Economy?

Yesterday I wrote about Dave Ramsey and his common sense advice that started Dave and me on a path of debt-free living.  It’s been in the news lately that due to the recession, Americans have been reducing their personal debt.  I think this is a good thing!  “Experts” disagree with me.

Robert J. Samuelson wrote an article in the Washington Post Monday entitled “The Saving Mentality is Hurting the Economy’s Recovery”.  If you want to read the entire article, click here.

From the article:

“ “Consumers are deleveraging (reducing debt) . . . and rebuilding saving faster than expected,’ writes economist Richard Berner of Morgan Stanley. In 2007, the personal savings rate (the share of after-tax income devoted to saving) was 2 percent. Now it’s about 6 percent. Temporarily, this hurts buying...”

Well, you be the judge, but if spending is going to save the economy, then let’s do that spending only when we can afford it!

Today’s picnic spot at the Port of Camas, WA, along the Columbia River

Debt-Free Living

About nine years ago, Dave and I began listening to the  Dave Ramsey show on the radio.  The more we listened, the more his plan about becoming debt-free made sense to us.  In a few short years, we became debt-free, including our house.  Dave Ramsey’s common sense, down-to-earth ideas about money worked well for us.

We still listen to Dave Ramsey, and even in this tough economy, he hasn’t wavered in the advice he gives to people about money.  Dave Ramsey’s program consists of seven baby steps to be done one at a time, starting with the number one:

  $1,000 to start an emergency fund

Pay off all debt using a debt snowball

3 to 6 months of expenses in savings

Invest 15% of household income into Roth IRAs and pre-tax retirement

College funding for children

Pay off home early

Build wealth and give!

Click on Dave Ramsey’s website for more information, or look for one of his books at a library or bookstore.  In addition to his daily radio show, Dave Ramsey now has a daily TV show shown on the Fox Business channel.

Tires!

Do you remember when I posted about going to Prescott Valley, AZ, to get an alignment for the motorhome?  We knew that both front tires were worn because of being out of alignment, probably since we got this new motorhome in October, 2009.  Dave didn't discover the problem with the tires until we were half done with our trip.  The alignment folks told him that the tires would need to be replaced soon, but we hoped we could finish the trip and get home before that happened.

This afternoon when we stopped for gas just north of Ogden, Utah, Dave noticed that one of the tires was even more worn and was getting hot.  So we quickly found a Les Schwab Tire Center nearby and got the tires replaced.  These tires are BIG and EXPENSIVE!  But it was a necessary evil and we were very lucky that we didn't have a breakdown by the side of the road.  The Les Schwab store had to get the tires from their warehouse in Salt Lake City and then install them, which took 2 1/2 hours altogether, which could have been a lot worse.  Thank you, Dave Ramsey, for your advice about having an emergency fund and about being debt-free!

We were soon on our way, as planned, to spend the night at Golden Spike RV Park in Brigham City, Utah, just eighteen miles away.  We had called for reservations when we found out about the delay, so they had our spot waiting for us.  Check-in was friendly and easy, and the price was right at $30 for the night.  Wifi is working a bit slower than we would like, but it's adequate.  We have 50 amp power, so I have a load of laundry going.  And, oh yes, just to welcome us on our journey back to the northwest, it's raining and has been raining off and on all day. 

Before we left the Richfield, Utah, KOA this morning I took a picture of the lovely lilacs that were along the entryway and throughout this park.  Lilacs are my favorite flower.  What a wonderful fragrance!