Economics 101 for Millionaire Nurses!

Economics, just the word scares a lot of folks.  They start thinking of pointy headed nerds, with pocket protectors, and slide rules- using big words to tell people how bad things are out in the real world-like we didn’t already know…..

I found this definition of economics online:  “The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems.”

Just the definition puts most people asleep.  What I found a little surprising, was that economics is a social science.  When I think of social science- I usually think psychologists, social workers, and anthropology.

I thought economics was “mathematical”.  Most social scientists that I know, would run from a calculator-so I learned something today….

One of my ways that I give back to society (one of the most important tenet’s of “Millionaire Nurses” -giving back) is serving on our city council-yes, I am a politician!!!!  You might think I do it for the money, but the 300 bucks a month that I get paid, doesn’t go far when I miss at least 10-15 business days a year from my medical practice.  ( I need to learn more about  “economics” myself.)

Now I am not telling you this to pat myself on the back. I consider it a privilege to serve my community- that has provided a great living for my family  for the last twenty-five years.  I also have learned a lot, by going to seminars, and educational opportunities to help become a better councilperson.

Today, I had the opportunity to hear a round-table discussion about the current economic downturn, to help cities manage their budgets. To assist us in providing the services citizens expect from city government, with the severe downturn in revenue from the drop in sales tax revenue, and other fee’s that normally support local government.

The featured speaker, was Dr Jeffery  Dorfman, Professor of Economics at the University of Georgia.

I am happy to tell you, he was neither pointy-headed, nor boring, and certainly didn’t sound like a nerd.  He gave a great presentation on the current economic situation facing our country, and by extension our state and city governments.

My “take home” points from his presentation were:

• The recession is now over, but until consumer confidence returns, it may not be obvious to you or I.
• When you are out of work-it doesn’t really matter whether we are in a recession-the household affected is in their own version of a “depression”!
• This recession, while severe, is comparable to recessions in the sixties and early 80′s, though it will probably take longer to recover, than those past recessions for various reasons.
• City and State politicians should plan their spending based on conservative estimates of revenue, using the good times to put money in  reserves, so when times are bad, they have a cushion.  This, to prevent having to curtail services, fire people,  or raise taxes-when it is the most harmful for the citizens, who are already struggling.

Now how does that relate to “Millionaire Nurses”?  Obviously, a lot, or I wouldn’t be writing this long post!

This is exactly what I am trying to stress to my readers.  The huge benefits you and your family will have , when you put aside money in the good times-(also known as the “Super-duper emergency fund”).  Limiting your spending to less than you earn, and limiting your borrowing so that you can continue to prosper when times are bad.  Millionaire Nurses are not struggling because of  living beyond their means.

So thanks, Dr Dorfman for an enlightening presentation-the Georgia “Dawgs” are lucky to have you.

Tags: emergency fund, living within your means, managing your money in a recession, saving

This entry was posted on Sunday, January 24th, 2010 at 8:33 pm and is filed under debt reduction, personal finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.