Finance Roll

Imagine that one day you open your wallet, gasp and think where did my money go? Now the questions really start rolling and you ask yourself when did all these credit cards get in there? Your head starts to spin as the reality sinks in. How much debt am I in? Can I afford to eat or feed my family? What happens if I lose my job? Do I have any savings for retirement? Then, suddenly you go blank, you start to feel anxious and the sleepless nights begin. You have financialitis.

Denial has served you well up to this point. Now you are able to see it for what it is - the truth. However, this did not occur overnight but was growing over a period of time. Now, take a good look at your wallet. It is floppy and gasping for air each time it is opened and closed, it is probably thinner in the cash section and has aged tremendously. The edges are frayed and worn and there may be nicks or scratches noted. The pockets may be lax or stretched from overuse or bursting with too many plastic cards and paper receipts. All of these reflect poor habits and are some of the telltale signs of financialitis, which is a pervasive, invasive and often destructive dis-ease of your personal finances.

How Did This Happen?

Perhaps, like most people, you have been listening to the news or one of those favorite financial channels telling tall tales about how the economy is recovering, how the unemployment rates are improving, or worst yet blaming some political party for all the problems. You went on with life as if it would not affect you personally but now see that it has in a big way. By not being honest, the media provides everyone with a false sense of security that everything will get better. But, it is not going to happen. In fact, it will probably get much worse which is what you are now finding out.

As previously written, financialitis can occur quite suddenly with a natural or catastrophic event, but most often it is due to long standing abuse, negligence or apathy regarding financial health. For example, most Americans during the 1980's experienced a time of growth and increased spending. As a society, we became much more materialistic as depicted by a popular Madonna song, "Material Girl". A whole generation grew up thinking that money was no object and spending can occur without any repercussion. Just charge it.

During this same time, we were brainwashed on the idea of saving for retirement in mutual funds and saw the explosion of an entirely new market for Wall Street and the financial world. Most people just handed over their money without really understanding all the ramifications of having other "experts" manage their money. The thinking was if the money was taken right from our paychecks, we would not miss it. The problem is we lost control of what happens to it and took no responsibility as to where the money was invested. It was a "too hard to learn, let someone else do it" mentality.

Adding Insult to Injury

Then in the 1990s and early 2000s, we saw the boom on real estate. The housing rush was everywhere and people went crazy for real estate with some areas affected more than others. New housing developments were going up in many parts of the country. Creative financing was started allowing more buyers than ever purchase homes, many above their means. But, everyone was happy - the financial firms, the banks, the builders, and of course the home buyers.

When the bubble broke and the financial bloodshed began, that is when everyone asked the question "how did this happen?" No one took responsibility. Not the financial market, not the banks, not the government regulators and not the general public. Everyone was guilty. Apathy, greed, money, and power all contributed to this current state and created widespread financialitis starting at the top and crashing onto the bottom.

When the stock market had its mini-crash in 2008, everyone lost. Well, not everyone... Seems the major banking firms received an enormous amount of money from the government which was to be used to stimulate confidence in the market and provide loans to the public. However, there was one big problem - they did not use it for what it was intended. There were no restrictions placed on how the money was to be used and these institutions were free to do whatever they wanted. Some were brazen enough to use this money to provide huge bonuses to employees, one planned a large party-atmosphere conference which was cancelled after public outrage, and the rest clamped down on mortgages and loans further adding to the real estate collapse already in progress. Government bailed out the banking industry with our tax money and we did not see a dime, but they received millions.

Why do I Have to Suffer?

What we are seeing now is the trickle-down effect of a complex, multi-layered nightmare devoid of any sense of responsibility or accountability on the parts of all the participants. Rising unemployment, increase cost in utilities and commodities, elimination of services, municipalities and states going bankrupt, and so on. In hopes to continue the charade and prevent massive public outrage, the Federal Reserve is printing paper money with dropping value in hopes to fool the world that all is well. They are fooling some, but not all. Those who are getting educated are seeing this for exactly what it is: a set up for the next big crash. What you must realize is someone has to pay the price.

The best thing people can do right now to lessen or eliminate the painful experiences of financialitis is to take responsibility and become educated. Do an in-depth analysis of what your expenses are, evaluate what you can afford and make responsible choices in how you spend and save your money. Be honest with yourself to determine how you arrived at your current financial state, learn how to eliminate your debt, and obtain knowledge on creating wealth. There is hope but you have to take action now and have unwavering conviction in resolving the problem. Commitment, responsibility and wealth education are the keys to success in overcoming financialitis.