Time reports here on a TD Ameritrade survey about financial habits — dubbed the “doers” versus the “dreamers” — and the correlations of these behaviors with a person’s outlook on life and other markers of health. I find the conclusions mostly common sense. Perhaps the most valuable thing we can do with this data is to apply it to candidates for public office. Since we have passed $15 trillion in debt, and the so-called super committee appears unable to make cutbacks to back government spending, I’d like to ask every candidate if he/she engages in any of the following behaviors. The answers will tell me a lot about how they will govern.
TD Ameritrade separated financial doers from financial dreamers by identifying eight sound money practices. Doers engage in at least five of these behaviors; dreamers engage in just four or fewer. Where do you fit in? The behaviors:
- Act more like a saver than a spender
- Live within your means
- Automatically deposit money into savings each month
- Stick to a budget
- Track household expenses
- Pay off credit card debt in a timely way
- Regularly contribute to a 401(k)
- Have contributed to an IRA
In the survey, those who engaged in at least five of these practices – the doers – expressed far greater confidence in their financial future; 80% said they expect to reach their retirement goals vs. just 59% of dreamers with similar expectations. The starkest dividing line: 78% of doers identified themselves as savers vs. just 33% of dreamers who did the same.
