Most people who read this blog are concerned about the overall economy, jobs or what is going to happen to “lifestyle.” At the same time, many are concerned and overwhelmed by the idea of saving for retirement. 401k and both Roth IRA and Tradition IRAs have made this easier, but setbacks like the recent recession have challenged the idea that these instruments are helpful in securing your family financial future to those who watch these accounts regularly. The truth is that your 401k is not about what is in the account this year or next (unless you are nearing actual retirement). A 401k, Roth IRA or Traditional IRA is designed to perform over 30 years or 40 years. You can’t judge it by today or next week. That would be like judging a book by its’ cover.

What can you do? You can focus on the percentage you put in your 401k and either Roth IRA or Traditional IRA (yes, we believe you should have both – it’s not 1973 anymore).

You should also focus on your after tax paycheck. Base your savings on the percentage of after tax savings you are putting away each time you get paid.

If you don’t have a regular savings plan, start with our “1% Savings Plan.” Begin with your next paycheck. Look at your after tax income and multiply that amount – whatever it is – by .01. Take the answer and put that money in savings before you pay any bill and before you spend money on anything.

Then, the next time you get paid, multiply your after tax paycheck by .02. Put that in savings. Keep adding an additional .01 every time until you reach .20. This will insure you have a true savings plan. Because you started with .01 and moved slowly to .20, you will not destroy your lifestyle, but you will take saving from optional (which it isn’t) to non-optional and critical.

Do this until you have 15 to 18 months in emergency savings (money market savings and certificates of deposit. Once you reach that point, split your savings into regular investments.

Educate yourself. Include your family. Learn before you get to investing. If something does not make sense to you, don’t do it.

Remember our guidelines:

Saving is not optional.

Credit cards are the enemies of wealth-building (as is chasing your credit score).

Reduce debt and then eliminate debt (beginning with the highest interest credit card debt).

A checking account is a MONEY LAUNDERING ACCOUNT for OTHER PEOPLE’S MONEY! Use any excuse to pull money from checking and boost it to savings.

Use coupons, coupon codes and negotiate – the rich people do.

If you don’t need it, don’t buy it.

Don’t buy when you are emotional.

Anything you save with a coupon, coupon code or because of negotiation, push that money to savings. In other words, pretend you paid full price and put the difference between the sale price and the original price in savings.

You will get ahead.

Saving is not optional. You better make sure your children know. We are always worried about their formal education; give them the power to control money. It is actually a greater gift.

Remember these words: You can do it!

HELPING YOUR KIDS GET AHEAD

If you think I was born saving money, you are wrong. My family is filled with hillbillies from Louisiana. There are members of my family that don’t believe in 401ks or IRAs. I was not brought up to saving and invest regularly and I have made every mistake you can think about when it comes to money. I have had to learn the absolute hard way how to get savings on track and make it a part of your life without killing your lifestyle. I have had to learn the hard way how companies mislead with marketing. It is my mission to share what I have learned about regularly saving with my own children and also share it with you. That’s why we have a lot of “free” (blogs like www.boostmywealth.wordpress.com and www.stickyasset.com/blog and groups on Facebook like “Coupons & Coupon Codes”)!

In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.

You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.

If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at www.middleclassmoney.com.

Thank you for reading our blog and good luck!

Loyd Ford
www.stickyasset.com/blog
www.middleclassmoney.com
www.boostmywealth.wordpress.com
www.squidoo.com/boostmywealth
www.stickyasset.com

Connect with us on Facebook with these free groups:
“Coupons & Coupon Codes”
“Live The Lifestyle Your Family Deserves”
“Saving Money”