If the point is to acquire more depreciating assets that are not really needed, then it's not worth it. I do get travel (which is great for personal growth but in moderation and within reason)
Thanks @jdh7190 great to hear you do this :) If you want to be more advanced in savings and investing you can also time your investments according to these yearly payments, and contact the companies to arrange all payments to be in the same month so you don't have to loose out on potential interest gains ;)
I'm constantly telling my children, "You don't save money just to spend it later. You save money to put it to work to make more." They're still young, but they're starting to understand. You don't need to make a lot of money to save enough to make money from it either. It just takes time, and the less you spend the easier it is. The less you spend, the faster your wealth grows as well. You just need discipline.
@finnian yes! It is a little bit of discipline right now (okay well for some people a lot) but it really doesn't take that much. Even if you would want to invest in some real estate, you may need $30.000 - $40.000 to get started. That is really doable. Especially if you team up with a brother or sister, or maybe very good and trusted friend :)
What would you recommend to your children career and finances wise? I've always told them to learn economics, a trade, a professional (the trade and professional being related helps), and at least a second language. Would you add or change anything in that formula to assure their success? This is beyond the basics of saving to put wealth to work of course. Thanks in advance!
I would simply teach them my basic philosophy about financial freedom. And assure that they learn about what is of interest to them. A second language can be helpful depending on where you live. I don't really care about economics myself. Economics is based on macro levels and has little or nothing to do with personal finance. However I would teach them about money of course. :)
Most importantly I would learn them about success in their personal lives, based on their own values, not on pre-scribed values dictated by society.
Congratulation markdeheide! Your post has appeared on the hot page after 22min with 12 votes.
Ah nice! :)
I will try to learn how to set aside money to use in the future, after I read this article, thank you.
You're most welcome @novian2012
That is important know, get you to protect your money with spend it in things not important
@lect1 Thanks glad to hear you liked the post! :)
Save to invest not save for future expenses... Ton of value @markdeheide.
Yes @micscrpt ;) very important to do both actually :)
Yes, it is. Only if the expense is justifiable. What do you think?
Well how would you qualify the justifiability? :)
If the point is to acquire more depreciating assets that are not really needed, then it's not worth it. I do get travel (which is great for personal growth but in moderation and within reason)
Yes, well just acquiring depreciating assets you never or hardly use is definitely a waste of money and resources in my opinion. :)
we are on the same page
Great post - I finally implemented saving for yearly costs this year by setting up a savings account as essentially an escrow for myself.
If my yearly costs were say $1200, then I would transfer $100/month to this account so I am able to handle the yearly costs once they are due.
Examples of these costs are credit card annual fees, Amazon Prime, car insurance etc.
Thanks @jdh7190 great to hear you do this :) If you want to be more advanced in savings and investing you can also time your investments according to these yearly payments, and contact the companies to arrange all payments to be in the same month so you don't have to loose out on potential interest gains ;)
I'm constantly telling my children, "You don't save money just to spend it later. You save money to put it to work to make more." They're still young, but they're starting to understand. You don't need to make a lot of money to save enough to make money from it either. It just takes time, and the less you spend the easier it is. The less you spend, the faster your wealth grows as well. You just need discipline.
@finnian yes! It is a little bit of discipline right now (okay well for some people a lot) but it really doesn't take that much. Even if you would want to invest in some real estate, you may need $30.000 - $40.000 to get started. That is really doable. Especially if you team up with a brother or sister, or maybe very good and trusted friend :)
What would you recommend to your children career and finances wise? I've always told them to learn economics, a trade, a professional (the trade and professional being related helps), and at least a second language. Would you add or change anything in that formula to assure their success? This is beyond the basics of saving to put wealth to work of course. Thanks in advance!
I would simply teach them my basic philosophy about financial freedom. And assure that they learn about what is of interest to them. A second language can be helpful depending on where you live. I don't really care about economics myself. Economics is based on macro levels and has little or nothing to do with personal finance. However I would teach them about money of course. :)
Most importantly I would learn them about success in their personal lives, based on their own values, not on pre-scribed values dictated by society.
thanks @transparencybot. I hadn't noticed it was more than $50 stu. I wanna keep it a lot lower actually :)
Thanks! @transparencybot :)
@tts Thanks! :)