What we learn from history

I’m Miriam Neff-with and I’m Valerie Neff Hogan with Wise Women Managing Money

M Two significant economic disruptions happened about a decade apart.  A great recession starting in 2007 impacted families.  The global pandemic in 2020 again shook-up financial wellbeing.  Most had not fully recovered from the earlier disruption.  Many debts were carried forward.

V This highlights the necessity of having money in reserve to cover 3-6 months of your spending plan.  Not just a good idea, a necessity.  In that disruption, we change the family spending news.  What is a want? What is a need?  The item matters, not the brand. 

M Let’s learn from history.  Incurring debt means we’re assuming our financial picture will be getting better.  Fact: disruptions happen. Debt does not go away. It has increased in both cases.  That 3-6 month reserve is wisdom.