Monday, December 7, 2009

Fiscal Responsibility

Several times a week, I see articles suggesting if Americans don't start spending, then the economy will be derailed. Nonsense! This is akin to saying fiscal responsibility is a bad habit.

This recession was primarily driven my excessive use of credit, compounded by a zero or negative savings rate. This isn't a fiscally responsible way of living, nor is it sustainable.

There is good debt, for home purchases and to grow your business, and bad debt, for consumer spending. It is past time we learned to live within our means. It is also great news that our savings rate is up higher than it has been in 20 years.

Avoid reading articles like this one http://tinyurl.com/yjcsrxb which attempt to scare us back into being hooked on debt consumers. Put your own oxygen mask on first, keep reducing debt and saving.

Mackey McNeill, CPA/PFS
CEO of Mackey Advisors
www.CultivatingProsperity.com

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