I read THIS ARTICLE yesterday.
All I could think was "But for the grace of God, there am I!"
Here are some lines that stood out to me:
- … consumer borrowing rose at an annual rate of 7.4 percent in November
- … The category that includes credit card debt surged at an annual rate of 11.3 percent …reflecting the fact that shoppers are continuing to rely heavily on their credit cards to finance purchases …
- … Economists believe that consumers are being forced to rely more heavily on borrowing on their credit cards with the collapse of the housing market …
- The overall increase left total consumer credit at a record $2.51 trillion.
There was a day where a market like today's market would have CRUSHED my family's home economy. And it would have been ALL MY FAULT because I was managing my money HORRIBLY!
The above article just reinforces the absolute necessity of having an Emergency Fund. The more, the better! At least $1,000. If you have children or own a home, make it at least $2,500. If you have paid off all of your debt except the house, make it three to six times your monthly expenses!
That is a decision I have NEVER regretted!