Updates when the spirit moves me...
Personal Commentary about current events and issues brought to you by
William C. Walker of WILW Radio.
July 28, 2009
August 2009 Edition...
Randumb Thoughts for August 2009
A Depression Is Upon Us
One thing has become very apparent to yours truly over the last year and that is economic conditions are going to require that people make dramatic alterations to their lifestyles and personal spending habits. For years I had been warning people that a Depression was on our doorstep and it finally did hit us over the last year. I think even the most fervent deniers of the Depression have finally conceded the fact that we are not in a serious Recession anymore!
Job losses continue to rise and business and personal bankruptcies continue at record paces. And home owners are still going into foreclosure at double digit rates in most areas of the country. The only bright note appears to be that people are beginning to save money again and banks are reporting that they are seeing an increase in the number of people that are actually putting money into their personal savings accounts for the first time in more than a decade. They days of unbridled, frivolous consumer spending appears to be reaching a merciful end and the hoarding of material wealth also seems to have reached a conclusion.
From my personal standpoint I’ve come to the conclusion that my Grandparents way of dealing with the Great Depression of the 1930’s is likely the best way to deal with the current economic downturn. I have begun making changes to my own lifestyle and I am now planning to live a more frugal and simple life in the years ahead in order to survive the storm. I am going to pass along a few of the ideas I have or will implement with the hope that it will inspire others to follow suit.
First on the list of things to do is to start paying off debt. I expect to be nearly debt free in about a year. Why waste all of that money on credit card interest when it is not necessary? After that I plan to get my auto loan paid off and will keep the car until it can no longer be restored. A personal friend of mine actually drove a 1989 Toyota Camry for about fifteen years until it finally bit the dust. This despite the fact he was a corporate Vice President and could afford a better car years earlier. And another personal friend of mine, drove my 1986 Honda Accord that I sold to him in 1987 for twenty years until the rust finally got the best of the car body. I am going to take their advice and hang onto my new car until it bites the dust.
Wiping out the monthly rent is also on the list. I have decided it will be wise to buy a modest home, a fixer upper if you will and pay straight cash for it. No loans and no mortgage of any kind! It makes more sense to own a home outright without being saddled down with a 20 or 30 year loan and having to run the risk of losing the home to foreclosure. At present I have resumed my search to buy a house in communities in several states where I believe I have a market for my Part 15 AM radio station and won’t have to pay an arm leg for local property taxes when I purchase a house. Yes, a little sweat and manual labor will be required to fix the home along with a few bucks but the return on the investment will be satisfactory when I see that I have a livable house without the hassle of a mortgage or rent.
Living off grid is also on my agenda. I plan to buy some solar panels to power virtually all of the products that require electricity. Over the last two years I’ve started ridding myself of high energy use appliances and replacing them with models that use very little electricity. This will make it possible to use solar power even in an area that has sunny skies less often than gray, cloudy days. BTW. Contrary to popular opinion, it is possible to use solar panels on cloudy days though you will only receive about a quarter to a half of the normal expected energy on a sunny or partly sunny day. A cistern will provide fresh water for drinking unless I wind up with a property that has a well. No more tap water if I can help it. Using a kerosene heater and either a pellet or wood stove will also greatly reduce the cost of heating with oil or natural gas. Granted there will be an initial up front cost to purchase a pellet or wood stove but it should pay for itself in two years in the colder northern climates of the country.
I firmly believe that we’ll see a return to when life’s simple pleasures were more important for recreation and entertainment than the crass consumerism that has dominated our culture for decades. People will have to cut extraneous expenses like Cable Television, XM and Sirius satellite radio, Cell Phones, eating at restaurants and expensive vacations and replace them with less costly or free activities in their spare time. This can work to my advantage especially where my radio station is concerned. People will start listening to local radio again especially if a station offers some live and local content. People are sick of generic, syndicated crap that is produced in a distant city and serves mass markets around the country. McRadio if you will is losing favor with the radio audience and they want something with a little more local flavor and substance.
I’ll be spending my spare time doing things that I enjoy that don’t cost a lot of money. I’ll be out hiking in area trails, camping and fishing, listening to music on my home stereo, hanging out with friends and taking day trips to see area attractions and sites that don’t cost very much money and cooking good meals that I’d otherwise buy in a restaurant. I recently invested in a Pizza Oven in order to satisfy my craving for NY Style Pizza. Considering how many pizzas I consume each month, this will be paid for in under a year. And of course, I’ll be listening to the radio, especially my own station when I am driving around town. I hope you will too.
