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Long Term or Short Term?
By Daphne | November 5, 2007
Are your goals long term or short term? Though there is a lot of focus on the economy and stock market there are lots of people who do not save or invest because they are unable to save anything.
When we relied on different types savings and plans for the future personal investing was for those who were more affluent. As the social security schema changes and s well as job security and with it pensions, the stock market has become a way for people to be able to secure their future.
Some people don’t save for their futures because they can’t. If they are employed in a job that covers basic necessities or less then it is difficult or almost impossible to save. The other side of the coin is that there are some things that people cannot afford food, clothing, shelter and transportation. Even public transportation is a “luxury” to some people.
If you are spending close to the belt, there is an option. Go to Choose to Save for some calculators to help with money management, but even more so set a goal for the future where you will have more than enough to pay for your basic needs. Most people have a time where they have an abundance and a time when there is famine. If you spend all of the money you have in your abundant time then you will have nothing in reserve for the future.
Maybe your famine period happens before your feast period. Use what you know or don’t know to help you maximize what you have. Then when you have an excess you can save it.
If you have money and can save but don’t: rethink where the money goes. For someone who is not playing with their bills that close to the vest it is easier to save. For those who make closer to minimum wage and have higher expenses saving money is like dust in the wind.
The short term goal for a low wage earner may be to pay the rent or other bills on time or reasonably on time. For a person who spends more on non-necessities some of that money could be used for long term goals of a retirement.
There are always going to be people who have not saved enough for retirement but if you are able to save now but choose not to, make some changes now. Stop looking at things or services that will make you happy short term; if you save just a fraction of what you spend now, it will help you long term.
Topics: November 2007 |