I’m running a little late, which my friends and family will
tell you isn’t that unusual. I don’t try
to be late. I just always think I can
get one more thing done. My most
famously late time was probably when I arrived to a wedding an hour after it
was scheduled to start. The problem was,
the wedding was mine. So, what can you
expect from someone who was an hour late to her own wedding? You can expect that I’m not going to be on
time for everything. What I’m late for
now is America Saves Week, which is
February 24-March 1. But, better late
than never. Which, if you think about
it, is an adage that applies to saving money, too.
Hopefully we have all heard about the time value of money. If
you save when you are young, you’ll accrue more interest -- thereby having to
save less overall, but ending up with more saved. For example, Jack deposits $2000 into savings
for 10 years between the ages of 25-34 and leaves it there, contributing
nothing
more to his savings between ages of 35-65. Jill, on the other hand, waits until age 35
and starts depositing $2000 per year for 31 years (ages 35-65). Jack put a grand total of $20,000 away and Jill
put $60,000 in savings. In the end, due
to the time value of money and compound interest, Jack has $545,344 at age 65
and Jill has $352,427. By starting when
he was younger, Jack is almost $200,000 wealthier. But what if you no longer qualify as young?
What I’m afraid happens to people is they hear that they
should have started saving before they were in their 30’s and, since they got a
late start, feel hopeless. But, guess
what? Jill still has $350,000 and change
in savings. Truly, better late than
never. Even though I’m not great at math
or time, I know that $350,000 is a lot more than zero. If you get a late start, so be it. Just be sure you get started.
One way to get started it to go to www.AmericaSaves.org and set a savings
goal. It doesn’t matter how big or small
the goal is, just get started. It also
doesn’t matter if you do it after the big America
Saves Week. In the end, what matters
is that you save some money.
Stephen
Brobeck, Executive Director of the Consumer Federation of America and a founder
of America Saves, noted: “Only about one-third of Americans are living within
their means and think they are prepared for the long term financial future.
One-third are living within their means but are often not prepared for this
long term future. And one-third are struggling to live within their means.” If
you are in the two-thirds of Americans who are not prepared for the financial
future, now is the time to start preparing.
One
great financial tip is to automate savings.
Even if it is $40 per month, getting that habit automated can really
make a difference. If you have automatic
deposit on your paycheck, set up a savings account and automate a portion to
the savings. Some people spend whatever
they have, or can see in their checking account, so getting a portion
automatically out to savings can be an important move. If you get a tax refund, put that in your
savings. You might be surprised that the
financial security you feel as you start to build savings will be more
important to you than consumer purchases.
You can get used to living on less.
There
are twenty-five other great strategies in the book, Small Steps to Health and Wealth by Rutgers Extension. We have twelve copies of the first edition of
the book available for free at the MSU Teton County Extension Office, because
it is never too late to get your finances in order.
What
if, all those years ago, I had decided because I was running a little late, I
shouldn’t even bother? With savings, and
weddings, as it turns out, it’s great to be on time, but it is also better late
than never!
Resources for Saving:
Thanks to Barbara O'Neill, Ph.D., CFP, CRPC, AFC, CHC, CFEd, CFCS
Extension Specialist in Financial Resource Management, Distinguished Professor,Rutgers Cooperative Extension for the list of resources below.
Cooperative
Extension Investment Resources
When it comes to investing, it always
helps to have background information, financial calculators, and other planning
tools. The Cooperative Extension System offers a wide array of online resources
through its online eXtension portal and through various land-grant
universities. Below is a list of publication titles and Web site addresses:
eXtension Personal Finance Web site: http://www.extension.org/personal_finance
eXtension Investing for Your Future
11-module home study course:
eXtension Investing for Farm Families home
study course:
eXtension Saving and Investing Web
page:
eXtension Saving and Investing
Research Briefs:
Illinois- Plan Well, Retire Well
Blog: http://web.extension.illinois.edu/cfiv/eb141/index.cfm
Indiana – Planning for a Secure
Retirement (online 10-module retirement planning course with dozens of
links): https://ag.purdue.edu/programs/areyouprepared/secureretirement/Pages/default.aspx
Iowa- Family Finances Web Site: http://www.extension.iastate.edu/humansciences/family-finances-families
Iowa- Invest Wisely (news articles
and audio files): http://www.extension.iastate.edu/investwisely/
New Hampshire- Saving and Investing
Web site: http://extension.unh.edu/Managing-Your-Money/Saving-and-Investing
New Jersey- Investing Basics (from
Rutgers Cooperative Extension book Money Talk: A Financial Guide for Women):
http://njaes.rutgers.edu/money/pdfs/session-iii.pdf
New Jersey- Investing for Retirement
(from Rutgers Cooperative Extension book Money Talk: A Financial Guide for
Women):
New Jersey- Investment Risk and Return
Characteristics: http://njaes.rutgers.edu/money/investmentrisk.asp
New Jersey- Rutgers Cooperative Extension
Asset Allocation Spreadsheet: http://njaes.rutgers.edu/money/
New Jersey- Rutgers Cooperative Extension
Personal Finance Web Site: http://njaes.rutgers.edu/money/
New Jersey- Rutgers Cooperative Extension
Financial Goal-Setting Worksheet: http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf
New Jersey- Rutgers Cooperative Extension
Financial Planning and Investing Glossary: http://njaes.rutgers.edu/money/glossary.asp
New Jersey- Rutgers Cooperative Extension
Financial Fitness Quiz:
New Jersey- Rutgers Cooperative Extension
Investment Risk Tolerance Quiz: http://njaes.rutgers.edu/money/identitytheft/
New Jersey- Rutgers Cooperative Extension
Tax Information Web page: http://njaes.rutgers.edu/money/taxinfo/
Virginia- Building Your Financial
Team: Financial Planners
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