Mike Folkerth - King of Simple

Western Colorado’s own Humorist / Economist

Income Problem? Or is it Out-go?

Good Morning Middle America, your King of Simple News is on the air.

U.S. NEWS: It’s about time that we had some good news. “Badlands” George Bush and “Bronco” Ben Bernanke have just assured us that we are not in recession. Thank goodness, for a minute there I thought we may be in trouble.

What they didn’t say is that much of the country is in depression which I guess would qualify and not being in recession. Take a stroll around Detroit and Cleveland if you doubt my reporting. Or, hang out with the building contractors in say Phoenix or Las Vegas and ask them how things are going. Wear your fastest running shoes when you visit these locations and don’t flash any food around.

Oil jumped above $103 before retreating, consumer spending has stalled and the dollar is shrinking against other world currencies, but don’t worry, that’s normal when the FED purposely induces inflation.

Soon, the magic of inflation will allow you to borrow against your home again in order to pay down your credit cards, which will allow further borrowing on the credit cards and about that time the federal rebate check will come rolling in and everything will be just fine and dandy. I should have started this paragraph, “Once upon a time,” because that’s how fairy tales are supposed to begin.

Here it is from the King of Simple. We are in recession and likely to stay that way for all those who continue to practice convention. For those who refuse to accept that fact and are waiting for government to save them…the next level is called depression. The country tried living in depression for some years in the 30s and it didn’t catch on.

Everyone is crying for change, as long as that change allows them to live exactly like they are living today, and there is no action necessary on their part. For all of those who think this may occur in the near future, a good psychiatric exam may be wise.

The old Lone Ranger is dead and there is no silver bullet to cure what ails us. So, we have to change as individuals. I’m talking about good changes that will make your life better.

First things first, why do we go to work? The short answer is to pay bills. Given that information, the lower the bills the less we have to earn to pay them. It’s not income that is the problem for many; it’s out-go. Reducing out-go is the key.

I have a friend whose initials are Larry Turney who realized that once a $50 or $100 bill is broken; it’s not long until it’s gone. But where did it go? Well, Larry decided to keep track of where the money was spent for an entire year. His findings were that the money primarily goes to numerous small and non-essential purchases.

I’m thinkin’ the convenience store conveniently sold you some junk food. Or, perhaps a bargain snuck up on you? We used to go buy groceries…at the grocery. Now we go to Wal-Mart and on the trip for a bunch of bananas, we come home with a tent and sleeping bag because they were on sale in the produce aisle and we might go camping some time; maybe.

Change your habits today and keep that $50 intact. Here’s my tip of the day. I go to a big box bulk store like Costco, Sams, etc. and purchase snack crackers, trail mix, nuts, etc. in bulk boxes; they’re cheap.

I have a plastic container with a sealable lid that I put a variety of the above snacks in and keep it in my vehicle. I also have sealable plastic drinking bottles that I fill with free water or energy drinks that we mix from powder with free water. I leave the house with a go-cup of my own premium coffee and drive on by the Starbucks of this world. The savings and the convenience over several months is nothing short of astounding.

What are some of your ideas? I’d love to hear them.

 
Comments
1.
On February 29th, 2008 at 7:39 pm, LarryT said:

Hey Mike, glad you got back from the Badlands OK.
The way I see it out-go is definitely the larger problem. Keeping up with the Jones’ and living beyond our means has become “normal.” Last year I had a discussion with a young lady who had deployed to Iraq with our local guard unit. They were there early on while living conditions were still fairly primitive. She was amazed at the things she could do without. Her comment to me was that “politics aside, that tour was the best thing that could have happened to me.” Living with few luxuries and among people with nothing can have that effect. We have become used to buying anything we want, instead of what we need, it’s just a way of life.
By the way, I no longer have that problem of wondering what happened to the rest of my fifty. Now when I stop for a snack there’s no change due from a fifty.

2.
On February 29th, 2008 at 9:48 pm, Mike Folkerth said:

Hey Larry,

Yes, it is amazing what we can do without and actually enjoy it.

It’s just a frame of mind. I lived in the Navy in a bunk with built in lockers and 11 other guys in the same cubicle stacked three high. Can’t say I would want to do it again, but I survived.

Simple is good and at this point, necessary.

How’s the book? Hope you are enjoying it.

3.
On March 1st, 2008 at 7:49 am, KathyP said:

Hi Mike,

So much unnecessary consumption is completely mindless behavior, subconsciously influenced by God knows what. I developed the habit of asking myself “How will this purchase positively change my life?” Usually, the answer was “It won’t.” Just stopping and asking the question allowed me the time to be mindful about the potential purchase, and to examine whether or not the item would be of actual value to me. This has been exceptionally effective in curtailing unnecessary spending.

If it weren’t for the price of gasoline, I wouldn’t even carry a $50 bill.

Kathy

4.
On March 1st, 2008 at 3:29 pm, Mike Folkerth said:

Kathy,

That is a good question to ask, because it does give pause to consider whether one needs a product or is simply stricken with consumeritis.

Everywhere we look, advertising is pushing us to buy, buy, buy. Our own irresponsible government is sending out checks and saying, “We hope people will go out immediately and spend the money rather than saving it or paying bills.”

I just returned from a short trip to visit my former business partner and the fuel was nearly $300.00!! So much for a $50 huh?

5.
On March 2nd, 2008 at 11:28 am, Billyb said:

With the US giving away approximately $51 per US citizen every year in the form of foreign aid alone; not counting all the grants and millions of other boondoggle giveaway programs; I would say that out-go is the bad guy right now.

We as individuals have also acquired a bit of this attitude and lifstyle our government uses as policy and it is now having an effect on us, as our US economic policy of exponential growth is winding itself to a conclusion, exactly as a candle does when the wax has all melted away. And our elected officials say there is nothing major wrong; just a dip. Next time you burn a candle all the way to the holder. Try to re-light it and tell me our government is going to save our economy without dramatically changing economic policy. -bb

6.
On March 2nd, 2008 at 12:09 pm, Mike Folkerth said:

BB
The situation is far worse than most care to believe and so,,,they don’t. After I wrote my book, I asked my readers as a courtesy to me, to dispute any of my findings from a mathematical basis.

The closest that I have come is a friend who said, “I can’t point out any definite wrong assumptions, only that things always seem to work out for the best.”

You can imagine how good that made me feel. And here I thought we were in trouble.

The current and purposeful inducement of inflation to revive a mathematically played out scheme will have grave consequences for many, but not the King of Simple gang huh? We’re shedding debt and simplifying our lives.

Life is good.

7.
On March 3rd, 2008 at 8:42 am, hayesml47 said:

Hey Mike, I think Bush thinks a recession is when Congress returns from a break. Of course I am giving him the benefit of the doubt that he can think at all. I think the old Lone Ranger put one of his bullets in his head when silver bombed back in the eighties. Tonto was the brains behind that outfit anyway! I still cannot get the feeling out of my head that Warner Brothers is running this country. Bush bears a striking resemblance to Elmer Fudd in more ways than one. Cheney must be the Tasmanian Devil. It will not be long before we all will be able to say ” T-T-Th- That’s All Folks!”. I can already hear the music now. You have yourself a good one Mike, while you still can!

8.
On March 3rd, 2008 at 9:24 am, Mike Folkerth said:

Michael,

There is no doubt that Bush has done a terrible job. But the larger problem is that our underlying economy has played out mathematically. Regardless of who is steering, the boat is going on the rocks.

All that we can do is get ready as individuals and lay out a future that includes more free time and less consumption.

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