A Pre-Recession Thrift Program

Gary North - July 08, 2017

A recent article is upbeat about Americans' savings habits. It says that almost one-third have saving of 6 months' expenditures.

But a quarter have no savings. Everyone else has under 6 months' expenditures in reserve.

https://www.garynorth.com/snip/1288.htm

We are going to get a recession. Recessions come every decade or so. We had two in 2001-2008/9. We are due for another one soon.

When a family is dependent on two incomes, and one of them gets fired, the budget gets tight very fast.

Then there are the predictable setbacks, such as a major car repair. What if you had to buy a replacement car?

This is why people go into debt. They do not have money in reserve for the emergency expenditures that are statistically inevitable.

I took a three-year loan out to buy a new 1971 Toyota. It was a lemon. I never made that mistake again. I have borrowed ever since only to secure a mortgage.

Start saving. Don't stop.