Save More.

The government is open and operating, for now, but during the shutdown we heard federal employees couldn’t miss a paycheck and that the gridlock in Washington was keeping workers from paying bills, buying groceries, and taking care of basic necessities.

Tyler Cowen wrote a column at Bloomberg that caught my eye (it was featured on the opinion page of my local paper, the Waco Tribune-Herald). Cowen claimed that one of the big lessons of the shutdown was “Americans should be saving more.” It can be done. He writes:

Indeed a higher savings rate is possible, and not just for the wealthy. Most Mormons in the U.S., for example, manage to tithe at least 10 percent of their incomes. This suggests it is possible to curtail one’s consumption without losing the best things in life. Mormons also tend to have especially large families, making tithing all the more difficult. If Mormons can tithe so much, is it so impossible for the rest of us, including government employees, to save more?

There is also a new “gospel of savings” in the U.S., being led by such renowned (but non-mainstream) figures as Dave Ramsey and Mr. Money Mustache. They reach millions of Americans, imploring them to strip down their consumption to essentials and to save a much higher percentage of their incomes, sometimes 20 percent or more. Ramsey wrote a column giving advice to unpaid federal workers, including “sell stuff” and to cancel Netflix.

Americans should be saving more, and spending less. Cowen’s column has several interesting numbers about the current savings rate of Americans as compared to past generations, as well as how Americans compare with other countries. The decision to save isn’t only determined by income level, but also by cultural values. Simplicity, thrift, frugality, industriousness, wisdom, and self-discipline all factor in our ability to save. We talk about these values in the Christian community. We do not always teach them diligently and carefully enough, thus helping congregants to actually form the kind of character that will assist them in being generous and wise with their money.

Do you save? Do you have an emergency fund, set aside for a rainy day?

It’s a wise idea.

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