Everyone, no matter their income, would like more money. The easiest way to increase your money is to reduce the amount you spend and increase the amount you keep. It is easier to save money than to earn it. An added bonus of reduced spending: Unlike increased income, you do not have to pay taxes on it your new-found funds. Saving money makes more sense than ever. Frugality is the New Normal.
In good times as well as in bad times, a plumped up cash cushion softens the landing of unexpected economic disturbances. Don’t be caught unprepared by the loss of your job, your marriage, or your health. As Paul Valéry once said wistfully, “The future is not what it used to be.” Just because you have a job now does not mean you will in the future. The same could be said for anticipated inheritances and entitlement payments. All you can really count on is today. Therefore, a “rainy day fund” is not only a sound financial strategy; it also broadens your array of options, and thus enriches your life.
True financial freedom is to not have to worry about money. It is to wake up each morning and how that you have enough money for the rest of your life. The first step sounds easy, but it isn’t: learn to save enough that you can manage to live below your income. If you do not save and you continue to outspend what your earn, earning more will not solve the problem, will it?
There are many reasons why saving has become an admired and respected trait. Setting aside funds for investment, retirement, emergencies, and charitable goals isn’t so bad, after all. Frugalists learned they need to put their “oxygen mask on first,” so they can help others. They’ve eliminated debt and stress from their lives. People respect savers and ask for their advice and guidance. They’re often the ones chosen to become community leaders, business and personal partners, and can manage successfully their family affairs.
Feeling frugal and acting thrifty will be a permanent, long-term condition among Americans, even when the economy revives. A hefty savings buffer is never a bad idea, in either good times or bad. The cost of living and everything connected with it continues to increase. The single most successful way of coping on a fixed income is to wring more value out of your dollars. You may have friends who live better on less than others who make more than they do. Frugality does not mean deprivation. You can have a life well lived and still be careful with your resources.
Changes in behavior have to seem easy or you won’t play along. Life isn’t a sprint; it is a marathon. It is not a crash diet. It is the daily healthy choices, day after day, that drop the pounds and gain the wealth. You do the things that you want to do. You need to believe, “Not only do I need to do it—I can do it!” What is the meaning and purpose of your life? Is it just about pursuit and disposal of income? You will have a fuller life if you gain mastery over your money--by learning to save it. Welcome to the New Normal.
In good times as well as in bad times, a plumped up cash cushion softens the landing of unexpected economic disturbances. Don’t be caught unprepared by the loss of your job, your marriage, or your health. As Paul Valéry once said wistfully, “The future is not what it used to be.” Just because you have a job now does not mean you will in the future. The same could be said for anticipated inheritances and entitlement payments. All you can really count on is today. Therefore, a “rainy day fund” is not only a sound financial strategy; it also broadens your array of options, and thus enriches your life.
True financial freedom is to not have to worry about money. It is to wake up each morning and how that you have enough money for the rest of your life. The first step sounds easy, but it isn’t: learn to save enough that you can manage to live below your income. If you do not save and you continue to outspend what your earn, earning more will not solve the problem, will it?
There are many reasons why saving has become an admired and respected trait. Setting aside funds for investment, retirement, emergencies, and charitable goals isn’t so bad, after all. Frugalists learned they need to put their “oxygen mask on first,” so they can help others. They’ve eliminated debt and stress from their lives. People respect savers and ask for their advice and guidance. They’re often the ones chosen to become community leaders, business and personal partners, and can manage successfully their family affairs.
Feeling frugal and acting thrifty will be a permanent, long-term condition among Americans, even when the economy revives. A hefty savings buffer is never a bad idea, in either good times or bad. The cost of living and everything connected with it continues to increase. The single most successful way of coping on a fixed income is to wring more value out of your dollars. You may have friends who live better on less than others who make more than they do. Frugality does not mean deprivation. You can have a life well lived and still be careful with your resources.
Changes in behavior have to seem easy or you won’t play along. Life isn’t a sprint; it is a marathon. It is not a crash diet. It is the daily healthy choices, day after day, that drop the pounds and gain the wealth. You do the things that you want to do. You need to believe, “Not only do I need to do it—I can do it!” What is the meaning and purpose of your life? Is it just about pursuit and disposal of income? You will have a fuller life if you gain mastery over your money--by learning to save it. Welcome to the New Normal.
Heidi Clingen is a long-time resident of Stevenson Ranch. She and Samuel K. Freshman are authors of The Smartest Way™ to Save, Why You Can’t Hang on to Money and What to Do About It. They offer only their opinion, which does not constitute professional, financial, or legal advice. To receive a copy of The Principles of Financial Independence or submit questions, email them at 2heidi@allwaritey.com
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