Gainer said:

Its like one of my teachers used to say if you make $20,000 a year you will be wearing shoes, clothes, driving a car that cost you $20,000 a year.  If you make $100,000 a year everything you need cost you $100,000 a year.

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WhiskeyClone said:

Gainer said:

Its like one of my teachers used to say if you make $20,000 a year you will be wearing shoes, clothes, driving a car that cost you $20,000 a year.  If you make $100,000 a year everything you need cost you $100,000 a year.

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Yes but savings and investments are just another way to spend your money, usually a smarter way than burning it all on momentary pleasures.

A great way to save is to not increase the cost of your lifestyle when you get a pay increase.  Don't get a more expensive car, or more expensive clothes, and you'll have a huge cushion for savings, travel, investments, and emergencies.

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The same teacher after telling us that would follow up with telling us about this guy.  He had a degree and made plenty of money, but he wouldn't buy an expensive car or even one that ran good.  He would go find a piece of junk car that would cost him a couple hundred bucks and just drive it a few months until it broke down.  Just leave where it broke down and go buy another piece of junk car.   The point I left out that my teacher was trying to get at was what you are saying it really helps in the future to put some money back and save.  You don't have to buy expensive stuff and waste money.  I've just got that attitude its money it's meant to be spent, and you can't take it to the grave with you.  I guess I need to get rid of that attitude once I start making good money though.

Quote:

Set up a savings account with an automatic deposit every payday, so that you don't have to actually do anything, savings will grow.

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Noooo


Thats how it used to be, not anymore. If you live in the US you have to get at least 7-10% interest or your savings won't even correct to inflation.

You got to invest it - savings accounts are death traps nowadays. You got to beat that 7-10% somehow.

Three basic ways to try:

1..invest in superduper stocks (see the monies forum)
2..buy precious metals (particularly gold/silver)
3..invest in assets in your life - stuff that will last you long and saves you expenses preferably.

The odds today are AGAINST a savings account. Such a scheme you suggested is a great way to free up money, but then you have to put that money to work for you because a savings account won't cut it.

Gainer said:

I've just got that attitude its money it's meant to be spent, and you can't take it to the grave with you.  I guess I need to get rid of that attitude once I start making good money though.

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