Yesterday the Apple News app gave me a CNBC story where a Harvard economist shares his 21 money saving rules.
As I was reading through them there was one theme I noticed. That most of these rules are unattainable for at least half the population in America if not more.
The most important rule he had was "Don't borrow for college".
The next most important rule he listed was "Own, don't rent". I would love to own, but based on my income and the cost housing around here, the only houses that would be considered affordable would be in areas you would never live. Run down, crime ridden bad neighborhoods in cities like Lowell. Not to mention my student loan debt would probably prevent me from being able to afford even that.
Followed by "buy in cash". You should never borrow money or charge things on credit cards. He includes Mortgages as things you should try to avoid. That they are tax and financial losers. If you have to take one out pay them off ASAP. Like I could ever afford to buy a house without a mortgage or pay it off in only a few years
Another rule was "have a rainy day fund". You should always have enough money in savings to get by for 6 or more months should you ever lose your job. Good luck with that. Me, like manny Americans, are living paycheck to paycheck just to get by. No way I can ever save that kind of money.
A lot of the stuff was about retirement. One of the things that I never thought about was "Social Security is not in the business of telling us what they owe us". Often, they make mistakes and don't pay you what they should be owing you. Always double and triple check that the amount they are paying you is correct and contact them to correct the amount they owe you if it's incorrect. The sooner you do this the better because they will not pay you back pay.
Speaking of back pay, they will also not start paying you social security when you are eligible. It's up to you to file to claim your benefits. This professor says he has lost count of how many times people in their mid 70's have asked him when they will start receiving their SS benefits. He tells them they need to file ASAP to get them. And unfortunately, even though they have been paying in their whole lives, they are not eligible for getting back pay for the 5 or more years they missed because they didn't know they had to file to claim benefits. They just thought they would start receiving them when they were of age.