FinanceSpectrum.com Endorses Most Basic Financial Rules as Most Effective
Boston, MA (PRWEB) July 08, 2013 -- Today FinanceSpectrum.com financial advice column released their support for Christian Science Monitor contributor Trent Hamm’s succinct financial advice, and expanded on his counsel. FinanceSpectrum.com offered advice to readers for tools that will assist them in actually living out Hamm’s pearls of wisdom.
Several days ago, FinanceSpectrum.com responded indignantly to a Time article that claimed that the action of reducing debt and putting money aside into savings simply “doesn’t cut it anymore.” FinanceSpectrum.com argued the case, stating that on the contrary, chipping away at debt and putting more money into savings is exactly the right formula consumers should be using to reach financial independence. And now, on the heels of a July 2nd Christian Science Monitor article by Trent Hamm singing the praises of the simple formula of earning more and spending less, FinanceSpectrum.com feels validated and stands steadfast in their belief that the simplest financial rules are the most effective.
In the above-mentioned article, Hamm reported that he believes it is easier to actually earn money than it is to consistently set it aside and accumulate wealth. He stated that the only surefire way to gain wealth is to be consistently spending less than one is earning month after month. Hamm reported that 72% of Americans would have a hard time paying the monthly bills if they got laid off of work today, reasoning that most Americans tend to spend everything they earn and not actually accrue anything in savings. But having an emergency fund, nest egg, or retirement account are necessities to one’s financial freedom. As with folks who have adult or senior life insurance, people with an emergency fund hope to never ever have to use it. But emergency funds are critical to ensuring the financial stability of an individual or family if someone were to fall ill or lose a job unexpectedly.
FinanceSpectrum.com commended Hamm for his short and sweet finance advice and urged readers to truly take it to heart. FinanceSpectrum.com is quoted as saying, “I’m sure many people will read this article, roll their eyes, and think, ‘Yeah, yeah, I know already—earning more and spending less is the golden rule of personal finance. Tell me something I don’t know.’ Yet I would beg the question to each American consumer how good of a job they do at actually following this formula? It seems to me that it is one of the easiest things to say and one of the hardest to actually do.”
In the aforementioned article, Hamm discusses “the gap,” which is the term he uses to refer to the difference between the amount of money being earned and the amount being spent from one month to the next. Hamm advises making gaps “big and positive,” pointing out that somebody living paycheck to paycheck has a gap of zero.
FinanceSpectrum.com encouraged consumers to use online financial tools and apps to help them achieve a wide gap. Apps like Mint.com, Manilla, and SmartSaver all have unique ways of helping people stick to a budget. FinanceSpectrum.com also recommended good old Excel spreadsheets to track one’s monthly earnings and spending, and to budget so that even if the income is growing, the spending doesn’t change much. FinanceSpectrum.com is quoted as saying, “Of course it’s always wonderful if we can earn more money through bonuses or getting a raise at work. But we have to remember to keep our spending low, and not adjust it so that we spend more as we make more. Think of it this way: if you spend like a millionaire, your savings account will look like a pauper’s. But if you spend like a pauper, your savings account will look like a king’s.”
About FinanceSpectrum.com:
Online financial and economic advice column FinanceSpectrum.com enjoys dishing out advice and knowledge on a vast range of financial topics to middle-aged, middle-class Americans. FinanceSpectrum.com takes pleasure in providing helpful information on everything from budgeting, to credit, to debt, to investing in an effort to assist consumers seeking financial guidance.
http://financespectrum.com, Finance Spectrum, 3479030160, [email protected]
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