Blog #4 Living Beyond Your Means

It has become apparent that the phrase “living beyond your means” does not hold much meaning. This is certainly not everyone, as there are some of us with both feet firmly on the ground. The handbag craze is sweeping the nation and it seems that more are largely aware of and owning designer fashions.

While walking though campus I have even seen several students who appear to have these designer luxury items and I wonder several things. I have learned some hard lessons about finances though some very tragic situations, and in the end I realized a simple concept; everything that happens is a result of a choice made and some people make bad choices.

Does anyone consider their financial standing before making these extravagant purchases? Money in the bank gains interest. A handbag is like a car, while the handbag may last more miles both are a consumable good. And after the extravagant good has been purchased, the happiness is short-lived and then most people are ready for something else new. Search for true happiness, I promise it’s not it a handbag. Remember, a rich man is considered rich because he has lots of money and he has money because he doesn’t spend it on frivolous items. We are entering an era of degree holding citizens, and more money is being made, yet everyone is still broke.

Why do some people struggle financially no matter how much they make? I began reading several financial books in search of the answer and one author seemed to hit the problem right on. He began discussing the differences between the rich and the poor, and he made some amazing points about financial literacy. What can a poor parent teach their child about finances? They can tell their child to go to college-get a degree, so then you can have a good job. So then you get a good job, but remain broke. This is because the crucial information most need to know about how to make money work for you (instead of you working for money), was a lesson not taught in grade school and a lesson that can be easily missed in college. Live within your personal means. Learn from the mistakes of others and critically analyze decisions.
I won’t ramble anymore…as it is unlikely anyone has read this…

If so, I found some great books…if anyone is interested.

Blog #3 Retailer Profile of The Gap, Inc.

The gap has a simple but elegant mission statement…, “Simply, to make it easy for you to express your personal style throughout your life.” The Gap, like most retailers, has only one objective. The objective is to have consumer’s outfitted head to toe in Gap brand clothes. In 2006 The Gap had reached revenues around five billion, falling one billion dollars short of its own internal competition, Old Navy. Some of the Gap’s main competition is internal and some is external. The prices at the Old Navy are comparable to New York & Co. and several other inexpensive retailers, and I would put J. Crew in the same category as Banana Republic, so what class is the Gap actually in? The Gap’s conservative appeal often directly competes with the prices of nearby retailers in department stores.
Despite the fact that there are only mediocre choices in the malls today, the clothes from the Gap rarely look out of style. The Gap has customers of all ages. Gap is a brand that should be considered “Uni-Trend”. Basic colors are almost never out of style and most styles feature a cut or design that doesn’t reveal when the garment was made. So is the Gap sinking? Not anytime soon.