People often use the excuse, “you can’t take your money with you when you die,” to keep from feeling guilty about not saving. My father would always point out the fallacy in this thinking. “Maybe you can’t take it with you, but people have long lives to plan for before they have to worry about dying,” he would say, shaking his head. He would explain to me that you always have to save for the future because there will always be hard times, there will always be surprises, and there will always be a time you are thankful you have savings.
When I was ten years old, needing savings, or the idea of having any type of life event for which my money could be useful seemed crazy. At that time, there was a really cool commercial about the “Hairigami,” a totally awesome hair styling system that would create high-fashion updos with a simple twist of the tool. My sister and I thought this would be the BEST use of our money. That’s what money is there for, right, to spend? After all, you can’t take it with you when you die.
After lots of begging and saving, my parents agreed, not so enthusiastically, that we could buy it with our money if that is what we really wanted. We did! It came in, we twisted, we pulled, we followed the directions and wal-la! Normal, not so awesome hair. We tried again, but no matter what we did, that “Hairigami” just didn’t live up to our expectations.
When I bought the “Hairigami,” needing a car felt like a LONG way out, but I made a mistake, I blinked, and there I was without a car and needing a way to get to work. The money I spent on the “Hairigami” would have served me much better if I had saved it for a car. It was a hard lesson that I had to learn.
Retirement is a life event that most people treat like a 10-year-old treats needing to get a car. It feels like a LONG way out, but be wise; realize that someday you too are going to blink and you’re going to be at your last day of work. Do not get caught thinking, “What am I going to do?” Save now. The “hairigami” isn’t as great as you think it is, and someday you are going to want to enjoy your retirement.
Jessi Canales, Marketing Director
Focus Financial Group, LLC