Should you save instead of spend?
Is saving your money a threat to the economy? Some think so. Given the coronavirus shutdowns, should you save rather than spend money now? Find out!
Hear the pros and cons of saving and spending
Is now the right time to save or spend?
A member of our Paying Off Credit Cards course and Queer Money Facebook group forwarded us the recent CNN article, “New Threat to Economy: Americans Saving Like They Did in the 1980s.”
In this episode of Queer money® we take a closer look at CNN’s article on how the pandemic is affecting the economy, explaining what the falling credit card debt statistics really mean and why many Americans fear we’re headed for another Great Recession or even a recession could lead to the Great Depression. We share how our Facebook community responded to the CNN story, discuss the long-term sustainability of our economic system, and express our concerns that people could be lured into overspending for the good of the economy.
We also provide advice for deciding whether to save or spend based on the impact of the pandemic on you. We encourage OH NOs to only spend on essentials, STATUS QUOs to balance saving and spending as usual, and GUNG HOs to focus on small and LGBTQ business spending. Listen in to learn how to reduce your financial stress during this uncertain time, and learn how to make money decisions that are in YOUR best interest – and the best interest of the queer community.
Saving vs spending topics covered
Our key takeaways from the CNN article on how austerity impacts the economy
At least two-thirds of the economy depends on consumer spending
Americans paid off $300 billion in credit card debt in March
Fear of another major recession or depression
Americans Spend at Larger Companies (Not Small Businesses)
How we categorize the four financial classes
The leverage class cannot meet the demand without borrowing
The spending class can never get ahead (but not get too far behind)
The savings class spends almost as much as they earn
The investing class uses their money to build a larger pool
Our advice to OH NOs who are unemployed or afraid of being laid off
Focus your spending on only the bare essentials and don’t take on more debt
Use additional funds from unemployment benefits for emergency savings
Our advice to the STATUS QUOs who are still employed
Continue to maintain a balance between savings and spending
Only take on debt wisely and increase emergency savings
Our advice to the GUNG HOs who are currently making more money
- Only take on debt and pay off credit cards smartly
- Focus your spending on small or LGBTQ businesses