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I'm really worried about the problems with the economy right now. I thought that spending would be a good thing right now, but my sister said that Americans shouldn't spend and should save their money. What do you think?
You absolutely should not spend money you don't have. A good budget is 1/3 housing, 1/3 other necessities, and 1/3 saving. And then you should spend 1/3 of your saving once a month. That way you build money. You keep your house. And you don't ever lose out. The problem with the economy isn't that America is failing, it's that American's are failing. Way to many people have bought houses that they couldn't afford, figuring that they could sell it at a higher price or refinance later. That's what the main problem is. Don't do that and you won't have a problem. But yes, spending money is the way the economy stays strong.
People should save money, THEN spend it...The USA today, has become a buy now, pay later, credit consuming society. The very idea of saving up for new furniture, or buying an older car for cash is darn near unheard of.
Had we been following this "Save and Pay" idea a little closer, instead of the "Buy and Pay" idea, those nasty old bankers wouldn't have been able to take such greedy happy advantage of us...
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That's one of the most serious issues.
If everyone stops spending, the economy will absolutely suffer. Businesses will close, the unemployment rate will go up and the country will be worse off for it in the long run.
Consumers need to keep businesses alive by spending - that's what makes the country thrive.
iam a christian and believe we shouldn't listen to all that fear-based media talk...it creates anxiety and panic. but we should be wise...save a little, spend a little and give a little. the worst thing any of us can do is panic. trust Jesus to care for you...and give Him all of your anxiety :)
"figuring that they could sell it at a higher price or refinance later"
Why are Americans even trying to sell their houses for profit? IMO a house is first and foremost a home, not an investment. Unless one is really sure one is rich one should just go and buy a small affordable house
thanks :)
