Becoming a Successful Entrepreneur

Sunday, September 18, 2005

Why Save ALL Your Money?

I was inspired to write this blog after reading, "Splurgable Income" posted by another blogger, SensibleSaver.

The question is "Why save all your money?". Many people have the idea to invest as much money as they can in order to make a fortune by the time they retire. This means cutting back on your spending while your young preventing yourself from having a greater time. Let me explain the scenario:

Cut back on your spending and invest the money. Yes, you will retire wealthy. But how long will you be able to enjoy this money? How long do you expect to be healthy? The question to ask yourself is, will enjoy having more money and spending it when you retire, or spending the invested money while you’re young to have a greater time. And you have to think about the time durations you'll be able to enjoy having the money.

No, I'm not saying to not invest. I agree to invest into your RRSP or CPP in order to bring an income when you retire. But I do not agree with investing beyond the RRSP and CPP in order to be a wealthy person when you retire IF this means living an unfulfilling lifestyle (in the present). I feel if I took this route I would be less happy while I'm young and full of energy and most important, I will be waiting impatiently for my retirement to arrive in order to collect the wealth.

There are people that have money just sitting in banks doing nothing but collecting interest. I agree to take this money and invest into something that will collect more than just interest paid by the bank.

I agree with the saying, “Pay yourself first!” Put money away regularly (deduct directly from your pay cheque is the best route) for retirement. If there is anything I would like you to remember from this post, it is to be a smart investor.

I would love to hear your thoughts on this topic, so please share your opinion.