Inspired Real Estate For Today

To read part 1 of The Tipping Point...When Poverty Moves to the Burbs...

In 2002, Malcolm Gladwell published a bestselling book, The Tipping Point: How Little Things Can Make a Big Difference. Gladwell's book popularized this term into a oft repeated cliche. 

However, the original term was coined in the 1960's by a sociologist Morton Grodzins who was studying integration trends  and white flight in suburban neighborhoods.  Grodzin defined the"tipping point" as the dramatic point at which something unique becomes common.

Today, another type of tipping point is upsetting the balance in many suburban communities.  Poverty has come knocking and for the first time in history, there is more poverty in the suburbs than in the cities.  A related Newsweek article indicates "currently, 38 million Americans live below the poverty line, which the federal government defines as an annual income of $20,000 or less for a family of four. But for the first time in history, more of America's poor are living in the suburbs than the cities-1.2 million more, according to a 2005 survey."

The situation in the Midwest is exacerbated by the economic crisis spawned from massive job losses in the manufacturing sector and automobile industy.  The effect has been widespread.  It's never possible to prevent all possible adverse situations, but there are some things we can do to minimize or avoid substantial loss.  These practical suggestions can be implemented at any time.

1.  Live within your means.  This is difficult but necessary.  If you don't have the cash to buy it, maybe it doesn't need to be bought.  Carrying cash in your wallet rather than plastic is a good way to get a handle on what you are actually spending.  You also won't have the additional drag of paying for your meal for the next 6 months!

2. If you're in a adjustable mortgage loan which is set to adjust soon, re-finance NOW.  Get into a loan program which will have a set payment amount.  Worrying about whether your payment will be increasing or decreasing is more excitement than is necessary in stressful times. 

3. Begin  a Savings Account or increase your contribution to the one you have.  America's Saving Rate has dropped to below Zero.  Coupled with money being taken out through home equity loans, there is very little cushion for the unexpected.  You may wonder how to save.  There are a number of creative ways to save money, sometimes by doing things differently. This wiki article on Saving Money is an excellent place to start.

4.  Talk!  Yes, talk to your family and significant others.  A common reaction to pain is to shy away from what we perceive to be the source.  Your family and those whom you love are also caught in the same trap.  Choose to involve them as on-going part of the solution.  Talking about what is going on, even with children in an appropriate way gives an opportunity for everyone to be involved in creating solutions.  When everyone is on the same page, it''s easier to go in the same direction and reach a mutually beneficial destination.

5.  Set Goals.  This may seem counter-intuitive, but it is even more vitally necessary in the midst of a crisis.  If you set goals and never looked at them, this is the time to look at them and perhaps revise them.  Developing a Budget plan is very important. Getting out of a mess is easier if you have a plan.  It doesn't have to be a complicated plan.  It can begin with simple steps to save an amount to be put aside for savings or to pay off a balance on a credit card.  Goal setting should also include regular reviews to check your progress.  Goal setting helps you to step out of the blame cycle and start taking deliberate steps to resolve the crisis.

These little suggestions are small, but significant ways that each of us can tip things in our favor as opposed to being tipped over.

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