The Death of Savings in America

In 1988, Americans saved 10% of their income. Twenty years later, that figure is down to 0.7%. Are you saving for your retirement? Bankrate.com reports that 68% of us aren't reaching our monthly retirement savings goals. About 30% of us save some money, but not enough. Thirty percent save no money. And only about 28% are actually meeting their savings goals.

Five Tips to Start Saving Again

1. Needs are not wants. Learn to differentiate between a real necessity and a frivolous pursuit. Do you need a new car if the old one is working well? Do you need the latest computer if your computer works fine? Remember that your basic needs are food, shelter, clothing, friends, and family. Learn to live with less and you'll enjoy life more.

2. Flash isn't cash. Have you ever met people that seem to have everything? They lease the latest luxury car, they dine at the finest restaurants, they get the latest gadgets, and they sport the newest designer outfits. Instead of trying to keep up with the Jones', try to live BENEATH your means. Rent or buy a smaller house, stop buying brand names, quit trying to impress people by buying things that mean very little to you once they're purchased.

3. Use psychology. Did you know that when you're hungry you tend to buy more food at the supermarket? It's true. It's also true that when you're feeling down or in a bad mood you tend to spend more. Instead of going shopping, why not talk to a friend or get some exercise? You'll feel better and save money.

4. Set a savings goal. Your objective could be anything from setting up a 6-month emergency fund to raising enough money to buy a house. Think about this, saving $550 a month becomes $6,600 in 12 months or $19,800 in three years. So owning that new home you want could be closer than you think.

5. Learn to say "no." Our society is constantly telling us to say "yes" and many people are saying "yes" to things they cannot afford, like dining out daily with the coworkers, buying the kids expensive toys, cosigning loans you can't afford, and lending money to people who never pay you back. Learning to say "no" saves you money!

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