Prior to this recession, Americans actually spent more than they saved. Our savings rate was approximately -0.6% at the end of 2008 and we have since rebounded to save more than we actually spend. The Bureau of Economic Analysis (BEA) is reporting that the personal savings rate has increased to approximately +4.25%. I’m not sold on this number. It doesn’t mean that people aren’t spending, I just think people are unsure about what may happen in the economy. People are worried about their jobs and their families and they are just saving. Maybe they aren’t saving under their mattress like they did during the depression, but they are putting more earned income into the banks. Our savings rate is still relatively low compared to other countries like China. The Chinese have a savings rate of +40%, which allows them to buy our debt because their financial institutions have more money to lend.

This country’s blueprint has been destroyed by borrowing and it has affected our blueprint. We are slaves to the lenders. The Chinese own us, the Saudi government will own us for energy if don’t spending $1.3 billion a day on importing oil. We have to start saving as a way of life. We need to revert back to lay a way and other old fashion plans. We need to decrease instant gratification for better opportunities in the future. What will we teach our children about money and savings. We need to start saving for them right now and train them to save for what they want.

My oldest daughter is being taught how to save money for the things that she wants as opposed to us buying it for her. We are instilling in her the principle of patience and delayed gratification. She will carry this lesson into adulthood, where she will realize that it is more important to save than to spend. The Chinese teach their children to save, shouldn’t we lead the way?

Where, when, and how do we learn how to manage money? Is it taught in the education system? I think we can all agree that the answer to that is, no. In the 1990′s and the early 2000′s more Americans filed for bankruptcy than at any period of time in history. That surge led former President George W. Bush to sign the Bankruptcy Abuse Prevention and Protection Act on April 20, 2005. Fast forward to 2009 and in May there were approximately 6,000 bankruptcy filings a day. So I ask again, where does our financial blueprint come from?

We tend to learn about money from our parents, friends, and the media. In addition to that we have become a country of instant gratification. We as Americans want what we want on the spot. We no longer have to adhere to Grandmom’s words of wisdom, “save for a rainy day.” Can we all agree that the mess that we are in right now is because we didn’t save for a rainy day? We have heard the saying, live on less than you make? I’ve heard it too and I ignored it and have paid the penalty for it, but never again will I expose my family or I too the risk that I did in the past. My blueprint has been changed!

How do we get out of a rut? How do you change your blueprint? Well the bible says in Romans 12:2 that we have to renew our mind. We need to get the junk out and replace it with the correct information. Learning about managing your personal finances is the same exact thing. When I graduated from college, I cleaned up my credit and my wife’s credit too. I was a man possessed, but I didn’t have understanding behind what I was doing. I read all the books, “Automatic Millionaire,” and “Young Fabulous and Broke,” but I didn’t have an understanding behind what I was doing. My blueprint wasn’t changed until I heard of a man named Dave Ramsey. Dave helped me change my entire thinking about money. I took a course called Financial Peace University that has changed the way my family and I look at money. It is going to save us from making a major mistake moving forward. I now understand that when I use a credit card that, “the rich rules over the poor, and the borrower is slave to the lender.” My blueprint has been forever changed. I am now a certified financial counselor helping people change their blueprint forever.

What can you do right now to change your course financially? First things first, it is never to late to start. Even if you have been through bankruptcy already, there is still hope. You need to have faith that everything is going to be ok. The next step is to work out a healthy financial plan that includes a monthly cash flow plan. After that you need to start saving immediately and get away from the dependency on credit cards and equity loans to survive.

Lastly, we all love our parents and friends, but if our goals and dreams are larger than our friends and family, shouldn’t we invest the time to change our blueprint? Isn’t our blueprint more important to the legacy of our future family members than anything else? We are not exempt from living a prosperous lifestyle, but we can do it without debt attached to our name.

Contact me for more information or if you have questions.

Suggested Reading: My Total Money Makeover