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Interesting article on 'saving clubs'
Old 11-21-2011, 11:53 AM   #1
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Interesting article on 'saving clubs'

Global Lessons for Better Savings Habits - SmartMoney.com

The use of social peer pressure to save - I myself am more inner-directed and don't necessarily respond to well to peer pressure (except when I declare something - I like to be true to my word). However, I can see how this might help a lot of people.

Another article in the WSJ was saying that people should work longer :-) Didn't want to post that article as I know most here would sigh - however, the point was the percentages of savings at an early age and how long one would need to work to fund a retirement (with the SS part figured in). That article stated that people on average only save about 5% right now - but that they should be saving 10% - hmmm, for FIRE, I would go for 30-75%.

To me, the book "Your Money or Your Life" truly highlights the real issue - what do you wish to spend your time on ( money is merely a form of 'saved time') - is it of value to you? Is a large house of value compared to a newer car? Is a new car of value compared to traveling? It comes down to tradeoffs (for most of us - the super rich, of course, make different tradeoffs). Further refinement can be had by finding inexpensive ways to meet what you value - books/DVDs:library - shows:matinees or other - clothes:consignment/sales/thrift shops/garage sales. I am merely repeating the mantra many know here.

To bring it back to the topic at hand -the article - saving money (time) is so important no matter what you make. Saving more than the average (much more, if possible) opens up your life to so many opportunities. Heck - the examples in the article of living off of $50 month and still saving should give many pause here.

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Old 11-21-2011, 02:28 PM   #2
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The use of social peer pressure to save - I myself am more inner-directed and don't necessarily respond to well to peer pressure (except when I declare something - I like to be true to my word). However, I can see how this might help a lot of people.
I wonder if the only people who'd join a saving club are the people who are already saving on their own.

OTOH I can see a great career for a financial adviser who runs a "saving club" on the side... as long as the members don't start comparing notes on the fees.
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Old 11-21-2011, 03:01 PM   #3
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Originally Posted by deserat View Post
Global Lessons for Better Savings Habits - SmartMoney.com

The use of social peer pressure to save - I myself am more inner-directed and don't necessarily respond to well to peer pressure (except when I declare something - I like to be true to my word). However, I can see how this might help a lot of people.

Another article in the WSJ was saying that people should work longer :-) Didn't want to post that article as I know most here would sigh - however, the point was the percentages of savings at an early age and how long one would need to work to fund a retirement (with the SS part figured in). That article stated that people on average only save about 5% right now - but that they should be saving 10% - hmmm, for FIRE, I would go for 30-75%.

To me, the book "Your Money or Your Life" truly highlights the real issue - what do you wish to spend your time on ( money is merely a form of 'saved time') - is it of value to you? Is a large house of value compared to a newer car? Is a new car of value compared to traveling? It comes down to tradeoffs (for most of us - the super rich, of course, make different tradeoffs). Further refinement can be had by finding inexpensive ways to meet what you value - books/DVDs:library - shows:matinees or other - clothes:consignment/sales/thrift shops/garage sales. I am merely repeating the mantra many know here.

To bring it back to the topic at hand -the article - saving money (time) is so important no matter what you make. Saving more than the average (much more, if possible) opens up your life to so many opportunities. Heck - the examples in the article of living off of $50 month and still saving should give many pause here.

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I read the same SMoney article. As I read the article, it was absolutely amazing to me that people who live on so little (compared to the developed world) can save so much. Then, I thought, WAIT, my parents ( and grandparents to a large extent) did exactly the same thing, simply on a different scale. So, the key for me is "what's the standard?"

What standard of living do you 'become accustomed to' which is the point from which your measure everything else; how much you "need", how much you "save", what's a "sacrifice" and what's not.

In all honesty, my parents are WAY better at living the Joe D life than I am but, largely because they started in a different place regarding expectation ( and 'standard'). So, in one sense, that makes YM-or-YL more about how we change our standards than where they start. That's the struggle for me; a lifetime of messages about 'doing better' than your parents, encouraged and enabled by them, pulling in one direction, countered by the YM-or-YL message pulling in the other.

Balance grasshopper, balance.
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Old 11-21-2011, 03:06 PM   #4
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I spent some time Saturday night talking to a 20 year old girl about the hedonic treadmill, using her, the 30 year old whose birthday it was, and my ancient 40 year old self as examples. It was quite entertaining, at least to me, and I think she "got it" pretty well about what she's willing to trade her dollars for at this stage, and how ramping up her minimum standards early will cost her time in the end.

I explained it like this: most of the time, you have either time or money, rarely both in equal quantities. And nearly every one of the people who have lots of money but no time (ie health) would trade it for that day when they had time and little money.

Fun to see the wheels turning with her. And a nice young lady to boot. DH wanted to know if I was interviewing my replacement!
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Old 11-21-2011, 03:16 PM   #5
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Fun to see the wheels turning with her. And a nice young lady to boot. DH wanted to know if I was interviewing my replacement!
He must enjoy living dangerously.
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Old 11-21-2011, 04:34 PM   #6
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I spent some time Saturday night talking to a 20 year old girl about the hedonic treadmill, using her, the 30 year old whose birthday it was, and my ancient 40 year old self as examples.
!
Now you are just being mean. I am off to spend Thanksgiving with mother and her partner in their new retirement community. I'm looking forward to hearing her 85 year young partner talk about the old and ancient folks.
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Old 11-21-2011, 07:02 PM   #7
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Let me tell you, Clif...to a 20 year old--I AM ancient! But you might be on to something, there, hanging out with the older folks at the retirement center, as there is always someone older than you!

Ha, you'd have loved her--she's a dancer with the ballet here in town and her equally nice sister is a soccer standout at the college. Tall, tall, tall.
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Old 11-22-2011, 02:05 PM   #8
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I spent some time Saturday night talking to a 20 year old girl about the hedonic treadmill, using her, the 30 year old whose birthday it was, and my ancient 40 year old self as examples.
Fun to see the wheels turning with her. And a nice young lady to boot. DH wanted to know if I was interviewing my replacement!
I think if you turn in one 40-year-old you get two 20-year-olds...

... or in my case our daughter turns 20 in just 11 more months.
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