What Savings is All About
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Have you ever run out out of time? Never enough time to do the fun things. Forgot to renew your drivers license or passport ? Run out of time on a test?
There are many ways to run out of time. You run out of time all the time without realizing it. Not enough time to go grocery shopping. Not enough time to do this errand or that errand.
Saving money is about running out of time.
It is one of those things in the back of your mind telling you, “I know I should save something, but I need this now or I have to pay for that soon. Next month I will begin to save.”
Next month becomes next year. Next year becomes a few years.
“Yes, yes I know I need to save.”
But at some point, you will run out of time to save and there is no way to catch up.
You cannot catch up when it comes to saving and investing.
The longer you put it off, the less you will have.
Saving is not about doing something altruistic. It is not about being a better person.
Saving, no matter the amount, is about forming a little habit that will reward you in the future.
We often lump saving with spending. ”I’m saving up for a new car”. “I’m saving up for a house”. “I’m saving up for a new pair of boots.”
When we save up and spend, then the savings are gone.
There is saving to spend and there is saving to save and invest.
You can do both.
Before you run out of time.
I have met people who never save, never invest and then, faced with retirement are trying to figure out how they are going to live.
And then I’m asked, “How much can I make if I start investing now?”
The honest answer is, if you are close to retirement you cannot make enough to close the gap by investing now.
No one wants to hear that of course but it is the truth.
What then happens is that individuals take outsized risks to play catch up.
Think about saving as your “future money”.
What will your future money look like? If you want to give your future money time to grow, start saving and investing something now.
How much you save is not an exact science. The amount you save does not have to be an exact percentage or an exact amount.
The purpose is to get in the habit of saving. If you can only afford to save $10.00 a month, do it.
I’d put saving in the same category as brushing your teeth or washing your face. We just do it. We know there are benefits from brushing and washing but we don’t consciously think about it.
Start saving and save yourself a lot of time ! Your future money will thank you.
This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by The Modest Economist LLC.
