Sometimes a retirement fund is not enough, you need to save to emergencies and luxuries, too. There is a
MSN Money article about 6 (worthless) excuses for not saving money (my thoughts are in italic):* Excuse 1: I don't make enough. No kidding, I think I'm underpaid. But I also find that the more I make, the more I spend. Someone once said, "it's not how much you make, it's how much you keep".
* Excuse 2: I'll get around to it later. Procrastination. If you can't save now, how can you save in the future [with house, family, kids, aging parents]?
* Excuse 3: I deserve a little luxury in my life. I struggle with this. "Wants" can be strong.
* Excuse 4: Someone else will take care of it. Hahaha, I think I figure out that Social Security won't be around when I retire.
* Excuse 5: I am saving through my 401(k). You know, 6% contribution plus 4.5% matching. Is it enough?
* Excuse 6: This item or service will pay for itself. Oh my gosh, this is definitely a struggle. I tell myself that "I'm not buying, I'm investing in this thing."
November 3rd, 2006 at 02:57 am 1162522668
* Excuse 6: This item or service will pay for itself. Oh my gosh, this is definitely a struggle. I tell myself that "I'm not buying, I'm investing in this thing."
for # 3 i always think about how i want to have a little luxury later in life, too. i think i may want that even more than luxury now, because i'll be able to enjoy it without having to schedule my life around work.
for 6, i find that few things in life pay for themselves. the only purchases i consider 'investments' are houses and possibly certain antiques. now, certain items i will consider money well spent, like shoes that will last 10 years. but the shoes will never 'pay for themselves'.
November 3rd, 2006 at 01:27 pm 1162560442
#3 would be the one I would have the hardest time with myself. Sometimes, it's tied in with #6. However, at least I am aware that it's an excuse and do fight it constantly.
Thank you sharing it though. It certainly is worth another look.
November 4th, 2006 at 03:14 pm 1162653281
If you decide to step it up step it up either 1/2 or 1% at a time. Don't kill yourself to do it. But when you get your next raise, raise your retirement savings a bit. Seriously, you won't regret doing this at all. And after a month or so of doing it you won't even notice it.
f you really get with your retirement savings now you'll have your future MADE. If only I had been a lot more serious in my 20's and 30's. Compound interest and all that.
November 6th, 2006 at 04:08 am 1162786109
yeah, delayed gratification is definitely worthwhile. i guess your definition of "investment" is something that appreciates in value, hm...shoes definitely don't :-)
November 6th, 2006 at 04:12 am 1162786363
thanks for the compliment! oh my goodness, we all need to stop making excuses.
November 6th, 2006 at 04:15 am 1162786543
yeah, great idea! i was thinking about that too. perhaps adding 1% every 6-month or 12-month in 2007. my job is much performance based. from the grapevine, i hear, that the bonus would be quite substantial in january.