What we learn from history
May 10, 2022
I’m Miriam Neff-with and I’m Valerie Neff Hogan with Wise Women Managing Money
M Two significant economic disruptions happened about a decade apart. A great recession starting in 2007 impacted families. The global pandemic in 2020 again shook up financial wellbeing. Most had not fully recovered from the earlier disruption. Many debts were carried forward.
V This highlights the necessity of having money in reserve to cover 3-6 months of your spending plan. Not just a good idea, a necessity. In that disruption, we change the family spending news. What is a want? What is a need? The item matters, not the brand.
M Lets learn from history. Incurring debt means we’re assuming our financial picture will be getting better. Fact: disruptions happen. Debt does not go away. It has increased in both cases. That 3-6 month reserve is wisdom.