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Develop a Savings ethic.

November 15, 2022
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Saving for our future is one of the most FUNdamental habits one can develop.  Having a consistent saving ethic is key to enjoying a bright and successful future. How does one develop a savings ethic?  What are the Keys to learning how to save money?  Is it too late to start?  

TO BEGIN:  START.  Just Start.  Start small.  Save for something.  Save to have a sum for a REAL emergency.  Put something away every week for when you will need it to -replace a tire. - Fix or replace a broken appliance.   a set sum that you believe will cover 80% of any emergency you have.  If you use it for an emergency, replace it.  This should be a separate account that you can access anytime for YOUR emergency.   Someone else's emergency may not really be yours.  Clearly define your amount and time frame.  

SAVE FOR A SHORT TERM GOAL:  A birthday gift for someone else.  a holiday gift. a special dinner. a short vacation.  Have an account that is for your happiness.  Something that you want to do or give.  Set a time frame for when to accomplish the goal.  No longer than a year or two.  Set the total you will need and divide it by the number of weeks to achieve.  Set that aside every week in a separate account.  This is not an emergency.  This is a goal. Every goal achieved leads to saving for another goal. or Ladder them. 1 year to the vacation, 2 years to the new car.  The goals can always be different and can always change, but the savings will begin the habit and the rewards are yours to enjoy.  They should be realistic and achievable.  Clearly defined and a value applied. 

INVEST:  Invest for your forever.  This starts small and grows over time.  If you take care of the next 2 or 3 years and are always saving and investing. The 20 and 30 years will take care of itself. Pay yourself first.  You are the most important debt that you owe.  Set an amount aside for you.  Start at 5 or 10 percent of your income and increase it every year.  every time you get a raise, a bonus, or pay off a debt.  Save this for your forever and years from now the forever will take care of you and your family or your charity.  Included in this forever is your IRA, 401K, your pension.   The government takes out taxes before you get your paycheck so you should pay yourself first before even the government takes its cut.  It is fundamentally the foundation to your forever.  Notice this whole paragraph had a start of INVEST.  Invest in your forever.  This is the sum that you are investing in your future.  Not to spend but to, hopefully, be there forever.  Your Legacy.  Invest this in any Strategy, Fund, or portfolio that fits your tolerance. Find a financial professional that shares your values, and understands your goals and objectives.  Guides you and advises you.  Don't forget.  It is your money.  You have an obligation to it like your children.  Know where it is and what it is doing.  Set the parameters and inspect what you expect.  

Investing over time, I believe, a very well-allocated investment will grow. In today's fast-paced, constantly changing, world and environment, it is difficult to look at 20 or 30 years from now and know what the world will be like or what will be going on.  If you focus on assessing the next 2 or 3 years and expectations, and invest based on that, and what is going on today, the future will get here and be taken care of.  Time marches on.  It is not to late to start.