How do you make sure that you can financially survive on your own?  Fred Young, a business acquaintance, began a successful second career on the speaking circuit with the simple premise, always save some part of your income, no matter what the amount.  Something is always better than nothing.

Saving money involves big and small sacrifices.  You have to stop spending money on something to begin saving.  But those sacrifices will provide you with a safety net of savings.

The Urban Institute published a recent study finding that adults under age 40 have accrued less wealth than their parents did at the same age.  During the recent economic downturn younger Americans have faced stagnant pay, a housing collapse, a brutal job market and soaring student loan debt.  So, building savings may take even more sacrifice than past generations.

In MoneyYOYO I will throw out hard and fast rules such as the Fred Young rule – always save something.  I will also use rules of thumb.  Rules of thumb are not intended to be accurate or reliable for every situation, but it is a good place to start.

Improving your financial literacy through hard and fast rules and rules of thumb will give you the ability to manage your savings more effectively and make sound financial decisions about how you spend your money.

Financial fact:  The unemployment rate fell to 7% in November, the lowest level since November 2008. (WSJ)

Comment:  According to the Pew Research Center 34% of Americans aged 18 to 32 lived at home this year.