Saving Money
Have you ever read anything that made you feel like a failure? Something that slammed you in your gut, made you want to vomit?
This innocuous looking article on savings rates at Smart Money hit me that way.
The article discusses the savings rate of our country compared to others in the world. It seems that individuals who are living in the poorest corners of our world are also some of the best savers.
Ring the Bell For Others!
We complain and whine about our inability to get ahead on our income.
- “How can anybody save money in this economy?”
- “It costs so much to eat, buy gas-our monthly bills are just too high!”
- “Momma, I can’t wear those no-names, my friends all wear Uggs.
The super-savers in third-world countries, whose income would be less than 1% of our so-called poverty level, sometimes making as little as $2 bucks a day, are living on half and saving the rest.
How many of you are saving 50% of your income, or putting 50% of your income against your debt?
The current savings rate of our country is quoted to be around 5%. That means we spend 95% of what we make on average. At the height of the boom before things crashed in 2008, we were at a negative savings rate. That meant as a country we were all spending more than we made on an annual basis.
Our government continues to do so at a dizzying pace.
Spending, Can You Do Better?
I know why this got my attention. We are blessed in this country to have so much in the way of material goods-most of which sits in our homes unused, just to be available if or when we need it.
We have 15 different damn ways to cook a hamburger. From a microwave, to George Forman’s grill, to our stove, to the $1000 BBQ with 5 burners and while you’re cooking- a blender for your margarita-cheers! Cooking, that’s for losers, let’s go to __________ (insert your favorite burger joint here!)
And don’t forget the pasta maker, the tortilla maker, the bread machine, and the rice cooker. How many ways can you cook a starch???
I’m not just casting stones here. I’m looking dead center in the mirror and don’t like what I see.
And my wife and I are laughed at ‘cause our TV is 20 years old and both our cars are more than a decade old! I know I’m far from the worst spender, and that just makes it even worse.
Why Personal Finance?
Many people ask why I do this. “Why do you teach others about personal finance, as busy as you are at practicing medicine?
The only answer I can give:
I’m called to do it. I want to help you see how poor, (some would say stupid) choices are ruining your lives. It seems like fun to buy these new shoes, eat out, I gotta have that new boat, the kids have to go to that private school..….. We borrow money for school when we could be working and paying our own way!
We delude ourselves daily!
It’s so easy to watch TV rather than study and better yourself to improve your income. It’s easier to have a beer with your buds rather than volunteer at the food bank or ring the bell at Christmas.
It happens so slowly and in the company of so many others, that we don’t realize we’re in Overspending Hell ‘till it’s too late!
Reader Questions:
What do you think? What is your savings rate? What would get your attention about your spending? Do you save 5, 10, 15% of your current income after taxes?
If you are saving more, how do you do it? How did you get there and what would you suggest others do who say they can’t get by?
{photo credit: Monica’s Dad c.c.}
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