An interesting article with many good points, it is obvious that to change
poverty something different needs to be done.However..."The answers, according to Sherraden, aren’t about behavior or
income but are caused by structural issues." Yet the lady cited
in the article changed her behavior to save money.I have a very
different world view than Mr. Sherraden, in his view mortgage interest and
property tax exemptions, as well as divdend income being taxed at a different
rate are "subsidies", implying that all of your money belongs to the
givernment and they generously allow you to keep some of it.I view
the examples he cites as simply allowing you to keep more of what is yours,
instead of taking it.
Saving is one of the most liberating habits one can acquire. If you save and
invest wisely, your capital works for you even when you are sleeping (or on
vacation!). For most people, saving and investing will have to be a lifetime
endeavor to prepare them for retirement. But if you save 10% of your income
every month, and invest it wisely in high quality stocks, bonds and real estate
(e.g. don't just stuff it in the bank), it will bring you freedom,
opportunity and peace of mind, and you will be able to maintain (or even
increase if you invest well enough) your standard of living in retirement. It
requires setting priorities and discipline, and will mean making some
sacrifices. But I have learned that it can be done at almost ANY income level.
Debt and over-consumption will only bring the opposite -
frustration, worry and perhaps even fear. Parents should learn how to save and
wisely invest, then teach their children these important principles.
My wife and I attended the financial classes needed, applied for an IDA account
and was accepted. We are currently still saving for a home that we hope to
purchase by the end of next year. This program has helped us with having more
structure in our family budget to make sure we are making the required monthly
contributions to our IDA account. Also, the three to one match in Utah is
phenomenal and really motivates to us to save more than just the required amount
in order to get a home. We have really enjoyed the program so far. Thanks to my
wife's college professor for letting us know about it.