revised fall 2008~kalan
At a certain age, retirement is necessary. One needs to live off his or hers savings once retired, therefore it is essential to have substantial savings. However, retirement appears to be a distant phase in life for most Americans and saving is neglected.
People in western America are known for their common sense and self-reliance. They understand the need to have savings to fall back on whether it is for retirement or an unexpected expense. However, it is hard for many people to look past the present and invest in their future. For example, buying a new high definition plasma television tends to be more appealing than putting money in IRA account.
The unattractive nature of saving paired with the rapid rise in costs paints a bleak picture for many families. Even those who have a projected savings goal will most likely outlive their money. Social Security is no long relief to be counted on. One also must now be leery of pension plans. We are living in time of corruption, thousands of ENRON employees depended on their stock options and pension plans, and those individuals are now left with out of penny of that money.
There are many of options when it comes to investing. There are low risk safe options with smaller returns and there are the higher risk opportunities that can yield very big profits. It is important to choose an option that is most comfortable. Most individuals choose to put the bulk of their investments into the safer ventures. Since these have lower interest rates it is very important to start saving early. It takes money to make money. In addition, once money begins to pool it really compiles and soon the yielding interest is greater than the deposits.
If someone is very good at saving and makes good investment decisions they can surpass any amount they would need to live out retirement. When this happens, it is a wonderful opportunity to be charitable. One could give large donations to their church or local shelter, something that would not be possible if he or she had not started saving at an early age. Being smart with income can create so many wonderful opportunities. Therefore,
To guarantee security for emergencies and a comfortable retirement, families need to budget, cut down on unnecessary spending, and formulate ways to save money. Such as, carpooling with neighbor families or cooking meals instead of dinning out. Once these things have been done, it is also very important to find a good way to have that money build on itself. Living pay check to pay check or beyond ones means, paves a path for struggle. To avoid likely unhappiness save a portion of income for retirement and unexpected events.
A commitment to saving for the future (#) provides security in life (#). It utilizes (#) one’s career (#) and rewards hard work (#). It requires a balance (#) of pleasure (#) spending and frugality (#).Being disciplined (#) and responsible in saving promotes progress (#) and charity (#).