I originally intended for this web log to be predominantly focused on personal finance ( hence, the "\money" part of the URL ), but over time this site has evolved into more of a family experience blog.
However, today I would like to talk about a finance issue that has been on my mind.
The Personal Savings Rate has been in the news quite frequently lately due to its historic low. The PSR is actually negative at the moment. We are spending more than 100% of our monthly after-tax income. Some economists have attributed this to the fact that many people have been relying on their increasing home value as a means of claiming that their net worth is climbing in spite of not actually putting aside a portion of their income into savings. Now, however, home values are flattening out and consumers can't necessarily feel good about their financial position if home values continue to decrease.
I am, by nature, an economically conservative person. As a result, I'm not frequently enticed to purchase the latest and greatest gadget. Fortunately, saving money comes very easy to me. I take great joy in seeing my money grow in investments. Watching money grow is MY hobby. There are very few things ( other than watching my child grow ) that gives me more joy than to set aside money for investment purposes. Why? You ask. Well, for me personally, I don't have a need some day to cash in my pennies and throw a big party. My desire is for my children to grow up with a healthy view of money and to some day be the beneficiary of my assets such that their lives are not filled with uncertainty about money. For me, other than instilling a loving and caring character within my children, would be one of the most wonderful legacies I could leave to my family.
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