Friday | February 10, 2012
With Savings, Don’t Miss the Forest for the Trees
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By
YOUNG MONEY Staff
16 July 2010
That's fine, and it can help trim the fat from your budget. But for real savings, it's often necessary to step back, look at your life holistically and ask yourself some painful questions.
Books like Jeff Yeager's The Ultimate Cheapskate's Road Map to True Riches and Thomas Stanley's classic The Millionaire Next Door point out that it's big decisions that save big money.
Instead of trading down to a cheaper car, what would happen if you sold your car and took the train or biked?
Rather than moving into $2,000 studio apartment in Manhattan, what if you lived with family or rented from relatives for a few months, investing all your earnings?
What if you skipped vacations for a few years and put that money into a down-payment for a house?
None of these sound that appealing, until you think about having $50,000 or $100,000 extra in the bank some years down the road. Savings and cost-cutting are like any other type of investment - your returns scale with a greater initial commitment.
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Jayant said:
Very nice article. Thank you! I am just 25 and was looking for some advice. I will be starting my job soon and wanted to get a jump-start. As again, thank you very much! |
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Jayant said:
Very nice article. Thank you very much for the advice. I am trying to figure out the difference between traditional IRA and Roth IRA. Thanks |
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Adam said:
good article! |
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WashingtonSavingsBank said:
Great insights in this article. Smart saving habits can be difficult to start, but young professionals should take the time to work closely with their banks and develop a savings plan that suits their lifestyles. http://ow.ly/3IMVh |
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saw said:
this article is decent but isn’t the whole story…One; saving is losing, As inflation makes it worth less and less, even the interest that pile of cash collects on the bank isn’t enough to make up for how quick inflation works. Two. Live within your means-while that’s great advice, you don’t want to inundate yourself with a sense of lack…know the difference between assets and liabilities and play the game of investments. your cup will floweh over when you do it with a wealthy mindset. thats my two cents anyway. god i sih the rules of money were still like the ones in this article. |
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Robin Williams said:
Saving money imposes great advantages for our personal finance in the long run. I think it should be a priority because when we have a security blanket, there will have no reason to be stressed out about money. |
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