Most of us were taught that saving is a critical financial activity. Why do so many have trouble putting away a small part of their earnings? Why is it so hard to save for a rainy day or to prepare for major events like college, weddings or retirement? What is so difficult about goal setting and savings? Here are three reasons: easy credit, a perceived shortage of extra funds and a lack of visualization.
In our society we are led to think we can have it all, right now. Advertisers bombard us with the idea that if we want it, charge it. There is no need to save if you can purchase today and pay it off tomorrow.
Many people don’t think they have the extra cash to save unless that money is immediately deducted from their paychecks. Putting away an extra 5-10% seems impossible after paying for necessities and a few extras. The cost of living does increase but putting money in savings is a choice. Instead of the extra lunch out or the latest new electronic device, you could invest the same money for future events.
Goal setting and saving money can be difficult without a picture of the end in mind. One of the tricks to saving is to visualize in your mind how the event you are saving for looks and feels. Saving is easier when you imagine the goal. Think about what that wedding will be like or how it will feel to see your children graduate from college. Picture yourself in retirement relaxed at the beach or enjoying the mountains. When your goal is real in your mind, getting there is so much easier.
Les Merritt, Certified Financial Planner (CFP) can help. Set up a meeting with Les and his staff to begin your goal setting and savings. We are half way through the year, time to reassess your goals. Call (919) 269-8553 today to set an appointment.