Comments on: The 10 Year Savings Strategy: Saving money after you’ve already handled the basics

By: Why am I maxing out my 401K? « Paranoid Asteroid

Why am I maxing out my 401K? « Paranoid Asteroid — Thu, 17 Dec 2009 15:53:13 +0000

[...] had a survey where 62% of people in their 40s wished they’d saved more for retirement. I don’t want to be one of [...]

By: The Money Diaries: The 20-something semi-conscious spender | I Will Teach You To Be Rich

Tue, 11 Aug 2009 08:02:32 +0000

[...] save for something… — until the next shiny item comes along and they buy it. Forget the 10 Year Savings Strategy. Sometimes, it can be something 3-4 months away. And we need these sub-savings accounts for [...]

By: Mr. P

Mr. P — Sat, 25 Jul 2009 15:31:07 +0000

I am amazed at the negaitive comments here. The guy is offering advice on how to grow wealth and your dumping on him? People are missing the point of article. Yes, some of you may not get married (I didn’t) or have children (I don’t). But you will have expenses. If you save for a wedding and children (or other scenario) and don’t have any, you will still have a bundle of money that may be used for something else. A new car, roof, better home, dream vacation or maybe early retirement!

Maybe you aren’t planning to get married. I’m betting there is something you are planning for or would like to have. A horse, land, boat etc. The point is to plan, save, grow wealth. You can’t plan for every contingency, and plans may need top be modified. Your needs and desires may change over time. But by saving and investing you will have the means to adapt.

Not everything in his strategy is going to apply to every person or couple. Take what works for you and ignore the rest. The principles are sound.

I think the excercise example was perfect. Most people complain, make excuses or make a semi hearted attempt and do not stick with a plan.

I wish I had this information when I was 20. I had to figure it out on my own. Now I have multiple homes, a new car, a job and two self owned businesses. I am not rich, yet, but am well on my way.

I leave you with these comments:

- Compounding interest is a very powerful force.
- If you keep doing the same thing over and over and expect different results, you’re nuts.
- Anybody can get rich slowly.
- Multiple streams of income.
- If you don’t make an attempt, ten years from now you will just be ten years older. If you work at it, in ten years, you will be ten years older and – have your degree, home, invetsment, new car etc.
- Just do it

By: Anon

Anon — Wed, 22 Jul 2009 02:51:38 +0000

Obviously everyone is going to say they wish they had saved more when they were younger. Here at the present moment, it is easy to borrow money from the past self because it’s just a memory. No one takes the time to really think about the life changes it would have involved.

There’s also a correspondence between savings and perceived life expectancy

By: Natalie

Natalie — Tue, 14 Jul 2009 00:35:50 +0000

I’m interested in finding out what people wish they’d spent less money on looking back at their 20s/30s/40s in order to have money for the travel/wedding/kids.

In my 20s I did the Sensible Thing, moved back home and scrimped and cleared my student loans completely. Now I’m in a good financial position but looking back I really wish I’d spent more money on pretty frocks and partying.

Anyone else?

By: H Lee D

H Lee D — Sun, 12 Jul 2009 15:59:56 +0000

I like the advice but I dislike the condescension. The “YOU WILL” do this bothers me. I don’t like being told what I’m going to do, as if told by a prophet. I did get married, and we paid in cash, but not only was it not $20, we came in under budget. There is a good chance that I am sterile as a result of chemo, so the odds of having kids (though we’d like them) are low.

And if you’re wise and thrifty, you can raise kids on much less than is typically done anyway, just like everything else. I have a couple of friends from whom I am learning a lot, should I ever get a turn.

I don’t at all disagree with saving for big things coming around the next blind turn. But I do disagree with being told what they will be.

By: Randy

Randy — Sun, 12 Jul 2009 14:07:46 +0000

Agree with those who have commented on how desires change over the years. It may come to pass that your current desire to have no kids, no spouse, no house…….. becomes a reality, but saving aggressively early will give you more options should your desires change. My wife and I look back at the year A.K. (before kids) and think about all the times we said ” our kids will never…….”, then see it come to pass. Saving is a hedge against future changes in life events or desires.

“Life is what happens to you while you’re busy making other plans”-
John Lennnon

By: Kate

Kate — Sat, 11 Jul 2009 16:31:14 +0000

I was really surprised by all the negative comments here (Raymond’s post honestly made me feel a little sad, but I hope he has a nice life with his money…) but I just wanted to chime in and say that I loved this post and found it really useful and thought-provoking. Keep it up!

By: Andrew Parkes

Andrew Parkes — Sat, 11 Jul 2009 16:10:28 +0000

Ramit,
This is a great post… comprehensive and I love how you incorporate the psychological element in lack of action.
It’s funny to watch when someone is disarmed of all of their lies, excuses, and stories. They either go on to prosper… or scramble to find new, more ridiculous excuses (the economy, India, not getting married, not having children.) Fascinating!
Thanks,
Andrew

By: Ramit Sethi

Ramit Sethi — Sat, 11 Jul 2009 14:43:16 +0000

Sarah unintentionally proves my point in many ways.