I have come to the conclusion that most people know nothing about "saving". I have made the assumption that it is axiomatic that the concept of savings is understood by everyone. I'm finding that is not true.
Saving is a required for financial success. It means the discipline to put money aside for your future.
Savings should become a habit. Setting money aside on a regular basis is the engine for accumulating wealth. You can't invest until you've saved some money.
Savings should remain essentially untouched. If you tap into your savings account it should be for something that you've planned for or possibly for an emergency. Some people have a goal of a larger home. Sometimes emergencies occur and when your basement is flooding with water, you don't quibble with the plumber about how much he charges. There are legitimate uses of savings.
You can save regardless of your level of income. You can always set money aside, even if it is $5 per week.
Saving never stops. It is like breathing. Pay yourself first. Who is the most important person in your life? The answer is "you are".
Saving can be an account at your local bank, credit union, or savings & loan. Saving can be a 401(k) at work where you authorize putting your pre-tax earnings into a deferred account. Saving can be the equity in your home that builds up after years of paying off the principal while simultaneously your home is growing in value.
Saving is usually slow. It can be weekly, semi-monthly or monthly or annually. It comes with discipline.
Savings give you choices. If you have money in the bank, you can choose alternate services or products. Your are in control. Money gives you access to lawyers (when necessary), doctors of choice and decisions on where you want to live your life.
The way to grow your personal savings account is to spend less or earn more. Earning more allows more dollars to be set aside and as your income grows, the amount of money set aside should grow. As your careers progress, you should be able to accumulate more.
Save people. It is important. It is necessay. It should become a way of life.
SAVE, SAVE, SAVE. Why is the concept so hard?
Love,
Dad