There are plenty of people who don't have an emergency fund. In fact, nearly 30 percent of Americans don't, according to a report by NeighborWorks America.
Lockheed Aircraft Employees Federal Credit Union was officially chartered January 21, 1937. Several weeks ago, with that milestone anniversary rapidly approaching, I took a few minutes to again read the original charter application, signed by the 12 Lockheed employees who founded our institution.
Once again, it’s a new year. As we all begin to ponder on our new year’s resolutions and how to actually stick to it this year, I thought I would offer some advice before it’s too late. If your New Year’s resolution is like mine, to save money for whatever the purpose, this is any easy way to do so.
The first thing I do when I’m thinking about buying someone a gift is think about what gifts have meant the most to me in my life. While this might seem selfish, the idea isn’t as simplistic as “oh, I loved that cup I got that one time, and so I should get this person a cup,” the point is to think about what are the qualities of the gift that made it stand out. What about that particular Christmas gift in High School makes me still think about it, what about that moment has stuck, and why. Then, as best as I can, I try and shop with those qualities and values in mind when I think about gift giving with others.
Humans have a hard time properly recognizing value. For instance, I have to fill out about an hours worth of paperwork to receive a $100 rebate on my glasses through my health insurance. This seems like a tremendous hassle to me, but on the flip side, if someone walked into my office and offered me $100 to fill out an hour of paperwork, and I could do it whenever I wanted, I would happily do it, thinking to myself “oh, wow, $100 to sit in a robe on a sunday morning and fill out papers, what a deal.” We think we’re rational creatures, but we aren’t, and sometimes we are very, very bad at knowing how much we need to spend to make ourselves happy.