|
Reader question: Please explain this sentence: In a healthy financial living at least 10% of the income should go to the “piggy bank” for the future or unexpected expense. My comments: To paraphrase: If you want to stay healthy financially in the long run, every month you should put aside 10% of your income as savings. You can open a savings account at the regular bank, or you can put the money under the mattress. Or you can save the money via the piggy bank, as children do. Here, piggy bank is, of course, a metaphor. Adults don’t keep a piggy bank. Most of them don’t, at any rate. And so here piggy bank simply represents what piggy banks are for, i.e. the piggy bank mentality, a willingness or awareness to save for a rainy day. Well, “rainy day” is also a metaphor. I’m not talking about the real wet rainy days of summer time. Here, “rainy day” stands for any unexpected situation in future under which some extra money may be needed, an unexpected injury or illness, for instance, and subsequent hospitalization. To save for a rainy day is for you to put money aside in advance lest you get caught unprepared when that day comes. That day will come. That is life, which is full of marvelous miracles – good and also bad, sometimes expected, sometimes unexpected. In short, you’ve got to have foresight to build your financial house strong – by cultivating a piggy bank mentality. | 
