Articles like this are a big reason why...
Should You Really Live Within Your Means? (Yahoo! Finance) -- " "An economist will tell you that sometimes people should borrow," says economist Annamaria Lusardi of the George Washington School of Business. "If you face an upward-sloping earning profile, you should borrow as a young person. If today you're earning $20,000 but tomorrow you're getting $65,000, there's no reason to starve today and have three BMWs when you are 45." In particular, Lusardi advocates borrowing to finance a college education, since it can have a profound effect on future earnings. "If you get an education that will give you wages so you are not competing with the poorest immigrants, that's a good choice," she says.
Lordy! Those are big assumptions there.
And what happens when you "Assume" as the joke goes?
You make an "Ass" out of "U" and "Me".
1) Whether the economy is strong or weak, you never count chickens before they hatch, and you don't get into debt buying things you can't afford today on the assumption you will be able to earn income to pay those debts later.
2) Unless you are going into a field that is in demand and the chance of you finding work are very high, you do not put yourself or your parents into tens or hundreds of thousands of dollars of Debt. It is selfish and thoughtless, both because the money can be used more productively and because once you take on a student loan, you are Never getting rid of it...ever. And if you must go to college, start in Community or Junior College for the first 2 years, where its much less expensive and you're being taught basically the same English and Chemistry 101 as an Ivy League School.
3) Oh my.. you don't want to be around those immigrants; those 'poor' immigrants.. Heavens to Betsy! They may touch you or breathe in your direction.. Perish the thought...
4) Over the past three years, since the 2008 crash, I have not observed so much consistent idiocy and misplaced smugness from a profession, as I have from economists; virtual know-nothings. They did not predict the 2008 crash, nor have they been accurate forecasters concerning the depth and breath of the recession. Yet they certainly get a lot of TV time especially on financial news.
To succeed in these times and those to come, you have to possess the 3 S's:
* Street Smarts
* Savings (capital)
* Survival Skills
When you see stupid headlines encouraging you to spend, shop, invest or act like its 2006 again, don't even click it.. just move on.
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