Budget to Help Yourself and to Help Weaken Plutocrats

In honor of the agreement (behind closed doors) and passing of the New York budget, I thought I would take a moment to write a little about how the poor -- because there will be more -- and the middle class can help remove themselves from the system that created monsters like the Kochs who fund Plutocrats like Cuomo.

I am well aware of the boycott of products made by Koch Industries or their subsidiaries.  While I support the boycott in principle, most people will be inclined to engage in it only for a limited period and, while it does single out a specific target, it does little to nothing to damage the system that created the Kochs and those like them.  A system which undervalues human rights and views people as a "resource".  A system profoundly anti-labor, anti-equal rights, and dedicated to a financial caste system.  If people want to take a stand against this system, it really isn't as hard to do as one might think but it does require a change in lifestyle and, surprisingly spending less and saving more.

While I do not have a credit card and haven't had one for almost 20 years, I realize getting rid of yours may prove rather difficult.  The United States, in particular, has become addicted to debt.  However, getting rid of a credit card and budgeting wisely will go a long way towards improving your personal financial health.  Think of it this way: every time you buy something with a credit card, instantly add 20% (or whatever your interest rate is) to its cost.  In other words, a $100 purchase really costs you $120 -- but only if you pay it off before the interest is added to your balance.  Then, that $100 becomes $120, then $144 and so on.  You can see the pattern, in short order (on the order of months) the value of your $100 is over shadowed by the debt generated by your credit card.  In an effort to eliminate financial waste this cycle has to be stopped.

While getting rid of your credit card makes good sense for your pocket book, how does it limit the system that creates plutocrats?  Simply put, the "economy" (the term is ironic because our financial system is not efficient) runs on debt.  Things like interest and debt are what makes the system run.  "Me alone can't make a difference", you might say.  I would counter that small groups of people, working together can change history -- and they have time and time again.  Look at Gandhi's salt protests or the American Revolution.  Keep that in mind whenever you feel overwhelmed by society's inequalities and corporate indifference.  You are not alone.  Only a 3% decrease in the debt generated in the United States would have a reverberation that could not be ignored.  The place to start is getting rid of your credit cards.

Alright, getting rid of your credit cards may involve a lifestyle change you need more time to prepare for and there are many websites (like Getting Rich Slowly) out there that can help along the way.  Fundamental to a change of this nature is coming to an understanding of the differences between "wants" and "needs".  The most basic needs would be things like nutritious food, clean water, and safe shelter.  As you can see, Society fails many of its Citizens on these basic needs -- largely as a result of a mistaken faith in the "free market".  Think about that for a moment, the "economic" system that feeds the Kochs denies some of its most vulnerable Citizens of their essential needs. 

Back to how "wants and needs" can be used to help you take a stand against plutocrats and corporatocracy.  Every single time you buy something, ask yourself "Do I NEED this or do I WANT this?"  There is nothing wrong with wanting something.  However, corporations go to great lengths to confuse us with what we want and what we need.  Have you ever told yourself you "need" that new pair of shoes or smart phone?  Sure, it is immediately followed up with a rationalization as to why you "need" that thing but, the truth is, you do not need a new pair of shoes unless you have worn out your last pair.  Smart phones....while they are pretty damn cool no one really needs one (yes, I have one but I'm honest with myself -- I wanted it).  Instead, be honest with yourself and your rationalization will become an explanation!  Instead of saying you "need" (the lie) a new pair of shoes for a job interview (the rationalization), realize you want a new pair of shoes (honest statement) for the interview (now, an explanation).  If one consistently applies this method when shopping for anything, you will find that you will see a beneficial impact on your budget.  You see, you will become aware of how much you buy that you do not really need and, possibly, may not want.  If you are uncertain as to whether you need or want something, put off the purchase for a week or so.  If you suffered no ill effects, you didn't need that item; you wanted it.  By decreasing your consumption, you put less into the system that demands rampant consumerism to survive.

Food budgets are a large part of most families budgets.  If you are a public servant like a teacher who may be laid off, your food budget is going to take up even more of your household budget should your income be cut off because of plutocratic cuts to the services you used to provide.  How can one make a significant impact in this spending area?  First, never, never buy your food with a credit card.  if you ever find yourself in a situation where you do not have the cash to buy food, ask family or friends to borrow some cash.  You can pay them back and not have to pay interest and you will be turning to your support system -- not a debt machine -- for assistance and, in doing so, you will be actually engaging society.  We should be depending upon each other and not some heartless corporation. 

Ask yourself if you want or need that food you are looking to buy and make sure you make a grocery list before you go in to the store.  Seems simple but, a lot of the foods sold in groceries these days are nothing but junk food meant to be bought on an impulse and no one "needs" them.  Having said that, the cheapest way to eat is to make your own food.  The real needs for a healthy diet are the raw ingredients, vegetables, meat, flour, and so one.  Instead of buying factory-prepared foods, buy the raw ingredients and learn to cook that food at home.  Not only will you be spending less, you will be learning how to cook, and you will be giving less monetary fuel to the likes of the Kochs.  For example, I can feed my daughter and I for about $40 a week.  Before I got smart about my shopping, I would spend around $100 a week just on myself (before I became a dad).  The difference?  I cook.  I cook everything from pizza to bread, to gumbo, to whatever catches my fancy and I cook extra -- to have leftovers for lunch at work, etc.  Recently, I've started looking into the cooking of the Shakers (a Christian religious sect known for their woodworking but who were also very efficient and hardy cooks).  Books like Seasoned with Grace: My Generation of Shaker Cooking can provide valuable tips.  Whenever possible, buy local food or grow your own.  The food is usually cheaper (when things like transportation are figured in), you cut out the middlemen (read: the Kochs and their ilk), and you keep the money local (thus helping preserve local agriculture).  Oh yeah, avoid fast food restaurants.  Sure they are convenient and their food tastes good but it is overpriced and continues a system that hates workers rights.

Ok.  I've written enough for one post and, undoubtedly you're ready to anything more exciting than continue reading (oh, things like cleaning your toilet probably seem more interesting).  No, I'm not some grubby Hippy so put that thought away.  I'm just like you -- an honest American worker trying to do the best he can for his family in a time where the government and society is run by greedy corporations.  I'll write more in later posts but before I go, I want to leave you with this thought,  the less you pay to ensure your needs are met and you maintain a comfortable quality of life, the more efficient you are.  The more efficient you are, the less money you waste and give to the wealthiest 1% and, therefore, limit the amount of money they can use to buy plutocrats like Cuomo, Obama, or Walker.  Finally, a great book to read to help get a grip on your finances is Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Revised and Updated for the 21st Century.  There are many tips and techniques in that book which will go a long way of letting you take control of your budget and, as a result, take a little power back from the corporations that are running our country.