We all strive to have a little nest egg set aside. It may be for a long term goal or a short term goal.
It could be for paying off debt, retirement funds, emergencies, a trip, a new vehicle, a home, lots of things. We often put off current wants to fund future wants. That is saving!
Many folks feel very deprived and resentful when saving. If you are striving for a goal, you need to learn to not feel resentful. The future payout will be great. Learn to minimize the not spending without it hurting.
We all know the basic ways to save extra.
Buy/shop sales and clearance
Purchase needs and not wants
Ask for discounts when you can (big for seniors)
Have no spend days and weeks
Eat mainly at home - not restaurants
Do NOT waste - find uses for everything
Wait 48 hours before making big purchases
Ask for reduced rates - all they can do is say no and you might get a YES
Cut out things that aren't really needed
Look around for new ways of making extra funds
If working - use every saving option available (like 401K or similar)
PAY YOURSELF FIRST
There are so many more simple and basic things we can all do!
It is important to have a plan. Know what you are saving for. If you are looking to save for retirement and a big long term goal - you need to look back at your past successes and failures. What worked? What didn't?
You can't really make any interest today at the bank - so if you are trying to increase your money, you will need to look for a different avenue. Seriously, hunt for the safest options you can find.
Find a trustworthy advisor. Ask family or friends who they recommend and trust. You don't have to get nosey about their finances - just ask who advised them.
Increase your knowledge - read and study about options.
Connect with like-minded people.
We come in this world with nothing, and we will leave with nothing. What happens in between is gravy! Really! Look at every success as a big thing. REMEMBER - you really only need enough! I know many will not agree with that. That's OK. I am one of those with the frame of mind, I don't need millions to be happy. I only need enough to live a nice, comfortable life.
You decide what YOU NEED and go forward. We all save for different reasons and have different goals. I do think we all agree nice and comfortable is GOOD!
Just do something and get started NOW if you haven't started yet.
Now all that being said - remember - you can't take it with you!!!!
So yes, please do enjoy some pleasures and comforts along the way IF you can afford to.
Life is short - DO stop and smell the roses now and then!
We have our savings auto transferred every month and so we never really see that money except to write it in the savings book. This really makes it painless to me since I don't actually do it myself. Every month a small amount goes into a vacation fund, we get cash for eating out and we put away money to pay the fees for our vacation house share. These are our entertainment and fun things and it really helps to have those funds allotted for each month. I do Swagbucks for my mad money. I am going to be able to buy my second $25 gift card this month today. My thing is expensive kitchen gadgets and tools so that is where I spend most of my money I earn there. Since I can blow the Swagbucks money any way I want, it really keeps me from feeling deprived.
ReplyDeleteGood plan. You have it all covered. That is neat that you can have your fun money and never feel like you have depleted any other accounts. You are so right about auto deposit - out of sight - out of mind!
DeleteSounds like you have it all together.
I've been reading some blogs where the writer has kept their small change over the year. Since I rarely use cash, that isn't really a good option for me, but I can see where it can make a difference.
ReplyDeleteI recall when my children were small and I was in university there was no extra savings. It took every penny to keep us in our home, fed and clothed. But when I started working again, I began setting aside just a small amount. At first I often had to dip into it, but eventually that little bit got bigger. It's a life long practice I've passed onto my kids.
I used to save change as well. I do use cash - so now I actually just spend it.
DeleteYes, we have had those times that just getting by was a challenge. Every little bit that can be put back for something - is a great help.
Glad you passed those ideas on!
I am retired so no longer in savings mode. I live off my investments with a base allowance. I draw extra for large expenses like prop tax, income tax, home/car insurance that hits all at once.
ReplyDeleteI started tracking all expenses after reading Your Money or Your Life in 1997. We did all the homework. We evaluated the VALUE of each expenditure. We became MINDFUL of our purchases. This is why I say I no longer save. I don't have to. Mindfulness replaces saving. It amazes me how long we will put off a major expense. IE: our flooring has needed replacement for at least 3y now.....maybe 2022 is the year???
Mindful. No-waste. Frugal. Best retirement plan. 😀😀
Same here. We are long retired and have no need to save, but have been frugal for so long that we have a surplus every month. One thing that happens when you're older is that you want less. We finally decided we are going to throw some money at the house this year, mostly cosmetic. We are going slowly and deliberately. But that's in part because of the difficulty in getting trades people to call you back. Honestly, I can't figure out how A LOT of these people stay in business.
DeleteBecause of the housing boom the trades people are booked up building new houses and apartments. They don't have to work for the little guy when they are hired to do an entire neighborhood or apartment complex.
DeleteAnne, where we're moving to, which is really a very far removed from the beaten path, rural area, has seen so much demand in real estate that contractors are working out at least 6 months. It's part of the reason for our delayed move; we'd hoped to be there in time for Christmas just passed. Originally, we were told October (2021). We're putting a manufactured home on land we own, so it's only site prep, foundation, setting and finish work. Whereas a site build brings more profit. --Elise
DeleteYou guys all make great points and have great advice.
DeleteI am retired as well - and have hubs retirement and SS. Haven't touched investments. I can, but will put that off, as I don't need it.
You are so right that wanting less comes with age. I am content with what I have and the things around here I want to do won't cost that much.
You all have great viewpoints. I hope the younger ones are reading!
I think I have been frugal for so long, that saving just came natural. It takes so little to live now (for me), that over half of what comes in is saved. I need to find a project!!!!
DeleteCheryl, you are SO right! Our 29 yr. old son has been saving as much as he he can squirrel away for the past 4 years, forgoing all sorts of "wants" many his age consider "needs", and because of that, now has enough for a healthy down payment on a modest home in the area his dad and I are retiring to. Just today he got pre-qualification approval from a mortgage company there! And, because he researched utility costs in the area, is setting his budget for under the amount he qualifies for. Guess he paid attention to his mom. LOL!
ReplyDelete--Elise
FANTASTIC - obviously someone was a good example and someone else paid attention!!!!!!
DeleteYou are so right, Cheryl. I see people starting over when they are at retirement age and realizing they are going to have to work to make ends meet. No time to stop and smell the roses because it is a matter of food on the table and medicines they need. It is heartbreaking. Hugs- Diana
ReplyDeleteIt truly is heart breaking. I have friends that way - I don't see them ever stopping the work rat race. SS isn't enough for many and they never saved. I have friends who DID and STILL DO have fun and travel - but they have to keep working because not a dime was saved, and they are in their 70's.
DeleteSo sad IMO - but hey their life!
We have enough, but with the house debt, I just want it gone. But there is savings for travel, so I am grateful we put that away long ago, even when things were really tight.
ReplyDeleteI totally understand wanting to get the house paid off. That is such a huge debt and worthwhile to get gone.
DeleteGood for you on saving for travel.
Simple life is the best way. I have never felt the need to impress anyone with material things. I was never embarrassed to say we can't afford it. I was never ashamed that I bought things second hand. I am proud that I can say my child went to a top rated college and did not have to take loans to do so. I am proud that my home is paid off. I am proud that I drive a 14 year old car that only has 40M miles. I am proud that I only need to fill my car with gas about 4 times a year. I am glad we chose where we live. There are grocery stores, a public library, a mall, hosptial and doctors,pharmacy, the vet, the senior center,the post office, fire station, restaurants (which I go to rarely) all within a half mile of my home. I do not have to go far for anything I need. I too have my husbands SS and have not had to touch the investment accounts. I have moved those to safer areas since the pandemic, the market is to unsure for me right now. The simple life affords the luxury of having not to worry about your security. That is why I love your blog, that you can be happy if you have a roof, plenty of food and the love of pets, so simple isn't it. Wish you the best!!
ReplyDeleteIt IS simple to us!
DeleteI was saying yes to everything you wrote. You and I sound very much the same. I didn't have a child so no college debt - but I didn't have any for myself. I worked and went to school and paid for it as I went.
After Glen passed, I got very careful with investments and now if the market falls - I am still guaranteed a certain percentage. I am not a risk taker.
Simple life, lovely life and a secure life (as secure as can be).
The best to you as well.
Yes, simple is best! There is a big difference between want and need. The more you have, the more you have to clean and maintain (and pay taxes on!). We are not part of a social group that would look down on us because we choose to live frugally. There is always peer pressure! Some folks make poor choices which impacts their retirement years. There will be instances where unfortunate circumstances create money woes. When I see people my age and older working, I wonder what their situation might be. We have been blessed that neither one of us needs employment. We are busy keeping up with our animals, home and garden.
ReplyDeleteYes, yes and yes.
DeleteI know no one that would think differently of me for how I live, either. Thankfully - and if they did - well they may not be someone I would choose.
I wonder that too. What happened that they can't just retire. Sometimes you can figure it out, if you just listen to them, and other times you just wonder.