Yours Truly on CNNMoney

Some version of this should be appearing on CNNMoney.com soon. I responded to the question of whether I am better off today than in 2001. They claim it will be published based on the rights I gave them today.

I am certainly better off than I was in 2001. The value of my 401(k) and other investments are higher (even with a 15% loss YTD). We moved into a bigger, nicer home financed with a fixed-rate 30-year mortgage where we put 20% down. We make two extra payments per year and will have it paid off in 20. My wife and I stick to a strick budget every month and track our expenses to the dollar in Quicken. We never carry a credit card balance, but put most of our expenses on them. We live well, but well within our means. We save over 25% of my income (my wife stays at home with our kids 9 and 12).

Now the above sounds nice, but it comes with great sacrifice. We drive cars that are both 7 years old. My kids do not have the latest fashions or fancy gadgets. We have no big boy toys or expensive hobbies. We do not eat out very often and when we do it is usually at a burger place. My wife is a very diligent shopper whether it is clothes or food and that saves us lots of money every year. No two week vacations to Italy either.

We watch our neighbors buy new boats, cars, and take expensive vacations many times a year. We know they do not save a penny and live on the edge financially. Being smart about money takes discipline and saying "no" to some of life's pleasures.

Now I have read many sad stories on this site. People lose their jobs, cannot pay their mortage or bills and that is a terrible thing. However, some of this is within their control. For one, most of these people never made plans for the rainy day. Unfortunately it started to rain. They bought more house than they could afford. They bought/buy things that were/are luxuries, not necessities (that includes cable TV and cell phones). Many seem to be unwilling to move to a new area or re-train themselves and learn new skills. There are plenty of jobs in this country if you only look (Check out Odessa, TX for instance). You might have to move and acquire some new skills, and maybe even take a small pay cut. However there is plenty of opportunity out there for people committed to change.

Blaming the government and everyone else is the typical response. Unfortunately there is really no one to blame but the individual. Life deals us bad cards some times and we have to be prepared. The beauty of a capitalist system is that it is constantly changing and making our lives better (I would much rather be poor today in this country, than rich 200 years ago). That change effects some people negatively at times. In that case it is time to acquire new skills and look for new opportunities. Hoping Obama or McCain or anyone in government will solve your problems will only lead to more disappointment.