Irrationally mad decision making to obtain the American Dream.

CNN Money Article on saving money for retirement.

I received this news article from a co-worker of mine and thought it was very significant because its content lines right up with my opinions on consumer spending and saving.

Basically a person with a smaller income can still save more then a person with a larger income just because they spend less and save more.  Read it for yoursefl.

CNNMoney.com News:  “What works: Your worst enemy…overspending”

By: Penelope Wang

http://money.cnn.com/2006/09/07/pf/retirement/retire0610_whatworks_hartmann.moneymag/index.htm

In my own life I can see this with my friends earning more then me, but they want to spend and buy a sports car, new furniture, and have their own place instead of sharing.  Just by owning your car with no payment you are saving $100-500, sharing as a roommate instead of having your own place saves your $300-1000, and buying or getting used furniture could save your hundreds if not a couple thousands.  I know its personal choice, luxury, and enjoyment.  Can’t you have just a good time driving a regular car, or sitting on a used piece of furniture.  Having a bran new furniture set doesn’t make it come alive and talk to you does it?  I don’t think so.  Sure, comfort, you want it but you still can have it being more on a budget and finding a reasonable simular piece of furniture cheaper would help you save in the long run.  As with expensive cars comes higher insurance just another thing to think about when spending your paycheck.

In the article stated above they are earning a sweet income, but if with a $20,000 to $40,000 yearly income you can save just as much.

 I factor variables like (for males and females):

1. Do you have a boyfriend, girlfriend, or are you married?

2. Do you own or do you rent or which is cheaper?

3. Do you own your car, leased, or have a loan on it?  What’s the insurance?

4. Do you eat out a lot, binge drinkers, or like to go out a lot on the weekends?

5. Do you play sports?  Because most sports are free.

6. Do you have credit cards and how much is on them?

The above questions can help you budget your money better and plan for retirement.  Yes, people change, you get married, you have babies, and now you have a hospital bills because you don’t have health insurance.  I understand that, but if right now you are young, healthy, and able to work then now is the time to earn and save the most you will ever be able to.

Think about how much you spend in your current lifestyle.  If you can makes changes you’ll be saving probably 25-50% of your paycheck and be blown away when you see your savings account start stacking up like gold inventory as in the Federal Reserve in NYC, NY.

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