How Does your Savings Add Up?
February 2nd, 2007 by asianTom
An article just came out today stating that personal Savings in America fell to a 74 year low. The savings rate was actually a negative one percent. This means people spent all their income and used credit.
I found this article very disturbing, and alarming. If you plan to become wealthy then you must start saving right now. Many people have the notion that they should spend every penny they make because they can’t take the money with them, or that they might die tomorrow. The reality is you will probably live a very long time so saving is very important. I believe you should live for today but plan for tomorrow.
I just received bad news the other day about a friend’s dad, at the age of 45 he got laid off and is now looking for work. His future right now is very uncertain and with no real savings this can be very scary at his age.
With today’s media and unrentless exposure to advertising we are often times caught up with material wealth. So how do you start saving? Think before you buy something, ask yourself if you really need it. Use a few days to think over about buying.
Put part of your income into an account that you never touch. I recommend a money market account as these accounts will have a higher interest rate than conventional savings account.
There are great shortcut saving techniques: Every day empty your pockets and put all your change into a jar. Day after day, it all adds up. A young woman started a foundation by soliciting all the pennies from her neighborhood.
this is good advice. every month I take my change to the coin star machine and use the money for groceries.