So, how does a person succeed at saving?Another thought provoking article by Ernie McDaniel - as seen in Forum News. |
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So where do you want to go with your saving? Usually, long term saving destinations are the toughest to reach. Why? Because we have more difficulty visualizing the specifics of long term goals than visualizing short term goals such as a new car or a vacation. Here's one helpful hint. Use your imagination! If it's retirement you have in mind, imagine a home in the mountains, sitting in front of the fireplace every evening, chopping wood for the fun of it, taking hikes, having friends visit from Shreveport to eat barbeque and to roam the trails around your home. Make your dream so real you can smell and taste it. You might even discover that saving is exciting!
But saving is also sacrificing. For something better, true, but…later. Even with a clear goal, the necessary sacrifice can be a challenge. And this is especially so if you have the common and entirely mistaken notion that saving is something one does after the buying is done…you know, after you've purchased exactly the house you want, the car, the clothes, the trips, the toys. Let's face it, we all want more than we can afford, and we want it yesterday. But it is instant gratification and conspicuous consumption, as well as good intentions, that pave the wide road to financial doom.
Your future isn't lost in one fell swoop. It happens one day, one week, one month at a time. And that's the way you build it, too. The secret of success is to pay yourself first. Organize your life so as to spend only what is left after you save what you need for your dream.
If your goal is retirement, and I certainly hope that's at least one you hold dear, I suggest you save at least 10% for that alone. More if you're over 35. Much, much more if you're over 45. If you must, begin more gradually, so as not to turn your life upside down. For example, downsizing from one home to another can be prohibitively expensive. But do make reorganizing of your life - and your finances - a priority. Increase your rate of savings as soon as possible. A little now is much better than more later. Remember, it's your future at stake.
Saving isn't an end, it's a means. Develop a clear, highly personalized and motivating vision of what you're saving toward. Then you'll find the sacrifice less offensive, maybe even satisfying. Above all, remember, you must make saving a high priority. You must pay yourself first.
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