Money Smart Week: Just save already, darn it

Money Smart Week has come to an end. The goal is great: to get people handling their money more responsibly. After all, money represents hours of work, and you should use your time for things you want and need.

The key to financial security is to live on less money than you make, then get a return on savings that beats inflation. That’s it. That’s the secret, and it’s not all that fancy, is it?

And that’s the message for today. Get into the habit of saving, even it if’s a small amount. If all you is out $5 or $10 a week into an envelope and then use that in December so that you don’t buy presents on credit cards, you’re ahead of the game. If you put just one percent of your paycheck into your employer’s retirement plan, you’re making progress. If you pay even a buck or two more than the minimum on your credit card, you’re getting closer to financial freedom.

Yes, it’s easier if you make a lot of money, and it is easier if you have a lot of extra money – enough to pay cash for holidays and vacations, to put 15 percent to 20 percent away for retirement, and to have no credit card debt whatsoever. But the little bits add up, and they help you gain ground over time.

Think of it this way: even if you lost money in the market crash of 2008, you would be better off than someone who never saved anything because you would have money set aside.

Life is long, and you need to save for it. Life is short, so you need to have fun while you’re saving money.

(This is cross-posted on Chicago on the Cheap.)

A white woman with green glasses and gray hairAnn C. Logue

I teach and write about finance. I’m the author of four books in Wiley’s …For Dummies series, a fintech content expert, and an avid traveler. Among other things.

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