Saturday, January 22, 2011

Save Your Money!

News report are telling us that savings are up.  People are beginning to save their money again.  This sounds good but...most of the people/families saving their cash are those that make greater than $70,000 a year.  Those making less than $70,000 are not saving any money.  Although payroll has not gone up the last two years, commodities have come down in price, giving us a sort of in facto raise.  However, when inflation does start to occur, if those not saving do not have any extra cash, how will they be able to afford their needs?

It may sound disappointing, but it shouldn't be.  The reason those families with household incomes less than $70K are not saving is not because they don't have any remaining discretionary income, but because they are spending any extra money they have on crap.  They are the ones that over the last decade have built a mountain of debt they cannot now pay.  Those that can save are not necessarily able to do so because they make so much money, but because they were not out getting in debt, living higher than their capabilities, or setting a standard of living they were not entitled to.  I hate using the word entitled, but when you make your own money and it is not given to you through programs that encourage a lack of productivity, one is entitled to enjoy the fruits of their labor.

The people that are saving are not the ones that make a lot of money, but the ones that are not in debt!!!

~ Digger

2 comments: