Automatic Savings

As a young husband and father, one of my goals was to make as much money as I could. Automatic Savings
As a young husband and father, one of my goals was to make as much money as I could. I discovered was that raising children was expensive. I worked part-time jobs on my days off, I jumped at any available overtime opportunities. The more money I made, the more money I spend. When I started in the financial services industry, I quickly made more money that I ever did serving in the military. I spend almost everything I made. It was a new thing to me to have money and I didn’t handle it very well. 25 years later, I realize it doesn’t matter how much you make if you spend it all. A person who makes 60k a year and saves $10,000 is much better off than the person who makes 100k and saves nothing. People who have not saved anything until they are 40 are very likely to work into their 70’s out of need. The best advice I can give you is that automation is your friend. If you have a retirement plan available through your employer, have your employer withhold at the minimum amount necessary to match your employer’s contribution. If you leave a job for another, DO NOT cash in the retirement plan. Consider rolling it into an IRA that you control. Once again, an IRA is not your emergency fund. If you are self-employed, speak with an advisor that can help you set up a retirement account. Do not put yourself in a situation where you are completely reliant upon social security to fund your elder years. Don’t procrastinate and use excuses to avoid saving money. I have heard many times that people will start to save when they pay off their debt. That day usually never comes. It is difficult to unravel years of bad stewardship, but you can make a positive change if you simply recognize the need to improve.

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