This lesson might be rephrased to read "you should not spend" instead of "cannot" but the net result is the same. You will be in significant financial trouble. This has always been true, but in today's Corona-19 shattered world it is more true than ever. Currently, Canada has over three million people unemployed and the USA has over thirty-million unemployed.
Most of the Western World has possessed a very high standard of living for over 75 years since the end of World War Two. Never before have so many people been able to accrue personal wealth and possessions that were the envy of much of the undeveloped world. Economies flourished, employment was high, standards of living were high and the good life was accepted as the norm and there was no end in sight. Of course, in very recent months we now know that is not true.
For years, economists have been encouraging the public to develop some long term financial plans and build some savings for the future. Some heard the message, but a large proportion of the population did not take the message to heart. The average debt of every Canadian this past year was about $21,000, excluding mortgages, for every man, woman and child. If mortgage debt was included the average debt was $73,000 per person! More than 50% of the population do not have savings that would cover all of their living expenses for the next month. Although these statistics are not unknown, many people have paid no heed. How this will impact the future of millions over the next year or years is going to be devastating.
Before the last century, saving some money for the future was a commonly accepted practice. Our recent history has shown us that saving is no longer a very common practice. It appears that we are headed for a very difficult economic time. Where I earlier wrote that a man's reach should exceed his grasp, I also know that a man's expenses should not exceed his income. It is never too late to learn and practise that lesson.
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