When the economy went into the gutter, Americans were suddenly admonished by pundits on television and columnists writing for our favorite papers and magazines that we were irresponsible. As individuals we had way too much debt. We all know that people bought houses they couldn't afford. Oh yeah, and those savings for a rainy day didn't exist. We couldn't bail ourselves out.
So, there was a new mantra. Save! Hunker down and conserve some cash.
It actually worked. According to a Newsweek article this month Americans saved 5 percent of disposable personal income in January, up from 0.4 percent in the forth quarter of 2007. If you ask me, that's good news.
But, guess what -- a few months have passed and I just got a new memo. "Stop Saving Now!" At least, that's one magazine's cover story this week. What? In just three short months have we saved all the money we'll need? Have we managed to dig ourselves out of debt? Has the foreclosure crisis been resolved? No...No...and No.
Okay, I get it. In order to keep the economy running we do need to spend money. We need to invest in new ideas, in new businesses, and in the stock market. True to our tradition as Americans, I don't think we'll stop spending. Some entrepreneurs will recognize the opportunities and the deals that exist in a down economy. We're still wounded, but we'll come around.
When we do though, I want us to remember some of the lessons we've learned. Being thrifty is okay and saving is smart. I bet more people today are balancing their bank accounts and budgeting their finances. Those are good habits! Dealing with a layoff, maybe families are realizing the importance of having an emergency fund and having 3 to 6 months of expenses stashed away. If they didn't have that money this time, I hope they will the next time there's a bump in the road.
On a smaller scale, shoppers are doing some research and hunting for the best price. Maybe you're using coupons at the grocery store or buying the store brand. Or, it could be we're just practicing a little self restraint. If I have 10 purses in my closet, do I really need a new one? Must I have the cell phone plan with a gazillion minutes or the premium cable channels? Maybe you want all of those things. I'm finding, it's okay to do without some luxuries. I also plan on continuing without some of those luxuries when we're all flying high again.
So, what will I do with the extra money? Save! I'll save for a rainy day, for retirement, for a house. I've always been a bit of a saver. Even as a child, I clung to the gifts I got for my birthday. It's just my nature.
But, that's okay. I'll be spending too. After all, I'm saving up for something. And, here's the best part...I'll be able to afford it.
So, there was a new mantra. Save! Hunker down and conserve some cash.
It actually worked. According to a Newsweek article this month Americans saved 5 percent of disposable personal income in January, up from 0.4 percent in the forth quarter of 2007. If you ask me, that's good news.
But, guess what -- a few months have passed and I just got a new memo. "Stop Saving Now!" At least, that's one magazine's cover story this week. What? In just three short months have we saved all the money we'll need? Have we managed to dig ourselves out of debt? Has the foreclosure crisis been resolved? No...No...and No.
Okay, I get it. In order to keep the economy running we do need to spend money. We need to invest in new ideas, in new businesses, and in the stock market. True to our tradition as Americans, I don't think we'll stop spending. Some entrepreneurs will recognize the opportunities and the deals that exist in a down economy. We're still wounded, but we'll come around.
When we do though, I want us to remember some of the lessons we've learned. Being thrifty is okay and saving is smart. I bet more people today are balancing their bank accounts and budgeting their finances. Those are good habits! Dealing with a layoff, maybe families are realizing the importance of having an emergency fund and having 3 to 6 months of expenses stashed away. If they didn't have that money this time, I hope they will the next time there's a bump in the road.
On a smaller scale, shoppers are doing some research and hunting for the best price. Maybe you're using coupons at the grocery store or buying the store brand. Or, it could be we're just practicing a little self restraint. If I have 10 purses in my closet, do I really need a new one? Must I have the cell phone plan with a gazillion minutes or the premium cable channels? Maybe you want all of those things. I'm finding, it's okay to do without some luxuries. I also plan on continuing without some of those luxuries when we're all flying high again.
So, what will I do with the extra money? Save! I'll save for a rainy day, for retirement, for a house. I've always been a bit of a saver. Even as a child, I clung to the gifts I got for my birthday. It's just my nature.
But, that's okay. I'll be spending too. After all, I'm saving up for something. And, here's the best part...I'll be able to afford it.
