Comments on: Consumption Smoothing and You: Save While the Saving’s Good http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 18:35:25 -0500 http://wordpress.org/?v=abc hourly 1 By: Andy http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118977 Andy Tue, 22 Jul 2008 20:56:13 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118977 There's a song here: EarningTime, and the savin' is easy... There’s a song here:

EarningTime, and the savin’ is easy…

]]> By: Michael http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118934 Michael Mon, 21 Jul 2008 13:23:39 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118934 Great post. It's a great reminder of the importance of balance. No one knows how long he has on this planet, so you can't live exclusively for a tomorrow that may never come. Consumption smoothing is a fascinating concept made a lot easier to execute if you are able to and choose to save aggressively when you are young. Great post. It’s a great reminder of the importance of balance. No one knows how long he has on this planet, so you can’t live exclusively for a tomorrow that may never come. Consumption smoothing is a fascinating concept made a lot easier to execute if you are able to and choose to save aggressively when you are young.

]]> By: Sam http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118884 Sam Thu, 17 Jul 2008 15:24:15 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118884 My bad....should have been "you don’t spend what you CAN'T see". This is the main concept from this book I've just finished Automatic Millionaire by David Bach. Cheers! Sam My bad….should have been “you don’t spend what you CAN’T see”. This is the main concept from this book I’ve just finished Automatic Millionaire by David Bach.

Cheers!
Sam

]]> By: Andy http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118882 Andy Thu, 17 Jul 2008 14:48:03 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118882 Sam said: Remember, you don’t spend what you can see :) Um, are you sure about that? Sam said:

Remember, you don’t spend what you can see :)

Um, are you sure about that?

]]> By: Sam http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118550 Sam Thu, 10 Jul 2008 05:18:39 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118550 For me, the most effective way to save money for retirement is to do it automatically. That is, do it once then forget it! Setting apart a % of your income every paycheck requires a lot of discipline and for most people not achievable at all. By doing it automatically, you save yourself the effort of having to spend time dividing money for retirement and for yourself. How do you do it automatically? Ask your company finance guy if your company's preferred bank can automatically deduct a certain % from your salary automatically and store it in your retirement fund or savings fund. Remember, you don't spend what you can see :) For me, the most effective way to save money for retirement is to do it automatically. That is, do it once then forget it! Setting apart a % of your income every paycheck requires a lot of discipline and for most people not achievable at all. By doing it automatically, you save yourself the effort of having to spend time dividing money for retirement and for yourself. How do you do it automatically?
Ask your company finance guy if your company’s preferred bank can automatically deduct a certain % from your salary automatically and store it in your retirement fund or savings fund.

Remember, you don’t spend what you can see :)

]]> By: Benjamin http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118549 Benjamin Thu, 10 Jul 2008 04:25:12 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118549 I wrote a similar article on consumption smoothing last week. It's not only those that set a predetermined percentage of their salary away that can benefit from the concept of consumption smoothing. There seem to be some families (especially among the personal finance blogging world) that live frugally all their lives to stockpile as much cash as they possibly can for retirement. Then they get to retirement with millions of dollars and don't know what to do with it all. It's all about finding a balance between what you Want to have today, and what you NEED to have tomorrow! I wrote a similar article on consumption smoothing last week. It’s not only those that set a predetermined percentage of their salary away that can benefit from the concept of consumption smoothing.

There seem to be some families (especially among the personal finance blogging world) that live frugally all their lives to stockpile as much cash as they possibly can for retirement. Then they get to retirement with millions of dollars and don’t know what to do with it all.

It’s all about finding a balance between what you Want to have today, and what you NEED to have tomorrow!

]]> By: livingalmostlarge http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118541 livingalmostlarge Wed, 09 Jul 2008 21:57:12 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118541 It is such a tough feeling. Today I wrote about almost living large. That is exactly it. I want to live large but to get there will take time and what exactly living large is defined by the standards you set yourself. There is no easy choice about how much to spend. Only you can decide. It is such a tough feeling. Today I wrote about almost living large. That is exactly it. I want to live large but to get there will take time and what exactly living large is defined by the standards you set yourself.

There is no easy choice about how much to spend. Only you can decide.

]]> By: The Other Eric http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118537 The Other Eric Wed, 09 Jul 2008 17:35:27 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118537 This is an intriguing idea, something I'm definitely going to look into. After many years of saving since my Lovely Wife and I got out of college, I'm tired of seeming to put off some good life while putting a bunch of funds for retirement. I'm certainly not wanting to shortchange my retirement and future but there has to be a balance -- I'm not sure I've found it. Also compounding our situation is Lovely Wife is now stay-at-home which halve our income. Lots of financial flux on our household. This is an intriguing idea, something I’m definitely going to look into. After many years of saving since my Lovely Wife and I got out of college, I’m tired of seeming to put off some good life while putting a bunch of funds for retirement. I’m certainly not wanting to shortchange my retirement and future but there has to be a balance — I’m not sure I’ve found it. Also compounding our situation is Lovely Wife is now stay-at-home which halve our income. Lots of financial flux on our household.

]]> By: Four Pillars http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118534 Four Pillars Wed, 09 Jul 2008 17:19:32 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118534 Great post - this is definitely something I aspire to particularly with regards to retirement. Problem is that it is so hard to do. Mike Great post – this is definitely something I aspire to particularly with regards to retirement. Problem is that it is so hard to do.

Mike

]]> By: Eric http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/comment-page-1/#comment-118532 Eric Wed, 09 Jul 2008 16:08:18 +0000 http://www.fivecentnickel.com/2008/07/09/consumption-smoothing-and-you-save-while-the-savings-good/#comment-118532 Scott Burns has a new book out called "Spend 'Till the End" which is all about consumption smoothing and challenges the conventional wisdom when it comes to things like when to take Social Security, paying off your mortgage, etc. Scott also has an excellent website called Assetbuilder where he posts thought-provoking articles like this: http://assetbuilder.com/blogs/scott_burns/archive/2008/06/06/the-n-factor-and-retirement-planning.aspx All consumption smoothing does is take your entire lifestyle into account as part of your financial future along with non-financial things you can do to ease the financial ups and downs of living. Good stuff all the way around! Scott Burns has a new book out called “Spend ‘Till the End” which is all about consumption smoothing and challenges the conventional wisdom when it comes to things like when to take Social Security, paying off your mortgage, etc. Scott also has an excellent website called Assetbuilder where he posts thought-provoking articles like this:

http://assetbuilder.com/blogs/.....nning.aspx

All consumption smoothing does is take your entire lifestyle into account as part of your financial future along with non-financial things you can do to ease the financial ups and downs of living. Good stuff all the way around!

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