I was reading the paper, the wall street journal, and I saw a few articles on how inflation is increasing in the country and everything costs more and your money is worth less.
I started to think about why people are getting more into debt these days, by using their credit cards, or borrowing from their home, and even from those 401k retirement accounts to keep their life style that they have become accustomed. I just think that it is crazy that people are doing these things. I know that saving is important to get ahead. Here are 3 major reasons that I have outlined:
Uno (1). Easy Credit Accessibility. We all know how easy it is to get credit know a days. Come on even unemployed students qualify for loans. It’s quite upsetting but that’s the way it’s become. However what really makes want to vomit is the easy to get mortgage loans to people that can’t afford to pay back the loan. People who are going to try to pay it, but who will not be likely to sustain the payments of a house that are like 50% to 60 % of their take home income. Historically, in the financing industry, the rule of thumb of debt ratio on home loans is about 1/3 or about 28% of the total monthly after tax income. It the end people who are paying high mortgages cannot save. Bottom line, the more you owe the more likely you are to not have any savings.
Dos (2). Saving is Harder in This Time and Age. As inflation increases everything becomes more an more expensive, and by consequence we have less money to save because we spend more on commodities. The gas, food, and electricity have gone up and you pay(income level) has stayed the same, and for some it has gone down. So this is why is hard to save.
Tres (3). Saving sucks, I hate saving, saving is not Fun. Almost nobody likes to save today. Everybody is like “I want to live now and forget the future.” Saving for retirement means nothing to people. It’s just not fun.
Conclusion:
Things are tough now, everything is expensive because of inflation, however with sacrifices and priorities on each individual person saving can be accomplished. Saving could define your future. I think that if you want to save you must get out of debt and change your spending mentality. Please people save your money don’t spend it all.
