This is a rant. Thank you for indulging:
I've thought about the current crisis, and the immediate and near unanimous belief that because this virus is nobody's fault, that bail outs for everyone (which add to an incredible national debt, eventually debase our currency, and pretty much ensure some combination of slow growth, higher taxes and fewer services for future generations) are a given. Then I thought about some challenges in my own life which included:
1. Born into a middle / lower middle class family. Nothing special. Dad moved us around the country a lot chasing jobs. One of his favorite sayings if I'd complain about something was, "Life ain't fair. Accept it."
2. As an adult, I made major geographic moves on at least 5 occasions for jobs / tax reasons / housing affordability. It's not pleasant moving around so much, but it can be made to feel like a fun adventure.
3. I've been laid off three times. Never once applied for unemployment. I figured, "I'll figure something out." And having the need for a paycheck often led to some of the most creative ideas.
4. Started multiple businesses and had some serious failures on the first few. For one of them, I was unlucky enough to launch it (and my whole marketing budget) on Sept. 11, 2001. That business did not even survive until Thanksgiving. I lost a good chunk of change and felt pretty depressed for a while. But took my lumps and moved forward.
5. I happen to live in the state which was hardest hit during the housing downturn. I recall Zillow'ing my house and seeing it was worth about 60% of what I'd paid. (And I did NOT buy at the top of the market.) Though underwater, I continued to make every mortgage payment even though my income had dried up. In my mind, that was THE reason for having savings....so that you don't have to change your lifestyle or expect others to subsidize it when inevitable set backs occur.
Despite those things (which I expect are pretty normal ebbs and flows that everyone experiences to one degree or another) I've never missed a payment on anything. I've saved a considerable amount of money and consider my health choices and wealth choices to be decisions to be made proactively, not reactively. But I hold a number of private mortgages (I'm the lender.) Within a few weeks of a viral pandemic, numerous borrowers are coming asking for forbearance. It's just assumed that if the value of their properties goes up, they get the upside. But if they run into trouble, rather than having savings and using it, it's the note holder's responsibility to suck it up. (And yes, I'll be human. I'm not foreclosing on anyone and I will grant forbearance for a few months. But this gift will come with a stern warning of "this is your one get-out-of-jail card...don't come back looking for more.")
But I'm wondering, for those of us who not only expect that the unexpected will occur, but actually plan for it by having "emergency savings", can we please at least get a participation trophy in this time of universal bailouts, and worse, universal bailout expectations??
I've thought about the current crisis, and the immediate and near unanimous belief that because this virus is nobody's fault, that bail outs for everyone (which add to an incredible national debt, eventually debase our currency, and pretty much ensure some combination of slow growth, higher taxes and fewer services for future generations) are a given. Then I thought about some challenges in my own life which included:
1. Born into a middle / lower middle class family. Nothing special. Dad moved us around the country a lot chasing jobs. One of his favorite sayings if I'd complain about something was, "Life ain't fair. Accept it."
2. As an adult, I made major geographic moves on at least 5 occasions for jobs / tax reasons / housing affordability. It's not pleasant moving around so much, but it can be made to feel like a fun adventure.
3. I've been laid off three times. Never once applied for unemployment. I figured, "I'll figure something out." And having the need for a paycheck often led to some of the most creative ideas.
4. Started multiple businesses and had some serious failures on the first few. For one of them, I was unlucky enough to launch it (and my whole marketing budget) on Sept. 11, 2001. That business did not even survive until Thanksgiving. I lost a good chunk of change and felt pretty depressed for a while. But took my lumps and moved forward.
5. I happen to live in the state which was hardest hit during the housing downturn. I recall Zillow'ing my house and seeing it was worth about 60% of what I'd paid. (And I did NOT buy at the top of the market.) Though underwater, I continued to make every mortgage payment even though my income had dried up. In my mind, that was THE reason for having savings....so that you don't have to change your lifestyle or expect others to subsidize it when inevitable set backs occur.
Despite those things (which I expect are pretty normal ebbs and flows that everyone experiences to one degree or another) I've never missed a payment on anything. I've saved a considerable amount of money and consider my health choices and wealth choices to be decisions to be made proactively, not reactively. But I hold a number of private mortgages (I'm the lender.) Within a few weeks of a viral pandemic, numerous borrowers are coming asking for forbearance. It's just assumed that if the value of their properties goes up, they get the upside. But if they run into trouble, rather than having savings and using it, it's the note holder's responsibility to suck it up. (And yes, I'll be human. I'm not foreclosing on anyone and I will grant forbearance for a few months. But this gift will come with a stern warning of "this is your one get-out-of-jail card...don't come back looking for more.")
But I'm wondering, for those of us who not only expect that the unexpected will occur, but actually plan for it by having "emergency savings", can we please at least get a participation trophy in this time of universal bailouts, and worse, universal bailout expectations??
