[quote]When Wall Street banks hit rock bottom three years ago and investors across the nation were crying uncle, members of one American subculture emerged relatively unscathed.
The Amish, with their horses and buggies and their "upside-down" values, were largely unaffected by the financial crisis, living contented lives and amassing cash.
"Their whole world view is based on living below their means, never ever above their means," said Lorilee Craker, author of the book "Money Secrets of the Amish: Finding True Abundance in Simplicity, Sharing and Saving."
"They are so much more prudent than the rest of us," she said. "They like the sense of security. They like to know they have a big cushion for a rainy day."
In a material world where economic success is often defined by big houses, flashy cars, caviar and champagne, the Amish way of wealth is found in delayed gratification, hard work and thrift.
The No. 1 dream item on an Amish family's wish list is often to own a farm that can be passed down to future generations.
One 45-year-old Amish farmer Craker interviewed during her research had saved $400,000 over the course of 20 years toward the purchase of a $1.3 million farm.
He and his wife saved that down payment while renting a farm and raising 14 children.
"I looked for signs of stinginess, of a wife and children suffering somehow under the regime of a tight-fisted, straw-hatted Scrooge," Craker wrote of her visit with this family. "No one seemed deprived; in fact, just the opposite. Amos and Fern's adorable children have a calmness and peace I find striking and appealing."
The Amish do not buy into the added expense of modern conveniences that many others take for granted, such as automobiles, telephones and electricity. But that also means they rely on sunlight and they're limited in how often they can visit and communicate with people outside their community.
Another aspect of the lifestyle is the absence of personal debt.
Buying a farm is one of the only reasons the Amish would consider borrowing money, because they passionately avoid debt. They also have little respect for people who do not pay their bills on time.
"To pay someone on time is an extension of the commandment 'Do not steal,' " said one Amish man interviewed for the book. " If it's due on the 10th and you pay it on the 15th, you are stealing that man's money for five days."
Lancaster, Pa., banker Bill O'Brien can vouch for their creditworthiness.
HomeTowne Heritage Bank services $225 million in loans to Amish people, and Mr. O'Brien's customers are almost exclusively Amish. In 20 years, he said he has never lost money on an Amish loan -- ever. He can count on one hand the number of loan forbearances, or requests for a temporary delay or reduction in loan payments, that he has been asked to grant.
O'Brien told the Pittsburgh Post-Gazette that 85 percent of his institution's loans to Amish people are for the purchase of farmland. The other 15 percent are loans for primary residences and for rental property owned by Amish people.
Members of the religious sect usually limit their borrowing for real estate only, and they will always save at least 20 to 25 percent of the purchase price of whatever real estate they want to buy.
"After 20 years of working with the Amish, I have learned a lot from them," O'Brien said. "The Amish are like us, but they have certain beliefs that keep them from making the mistakes we make economically. They are more apt to stay within their means than the rest of the population."
Craker's interest in the Amish culture was piqued in 2008 while listening to an NPR report on how a bank in Lancaster that served the Amish community was having a record year even though banks across the nation were reporting heavy losses and even going out of business.
She found that money saving is built into their culture.
"They are very green," Craker said. "They like their food sourced naturally. They raise their own beef and chicken and butcher it themselves."
They find a second or third use for everything, going to great lengths at times to fix what is broken, patch what is torn and repair what is repairable. Generally, the Amish use things until they wear out -- completely.
The secret of the Amish people's financial success could have much to do with realizing the best things in life are free.
Recreation has nothing to do with trips to the mall or high-priced vacations. They opt for hiking, volleyball and badminton.
Ice cream is their number one extravagance, and it must be eaten quickly due to the prohibition against having electricity in the home. One Amish woman admitted her biggest indulgence was to treat herself to Ritz crackers.
"I told one of the Amish teenagers how much movie popcorn costs and she nearly fell out of her chair," Craker said.
"She and her family play dominos on Sunday nights and start a fire and make big bowls of butter popcorn for way less than $9."[/quote]
[URL="http://www.scrippsnews.com/content/amish-largely-untouched-us-financial-crisis"]http://www.scrippsnews.com/content/amish-largely-untouched-us-financial-crisis[/URL]
Quite funny, but I can't say it isn't surprising.
Our new economic solution.
Horse buggies and agriculture all day erry day.
Maybe we should put more of our trust in power of the Lord. And I'm not talking about some Rick Perry bullshit so don't get that started. These Amish people seem to be impervious to the financial crisis that we've been in. We need to do a scientific study on what exactly they do (or what God does) to be so resilient.
It helps that they don't have an economy.
[QUOTE=Performula;32700008]Maybe we should put more of our trust in power of the Lord. And I'm not talking about some Rick Perry bullshit so don't get that started. These Amish people seem to be impervious to the financial crisis that we've been in. We need to do a scientific study on what exactly they do (or what God does) to be so resilient.[/QUOTE]
They don't take out huge loans on useless crap and they tend to grow everything they need.
[QUOTE=Thom12255;32700077]It helps that they don't have an economy.[/QUOTE]
They do have an economy, it's just completely different from ours.
Time to go Amish.
[QUOTE=Performula;32700008]Maybe we should put more of our trust in power of the Lord. And I'm not talking about some Rick Perry bullshit so don't get that started. These Amish people seem to be impervious to the financial crisis that we've been in. We need to do a scientific study on what exactly they do (or what God does) to be so resilient.[/QUOTE]
Consider how they live and how we/you live. Look at your lamp, your computer, your TV, your investments, your clothes, your car, your cellphone, your iPod . Listen to your air conditioner or fan, listen to every little thing buzzing and beeping; clicking and tapping. Picture everything you pay for: groceries, gas, cigarettes (maybe), clothes, games, books, nick nacks, etc.
Give up all that useless shit and live like it were a hundred years ago and you'll be 'impervious to the financial crisis', too. Or at the very least, limit yourself to what you need and not everything that you want.
So, the moral of the story is that all the poor people in this country should regress to the 15th century?
Fine if it works for the Amish, but if everybody emulated their way of life, we'd be back to an average lifespan of 40 and impacted wisdom teeth being a fatal disease. Regression is NEVER the answer.
[QUOTE=Performula;32700008]Maybe we should put more of our trust in power of the Lord. And I'm not talking about some Rick Perry bullshit so don't get that started. These Amish people seem to be impervious to the financial crisis that we've been in. We need to do a scientific study on what exactly they do (or what God does) to be so resilient.[/QUOTE]
they're self sustaining. they grow their own food, they make their furniture, houses, carriages, and their vehicles run off hay and carrots.
[QUOTE=-Ben_Wolfe-;32700199]Time to go Amish.
Consider how they live and how we/you live. Look at your lamp, your computer, your TV, your investments, your clothes, your car, your cellphone, your iPod . Listen to your air conditioner or fan, listen to every little thing buzzing and beeping; clicking and tapping. Picture everything you pay for: groceries, gas, cigarettes (maybe), clothes, games, books, nick nacks, etc.
Give up all that useless shit and live like it were a hundred years ago and you'll be 'impervious to the financial crisis'. Or at the very least, limit yourself to what you need and not everything that you want.[/QUOTE]
No silly its god of course
It should be simple, they are almost completely self sufficient save for medical supplies.
The Amish live essentially the same way that a peasant in the end of the high middle ages would. The only difference being that they are more religious than the peasant and don't have a local lord, instead having the military of the USA to protect them.
[QUOTE=Used Car Salesman;32700263]So, the moral of the story is that all the poor people in this country should regress to the 15th century?
Fine if it works for the Amish, but if everybody emulated their way of life, we'd be back to an average lifespan of 40 and impacted wisdom teeth being a fatal disease. Regression is NEVER the answer.[/QUOTE]
Actually, the average life expectancy and cause of death is the same as the typical American.
[QUOTE=Performula;32700008]Maybe we should[B] put more of our trust in power of the Lord[/B]. And I'm not talking about some Rick Perry bullshit so don't get that started. These Amish people seem to be impervious to the financial crisis that we've been in. We need to do a [B]scientific study[/B] on what exactly they do (or what God does)[B] to be so resilient.[/B][/QUOTE]
Are you retarded? Closed communities with no imports growing and building everything they live off of aren't effected by a financial crisis that involves the buying and selling of goods through representational currency? How is this possible?!
[QUOTE=Funcoot;32700345]Actually, the average life expectancy and cause of death is the same as the typical American.[/QUOTE]
Well actually life at the tail end of the high middle ages was remarkable good compared to the centuries before and after it. If you managed to reach the age of 20 you could very easily expect another 40 years ahead of you. So much so that in the early 1300s overpopulation became a problem as the climate cooled, famines and floods struck with great numbers and eventually the plague.
of course the amish wouldn't be touched by the financial crisis, they live in a traditional economy which has little to no need for the dollar.
Makes sense seeing as they are pretty much cut off from the economy, but maybe we can learn lessons from them of living within our means.
woops let me put the woosh up here because it makes more sense.
woosh
[QUOTE=StormHammer;32700384]Are you retarded? Closed communities with no imports growing and building everything they live off of aren't effected by a financial crisis that involves the buying and selling of goods through representational currency? How is this possible?![/QUOTE]
One interesting note is that Amish still use technology, there just has to be a very important reason to do so.
[quote=Amish FAQ]This question is much easier to understand if one is born into the Amish lifestyle. The Amish way of life is a chosen one. The Amish are not forced to live as they do. It is a matter of "drawing a line" at having things. When an Amish person has someone drive them somewhere in a car, they don't just hop in and go for a ride; there is a purpose to their trip, i.e., to go a distance to the Doctor, to visit family members at a distance, etc. The same goes for the phone and freezer. An Amish person would not just "talk" on the phone. They would use the phone for a specific utilitarian purpose, i.e., to order supplies for the farm, to call the Doctor or notify a distant family member of a death or major illness in the family. The call would be a conversation of purpose.[/quote]
They may buy into some odd beliefs but at least they don't buy in quite as much into the "monetary" belief system as most of us do
Cows dropped in value by almost 30%, and all the chickens are in debt.
Rough times, man. Rough times.
[QUOTE=StormHammer;32700384]Are you retarded? Closed communities with no imports growing and building everything they live off of aren't effected by a financial crisis that involves the buying and selling of goods through representational currency? How is this possible?![/QUOTE]
They sell things to people outside their communities, I live near an Amish bakery, and have bought Amish furniture in the past, which I still use, they're not really closed communities, they're just self sustaining.
They better not get all braggy about it and promote it
The Amish are anything but closed communities. They do interact with outsiders. There is a lot of trade between regular Americans and the Amish.
Hardly surprising, they're pretty self sufficient people and don't worry about the things that everyone else does.
But what about the recent [url=http://www.bbc.co.uk/news/world-us-canada-15219225]Amish-on-Amish attacks[/url]
[h2]Warning: I ended up accidentally writing a giant post on financial advices from someone who has "been there, done that" (in a way, I'm not actually Amish or anything):[/h2]
I see amish shopping at Target and places all the time, they look so nice c:
And they aren't exactly restrictive people either. When you turn 18 you have a choice of going into the outside world or continuing to be Amish by their tradition, most people generally choose to stay Amish.
Really it's not hard to take their advice and apply to our own lives. I'm in college right now with my own apartment (who I share with my sister roomate and split our rent) and a part time job of around 25hrs or so a week that I make around $250-$300 a week at.
I really can't complain. I live well and enjoy what I do. I honestly would be totally comfortable where I am for the next 5-8 years if I need to be (i.e. cant find a carrer job, etc), but I still am shooting for a career where I do what I love and make at least $20-25+/hr
Back when I was only making $600/mo at target, I was pretty comfortable too. Oh sure I wouldn't have been able to afford doing stuff like buying that specific dining table I wanted or a TV that was 42" vs 32", but that stuff really is frivolous when there are other options out there.
[B]The key is pretty simple:[/B]
[B]1.[/B] Be finacially aware. Save reciepts and check your account balances later on in the day online, then throw out reciepts once you see the correct amount was charged. Keep track of what you spend money on, and limit yourself if you find yourself a little too addicted to spending $5-$10 on lunch everyday. Give yourself "bank account limits" - I.E. if I ever get below $500 in my account I pretty much stop spending money on everything but the essentials. Know how much you make per week and make sure you only lightly spend what you have. All these little steps go a long way to making you more finacially secure.
[B]2.[/B] This ties in with the above. [U]Never ever get yourself into debt if you can help it. [/U] My dad told me great advice a few years ago: [I]Only spend money that you actually have, debts (and by loose extension, credit cards) are not your money.[/I] And this advice is so, so true and very important to staying financially sound. The only debts you should try and have on a regular basis are living debts (rent+bills), and insurence for things you need (like health and/or car insurance). If you can, while in college, stay under your parent's insurence plans. Not only is it cheaper for them, but it just makes more sense for you too. You pay less money, and it is one less thing you have to worry about.
As an aside, I'm paying my own way through school thanks to simply being aware of my options, where I am going in the next few years, and knowing how to take advantage of certain systems so I can stay out of debt. First two years of community college I had earned a $3000 scholorship that paid for 85% of my college expenses, where I'd only have to pay $50 or so out of pocket per quarter. The extra money I had in my pocket was great because I could actually save it for when I really needed it, or the occasional indulgence purchase. For my third year, I had to pay out of pocket in full (about $500/quarter), but because I was in community college it was much cheaper AND my job still afforded me some cash.
I graduated and now am at a university for the next 2-3 years to finish my bachellors. If I needed to take out a loan, it would be rather simple because I would only have about 2 years worth of debt to pay off instead of 4-5. Luckily, I chose a college that my dad works at, so I get an 80% discount still studying what I want to do, which means I pay about $600/quarter for classes which I could easily afford. But, I applied for financial aid, and I end up getting $800/quarter in Pell Grant money which I don't have to pay back.
Moral of the story? I get paid $200 per quarter to go to college. It would have been easier to get a loan but having a job through college and using every asset you can before resorting to loans pays off. Employers like it too, it shows someone is financially smart when they see "Graduated with no debts" or "Debts fully paid" next to their education in a resume.
[B]3.[/B] Shop at the grocery, and learn to cook simple meals at the least. Never get in the fast food trap if you can help it, even if you hate cooking. There are a surprisingly high amount of recipies out there that are simple, require zero effort (throw in pot, wait 20 min, done), and are delicious. When you eat, try to make it purposeful and something to look forward to instead of just snacking or throwing stuff in your mouth whenever. This helps you buy food and prepare food smarter, which can help reduce the amount of money you spend on junk you don't need.
[B]4.[/B] Stop buying shit just because its cheap. I don't give a fuck if Mass Effect is on sale for $5 on steam. I won't have any real time to play it and I don't need to stop playing the games I already enjoy more. So why buy it? Speaking of which:
[B]5.[/B] Start valuing your time more than your money. Money is a valuable resource, but it is a renewable resource. Time is not renewable, once you lose time, it is gone forever. Don't get stressed over losing $10 or having to pay a $150 speeding ticket. It's not worth your time an energy, and if you've been financially sound you should have a cushion available to support dings in your finances.
You'll find that once you start living wiht this mindset, you'll start becoming more financially sound as well. You're less likely to waste time shopping for shit you don't really need or would just be a timewaster, which saves you money. You'll start spending you money on things that really matter to you and will impact your quality of life in the future (or right now) directly. If I shopped at every steam sale for example that went on this year for a bunch of neat games that I really woudln't end up playing anyways, I wouldn't have been able to afford a trip to the nevada desert and Vegas later this year - something that is far more worth my time and my money simply for the unforgettable life experience, even if the "dollar per hour" ratio is much smaller than 100 steam games I bought for $1-$5.
Moral of the story: it pays to value your time higher than anything else, so you can actually spend your money on stuff that really matters to your quality of life while also having money for emergencies.
[/tangent]
EDIT: Well seing as this post is large I might as well make it look nice and easy to read
Well no shit. They're not really part of the general economy. They provide for themselves.
This is probably why middle PA is literally no different from how it was 10 years ago.
A self-sustaining off-grid community is untouched by repeated economic failure? Not surprising. I say we all band together and build an underwater city.
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