While history has had lessons to teach about the dark and traumatic days of the great depression, from people jumping out of buildings unable to cope with sudden financial loss, to perception changes for those that lived to tell the tale. No other generation has been able to turn adversity into something positive as the children of the Great Depression have. The deep losses instilled an acute need to preserve what little they had and that in turn made them the greatest savers of all time. In their own crude and unsophisticated way they employed diversification way before it became a sexy investment strategy. All in all they learnt their lessons well.
With our generation on the other hand, we appear to have collectively missed out on our teaching moment. The dark days of the Great Recession are neatly packed away without us learning enough to prevent a recurrence. While we may look to the politicians to put in place policies that will make the economy churn again for everyone, there is also a need for each of us to take ownership of our own future.
With the holiday season the throngs of people flocking to the malls speak little of how the economy really is. For the last couple of years economic inequities have been the buzz, the existence of the two Americas - two economies. While the stock market has surged ahead, main street has struggled to ride along the wave with a notable stagnation in wages. Which then begs the question - who are the people shopping in huge numbers on a daily basis? Sadly it can only mean that Americans continue to be big spenders without learning that buying our way to recovery using plastic is unsustainable growth. Borrowed money still needs to be paid back at some point.
There is a need for people to learn that just because something is on sale - no matter how much of a cut - it does not create a sufficient need for you to make a purchase. Even the recent dramatic fall in gas prices have some feeling the urge to go into big purchases. Which then begs another question - how many people have the recommended six months of expenses put away for a rainy day? For most the excuse is that its #Christmas but have we not commercialized a day that commemorates the birth of child whose parents had absolutely nothing materialistic to offer him at his birth.
We all need to know that risk is real. Curbing one's spending is a real need. Even if you have enough for a rainy day how are you doing on your retirement saving? One's need for a retirement nest egg is more important than buying a new car purely because the dealers have come up with attractive offers. If we try to remember the uneasiness of 2008/2009 we should like the Children of the Depression and learn ways that will ensure the next time the economy goes through another free-fall we will have enough of a cushion to ride the wave. And should we not experience worldwide economic challenges then good saving habits will only serve to ensure our retirement years will be financially comfortable.
With our generation on the other hand, we appear to have collectively missed out on our teaching moment. The dark days of the Great Recession are neatly packed away without us learning enough to prevent a recurrence. While we may look to the politicians to put in place policies that will make the economy churn again for everyone, there is also a need for each of us to take ownership of our own future.
With the holiday season the throngs of people flocking to the malls speak little of how the economy really is. For the last couple of years economic inequities have been the buzz, the existence of the two Americas - two economies. While the stock market has surged ahead, main street has struggled to ride along the wave with a notable stagnation in wages. Which then begs the question - who are the people shopping in huge numbers on a daily basis? Sadly it can only mean that Americans continue to be big spenders without learning that buying our way to recovery using plastic is unsustainable growth. Borrowed money still needs to be paid back at some point.
There is a need for people to learn that just because something is on sale - no matter how much of a cut - it does not create a sufficient need for you to make a purchase. Even the recent dramatic fall in gas prices have some feeling the urge to go into big purchases. Which then begs another question - how many people have the recommended six months of expenses put away for a rainy day? For most the excuse is that its #Christmas but have we not commercialized a day that commemorates the birth of child whose parents had absolutely nothing materialistic to offer him at his birth.
We all need to know that risk is real. Curbing one's spending is a real need. Even if you have enough for a rainy day how are you doing on your retirement saving? One's need for a retirement nest egg is more important than buying a new car purely because the dealers have come up with attractive offers. If we try to remember the uneasiness of 2008/2009 we should like the Children of the Depression and learn ways that will ensure the next time the economy goes through another free-fall we will have enough of a cushion to ride the wave. And should we not experience worldwide economic challenges then good saving habits will only serve to ensure our retirement years will be financially comfortable.
