Thursday, 27 January 2011

How to prevent a personal financial crisis (Part 1 of 4)


The Latin expression "carpe diem," which can be translated as "enjoy the day," has been elevated to a main component of our culture. The most popular interpretation goes as far as recommending people to "live for the day." This advice comes often accompanied by sneering remarks about those who save for the future.

The sad story of artists and athletes who make a fortune and end up bankrupt a few years later is told by newspapers with monotonous frequency. The message seems to be that there is no other way or, even worse, that human beings are unable to learn from someone else's disgrace.

Nevertheless, an objective assessment of the problem shows that the great majority of middle-class citizens in any country never go bankrupt. This is not a coincidence, but the proof that self-discipline and common sense are widespread in society.

To be continued in Part 2

[Text: http://johnvespasian.blogspot.com]

[Image by Mara1 under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]