There are really no two ways about it, building wealth requires saving money. Saving is one of the secrets to building wealth.
Why Save?
There are many reasons to save, here are three reasons to save. Savings is a means to an end, but it is also the first step to taking control of your finance. Lastly, it’s best to ignore the hype and do what works.
What to Save for?
The great part of saving money is that you can put it towards what you desire most in life, whether that is financial security, a retirement vs. your kid’s education, or buying a new toy. Whatever it is that you are saving for, it is unlikely that you’ll be saving too much.
How We’ve Saved for Goals
One thing that we’ve done well is saving. We’ve set goals and saved to meet them, time and time again. We saved for our first place together, then our wedding savings, our second mortgage, and paying off Miel’s student loans. This has been in addition to maxing out our nest egg. Inch by inch, it’s a cinch.
Pay Yourself First
The best thing you can do to save is pay yourself first by putting away 5-10% of you money right off the bat. This is how, in addition to other savings goals, Miel managed to save $50,000 for retirement in 5 years.
Saving Everyday
Whether it is seeking out a good interest rate on your money market account or , it all adds up! Here are eight ways to save money. Here are tips for saving in 2009. Of course living a frugal lifestyle, reducing your everyday expenses, and living within your means are keys to creating overall savings.
Saving for Emergencies. Having a fund to rely on when the unexpected turns up is essential. Emergency funds should also be customized to your specific needs at this moment. For instance, you’ll want to prioritize your debt pay off, and if you have credit card debt you will want to make sure that you have enough set aside to make it so that if something comes up you can still manage to pay your make your minimum payments if times are rough.
Start Them Young
A great part about kids is that they suck up life like a sponge. Get them a piggy bank and start them off right by teaching the kids in your life about the power of savings.
Saving Generation
We all know that those from the Great Depression are widely known for their frugal savings practices. We are hoping that with the recent economic crisis Americans will start saving more, it seems that initial reports show that they are. Prior to the economic crisis half of American weren’t saving enough. How do you stack up for savings?
Psychology of Savings
Savings has a great deal to do with the psychological issues around saving and spending. It is also interesting to look at some of the hypotheses about why whites save more than blacks, how minorities interact with wealth in America, and why Episcopalians and Jewish people are rich. And why studies show that married people are richer.
Miel&James
DINKS (Dual Income No Kids) Finance is a blog discussing personal finance for couples. While by no means financial experts, we own a variety of assets including real estate and stocks. We've both been up to our eyeballs in debt and have made tons of financial mistakes. However, we've both successfully retired that debt and we both do learn from our failings. We hope that our voice in this blog can help others in achieving their goals!
