It’s not a secret that the wise ones among us save money for their future. Those who stow away savings can be among the more healthy and vibrant people we know in old age. Think about the opposite for just a moment. If you saved little to nothing throughout your life, then the golden years would actually be quite bleak, and less than golden.

I’ve heard some say that savings won’t matter because you’ll be old. The average person lives to be into their 70s and the average retirement age is a little over 65. This means anywhere from five to fifteen years living off what we save now and our social security. So even if you save a little from each pay day, your golden years will not be limited by shortsightedness.

A MoneyCentral article written by Liz Pulliam Weston describes the best advice on saving money. The money saving tips come from MSN’s money forums. They are some choice nuggest like "Pay yourself first" and "Think of the true cost." All of the advice was sound, but the one that stuck out to me as the most useful would be to "Pay yourself first".

Practicing Paying Yourself First

We likely pay a mortgage or a rent payment every month. We regard this money as sacred, right? When we calculate how much we’ll have to spend on groceries, gas, and entertainment we’ve already subtracted out the living space money. We don’t want to be living on the street afterall. We have to pay it. This should be the type of committment we have towards saving money.

How do we get to a point where paying 10% of our income to a personal investment becomes necessary? I like lists, myself. I write down the reasons why I should do something so I have a reference point when I don’t want to do it later on. You could create a list outlining why you should save ten percent of your earnings in a monthly period. Or you could try any other way you deem effective — whatever the case, save the money.

If we pay ourself ten percent of our income over a thirty year period, that will account for a large chunk of money. Who wouldn’t want that?

Discussion Questions

• How do you stay on track with savings?
• Do you pay yourself first?