Sunday, March 2, 2008

Savings and Investment Program

One thing I learned early in life, thanks to my grandmother and aunts, was to save money. I had to teach myself how to do that "systematically". "Automatic withdrawals into savings" has been a big help in this regard. Over the past decade or so, with the advent of deferred savings programs (IRA, 401k, etc) I have always been able to save a little here and a little there and over time have been able to build up to the maximum established by law. The trick has always been to never allow any new income to get into my checking account. So the combination of "automatic withdrawal" and deferral programs, has made it even easier to save for retirement every pay day. God has been kind to me in this regard and I praise Him for His love and generosity.

All of this takes discipline and dedication. You have to have a personal "vision" of what you are trying to accomplish. It also requires much self-sacrifice. To save or invest for the future (mutual funds are an investment) you have to give up things you may "want" today, so that your investment program will allow you to live and enjoy life fully somewhere in the future.

My best friend began a savings and investment program 25 years ago starting at "0". He is today a millionaire... and owns 2 beautiful homes. So I know personally "putting money into savings and investments over time" works.

One final thing I learned, is that you have to save/invest at the same time you are reducing and eliminating debt. Time is truly money, so the longer you have funds invested the greater the benefits of compounding; stock growth; property value.

All of this has been a daily challenge for many years in managing my money. Especially, when you are trying to do all of this and meet the needs of your family, pay for college, maintain automobiles, etc...

It truly tests your skills. I pray each day for 30 - 60 minutes and asks for God's inspiration as I present my daily issues to Him. God has always shown me the right paths to follow. To quote Our Blessed Mother...Praise be Jesus!

No comments: