Here are some articles that caught my eye this week….
One of the keys to a healthy financial plan is having a good emergency fund. If you are living and breathing, I can guarantee at some point you will have some unexpected expenses. For many that means going deeper in debt, which then makes the next emergency even more painful, and the next and the next… An emergency fund takes much of the stress out of that car repair or plumbing disaster or even that layoff.
As parents there are many things we teach our kids, but aside from passing along our faith, I think one of the most important is teaching them about money. For good or ill money affects so much of our lives. Help them learn to make wise decisions while they are in the safety of your home so that they don’t make disastrous decisions when they are out on their own someday.
There used to be a commercial for a muffler commercial that had the famous line “You can pay me now, or pay me later.” So often spending a few bucks today to address a problem when it is small can save a major repair bill down the road.
It always fascinates me when we look at just how much our culture has changed in the last 50 years. Debt has become very normalized in our society to the point where many people don’t even consider that there might be an alternative. It was very different though in our grandparents generation. I question just how much better our lives are with all the “stuff” we now have and the debt that goes along with it, vs. the life our grandparents led.
Many of these are somewhat common sense after you read them, but the reason stores do them is they work. There is nothing wrong with it, but if you understand the psychology that is being used on you, then you can avoid the impulse purchases for things you don’t really need.
Good tips here, but I think the most important strategy for preparing for retirement is to just get started. The younger you begin saving, the better off you will be. Compound interest is a wonderful thing.