Fiscal Fragility

By November 18, 2009Uncategorized

How much money do you have in your savings account these days? Perhaps the question is, DO you have a savings account these days? Several stories on NPR this week have held a spotlight to the topic of “fiscal fragility”. The bottom line is that we are not out of the woods YET regarding this economic meltdown. Recently, two economists (Harvard and Princeton) conducted a study to determine how many Americans had a minimum of $2,000 in a savings account (not credit cards, but actual cash), for emergencies (e.g., car problems, health issues, etc.). The answer was less than promising. While it’s true that Americans are saving more today than two years ago, apparently not enough. Not enough people are being fiscally responsible, meaning that they are still living outside their means. The term “fiscal fragility” is another expression of stress, and there seems to be a lot of it out there.

• Stress Tip for the Day:
Take an inventory of how you spend your money by looking at your checking account register. Where are you spending your money? Where are you hemmorraging money? Where can you cut back?Financial advisors suggest tat you see your savings account payments as a weekly or monthly expense, not a luxory. even if you only have pocket change… deposit it into a savings account. Remember, debit cards are handy, but not if you don’t record your transactions in your checkbook register. Just cutting back on lattes at Starbucks each day for a year amounts to over $1,000. Little things add up. Make and effort each day (without becoming stressed about it) to move from financial fragility to financial responsibility.

• Links Worth Noting:
As if we all need more bad news about the economy, there is even more bad fiscal news on the horizon. NPR’s Fresh Air host, Terry Gross interviewed Josh Kosman (author of the book, The Buyout of America). He predicts that the next bubble to burst is the collapse of many companies bought then sold by private equity firms. The link below highlights his interview.

• Photo of the Day:
In making up a series of photos for the powerpoints for my college textbook, I tried to capture some ideas suggested by financial advisors.
1. Cut up and all unnecessary credit cards
2. Place your credit cards in a glass of water and the freeze it.. so you will only use it for emergencies.

• Quote for the Day:
“The best way to save your money is to fold it half and put it back in your wallet or purse.”— Anonymous

Brian Luke Seaward, Ph.D. is an internationally renowned expert in the fields of stress management, mind-body-spirit healing and stress and human spirituality. He is the author of over 10 books including the bestsellers, Stand Like Mountain, Flow Like Water, Stressed Is Desserts Spelled Backward, The Art of Calm, Quiet Mind, Fearless Heart and Managing Stress (6E). He can be reached through his

© Brian Luke Seaward, Ph.D.

Brian Luke Seaward

Author Brian Luke Seaward

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