- Nov 5, 2005
- Nov 5, 2005
Access said:On the other side, many people I talk to here are devoid of any kind of fiscal 'common sense'. People -- friends, work associates, etc. come to me and say things like "I have $1000.00 in the bank, what should I spend it on. New computer? PSP? mp3 player? Digital Camera? Upgrades for my car?" Saving the money or investing it never even enters their mind, and when I try to explain that, it just goes in one ear and out the other.
That why so many people are in debt right now. There are too many people that want to live in the now and not prepare for later. Instead of saving money and buying something they put it on credit because they have to have it now. Unfortunatly I learned the hard way. Now that my hubby and I have wised up we have not owned credit cards for about 4 years now. We have a debit card that we only use if neccesary and we pay cash for everything. We are still working on paying off things that we bought years ago and probably don't even use. Unfortunatly until my debts are paid (mostly now to my parents) I don't get to have that $1000 in the bank. And until I have that and more I will not be getting any ridiculously expensive new things any time soon. As bad as I want that new living room set I am not willing to spend the next 5 years to pay it off with interest. I would just rather wait until I have saved enough to pay cash for it. It will make me appreciate it more knowing that I worked X amount of time for it instead of the 5 seconds it takes swiping a card. Plus I don't have to pay the interest for it.
As for investing I think alot of poeple are going to have a rude awakening once they near retirement age. If you haven't been saving chances are you are not going to be able to continue living a champange life on a beer budget (sorry my dad's favorite saying). It is going to be alot harder to change your ways when you have been living that way for so long. My husband contibutes the max to his 401K and I will do the same once I have a new job. I also have other things I want to invest in. Bonds are great too. In fact my parents paid both my brother's and my college tuition using bonds. That's $20,000 that I did not have to take out in student loans. I want to be able to provide the same for my kids. My parents are probably two of the wealthiest people I know and they have pretty modest jobs. With the amount of saving and investing they did over the years they are going to be able to retire comfortably and my brother and I are not going to have to do too much worrying about them. I want to be able to say the same for my children.
Okay sorry I am off my soapbox now.