I was reading an article today that I wanted to pass along.

It was talking about Americans not understanding their personal finances.

This article has some disturbing figures about adults not having a rainy day savings (life happens fund).

Source USA Today – Spending up, but many Americans still don't understand personal finance.

"The economy may be on firmer footing, but many American families are still in financial distress and lack the financial skills they need to climb out of debt, according to the fifth annual Financial Literacy Survey released Tuesday by the National Foundation for Credit Counseling.

It seems that they are burying their head in the sand, as more than half of adults do not maintain a budget or keep track of their expenditures, the survey says.The trends are more disturbing, because 14% of Americans say they sometimes miss a bill payment, up from 10% in 2009. Among adults, 33% say they have no rainy-day savings".

According to the survey taken 33% of adults, 54% of African Americans and 47% of Hispanics do not have any money saved.

One quote struck me about these figures. 

“They are one flat tire away from financial disaster,” Cunningham says.

A flat tire may not seem very expensive but, when you have no understanding of your personal finances it can be.

Do you have the money put away if you needed to go buy a new tire today???

Do you have the money to replace the hot water heater today???

Do you have the money to pay your insurance deductible if you had an accident in the car or for your home???

So many people do not have a life happens fund, budget, or a balanced checkook register.

I have been stressing this same point about saving for a rainy day.

It does not matter your income level or social status if you make money and do not understand your personal finances you are headed for a disaster.

With signs of the economy getting better the article talks about people showing signs of frugal fatigue.

Simple put many are tired of finding ways to cut back.

Many Americans do not want to control their personal finances.

They are ready to spend every dime because they do not understand personal finance management.

They would rather live pay check to pay check than to get some help understanding their personal financial situation.

Whether the economy is good or bad you need to know what you're expenses are every month.

Simply writing down your expenses and seeing it in black and white can be an eye opening experience.

This is the start of understanding where your personal finances are out of order.

Learning to manage your money with a budget is not a bad thing.

We need to stop putting a stigma on a budget like its a diet or means that you can't buy things for yourself.

The life happens fund is one of the most important things that you should invest into your monthly budget.

This is a vital part of understanding your personal finances.

I use to be one of these people that they are talking about not having money put up.

I wasn't until I hit rock bottom and had to file bankruptcy that I realize that I needed a plan and to start understanding my own personal finances.

I now live by a budget. 

My monthly living expenses do not exceed $1500 per month.

I did that because I did not want to have another financial disaster. 

To have to start all over again would be a major setback.

Understanding personal finances can keep you from becoming bankrupt.

When you understand your personal finances you change your lifestyle to live within your means.

Are you one flat tire away from disaster??? 

To get a copy of my new book click www.sexliesandcredit.com.

Miss Rene'