Saturday, May 12, 2012

ASK THE MONEY GUY: How to save for future joys

Saving has always been the last thing on the minds of today’s generation.  We have turned from living within your means to living above and beyond.  Credit card debt is at its all-time highest while steadily increasing to new highs.  The typical consumer to merchant purchase transaction is completed through credit cards instead of cash.  There are a lot of credit rewards program with credit companies that do positively reinforce the use of credit cards; however, how are you really saving when you are in constant debt.  If, you take the small step to save $30 dollars every paycheck or more for a six month period you will have more readily funds prepared for future events.  The toughest part of savings is getting yourself in a routine where anytime funds become available to you no matter if it’s a graduation, new job, promotion, lottery or whatever the occasion.  Get in a routine to place extra funds into a savings account.  ‘Out of sight, out of mind’ is the motto to live by when it comes to savings.  Follow the motto, and trust your money worries will begin to fade in the background.  Payoff credit card debt, medical bills, store accounts all before it is too late and they become collection items. It is far better to have $4000 in the savings with no credit card debt, than $600 in the savings with $4000 in debt.

            Instead of savings being the last thing on the mind, let’s strive to make it become the first!


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