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Americans have forgotten how to save in recent years.

First, we came to regard the stock market as our piggy bank; if we needed a little spending money, surely we could always sell a few shares of stock or a bit of a mutual fund at a profit. Then, we viewed our houses as money machines that would always provide a surplus of cash on a moment's notice, since real estate "never goes down in value."

All that has changed, at least for now. People finally have again realized how important it is to save. After all, thrift was once one of the quintessential American virtues: Just think of Benjamin Franklin intoning, "A penny saved is a penny earned."



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IMO a penny saved is a penny earning extremely low if any interest. Invest that sucker. The overall point is excellent though.

To me the biggest thing to remember is this: time IS HUGE. It can be either your greatest ally or worst enemy. This above all things is an area you do NOT want to procrastinate in.

Those were/are the good ole days gone bye. In today's unforgiving economy, many people don't have a penny to save, they need those pennys to live on. I know quite a few people who fall into that catagory, even a few relatives. I try to financially help out the relatives needing it the most as best as I can, they are greatful, & I feel good!

Amen to that different times for sure.

[QUOTE]Those were/are the good ole days gone bye. In today's unforgiving economy, many people don't have a penny to save, they need those pennys to live on. I know quite a few people who fall into that catagory, even a few relatives. I try to financially help out the relatives needing it the most as best as I can, they are greatful, & I feel good! [/QUOTE]

Yep-------It's really hard to save when you have Cable bill of $100 a month to get 187 stations and a cell phone bill of $100 a month so you can talk to everyone on the planet for hours on end. Not to mention the $375 month car payment for the next 60 months on that super economical SUV. And hey, how about that $30 a week for your "Starbucks" fix? Granted, this is not representative of everyone, but does represent a large percentage of the population that views these expenditures as a necessity.

We refinaced our dire credit card bills into a new mortgage AND were able to do house updates. We were living on the savings account edge. 10 months of mortgage from savings. Now maybe we can save again. We cut up and cancelled every credit card we had. I FEEL FREE.

I've never owned a credit card.........thank god. and never will. I believe (because my parents knocked it into me) You buy when you have the money -- not before. I recently was taken on an expedition of Op shops in surrounding towns ........MY GOD I could not believe what I was seeing . THEY HAVE GREAT STUFF. So I decided from now on I 'op shop' and not Target or Kmart shop. Albiet I'll treat myself when the occasion asises because I like to look stylish when I go to functions.

One thing though you have to get out of the "consumer" race. I'm working towards not being "a consumer". and everyone can do that, it's so easy it's criminal.

I got rid of my cell phone ( well sort of, I'll accept calls and messages but I don't make them.) I still have a computer out of neccesity.

but some things I have been doing totally differently.

I bought all 'base' cleaning agents to replace the brand ones.

I buy insence instead of sprays and I have flowers everywhere around the home to make it smell nice.

I've begun putting vinegar in my clothing wash instead of store bought bleaches and cleaning agents. It softens and bleaches, and I hand them in the sun instead of the dryer. It's actually got to the stage that I'm thinking of throwing out the dryer.

In summer there is no need for light globes in every room. And a ceiling fan does a much better job than an air conditioner.

and I will never invest .............I will buy gold but nothing else. I'm a money under the pillow kind of girl . Government Super will take care of the rest.

My boys don't need Pay TV They have SBS and ABC,their playstations, wii and computers.

fuzzywuzzy;1268393 wrote: I've never owned a credit card.........thank god. and never will. Then I hope you plan to pay for EVERYTHING you buy in full up front - including a house and car. Otherwise you will likely pay higher rates due to a poorer credit score. PS I used to feel the same way ("debt free!") but have since found that, as stupid and illogical as it is, having and using a credit card just every once in awhile gives you a better credit rating than never using one.

I got rid of my cell phone ( well sort of, I'll accept calls and messages but I don't make them.) FYI almost all cell plans now have it so you are charged minutes regardless of whether you instigated the call or not. You're also charged time when checking voicemail. Ridiculous, but there it is. Point being you probably aren't saving anything.



I buy insence instead of sprays and I have flowers everywhere around the home to make it smell nice. Unless you're growing them yourself, I'd think that would be a lot more expensive than having scented cleaners or candles or some such-?

I've begun putting vinegar Vinegar does like 100 things, it always amazes me

And a ceiling fan does a much better job than an air conditioner.It's certainly cheaper but fans don't take the humidity out of the air - not an issue if you live in say AZ, but very much so if you live in say the South!

and I will never invest .............I will buy gold but nothing else. I'm a money under the pillow kind of girl . No offense, but gold is volatile and over the long haul a very poor investment to count on solely esp if you are saving up for retirement - and money under the pillow loses it's value every day.

Again no offense meant, just something to think about.......

Credit cards are not the problem when it comes to saving, but a lack of discipline is, and not knowing what your income and fixed expenditures are.

Credit cards are a necessity in this modern world and beats the hell out of carrying around cash, particularly when you are traveling. I have used credit cards for over 50 years and never have ever paid a cent in interest charges. I have always paid the balance due in full each month, and you don't have to be rich to do that, just have some money awareness and self discipline.

Lon;1268487 wrote: Credit cards are not the problem when it comes to saving, but a lack of discipline is, and not knowing what your income and fixed expenditures are.

Credit cards are a necessity in this modern world and beats the hell out of carrying around cash, particularly when you are traveling. I have used credit cards for over 50 years and never have ever paid a cent in interest charges. I have always paid the balance due in full each month, and you don't have to be rich to do that, just have some money awareness and self discipline.
Agreed, CC's are a necessary evil in today's world! Some businesses won't even do business with you unless you have a CC. For example, Car rentals, Hotels, quickly come to mind. Plus CC companies will go to bat for you if you have a dispute with a business establishment.

There is an old guideline from the book the A Barber which says to always pay yourself first.

Basically the idea is to pay yourself 10% of your net monthly income into savings before you start paying off your A as so forth. If you do not pay yourself, you will find that you will always have reasons to have nothing left at the end of the month.

These days this can be done by a direct monthly debit out of your main bank account into a savings account.

I am debit free and do own only one credit card. I use the card only when I know I can pay the full balance off when the bill arrives. I own a pre-paid cell phone and add minutes if needed. I have separate savings accounts set up for my animals and for my household expenses. I also do what mikeinie has suggested and "pay myself" at the end of each month. Times are tough but I believe that if you manage your money properly and don't over indulge, you can still save money.

joey2000;1268451 wrote: Then I hope you plan to pay for EVERYTHING you buy in full up front - including a house and car. Otherwise you will likely pay higher rates due to a poorer credit score. PS I used to feel the same way ("debt free!") but have since found that, as stupid and illogical as it is, having and using a credit card just every once in awhile gives you a better credit rating than never using one.

FYI almost all cell plans now have it so you are charged minutes regardless of whether you instigated the call or not. You're also charged time when checking voicemail. Ridiculous, but there it is. Point being you probably aren't saving anything.



Unless you're growing them yourself, I'd think that would be a lot more expensive than having scented cleaners or candles or some such-?

Vinegar does like 100 things, it always amazes me

It's certainly cheaper but fans don't take the humidity out of the air - not an issue if you live in say AZ, but very much so if you live in say the South!

No offense, but gold is volatile and over the long haul a very poor investment to count on solely esp if you are saving up for retirement - and money under the pillow loses it's value every day.

Again no offense meant, just something to think about.......


Yep I've heard all these things before. ..................then the crash happened and I wasn't affected.. so I think it depends on wht your saving for .

I'm working towards being self sufficient, and yes the flowers are from my own garden and the bush. Great way of defuming your house of nasty smells is grab a couple of gum leaves off a tree. put them in a pot and boil them ......house smells strongly of Eculyptus in no time. And yes i payed for my car up front and when I sell my other house I'll have enough to buy some land in the hills and and with the 'new home owners grant' build my own home.

Credit cards can be an advantage if used properly.Spending versus the amount you earn should be organize well.Personally,i make sure i spend less than what i earn.My earnings less the expenses and bills then what's left is divided into three parts.An emergency fund,stock market for investment and bank savings.