Add to Your Savings in a Crisis

Step 1 Financial ideas for a CrisisThis should go without saying, but Grandma was right. We should all be saving for a rainy day. When I was in high school, I lived with my grandmother. For my senior project, I had to interview someone who had lived through the Great Depression in the 1930s. So I sat down with my grandmother at our kitchen table and helped her remember things that had happened to her 50 years prior.

One of the themes that came out of the interview was that using real money that you actually have in the bank (or the cookie jar) makes a difference in a crisis. She told me a story about how she had gone down to the company store (my grandfather was a foreman in a sawmill business), and the gentleman at the store implored her to put the groceries on a line of credit for her family. He said, “Mrs. Sasser, I know you and Pete are good for this, and this depression will all be over soon. Please charge some more food for your family.” Continue reading “Add to Your Savings in a Crisis”

You can still Pay for Christmas with Real Money

gifts“It’s the most wonderful time of the year…for the credit card companies.  There is much jingle belling and hearts will be telling of credit galore.  It’s the happiest season for more.”  Ok, so I reworded the old classic Carole.  But someone needs to say it, “don’t spend more than you can afford on Christmas- this year.”  Reign it back in if you didn’t save well. Continue reading “You can still Pay for Christmas with Real Money”

One Million Dollars is a lot of Money to Save

I have been doing a lot of thinking lately about retirement. Unfortunately, I am one of those guys who didn’t listen real well in the Investment 101 class. Come to think of it, I am not sure I got invited to the Investment 101 class. I heard about it and even got some of my friends who shared some of their notes and highlights with me. Best I can remember, the curriculum is pretty simple: invest money early in your 40 year working life and that money grows over time and will hopefully grow enough to tide you over in your 20 years of retirement.

Let’s do the math on the American Dream. Young professional settles in to a working rhythm by age 25 and works 40 years till he hopefully retires at 65. Retiree enjoys healthy golden years and hopefully gets to put in another 20 years where he/she dies peacefully at ripe old age of 85. Because it is no longer cool for said retiree to depend on children or anybody else they must have saved enough money over the 40 years to help them remain “financially independent” till they die.

That sounds awesome. All I have to do is figure out what I want to live on and then save it. Simple right? Continue reading “One Million Dollars is a lot of Money to Save”