Smart Saving

        Isn’t it interesting that so many people say they cannot afford to save?  And yet there are others who believe we can’t afford not to save.  The former earn an income, pay their bills, and spend the rest.  The latter earn an income, save about 10%, pay their bills, and spend the rest.  Big deal or little deal?

        Well, if we live a long life, that 10% of income saved will come in handy later on.  If we live only for today and not be concerned about tomorrow, then in retirement we may be living a lifestyle not really in accordance with our expectations.  So, all we need to do to enhance our retirement years is to set aside some of today’s income.

        We do this by “paying ourselves first.”  Each payday we save or invest a percentage of our income before we pay bills and before we spend any of it.  We want to think long-term.  Then we can apportion the rest of the money as necessary and as desired.

        Can we all do this?  Almost all of us can if we simply have a mindset that we earn a bit less than we really do.  While earning $1,000 per week, assume that you earn $900.  With that mindset you will budget according to your earnings of $900 per week.  In no time you will realize that your life hasn’t really changed, based on your new income level.  

                              Give it a try.