Should You Be Saving vs Spending?
Is saving your money a threat to the economy? Some think so. In light of the Coronavirus shutdown, should you be saving vs spending money right now? Find out!
Hear the pros and cons of saving and spending
Is now the right time to be saving or spending?
A member of our Credit Card Pay Off Course and Queer Money Facebook Group forwarded us the recent CNN article, “New Threat to the Economy: Americans Are Saving Like It’s the 1980’s.”
On this episode of Queer Money®, we’re taking a closer look at the CNN article on how the pandemic is impacting the economy, explaining what the statistics on shrinking credit card debt really mean and why many Americans fear that we may be heading into another Great Recession or even a Great Depression. We share how our Facebook community responded to the CNN piece, discussing the sustainability of our economic system in the long term and sharing our concerns that people will be guilted into overspending for the sake of the economy.
We go on to offer advice for deciding whether to save or spend based on how you’ve been impacted by the pandemic, encouraging OH NOs to spend only on necessities, STATUS QUOs to balance saving and spending as normal, and GUNG HOs to focus their spending on small and LGBTQ-owned businesses. Listen in for insight around how to reduce your financial stress in this uncertain time and learn how to make money decisions that are in YOUR best interest—and the best interest of the queer community.
Topics covered on saving vs. spending
Our top takeaways from the CNN article on how saving impacts the economy
- At least 2/3 of the economy depends on consumer spending
- Americans paid off $300B in credit card debt in March
- Fears around heading into another Great Recession or Depression
- Americans spending with bigger companies (not small businesses)
How we categorize the four financial classes
- Leveraging class can’t meet needs without borrowing
- Spending class can never get ahead (but not too far behind)
- Saving class spends almost as much as they make
- Investing class uses their money to grow a bigger pool
Our advice to the OH NOs who are unemployed or fear getting laid off
- Focus spending only on necessities, don’t assume more debt
- Use extra from unemployment benefits for emergency savings
Our advice to the STATUS QUOs who are still employed
- Continue to balance saving vs. spending
- Only take on smart debt, grow emergency savings
Our advice to the GUNG HOs who are making more money right now
- Only take on smart debt and pay down credit cards
- Focus spending on small or LGBTQ-owned businesses