It’s funny you mention this. When I worked at MBNA I started in collections and eventually moved into credit and credit line management. There was one painfully obvious reoccurring theme I noticed…
Have you ever heard the expression “live within your means”? That’s not what people do.
People “live TO their means.”
Meaning the more money the average person makes, the more money the average person spends.
As much as I appreciate the career advice, I’d like to restate that I owned a restaurant for the last five years. My Economics degree did nothing to help me with it. The store did over 500k a year in sales and I took home about 20-25% of that. It was the easiest job I’ve ever had and the best investment I’ve ever made. I’d spend a ton of time at the store but it wasn’t work, it was play. I hired cute girls and hard working guys to run the show while I kicked back in my office drinking a beer and watching movies. Now even though I was goofing off in the back, I knew where every single penny went. I was able to track hourly sales and adjust staffing accordingly.
For the first time in history, inflation was about 300%. I’d buy mozzerella cheese at $22/20 lbs in 2007 and $59/20lbs in 2008. My flour went from $6/10 lbs to $18/10 lbs. Our logo boxes started off at $25/250 units and ended up at $55/250 units.
Not sure if you’ve ever heard of this but the New York Times or Wallstreet Journal keeps a “pizza index”. The cost of producing a pizza. I called my state senator and attempted to apply for federal bailout money after hearing that SBarro, one of the nation’s largest pizza franchises, applied for federal funds. Big surprise, no one could tell me where the millions of dollars was spent but it wasn’t available for small business.
I spent a lot of time researching what actually caused my cost of food disaster. I knew the stock market was going to collapse when I first saw the trend in my food prices. Aside from the securities scam diversion, the real reason for our nation’s collapse is simple, OIL.
Some idiots in Washington decided to pump money into Ethanol research and production. Ethanol is made from corn. Corn is what they feed cattle. The stupid Washington elite decided to incent farmers to stop producing food and start growing energy. So now that farmers are no longer feeding their cattle corn, they needed something else to feed them. They turned to grain. Now instead of grain being used for flower, it was used to feed cattle. This stupid, stupid Ethanol decision came when Oil hit record highs. 250 Logo boxes weigh about 50 lbs. So when I order 20 cases a week, I’m shipping 1,000 pounds. When oil hit record high, shipping costs went through the roof and caused the boxes to go up.
So basically, oil goes up. We start researching Ethanol. Which causes cattle to eat more expensive food. Which happened to be the food used for flour. And transporting becomes more expensive because oil went up.
Don’t believe the securities hype. OPEC was a major cause of our recession. I don’t know why this is being overlooked. Ethanol was such a stupid idea. The law makers that decided to invest in it should be held accountable.