Are you an ant or a grasshopper?

Aesop's fable about the ant and the grasshopper is one of the most basic financial lessons we are taught as children. In this story, an ant spends the summer storing up food for the winter while the grasshopper relaxes. Winter comes, the ant is well-fed and the grasshopper is miserable. You can read the whole story of the ant and the grasshopper online here.

Let's put this fable into modern context. Where would the ant and the grasshopper in today's financial world?

Ant B. Myrmeco

Credit Score: 810
Credit cards: Three credit cards with low balances and high limits
Loans: A mortgage that is always paid on time
Emergency savings: Three months worth of expenses in a high-yield savings account
Retirement savings: Puts 10% a year into his 401(k)

Grasshopper S. Caelifera

Credit Score: 640
Credit cards: One maxed-out credit card
Loans: An electronics loan, a student loan, two new car loans
Emergency savings: About $150
Retirement savings: None

The ant is well prepared for the future. He has short-term and long-term savings along with access to credit cards and a great credit score. It would be easy for the ant to use his financial resources to deal with an unexpected emergency. The grasshopper is not prepared for the future. He has a lot of debt, a low credit score and no savings. What would happen if the grasshopper lost his job, fell sick or was faced with an expensive car repair?

I am personally almost an ant. I have a high credit score and a lot of savings but no mortgage. Maybe I'm a bee instead! Are you an ant or a grasshopper? How well are you prepared for "days of necessity" in the future?! Share your opinions in the comments section below.

Comments

[Emma]

I don't think either one of those is an ant. The ant would not borrow or need to borrow because they store up enough supply to last for an extended period of time. We are well on our way of being a true ant.