Comments on: Why is Saving Hard? http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: mike http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/comment-page-1/#comment-83496 mike Sun, 10 Jul 2011 12:06:57 +0000 http://blog.canadian-dream-free-at-45.com/?p=695#comment-83496 I agree with you as to why savings is so hard. The easiest way I found to do so was dealing with the thought process of a prospective purchase. I not only consider the cost of the proposed purchase(ex $1,000), but what the purchase would cost me in future value terms. In this case the $1000 purchase would actually cost me in excess of $17,000 at the end of 30 years(10% return). This made it much easier to to divert the funds into savings. Is the purchase a necessity or will it generate $17,000 in additional income over 30 years. After doing this for a number of years and teaching my children the idea, I had heard an interview with warren Buffet that had done the same process when younger. Here I thought it was an original idea. I agree with you as to why savings is so hard. The easiest way I found to do so was dealing with the thought process of a prospective purchase. I not only consider the cost of the proposed purchase(ex $1,000), but what the purchase would cost me in future value terms. In this case the $1000 purchase would actually cost me in excess of $17,000 at the end of 30 years(10% return). This made it much easier to to divert the funds into savings. Is the purchase a necessity or will it generate $17,000 in additional income over 30 years. After doing this for a number of years and teaching my children the idea, I had heard an interview with warren Buffet that had done the same process when younger. Here I thought it was an original idea.

]]> By: moneygardener http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/comment-page-1/#comment-26882 moneygardener Sat, 30 May 2009 20:05:26 +0000 http://blog.canadian-dream-free-at-45.com/?p=695#comment-26882 Nice post. I don't think people in general will change. This may be a temporary shock but people will go back to the 'have it now' attitude. Nice post. I don’t think people in general will change. This may be a temporary shock but people will go back to the ‘have it now’ attitude.

]]> By: Emperor http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/comment-page-1/#comment-25701 Emperor Sat, 16 May 2009 02:33:21 +0000 http://blog.canadian-dream-free-at-45.com/?p=695#comment-25701 Actually, to me saving IS a form of spending. Saving buys me FREEDOM. The freedom of saying goodbye to a job I don't like at anytime, the relief from financial stress, the freedom to make different choices in the future, the freedom of being debt free. Someone who is tied with mortgage and car payments isn't really free IMO. Actually, to me saving IS a form of spending. Saving buys me FREEDOM.

The freedom of saying goodbye to a job I don’t like at anytime, the relief from financial stress, the freedom to make different choices in the future, the freedom of being debt free.

Someone who is tied with mortgage and car payments isn’t really free IMO.

]]> By: Philip Brewer http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/comment-page-1/#comment-25660 Philip Brewer Fri, 15 May 2009 11:05:38 +0000 http://blog.canadian-dream-free-at-45.com/?p=695#comment-25660 A lot of people seem to view their savings through a weird kind of retirement lens--either it's enough to support them forever, or it's nothing. Personally, I always figured that a little capital was worth having for lots of different reasons. Having a little capital protects you in case of financial catastrophe--losing your job doesn't force you to choose between debt and homelessness. Having a little capital increases your flexibility--you don't have to take the first job that comes along. Having a little capital saves you money--stocking up on sales, higher deductibles on your insurance, better rates on loans, etc. I always thought just a little capital--earning just a little money--was valuable right now, just not just later. I've written about it several times. Here's one post: http://www.wisebread.com/join-the-rentier-class A lot of people seem to view their savings through a weird kind of retirement lens–either it’s enough to support them forever, or it’s nothing.

Personally, I always figured that a little capital was worth having for lots of different reasons. Having a little capital protects you in case of financial catastrophe–losing your job doesn’t force you to choose between debt and homelessness. Having a little capital increases your flexibility–you don’t have to take the first job that comes along. Having a little capital saves you money–stocking up on sales, higher deductibles on your insurance, better rates on loans, etc.

I always thought just a little capital–earning just a little money–was valuable right now, just not just later. I’ve written about it several times. Here’s one post:

http://www.wisebread.com/join-the-rentier-class

]]> By: Early Retirement Extreme http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/comment-page-1/#comment-25647 Early Retirement Extreme Fri, 15 May 2009 07:03:48 +0000 http://blog.canadian-dream-free-at-45.com/?p=695#comment-25647 I actually wrote about that in one of my first ten blog posts ever :-) http://earlyretirementextreme.com/2007/12/on-how-car-dealerships-helped-me-save-money.html I did not see it as retirement savings (was not even thinking of retirement initially) but rather as incrementally larger things I could buy in cash. All you need is a vision. I actually wrote about that in one of my first ten blog posts ever :-)

http://earlyretirementextreme.com/2007/12/on-how-car-dealerships-helped-me-save-money.html

I did not see it as retirement savings (was not even thinking of retirement initially) but rather as incrementally larger things I could buy in cash.

All you need is a vision.

]]> By: Caitlin http://blog.canadian-dream-free-at-45.com/2009/05/13/why-is-saving-hard/comment-page-1/#comment-25599 Caitlin Thu, 14 May 2009 17:24:48 +0000 http://blog.canadian-dream-free-at-45.com/?p=695#comment-25599 I totally agree with you that many people definitely see saving as a lack of spending, and it's probably a very large reason why so few people have been saving enough these days. I hope you're right about people shifting away from the gotta-get-it-now mentality and leaning toward more saving and careful spending. I totally agree with you that many people definitely see saving as a lack of spending, and it’s probably a very large reason why so few people have been saving enough these days.

I hope you’re right about people shifting away from the gotta-get-it-now mentality and leaning toward more saving and careful spending.

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