Tag Archives: consumers drive the economy

Ghosts Of Past Year Savings

savings pic
If you could go back to talk to yourself even five years ago, would you share mistakes with your younger self and how to avoid them? Would you find a way to avoid more credit card debt? Save more?

Time is essential when it comes to wealth-building (for most of us). Anything real is real work. You know this.

The best news about today is: If you have a job, you are in the best position to establish or increase savings today. While most people understand that the economy has shifted, most don’t understand their real power in this economy. Consumers are driving the economy. More than this, the amount of savings you may need if things go wrong has increased. In the old days, “they” talked about 3 to 6 months of expenses in savings. This is wrong-headed thinking. It’s old. Today we are recommending that you establish regular and automatic savings patterns that help you build 15 to 18 months of expenses in savings. This can be money market savings and certificates of deposit in an FDIC-insured institution. The goal is simple: It may take you that long to find a job should you lose yours or even longer to replace your current income if you lose your job.

You can establish a savings pattern by seeing the people where you work. See if they allow you to take a small amount out thru direct deposit each time you get paid. Begin socking away a little bit per paycheck.

We constantly tell people to forget about focusing on the money you make or the amount you are saving actually. We encourage you to focus on the percentage of your after tax income that you are saving.

Remember that your checking account is a money laundering account for other people’s money. Any excuse you can give yourself to push money out of checking and into savings is a good excuse.

What you make does not matter as much as what you save or eventually put into investing, but start with building the emergency savings fund. You will be glad you did.


In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.

You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.

If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.

Thank you for reading our blog and good luck!

Loyd Ford