An article about some of the pitfalls when attempting to save lots of for university and pension. Also some do’s and don’ts about conserving and what banking institutions really do with your deposits. THE FUNDAMENTALS: When there is one idea that many people in america hear repeatedly through their lives, its the idea that saving money is a good idea fairly.
From your mom to your banker, people preach for you about working saving and hard your cash for your pension. In fact, its described as the key part of the blueprint to success in the us. This mythical description of how one’s life should be lived is just that – a myth.
America is not set up for the given individual to save money – America is setup for corporations to generate income and for folks to be beholden to them through debt until they die (and possibly beyond the grave). Ok, this seems pretty harsh but let’s address a few of the myths about saving cash and you could make your own judgements.
- 5% annualized come back
- Someone less outgoing and more focused on family, home, etc
- List down the screening matrix
- Birth of a child
- Internet TV / video
- Circumstances that might cause an investor to change the composition of his collection
- Purchase of home financial possessions by foreigners represents a credit to the capital account
1 – “Save your money so you can go to university, get education and get a good job”. On the top this sounds good, and certainly creating a good job is useful so conserving for college seems quite smart, right? Well, if university is such an american ideal and the right move to make, every day why is college so expensive and getting more expensive. Today many young people have to borrow thousands of dollars to visit college.
If you want to get a degree for the higher paying occupations (think attorney or doctor) you probably have to borrow even more income, and spend additional years in college at one of the most expensive schools. 100,000) before they get their first job and paycheck. College is great, but don’t believe saving for college is the guarantee for financial success. It could lead to many years of financial doubt (and thats IF you can get employment in this difficult and competitive environment). 2 – “Open a checking account at my bank or investment company and save your valuable money for the future”.
3 – “Get yourself a credit card which means you can save 1% – 2% or save regular flyer miles”. 4 – Get a CD and dont touch it. 5 – Buy a house, its your very best investment youll ever make. There was a right time when buying a residence was a terrific way to build your net worth. The house appreciated 10% or more per year and the equity you built in your house was like having a higher yielding savings account that didnt cost a cent.
Well I think we know that the days of 10% or more house appreciation are over and many people in America have seen their investment DROP in value considerably. The best savings investment vehicle has turned into the biggest money pit for an incredible number of homeowners in this country. If you were one of the unfortunate ones who spent their house equity rather than leaving it in the home you really realize why using your house as a cost savings vehicle is just about the cruelest joke of all. The debt incurred may last a lifetime if some drastic steps aren’t taken. 6 – Put your money under the mattress.