Advanced Personal Finance

Hubris

November 8th, 2007

Yesterday, I heard a commentary on American Public Media’s great program, Marketplace. The piece, by Moira Manion, was about how Ms. Manion is looking forward to a recession. It seems Manion is debt-free and she feels fully confident she can always bring in enough for monthly expenses (she proudly proclaims she nets $1,200 per month working a retail job at an airport).

Not only was the piece distasteful, it reflected a stunning hubris. Manion seems to believe that anyone with debt (any debt) is an irresponsible consumerist, buying big screen TVs and expensive shoes.

“No, the people who need to worry are the people I see every day: Customers with 10 credit cards that are all maxed out. People with two cars, two kids, a mortgage and no savings. The fresh-out-of-college guy who bought a $190,000 condo, while owing $40,000 in student loans, and who still hasn’t found his ‘dream job.’”

Better than you

One of the complaints I read about personal finance writers (including bloggers) is that they exude a holier-than-thou attitude. I truly hope I don’t ever sound like Ms. Manion on this blog. If I do, please feel free to cyber-slap me. I’m not writing to proclaim how awesome I am. The fact is, my family often busts our budget, we owe money on a mortgage, and I don’t have all the answers.

On the contrary, I feel an almost constant underlying dis-ease. I suffer from the feeling that financial disaster is only one step away. And I feel this way regardless of our current financial situation.

I’m sure it’s a combination of biology and experience causing this. Economic behavior is funny that way, I guess. I read that the same percentage of people polled agree with the statement “I always/often worry about my finances” regardless of whether they were middle class or extremely wealthy.

So as for me, I hope there isn’t a recession. Because I know people with debt aren’t bad people, and they certainly don’t deserve the pain a recession would bring. Regardless of how many credit cards they’ve maxed out.

I understand the phrase, “There but for the grace of God go I.”