Here is a shocking personal finance statistic. It was also the highest clicked link from Monday’s post:
Many Americans don’t have $500 in personal savings.
After you read the article, gaze below for a few of my thoughts:
1. Where is your edge?
Here is one of the main problems I’d identify is that a lot of people don’t even know where the edge is. So, budget. Know your expenses well, and build a base as well as you can.
2. Lack of control leads many to the edge.
It is true that Julie and I could make our monthly expenses (giving included) on much less than we make. I am glad to say we know how to control our spending. It takes teamwork and communication. It also means explaining to our kids why we do some things, and DON’T do some things.
3. A basic value test.
Answer this question: if you got a larger sum of money, would you begin to figure out how to spend it, or how to give it, save it, or use it to improve your family’s financial condition? The answer to this question just may be why 40% of Americans don’t have five Benjamins to rub together.
Have a great weekend everyone. Be challenged.