Tales of the New Poor
This is relevant now because the United States is in for a major economic disruption. A lot of people are either going to be newly poor or poorer than they already are.
That will knock us all down a peg or two. It's inevitable. It's likely to be as big or bigger than any economic shock any living American has seen. And it's going to be a long-term thing.
See, I make decent money. My net worth is negligible due to a divorce, some employment gaps, and a few self-inflicted wounds. But I can keep up with my bills now, and I've worked hard to build employable skills. I'm grateful. This will still impact me.
I've got three kids in their teens and early 20s. This is definitely going to impact them.
My parents are retired and we'll have to watch their money shrink in the stock market while inflation rises. This is going to impact them.
I have a friend who doesn't make much money. He thinks it won't impact him and he's wrong. Inflation alone, likely worse than what we've already seen, will hit everybody.
I mean, look, China is on the rise. We're bound to lose reserve currency status. Our self-inflicted foreign policy disasters over the last few years are just hastening the decline and adding fuel to the fire. We could waste a lot of time pointing out the reasons and the signs, but I'm more focused on preparing for what's coming.
How bad things get is yet to be determined. Our political situation matters a lot.
Where we as a nation invest matters. How we structure the major components of our economy, especially health care, matters. It's going to get more expensive, less useful, and less available if we don't switch to single payer.
The ability of workers to join unions. including sectoral unions, matters. Collectively bargaining with employers and countering the influence of money in our politics ensures greater equity and, in turn, a healthier economy.
Who we partner with and how we partner with other nations matters. As our economic might is eclipsed we will need allies and trade partners more than ever.
The number one thing we as individuals can control is our health across three areas: financial, emotional, and physical. Of those three financial is the one I've been focusing on lately.
I've been through rough patches in my life where I had to watch my money closely. I've also been complacent for years. No longer. I'm learning to save better than I have before.
Never before have I been so on top of sale ads, letting them drive my menu and looking at them the day before they're out.
I've never eaten out less, and when I did avoid the extras.
I'm first-world middle-class here. I've got an electric car. There are free electric chargers just a 10-minute walk from my house. I use those instead of charging in my garage.
I'm watching leftovers better and eating them. Not always fun but saves money.
Watching expiration dates on things and making sure I know when things expire. Useful in a lot of cases, if you are stocking up when things are on sale, if you are concerned about food availability in case of larger disasters.
I've canceled just about every subscription under the sun, going to the library more. I'm using more free software and more free platforms.
I avoid driving whenever I can, even with an electric car. Wear and tear on the car is not good. Getting out and walking is good.
I've still got vices I haven't given up yet. Energy drinks are probably the number one vice that I really need to tackle. I'm still spending at least $15 a week on that. I do get them at the store where they're much cheaper.
Get ahead of the curve. Do it now. Brace yourselves. Save all the money you can.
The good news is that it gets fun pretty quickly.
If you start exercising it takes time to see results in your life. Like weeks, sometimes, maybe even months, depending on how hard you're going after it, you start becoming more frugal, and you can literally track every penny you've pinched. Enjoy it now and later as they add up.
You wouldn't believe how geeked I got when I went to the store and got $55 worth of groceries for $30. Yeah, $55 worth of groceries in one visit. That's not much anymore. But still, I saved $25 in one trip, and that was the first week I really got locked in on sale ads in grocery spending.
The other bit of good news about going on financial lockdown now? Economic slowdown is a tool of nonviolent resistance. The struggling economy reflects poorly on Trump and the MAGA faithful. Your act of self-preservation and building resilience also has a positive political impact.
Stay frugal, friends.
Pennies are literally going out of circulation, and nickel-and-diming your savings won't get you there. We are now a quarter of the way into the 21st century. We're questing for quarters.
Game on.
T
