Nursing

FOR SOME, 2008 WAS A GREAT YEAR. Some hedge fund managers received bonuses exceeding $1 million, and many CEOs received bonuses exceeding $10 million.

For others, however, it was a dismal year. Many people faced layoffs, slow bill payments, bankruptcies, foreclosures, and liquidations. Equally important, the US government and many other governments around the world are faced with soaring deficits and significant debt. It is truly amazing to experience many years of growth and then have the bottom fall out.

Why did this happen? How did this happen? Is it because of the meltdown of the financial and credit markets? Is it because of the collapse of subprime lending? Is it because of a lapse of oversight? Is it because of easy credit? Is it because of the frenzy to get what you want even if you cannot afford it?

Personally, I love having money. I appreciate what money can obtain and purchase. I enjoy buying things for my wife and kids. I enjoy taking great vacations, buying new clothes, and watching Blu-ray movies on my large-screen television with surround sound. But I know my limits.

Unfortunately, many people do not seem to know how to control themselves with money. The common expression "Money is the root of all evil" actually comes from the Bible: "For the love of money is the root of all evil" (1 Timothy, 6:10). In other words, your attitude and use of money can become the root issue. For example, charities are able to provide food, shelter, and clothing to the less fortunate through the monetary contributions they receive from donors. In this case, money is used for good. On the other hand, some leaders (corporate, governmental, or educational) who are supposed to serve the public have exhibited dishonest activities (embezzlement and worse) using tax money. Money was not the problem. Money does not change. People do.

What are we going to do now? In January, we celebrated the inauguration of a new president. In light of our current economic climate, many believe that everything will somehow turn around and get better because of President Obama. I voted for and support him, but it is going to take more than one person to change how we use money. I have taken to heart the president's words regarding citizen involvement in handling money more effectively going forward. We must become more fiscally responsible—each one of us. We did not get to this point because of the greed and mismanagement of corporations alone. Consumers allowed greed and mismanagement to control their money decisions, whether it was buying a home they could not afford or not saving for a rainy day.

American consumers' love for money has driven our country to a breaking point. Many people are losing their homes, sources of income, and families. So what are we going to do? What are you going to do?

HERE ARE SOME STEPS EACH ONE OF US CAN TAKE:

1. KEEP HOPE ALIVE. Things can and will get better. It will take some time and effort from everyone.

2. LEARN FROM PAST MISTAKES. If you are one of the many who allowed mismanagement of money to drive them toward financial destruction, do not let it happen again. If we do not understand and learn from our history, we are doomed to repeat it.

3. EDUCATE YOURSELF. Spend time weekly reading financial and personal financial news and articles. Learn how to use money wisely so you can make sound financial decisions. Take a personal finance class, or attend financial seminars.

LIONEL SHIPMAN is the owner of Shipman Consulting, a personal and business finance-consulting firm that specializes in helping individuals and businesses improve their financial outlooks through education. The firm also offers one-on-one consulting services.