Secrets of Saving ~ Why You Should Start Saving Today
In generations past the only way people could afford to purchase big or even medium ticket items was to save up for them. Just ask your grandparents, I’m sure they’ll be more than happy to tell you all about it, and then tell you again about 5 minutes later.
For those of us who have been raised in the credit generation however, it has been a completely different story. If we saw an item we wanted, be it something as large as a house or as insignificant as a cup of coffee, we were able to have it there and then, even if we couldn’t afford it. Now that the flow of easy credit has ended or at least slowed for many, we find ourselves once again having to save for the things that we need, while at the same time attempting to pay back any debt we may have accumulated during those frivolous years, no easy task!
Though saving money in hard times may be difficult it’s certainly still possible, we just need to remember how to save and why we should save. If you’re trying to pay back debt on a low income then the same principles apply as you desperately try to find the money to pay down those maxed out credit cards and loans.
It’s my belief that there are two kinds of people in this world, savers and spenders. Which bracket do you fall into? People who are savers often seem to have an air of confidence surrounding them because they know that whatever financial pitfall may be hiding just around the corner, they likely have the means to get out of, or even hop over it.
What about the spenders? I’m not against spending money, there’s nothing wrong with enjoying the fruits of your labour. The problems come when people begin stealing fruit from a neighbour’s tree, a very vengeful neighbour who wants twice as much fruit in return.
As much as we’d all love for life to be a straight forward, stable affair with no kinks in the road, most of us have now learned that life rarely turns out that way. If you’re a natural born spender who tends to spend every cent that you earn way before the next pay check arrives, then it’s more than likely that when those kinks do arrive, you’ll be turning to that vengeful neighbour for help again and again and again!
Some people find themselves in trouble with debt because they make large unwise purchases, others because they overspend regularly. Others enter the debt spiral simply because they are ill prepared financially for the unexpected curveballs which life may throw at them. The only way we can avoid this debt spiral is to change our habits, to become a saver, protected against any incoming financial storms rather than a spender whose financial house is left unprotected and in ruins after the storm hits.
Live for tomorrow, not today.
‘Eat, drink and be merry, for tomorrow we may die’. Sound familiar? Many of us today think along these lines. We want to get the best out of life today and leave tomorrow to take care of itself. As much as it’s possible that tomorrow could be your last it probably won’t be. It’s also likely that the next years or decades won’t be your last either. The chances are that you’re going to live until a ripe old age and that means you’re going to need to be in a position to support yourself financially when those days arrive. Yes you may be earning lots of money today, but what will you do in the future when you’re no longer able to earn? It’s so vital that we use our money wisely today to sort out any debt problems we might have, pay off our mortgage and save for our retirement. No one else is going to do it for us.