In my first two blogs I discussed how the current U.S. recession has played a major part in the financial turmoil that the middle-class is currently experiencing, along with their own irresponsible money management. In conclusion, I find that the recession does not have to dictate the lives of the individuals. While it is true that losing your job can and will have an effect on your household income, people that have managed their money the financially responsible way, and followed the basic financial disciplines, will fare much better than those who don't.
By managing money correctly while they have a job, they won't go hungry a month after they lose it.
Financial planners say that in order to get ahead, people must build their wealth and assets. They can't do this by overspending and not having goals. Some people don't set goals, and thus overspend. Many can't discern between needs and wants, while others spend money to look the part, but have no clue on how they are actually going to keep it up.
The basic money management principles consist of saving three to six months of expenses, getting rid of debt, and saving an emergency fund. There are many books written on this, as well as T.V. and radio programs. If more people read and followed these financial disciplines, then maybe the economy will strengthen and the middle-class will be the image of the American dream once again.
Do you think your current spending habits are on track for prosperity or poverty? If not prosperity, are you willing to change your spending habits and save as stated above?
By managing money correctly while they have a job, they won't go hungry a month after they lose it.
Financial planners say that in order to get ahead, people must build their wealth and assets. They can't do this by overspending and not having goals. Some people don't set goals, and thus overspend. Many can't discern between needs and wants, while others spend money to look the part, but have no clue on how they are actually going to keep it up.
The basic money management principles consist of saving three to six months of expenses, getting rid of debt, and saving an emergency fund. There are many books written on this, as well as T.V. and radio programs. If more people read and followed these financial disciplines, then maybe the economy will strengthen and the middle-class will be the image of the American dream once again.
Do you think your current spending habits are on track for prosperity or poverty? If not prosperity, are you willing to change your spending habits and save as stated above?
I can honestly say that at the rate im going im heading straight to prosperity. Saving money used to be a very hard task to me. I was a senior in high school with two jobs so I always had money. Although money shouldn't make a person it always help to have it. I really dont plan on having a credit card but if i must have one I plan on paying it off as quickly as possible. Most college students get one and dont know the cost of their actions. In the article Top Ten Student Money Mistakes, getting a credit card and making poor judgment was at the top of the list.
ReplyDeleteTop Ten Student Money Mistakes http://www.youngmoney.com/money_management/spending/020809_02_982_982/
The header of your blog was interesting and made me want to read further. The credit card in the trap was a good choice. The recession has taken a toll on many people nation wide. I disagree with your comment "By managing money correctly while they have a job, they won't go hungry a month after they lose it" because I come from a family that lives from pay check to pay check. This means that all of the money is being divvied out towards the following items: light bill, water bill, rent, car insurance, car payment, food, and personal needed items such as soap, tooth paste, deoderant, and shampoo. If anyone in my family lost their jobs right now that would result in major trouble. I understand what you are saying about people needing to be responsible and budget with their money. Credit cards are never a good thing. I do not think I will ever acquire one. My question for you is would this 'saving money so you can not starve for a month after you lose your job' really be an actuality to a bunch of families like mine who spend every dollar and are currently barely getting by?
ReplyDeleteMy spending habits are heading directly towards prosperity. I was always taught that you don't have to have everything and that you should save money for a rainy day. I agree with your statement on if they manage their money while they have a job, they won't go hungry a month after they lose their job. After paying bills and buying groceries, you should have some money left over. If you strain from buying new clothes and going out on the weekends all the time you will save alot of money. http://blog.lendingclub.com/2010/10/26/simple-tips-for-saving-money/ This a website that just gives a few tips on how to save money.
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