Anyone can see that a 700 billion dollar bailout of the banking industry has to have some effect on our schools and pocketbooks. It will be difficult to pay for these budget deficits with taxes alone—especially if you expect that there will be some loss of jobs due to the economy going south (you figure, there HAS to be some effect there.) I predict that one of the first places that budgets will be cut will be the education system.
It’s much easier to weather the coming storm if you are in a good financial position. I agree with both Dave Ramsey and Suze Orman about having a couple months pay saved (in a safe bank?)in case of emergency.
In our case, it has allowed us to be our own bank. If a car needs immediate repair, we are able to pay for it without putting it on the credit card (what we consider to be a loan).