Dollars AND Sense

When did having common sense about your money disappear from the foundation of the American household? This is my question of the day. Over one hundred years ago, Ben Franklin said, "A penny saved is a penny earned." Today in the year 2011, hardly anyone saves money and the ones that do are not saving enough. Yes, I know the unemployment numbers are still above average and it is hard for people to save money right now. However, what about before the recession when people were working? That is when no one was looking ahead to the future. Unless you plan on dying tomorrow, then it should be your goal to have money saved for emergency situations. The recession would not have hit so many people if they would have saved more and spent less money ahead of time. We have allowed the market dictate our spending habits. Americans have been convinced that they need that new car, new house, latest pair of Jordans, etc. In other words, we have become a materialistic society that do not have the self discipline to understand what is and is not a good purchase. The car that cost $10,000 will get you to your destination in the same amount of time as the car that cost $50,000. The art of instant gratification has been mastered by marketing firms across the world and we have fallen for them. The common sense rule about money that I was taught as a child was that anytime you get some extra money, put some to the side. As I began working, my grandmother told me to "always pay yourself first". Treat your household like you would a debt that you have to pay every month. All you need to do, if you haven't already, is open up a second or third account at your local bank or credit union. If you really want to get more bang for your buck, look into a interest bearing savings or checking account. Once you have your accounts set up then start paying yourself like you would any other creditor. This way your money will be there if you lose your job or have any other sort of financial emergency. You cannot plan for an emergency but you can be financially prepared for one. The choice is up to you!