Debt and Hell November 2, 2006
Posted by spacemom in : Life...otherwise , trackbackI saw another blog suggest the book, The Two Income Trap. So I borrowed it from the library.
Wow. That’s about all I could say is wow. (that is taken straight from Lilly’s Purple Plastic Purse)
This book lays out some of the clearest arguments for why American Families are having trouble staying out of debt.
The biggest issue is that women, in the work place, are contributing to the family income (good) BUT families are using the family income to fit all of their FIXED expendetures (ie, housing, cars, food and education)(BAD). If the second income was used solely for savings, people would be better off and less likely to go into debt, however, that is just unrealistic in today’s world.
The authors go over the reasons why this can’t happen for most people: Changes in the banking laws, deregulation of loans, 2 income families pushing up housing costs, increases in educational costs.
It is very scary how they lay out the reality and how I can see many people I know, who have fallen into this trap. The subtitle suggests they have real solutions, but the truth is, they are pipedreams. It would take a lot of overhaul to deal with the changes they suggest.
Sigh…Scary scary stuff. I would honestly advise anyone who is concerned about finances to take a look at this book, if only to help you rebudget to protect yourself.
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One of the things I have been thinking about recently is (pipedream, I know!) selling our house, buying a lot in the area, buying a mobile home, and being free & clear of the biggest debt of all. Sigh. Ain’t ever gonna happen, because OmegaDad is firmly and forever against the idea of mobile homes.
But the question comes back to nature vs. nurture. Did you get the saving habit from things you saw happening when you grew up? Or are you inherently paranoid about being poor (and thus save). Or, are you a good resolution maker, but just can’t avoid going to eat out every night?
I know so many people with financial problems who are full of resolutions. But like a diet, it’s one thing to say…it’s another thing to suffer it.
I read this book a while ago (I think right after Coop was born, and we were trying to figure out if we could afford for me to not work) and it was like all of these lightbulbs went off - we absolutely are in the trap, and can’t quite seem to get out of it.