VIDEO ON MSN MONEY
My father and mother taught me these things. It is about living on less then you make and not including things like bonuses as recurring income. As to cars, I purchased several new cars in my 20's and early 30's. Last new vehicle I purchased was in 1988. This has served me very well.
RETIREMENT, is about getting your fixed costs as low as possible to have money for the things you want to do.
At 64, I am retired with ZERO debt and no I-PHONE.
Life is good.
It doesn't start with 7 new habits from a list in an article. It starts by changing core values and beliefs. If you believe life is short and you should live for the moment, savings money for retirement at the expense of a vacation or a new car is not going to happen, no matter how many articles you read.
Assuming similar circumstances, why one person spends more than they make and another person saves 20% of each paycheck is a mater of what is important to them. The successful saver has a different list of priorities than the spender. Change that list and then the 7 habits are useful tools to get to a retirement goal.
1) Start Early
2) Save regularly and increasing amounts over time
3) Protect your savings from the temptation to spend and those who believe you should share it with others
4) Vote out the people who believe that your earnings should be used to compensate the inadequacies of others
I was never very good at saving money until I got into the 401k at the place I worked. I started off contributing 6% which entitled me to matching funds from the company. Around the time I turned 55, I buckled down and paid off all debts and started saving 20% plus another 10% for over 50-catch up.
I retired a month after I turned 60. I received a lump-sum pension from the company and put that with the money in the 401k and bought an IRA. I get regular payments from that and also social security, which I started drawing as soon as I turned 62.
I suppose I was lucky in that our company still gave pensions, because as of five years ago, new hires do not get a pension. That seems to be the trend in big business nowadays. There may be a new generation of workers that have to work until a later age. I don't envy them one bit.
Save as much as you can. I know it's cliché, but when you finally retire, you'll be glad that you did.
Another poorly written article from MSNBC:
1) Start saving early: correct.
2) Avoid car loans: wrong; read the fine print of this advise. "... mountains of student loans still manage to swing the payments on a snappy import." Wait until the debt is small, and choose a car you can afford.
3) Pay off debt slowly: moronic. Pay off debt quickly to have a high credit rating. Your credit rating is the most important number of your life.
4) Save a sizeable down payment for a home: correct.
5) Never stop learning: correct.
6) Focus on investing costs: wrong. Focus on investment performance. Where do they get this stuff?
7) Ignore market fluctuations: correct -- to an extent. When the market crashes, you have a couple of days to get out before you lose 1/3 to 1/2 your portfolio. That kind of quick thinking and preparation for quick thinking can save you decades in savings.
Secrets? Try common sense. You must be addressing this article to the idiot liberals who want to blame the rich for their financial failures.
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The Fed's latest statement confirms that it won't be coming to the rescue of depositors soon, but these institutions are worth following anyway.