In light of today's economy I thought a posting on the importance of savings might be of interest.
"Why bother to become a better saver? Because boosting your saving prowess can have a huge emotional payoff. Nine out of ten savers say they're 'happy' with their lives. Savers are more likely than spenders to be happy with their lifestyle, self-esteem, even their appearance. They're more likely to feel confident and content, less likely to feel stressed and restless. Spenders are just the opposite: They're more likely to be frustrated with their lot in life."
— Jean Chatzky
"Doing what is right for you — including making sure you'll have what you need in any sitution — may mean giving up what you want right now to pay for what you could need later on. I hope you decide to do this, for you'll be amazed at how much control over your life you will feel with your emergency fund standing behind you."
— Suze Orman
"The basic truth is that you must plan for the unexpected, because it will happen. Although we don't know what form it will take, it will come. To think otherwise is naive. So you have to plan for it. Saving into an emergency fund is an essential element for financial peace."
— Dave Ramsey
"There is no greater power known to man than compounding interest."
- Albert Einstein
"When you're starting out financially, you need to take four steps:
. Find a low-cost checking account.
. Eliminate debt.
. Build an emergency fund.
. Start saving for long-term goals."
- Laura Rowley
An interesting person to study is Warren Buffett. He was ranked by Forbes as the richest person in the world during the first half of 2008, with an estimated net worth of $62.0 billion. Buffett is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. In 1979 despite having a net worth of $620 million, placing him on the Forbes 400 for the first time, he lived solely on his salary of $50,000 per year. He currently lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000. Jerry loves to study him and Jerry's favorite quote from him is "I will tell you how to become rich. Be fearful when others are greedy. Be greedy when others are fearful." Great advice perhaps, but easier said than done as we contemplate when to start aggressively investing in the stock market again....