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If you want to keep yourself out of serious debt (before you get into it), make sure you know the difference between a "status symbol" and a con job. After seeing endless examples of media hype of all sorts of products, be they homes, cars or anything else, I’m firmly convinced there are no status symbols. It never ceases to amaze me that so many people buy things they don’t need – and obviously couldn’t afford to begin with – on credit, only to end up having to sell those possessions or declare bankruptcy several years later. Let’s look at the guy on the commercial for an online bank (LendingTree.com, I think) who’s driving around in circles on his tractor saying, "I’m in debt up to my eyeballs. Someone please help me!" It shouldn’t take a genius to see that if this man had planned a lot more carefully, not to mention spent a lot more wisely, that whole mess would have been avoided. Unfortunately, many consumers fall into the trap of "keeping up with the Joneses," spurred on by advertising from retailers, builders, or car dealers whose only interest at heart is their own. They don’t seem to realize that once they fall in, it’s very difficult to climb back out. And the retailers who pushed them to spend are going to be the first to demand their money or take back the item they sold if the consumer can’t pay up. Everyone has his or her own idea of what a supposed 'status symbol' is. From the articles I’ve read and the television programs I’ve seen, though, the biggest con jobs fall into the following five categories: homes, cars, clothes and jewelry, electronics, and vacations. We’ll take a good look at each one. "McMansions" - These are the "mini-mansions" you see going up all over the country, or certainly all over my state of Virginia. The smaller, more modest and affordable homes, what I call the "George Bailey homes" of our parents’ generation, are rapidly disappearing. In their place, we are seeing the larger, far more ostentatious and unaffordable mini-palaces for the rich being built by developers who can only be described as "Potters." You know the story "It’s A Wonderful Life," don’t you? Good, then I don’t have to explain further. If not, you’ll have to buy or rent the video, assuming the stores haven’t cleared out their Christmas inventory by now. If you’ve never seen a "McMansion," however, they’re not too hard to spot. Actually, you’d have to be vision-impaired or totally blind not to have seen them. Take a look at any new housing development that’s being built in your area, and odds are each home is a "McMansion." They usually start at the "bargain" price of $250,000 or more, and only go up from there. What’s your financial picture like now? The only way you know for certain is to take a hard look at the salary you and your spouse are making if you’re both working, add up the amounts of your monthly expenses of rent, utilities, food, clothing and transportation, and see how much is left. If there’s not much to get by with for the rest of the month, investing in a "McMansion" would be a disastrous mistake. If you really want to trade up to a house, look for one that is smaller and adequate for your needs. If you don’t have children now and don’t plan or want to have them, a more modest three-bedroom ranch would probably be all the home you need. This kind of home would suit just as well if you and your spouse are "empty nesters," whose children have all begun life on their own. How much space do you actually require? Continued On Next Page (don’t, Page 2) ... AUTHOR: Susan Levine  TAGS: Opinion world america Family war Love government US living BOOKMARK: Digg it | Add to Del.ICIO | Add to FARK ACTIONS: Comment Save Print Register free acount  |
