Gary North

We all know the warning: "Don't run out of money before you run out of month." We need to budget our money to match our salary period.

That sounds easy enough, but it's very difficult for most people. American households are now failing to do this. The household savings rate has gone negative in recent quarters. Americans are not cutting back on their spending. They are spending by drawing down their savings or even borrowing to pay the bills.

I trust you are not among them. But you still should work on budgeting.

The crucial budget ratio is the income/time period ratio. Are you likely to run out of money in any time period?

Let's apply this to the longest relevant time period for your budgeting: your life expectancy.

Have you ever used an on-line life expectancy calculator to see what the statisticians say about your expected longevity? Probably not.

You should.

It's best to get a second opinion. Here are two calculators that I have used. Just click.

The second one is clever. The results, when you're finished, are in a box in the upper right-hand corner of the screen.

Remember: Half of the people will live longer than the age that the calculator produces.

The older you get, the longer the projection is.

See if you're doing your best to bankrupt Social Security ahead of schedule.