Strange Article

How the other half saves. The author proposes to describe how people living on $2 a day save for extraordinary expenses such as funerals or the loss of the main breadwinner -- in contrast to Americans, who during the 2000s, spent 100.50 for every 100 we made.

But then the article doesn't explain it at all. When the people run out of money, they borrow or plunge into savings -- the same way Americans do. Doesn't he understand that much of the "overspending" by Americans were undoubtedly due to similar circumstances - someone gets sick and incurs unexpected medical costs - the need to buy more space/housing for more people (or simple vanity). He implies that there is something we can learn from these poor folks living on nothing, but the fact is, we do exactly as they do -- or they do exactly as we do.

Here's a little secret I learned by living - as opposed to listening to all these saving gurus. You want to save money for a rainy day? Here's how you do it: earn more money. I've gone through various earnings cycles in my life. Sometimes I've earned less than average and sometimes I've earned more than average (strange term to use there, average, but most folks will know what I mean - average compared to peer group and relative cost of living, age, etc). When I've earned less, I tried to save and be disciplined and save that old 10% of the paycheck. But you know what happens? A car repair. A medical accident. A wedding and bachelor party. A move. A ticket. A tuition balance. A higher tax bill. And it crushes you. You can spend a year being disciplined and then get it wiped out in a moment of bad luck when your car blows a gasket and a timing belt at the same time. On the flip side, you can earn more money and be a total idiot. You can go to Vegas and blow $1000 on craps in a hour. You can eat at the new hot restaurant and order the most expensive wine. You can buy Google stock at an inflated rate. You can pay $200 for jeans. You can lease a BMW. And you know what? You'll still end up saving money. Because 10% of bupkis is still bupkis. But if you're making good money, saving is effortless. So what is my saving advice? Screw being disciplined and focus on finding ways to make more money. Do the old Mark Cuban thing and sell shoelaces. (his idea on how to make extra cash - buy colored shoe laces - say purple and gold - and go outside a Laker game and sell them at $5 a pop).