In this class we learned and talked about the importance of saving. The four building blocks of wealth creation are: Income, Budget, Saving, and Investing. Unfortunately despite one of the highest incomes in the world, average individual income in the in 2020 in the United States was $62,518.13, Americans don’t save enough. Actually, about 78% of American workers live paycheck to paycheck and a relatively small number of households save an invest. That is why we have large wealth inequality in the U.S. where 10% of households in the U.S. hold 84% of all stock. We have already discussed that in Essay 1. Syndicated columnist Froma Harrop discusses some reasons why and explains why many people do very little to save and invest.
I would like you to read the article and comment in your paper what you would do personally not to fall into the category of people described in the article and whether NOT saving should be the way of life. In order to help you with making good personal decisions now and in the future please watch this short video where a renowned financial advisor and talk host show Dave Ramsey presents his 5 steps to creating wealth. Please watch this clip which could give you ideas how to save and invest and because staying poor should not be anybody’s goal in life. If you believe does not make sense make sure to state where he is wrong. (That 5 minute clip could change your life so don’t get distracted when Dave gets a bit agitated but rather critically evaluate whether he makes sense or not).
After reading the article and watching the clip please comment on what would I do NOT to be one of those people described in the first article. I am interested on your educated opinion on the subject.
