economy

A couple of weeks ago I had a conversation with my little brother (fresh out of high school) about the problems that we are facing with the economy these days. While I feel secure in where my family is in this tough time, I know we are in the minority in this. Tonight I read an article about a town in California that has one of the highest foreclosure rates in the nation. The article said that this was the second time that this town faced a foreclosure crisis. The last part of the article had a line that said something like "They will always forget." This is something that our country needs to learn from not forget about. Gas dropped below $3 a gallon and all of the sudden people started looking at the bigger cars again. Pretty short memories we have.

Three years ago Spencer and I purchased a home for $174,000. We borrowed 99% of the value of the home. This scared me to death. Today I am so very glad that we did. The biggest problem with these kind of loans is it truly makes people house poor. When we first moved into this home I felt like we were drowning in house payments. However, my mind set was still back from college days when I was only making $8.50 an hour. Today, I sit down on payday with a very clear idea of where my money is going. There is a lot more money there than I ever dreamed we would be making on a single income.