- Don't Know How As Frugal For Life pointed out we make ourselves happy by collecting different items, such as stamps, hats, artwork, comics, etc, all we truly have to so is change our attitudes and save cash in a good savings instrument. A high yield mutual fund would be best, but you may have to start out with a simple bank savings account. - Frugal For Life
- Don't Have Enough Money It may not be much, but you can find a way to save something. In fact MSN makes this suggestion:
- Don't Have Any Time Really? It takes no time at all to save, if you put saving on auto pilot.
- Don't Have the Education What kind of education do you think you need to save money?
- I deserve a little luxury in my life Really? What about luxury in your retirement years? Or maybe you would rather spend your "Golden Years," working at the "Golden Arches," while you eat dog food. Come on people, this is a lame excuse. Start thinking bout the future.
- Someone else will take care of it Really? Someone else will take on the burden of your finances, because you were to damn lazy to plan ahead? Who is this imaginary person in your head, and how are they going to take care of you? Get off your butt and start planning for your future.
- This item or service will pay for itself
- I’m saving through my 401(k) That's good, at least you are saving some. Do you really think that is all you have to save? However, you need to max out your 401k, and then have your own IRA (or other retirement plan) in place to save for your future. MSN puts it this way,
- I’ll start saving when I am older Really? Statistically, if you won't do it today, tomorrow never comes. Plus the younger you start the better.
- I deserve to have what my neighbors have Why? So you can go deeper into debt?
The excuses won't bring you the savings that you hope for. You have a mind and a will, use them to your advantage and, not to bring yourself down.
In order to make sure you save that amount, have it automatically taken out of your account before you pay anything else for the month. "The first check you write every month should be to you," Stav says. "That should go to your savings. Start with 5%; hopefully you can get to 10%. When you get a raise, put half of your raise in savings." - MSN
Saving money is one of the least time consuming areas of personal finance. You can set up an automatic withdrawal from your paycheck to go to a retirement fund or a savings account. The time in setting this up is usually smaller than 15 minutes because companies have all the information ready to help you and banks are more than willing to talk with you on the phone to get you started with a paycheck deduction plan. - Frugal For Life
Saving money doesn't need to be about stocks, bonds, CD rates or best banks. Just the fact that you are stuffing $20 in a jar and not spending it means you are $20 smarter than the person who isn't. - Frugal For LifeIt's your future. Do something about it.
One of the main reasons people give for blowing their savings is because they're buying intangibles that are worth more than money over time. While there are some items that fall into this category, such as an education, it's easy to rationalize that something is worth more than it is. "People say 'I should buy a vacation because I will learn about the world,'" Bennett says. That may be true, but "you have to compare financial freedom to the benefit of the trip around the world." A better idea would be to save for that vacation. It may take longer before you can go, but you won't be compromising your financial future in the process. Once you stop making excuses, you'll see your money add up. At that point, something interesting will happen, Bennett says. "After you've gotten serious about saving for six months, what you'll find is you actually like it. Spending is addictive, but saving gets addictive, too." - MSN
Yes, it's crucial to save as much as possible for retirement, but if you don't have additional savings for emergencies and life's occasional luxuries, you're going to end up having to dig yourself out of debt. "The reason people get themselves in trouble financially is because they don't have anything in savings," Stav says. "They think that because they own a home and they're building equity or they have money in their 401(k), that's enough. If there's an emergency or the car breaks down, then they start borrowing money." A savings plan should have a multilayered approach: Savings should be allotted for retirement, emergencies and the evolving needs of life. - MSN
Witness the magic of compounding in the 2 instances below: Mary invests $2,000 at the beginning of each year between the ages of 21 and 29, for a total of $18,000 over nine years. Assuming a pre-tax return of 8%, by age 65, she will have $398,805 in savings. Lynn also invests $2,000 at the beginning of each year with the same pre-tax returns, but starts later at age 30. To get near Mary’s total savings by age 65 ($372,204), Lynn will need to invest nearly four times as much - $70,000 over 35 years. - DailyMarkets.com
We’ve all heard the phrase “keeping up with the Joneses”. Although few will admit it, a lot of people feel they have to have every gadget and gizmo that their neighbors have in order to feel good. People who feel this way will have a hard time saving and they often end up with debt issues. There’s nothing wrong with having material things but it’s important that you can afford them and that you maintain a rainy day savings in case something unexpected should come up. - Penny Saver Blog
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