We can learn many lessons from the Great Depression. My grandmother always said, everything old is new again. I didn’t realize, as a kid, that it wasn’t always good things that repeat themselves. Economists like to say that we are in a Great Recession right now. But how far are we from another great depression? We may be a lot closer than many of us realize.
Call it a recession or a depression, you only need to look around to know the economy is struggling. So what can the lessons from the great depression teach us now? I believe there is much to learn; and you can start applying it now to protect yourself from the pitfalls that could lead to devastating poverty.
Here are my 10 Lessons from the Great Depression:
Lesson 1 – Cash is KING (credit is the joker): Do not use credit, especially credit cards, to buy anything. Pay cash, and if you don’t have enough then you need to save for it. Neither a borrower nor a lender be… Own it, don’t owe on it. Can you imagine if we still had debtor’s prisons? How many of us would be a unwilling tenant? If you’re in debt, now is the time to make a plan to get out of it. If you’re not sure where to start then I recommend Dave Ramsey’s Total Money Makeover. Make debt a dirty word in your life. Can I be honest? This is the hardest lesson I’ve had to learn…and we are still paying for the mistakes we made. Don’t do it. Credit is a cancer!