Opinions and strategies about personal finances link directly into a person’s life ideas and are direct reflections of money attitudes in general. Some people are savers, others spenders. However, even the biggest spenders need to consider the benefits of saving money for a rainy day, no matter how much you have or how old you are.
Foregoing Frivolity and Enjoying Luxury
Have you ever considered the fact that you could go on a lavish, fun vacation with your loved ones more often if you saved more money? Dispose of frivolities like daily Starbucks runs or dollars in vending machines and put that money into a vacation fund. Enjoy your life, but do it without being overtly frivolous.
Planning Ahead for Medical expenses
Whether you have insurance or not, you never know when that unexpected medical condition will leave you in a situation where you need that extra money to avoid costly medical bills. This holds especially true as you age, and rely on programs like Medicare while having chronic or escalated health problems. It’s crucial to understand the ins and outs of your insurance coverage, but it is equally important budget and save for medical costs down the line. This is easy to do when you have a health savings account or emergency medical fund.
Saving for Retirement
No one out there is getting any younger. With each tick of the clock we are aging. Relying on social security income as a sole source of income doesn’t work for many seniors, eventually forcing them back into the job market. In your 20’s, saving five percent of your gross income helps you prepare to live well and enjoy your golden years; in your 30’s and 40’s up that number to at least 8 or 10 percent of your gross income. Max out funds in a 401K or Roth IRA also keeps them liquidated and available for use when the time comes.
The "Why" of Wealth Building
You can’t take your money with you when you are gone, but you can leave your children and grandchildren in a better financial position by building resources throughout your life. Saving money and being a smart consumer means just that. The secret to wealth building is to employ multiple streams of income and by using savings, investments and business vehicles as your transportation to a healthy financial life. The key is to think outside of the financial shoebox and see the bigger picture, sooner than later. Money doesn’t buy happiness, but it does make the world go round; use yours wisely and you might just be surprised by how well you can truly live, and with how much you can leave behind for your loved ones.
Shauna Zamarripa - Accomplished journalist with a background in background in real estate, finance, social media and marketing.
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