"What motivates you to save?"
If you can provide some concrete answers to the above question, you are ready to take a step towards financial independence. Now why do I have the feeling I sound like a bloody book?
I like to take the time here to recognise some important influences that have bestowed upon me. My parents' financial health had a great impact on me ever since my early youth. They are savers - frugal individuals who have worked hard all their lives. Plagued with the dual responsibility of supporting their elderly parents and taking care of their own children, they lived a harsh life. Obviously, there were many arguments that surrounded money. As a result, I become the individual that I am: being an early saver now so I can enjoy a future without arguments over money affecting my children.
I would like to stress the importance of saving and investing money when you are young. A number of factors apply:
1) Power of compounding. You've got a whole sh#t load of time for the rule of 72 to work its magic. Combine with RSP/IRA and you've got yourself a stew.
2) You don't have to buy that expensive toy for your kid. In fact, you have no kids to worry about. Or a wife/husband for that matter. Hopefully you have a gf/bf to give you mental support. A friend will do, even if s/he's imaginary.
3) You can jump into that start-up company proposed by your buddy knowing that if you fail after 1 year as most start-ups do, you still have lots of time to recover.
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Well there are many other factors to starting young. But even if you are old, it's still okay. It'll be tough, but still possible. Considering my limited expertise in this area, I'll leave other members to address this topic.
Start Now!
December 4th, 2006 at 02:31 am
December 4th, 2006 at 02:40 am 1165200055
that was an interesting post. I agree with you, and I enjoyed your comment about imaginary friends. hahah.
happy saving and dont buy Z4's
December 4th, 2006 at 02:42 am 1165200137
December 4th, 2006 at 02:51 am 1165200701
Good-old Wikipedia, the free encyclopedia.
December 4th, 2006 at 01:20 pm 1165238458
December 6th, 2006 at 08:04 am 1165392262
December 6th, 2006 at 11:35 pm 1165448149
I saved over $2000 in 8 short months doing this. Every single payday, I put $250 of my check into my savings. I was able to get through grad school owing only $3000 in loans instead of a lot more. Unfortunately, right now, I have a lot of medical bills and credit card debt, which is somewhat delaying my ability to save for a house. I guess I need to apply the same philosophy to the debt as I did to saving for school.
December 31st, 2006 at 10:52 am 1167562360
"Hey sweetie - How you doing, huh? What's going on?
You saving anything lately???
Say - You've lost even more weight, haven't you???"