problem so maybe you consider it a joy-kill.

Let’s talk about the mega-grocery stores, for example Costco & Sam’s Club.  Have you ever gone shopping there as a single person?  You really can’t do it unless you are going to split the spoils with a neighbor.  Can you imagine buying the 6 month supply of toilet paper?  How about the life-time supply of dental floss in a 24 pack?  Ok, I’m a

regular flosser but it would take me years to get through that unless I took up knitting flossy scarves.  When I consider the quantities that they bundle together, it’s no wonder we have extra large houses.  You need one in order to store everything you are purchasing at bulk-rate pricing.  The money you are saving in groceries is more than being spent on the super-sized mortgage you have undertaken!  Did you think of that?  Probably not because your mortgage broker said, “Don’t worry, your house is only going to go up in value so you might as well get the bigger one!”  He also said, “Don’t worry if you can’t afford it, it will only go up in value and you can refinance it, and pull some money out to help you pay for it and the new car I know you want to get your wife for her birthday.”  Ouch.  Where did that land you?   In foreclosure and divorce court?  With debt problems for sure.

I mentioned the line at Starbucks as a barometer of our continued consumerism inspite of  the economic mess we are in.   It’s my habit as well because I  still go there and get a single serving of tall drip (though it’s an occasional treat for me—which is how I manage my debt problem).  But my question is, how much is enough?  Where has common sense gone?  The common sense that says to look at your income—for those of you who need a reminder of how to find that: look at your paycheck or direct deposit statement, not your credit card balance available line.  Get an accurate read of the household income AND NOW SPEND LESS THAN THAT NUMBER.

Thanks for stopping in today.  Please add your comments to this blog as I find it infinitely entertaining.  Peace, Megan