Personal Finance: Keeping up with a changing economy

This is a particularly depressing summer for those of us unlucky enough to be tracking the national economy. The national media is bombarding us with one negative story after another about why the economy is in the pits. This is all typical but there is one theme that seems to be a bit unique this time around, and that is personal responsibility.

Todays changing economy contains a unique mix of problems that are putting more responsibility on the consumer to better manage their personal finances day to day. Gone are the days of getting cheap and fast money from banks and other lending institutions to start a business, buy a house, a car or get an education. Household cash flow is getting squeezed nationwide due to inflation and stagnant wage increases and there is a growing sentiment in some corners of the country that it is the patriotic thing to conserve and watch your spending. My wife showed me an article in Elle magazine from this month quoting celebrities about how they are 'cutting back' and changing their habits because of the 'recession'.

At PPS, we are also finding more and more that Americans from ALL economic brackets are taking a renewed interest in better managing their personal finances. All of a sudden, their credit score is much more important and the costs of not properly overseeing bill payment and monthly cash flow are increasing.

In America for the last couple decades we seem to have had it easy with readily available cash on loose terms, banks that were lax on late fees and other charges and our household cash flow was not as much of a concern. All this has changed for millions of people and even for those that are not as heavily impacted, they are reminded that it is a narrowing margin, no matter the economic bracket.

It is even more important today to pay your bills on time, review them for accuracy and changes. Americans need to be more personally responsible for controlling and monitoring their spending habits, saving for retirement and maintaining a process to stay on this track.

PPS fills a role for its clients by providing that managerial oversight of an individuals personal daily finances. We review the bills, pay them, dispute issues with the vendor and track to a fine detail clients monthly income and expense. We assist our clients in staying financially responsible and knowledgeable during these changing times.

The good times will roll again, they always do, but for now the rules have changed. Consumers are being punished more severely for being financially unorganized and the margin between success and distress is narrowing. If you are concerned about how you are managing your daily finances and don't have the time to devote to getting them right, maybe PPS is the right fit.

Devin