I woke up to this article as I quickly perused the news for the day: Consumers. It really made my day because I believe that consumers are finally looking out for themselves instead of the big corporations.
Consumers are padding their bank accounts instead of spending every last penny. It's a beginning and I hope it continues. Because I hate reading articles that show the average American owes $15,000.+ in credit card debt, $26,000.+ in automobile debt, $47,000.+ in student loan debt, and $165,000.+ in mortgage debt. The same article said that the average American owes $129,000.+ in overall debt.
I want to see more Americans savings increase. I want everyone to lower their debt, pay it off in full, and then save for their dreams and goals.
I would be ignorant to believe that everyone will pay off their debt. It just won't happen. But a lot of you could. Is it easy? No! Nothing in life is easy. But think about the stress free life you could live without it.
Looking back over our almost fifty years together, I wonder how different our life would have been if we didn't save for the future and had crushing debt for most of our lives. It's really scary to me to even think about. I doubt we would be living as well as we are today. We would most likely be worrying about where our next dollar would come from. We would ask ourselves if we could afford food this week or pay for our needed prescriptions. I shutter to even think about it.
So keep up the good work consumers and continue to save more and more money. And forget all the articles about how consumers saving money and not spending is bad for the economy. The government and businesses like to send that message to get you spending again. The news media reports it that way. But they are wrong. The economists will tell you that consumers are not the ones who drive the economy; the savers and investors are. It is the savers and investors money that the banks lend to new and existing businesses to build their businesses and hence create new jobs. The reason there has been such a bad economy the past seven years is a direct result of there not being money to lend because of American's crippling debt. The fact that America's government (which is us) owes 18 Trillion dollars in debt is a big contributing factor also.
So set your goal to pay off your debt and continue to save your money. It is the best thing you can do to get the American economy moving again.
The alternative is that the debt crisis will be our next big bubble and you saw what happened with the mortgage crisis.
And you don't have to worry about a depression because not enough people, like us, will stop buying to cause one.
So set your goal to get rid of that crushing debt, save and invest, and retire early with enough money to last your lifetime.