Fixed Costs Are What's Really Driving Americans To The Poorhouse
From Business Insider: Economy
December 13, 2012 - 2:21pm
Thumb through any personal finance book written over the last five years and chances are you'll come across at least a handful of chapters on how cutting daily luxuries like coffee and cable.
It's that kind of finger-wagging criticism that's rubbed so many hardworking people wrong –– the idea that they wouldn't be in this position if only they'd watched less TV, traded in their car, or tried cooking more meals at home.
In case you're in need of a reminder of the bigger picture, Personal finance expert Helaine Olen nails the issue right on its ugly head in her forthcoming book, Pound Foolish: Exposing the Dark Side of the Personal Finance Industry:
"The problem was fixed cost, the things that are difficult to "cut back" on. Housing, health care, and education cost the average family 75 percent of their discretionary income in the 2000s...Continue reading this article »