Buying the American Dream on credit

Sean Bahar's picture

issue 15, Sean Bahar, Opinion - By Sean Bahar on Thursday, January 27, 2011 - 04:02

Not only in these hard times, but at all times, people should learn to handle their money responsibly and avoid living beyond their means. In a society of commercial consumerism fueled by credit cards and convenient financing, many Americans, Whittier students included, have made living beyond their means the norm in their lives. Everyone needs to learn to not spend beyond his or her means and realize that living paycheck to paycheck is not a sustainable way of life.

When you finance purchases, you are betting on maintaining a steady amount of income. The only things that should ever be financed are your home once you decide to buy one, and a car, if you can not swallow your pride and buy a cheaper used one. It is understandable that not everyone has the cash to purchase everything outright, but if that is the case then they probably should not be spending the money on it. Just because you have the cash to pay for something does not mean that you can afford it.

Americans should also stay away from credit cards until they have a large cash base that they can rely on to pay for the expenses. Those that purchase more items via credit than they have cash are digging themselves a grave. Once you find yourself in debt you have fallen into your grave and the struggle to get out will cost you dearly. If people just made purchases on debit until they have a stable income it will help them in the long run. Americans need to realize that not everyone can live the “American Dream” straight out of college.

The American dream was not built on credit card bills and financed appliances, but rather on hard work and persistence. Coming in to the new century, many Americans have lost sight of how to save up money and have instead replaced the idea of smart saving with greed inspired financing plans that are disguised to look like a shortcut to a good life. America needs to rethink the way it spends money, to avoid a repeat of the economic meltdown, much of which was due to Americans living beyond their means.