Back on June 8th, I posted an article that suggested that one could save substantial amounts of money by cutting back on luxuries like, for instance, gourmet coffee.
Well, a Wall Street Journal article argues that we should not "Blame the Latte..." and that the key reasons for our nation's abysmal savings rate are expensive cars and homes. Americans consider real estate to be an investment that nets high returns, however "since 1975, home-price appreciation has been modest, averaging just two percentage points a year above inflation." It's just another opinion on this important issue.
Now, imagine if one were to buy a modest house and car and cut back on the luxuries. Talk about savings...
You can read the article here if you're a Wall Street Journal subscriber.
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