Here's the deal: The article was titled "Feel Secure About Your Money," and written by Lynn Brenner. The basic premise sought to outline a few actions folks could take in order to "recession-proof" their finances.
The first two headings of advice ("Stay Job-Ready" and "Check Your Mortgage") I was okay with. Number three, however ... well, I'll just quote it here:
If you don't have a home equity line of credit, you many [sic] want to set one up to use only in an emergency. "Some lenders charge an annual non-usage fee of about $50," says [Vice-President of a mortgage-research firm Keith] Gumbinger. "But it's still cheap insurance. You can borrow about 90% of the value of your house, so if you have a 70% mortgage, you may get a credit line of another 10% to 20%."
Here's a novel idea: INSTEAD OF PLANNING TO BORROW LATER, SAVE MONEY NOW! I'll refer to a quote from Dave Ramsey that nicely sums up how I view this situation: "The absolute worst time to borrow is when there's an emergency."
Nowhere in the article — not one place — is saving money mentioned. In a story that's supposed to help readers prepare for "uncertain economic times," and suggests that it "never hurts to be prepared," how ridiculous is that?
Wow. Have so many of us just given up altogether on the idea of stashing cash? For Brenner's part, the closest we get is this:
Make sure your longer-term investments are well-diversified. ...And don't keep more than 10% of your investments in the stock of your company or industry. It's risky to keep your paycheck and your nest egg in the same basket.
And will someone please tell me when we're in "certain" economic times?
Because, like, that would be really helpful to know.
Labels: Dave Ramsey, Debt, Saving
