Page 29 - Book2E

CHAPTER 3
Saving Makes Good Cents
Saving is most easily defined as keeping something valuable now to use in the future. This requires discipline, sacrifice, and planning.
• Discipline: an individual must control the desire to use the valuable item immediately
• Sacrifice: the individual must go without items that could be obtained immediately
• Planning: the individual must anticipate and know how to prepare for future events and establish a savings goal
The Reasons We Save
Everyone can save. Some people have fewer resources than others and may only be able to save small amounts infrequently, but there are ways for everyone to save something. Everyone has a reason to save, but not everyone has the same reason. More universal reasons to save include:
Retirement: Planning for retirement is critical. The future is unpredict- able and illness and disability that sometimes accompany old age can be costly. While the attitude to “live for today” that was advocated in the Sixties and Seventies was appealing, many are finding that it can make life tomorrow very miserable.
If you would be wealthy, think of saving as well as getting.
—Benjamin Franklin
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