New economic challenge: American are saving
Today's column:
Maryland Comptroller Peter Franchot, meet your nightmares. Yours, too, Gov. Martin O'Malley. And yours, President Barack Obama and Fed Chairman Ben Bernanke.Their names are Matthew and Meredith Targarona. They live in Towson, and they are cutting spending, increasing savings and paying down debt.
Since the financial crisis hit last year, they've been saving more than $1,000 a month and applying it against their home-equity loan. They paid off the loan a few weeks ago - "a really great feeling," says Matthew, 28, who works for Verizon.
They don't have any credit-card debt. And instead of getting a new car, they recently repaired Meredith's 1999 Subaru.
Comments
Jay, this savings thing is not a bad thing at all and we both know it. I am in my early 60's, and can vividly remember the stories of my parents who lived through the depression. To be honest, it made them better people for it. They hardly ever bought anything on credit and if I remember it correctly they both slept well at night. I applaud the Targarona's for what they have accomplished and I know they feel good about themselves. As I write this, sipping a bourbon and water, it is good to reflect on the simple things in life.
Posted by: reader203 | October 30, 2009 9:04 PM
Let's be honest...we all know that the savings rate has been negative for many years. One of the nice things about this recession is that people are starting to focus on spending less and saving more. We have a long way to go to catch up to the rest of the industrialized world but it's a start.
Posted by: Land Investment | July 18, 2010 5:39 PM