A Citizen’s View:

Personal changes can lessen effects of economy

Thursday, Oct. 30, 2008 | midnight

Judy Miller Gerard

"The only thing we have to fear is fear itself" is a very famous quote and a timely reminder to us in this time of economic uncertainty. When our minds are controlled by fear, we are in a constant state of anxiety and quite unable to think clearly, so we sink more deeply into the problem.

This fearful state of mind is created and fueled by the ceaseless voice of doom messages we receive via TV and radio. Unfortunately, many of us talk about it constantly, and the more we talk, the more anxious we become

So be wise. Expose yourself to the emotional tsunami of newscasts only a few times a day. And stop talking about it, unless it is part of a constructive conversation to formulate some plans.

At this point, it does not really matter whether you are in a Catch 22 because of your own bad choices or because of circumstances beyond your control. It is what it is, and you need now to be as objective as possible as you assess your own situation. You can do this by yourself or with your spouse and/or other members of your family.

If you suspect you and your family have a financial problem now or you see one in the making, do not do anything impulsive. Gather the information you need to make wise decisions and then talk it over with a trusted friend. Then sleep on it. By then you should know if it's an OK plan.

Finally, when making any major financial decision, seek out the advice of a qualified professional, which I admittedly am not.

If you know you have a pressing problem to do with foreclosure or over-extended credit, immediately seek information or help from a reputable professional, nonprofit group or government agency.

If you have a pressing problem regarding food or shelter, I'm sure you could get information from The Salvation Army, Catholic Charities and similar organizations as to where you can get help.

To get an accurate picture of your financial situation, it is helpful to take paper and pencil/pen and do this. Draw vertical lines to create four columns and label them at the top:

1. Income (amount of take-home pay)

2. Monthly payments: rent, mortgage, insurance, other

3. Living expenses: food, transportation, clothing, school, other

4. Date due

Fill in all the figures. Total the columns. How does your income compare with your cost of living expenses? If you're OK, good. If you can save some money each month, congratulations. If you are spending more than you earn, this is a very large red flag, and it needs your immediate attention, especially if you are doing this over-the-line spending on credit.

Get someone to help you plan a realistic budget that will allow for a comfortable, but not excessive, lifestyle. If you can involve all members of the family by seeking their input/ideas, and include them in the planning to make it a creative, fun thing to do, you'll be home free.

We have become a nation of spenders who seem to be obsessed with buying. Our closets and homes overflow with things we don't need/don't use. Yet we continue buying more and more and more. And the tragic thing is that so much of it has been done on credit, and now we must pay the piper. I am reminded of the line from Tale of Two Cities: "It was the best of times and the worst of times."

Let us take this wake-up call seriously and change our unwise spending habits. Let's live responsibly, so that we can all become active participants in the healing and recovery of our beloved country.

It's up to us. We can allow it to become the worst of times, or we can step up to the plate, and do our part to make it the best of times.

Judy Miller Gerard is a Henderson senior and can be reached c/o the Home News, 2360 Corporate Circle, Third Floor, Henderson, NV 89074; by fax at 434-3527 or e-mail at editor@hbcpub.com.