Some people seem to have forgotten all about saving money. In my parents’ day, it was always a case of putting 10%…
Some people seem to have forgotten all about saving money. In my parents’ day, it was always a case of putting 10% of your earnings aside every month. My parents tried to teach that to me, but saving money isn’t always that easy.
For example, an article in a recent “Fortune Magazine” (end of March 2006) talks about how the rate of household saving in the U.S. has dipped to -0.4%. That is SHOCKING. (A side note of depression: China has an average household saving rate of 30%, also bad in it’s own way, though).
An article on MSN Money called “Leave your ATM card at home” talks about how paying with cash helped save a person money because it made her stop and think if she really needed the item.
The article does mention a few reasons why Credit Cards are helpful, such as:
- They’re easier to track. With debit and credit cards, you know exactly what you’ve spent where…
- They offer some protection. Credit cards, and debit cards with MasterCard or Visa logos, promise “zero liability” for consumers if the cards are lost or stolen…
- They give you rewards. Many credit cards and even some debit cards offer reward points, frequent-flier miles, cash back or other fringe benefits. The more you use them, the more rewards you pile up.
But overall, they talk about how using cash is better than credit because you can’t spend what you don’t have. If you have put cash away for such things as entertainment, and you have run out, it isn’t as easy to just go out and spend.
Definitely an interesting read, along with the Fortune Magazine.