We are living in difficult times. House values have fallen, the stock market is at multi-year lows and there is reduced access to credit. Home prices are much lower in Southern California then they have been in years. The S&P 500 is down (32.15%) year to date, reflected in quarterly 401(k) statements nationwide. I have stellar credit, but was told that my credit line would be reduced by 25%. I knew this day would come and I am prepared for it.
Most people talk about saving, but never do it. The truth is that to become financially successful, either you have to work harder or your money has to. I choose my money since I only have 24 hours a day and I would much rather spend it with family and friends than working. Your choices are saving more today or working into your “golden” years. People in their twenties often feel that they have plenty of time to save later so they spend freely. Then, in their thirties and forties, money becomes tight since they are now paying for a new home or raising kids. In their fifties, they discover that they have less than 15 years (only 780 week) until they retire. At this point, it usually takes too much money create an adequate retirement fund. This means that living the retirement of your dreams will be nearly impossible.
Retirees often look back and are disappointed that they didn’t begin saving and investing when they were younger. If you develop good financial habits during these difficult times, it will pay dividends and serve you well into the future.
Wishing You Wealth in all its Greatest Forms
Alex
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