Investment & Strategies

What happened to the art of Saving?

The financial crisis that the world is currently enduring was to a very large extent predicated by excessive use of credit, both at macro and personal levels.

Over the past decade governments, businesses and people in Western Economies spent more than they often earned, financing the gap with more and more credit.

At the personal level household debt in Australia has risen to recordlevels.

Picture instead a World where people actually set aside money in advance so they could make purchase in the future  - actually saving cash to buy, not using credit cards and incurring debt.

Anyone can become a saver, it is a matter of choice.

If you decide to take out a subscription to cable television, it doesn't happen by accident.  If you decide to spend $10 per week on Tattslotto tickets, it doesn't happen by accident.  If you decide to continue smoking, at what cost only the smoker knows, it is a choice and it doesn't happen by accident.

So too you can decide to become a saver.  It is simple, you decide to make savings a fixed cost in your weekly budget just like you do with all of the other things in your lifestyle.

If you regard savings as a cost it becomes a permanent commitment, not the left-overs after everything else is covered.

After a while, when your savings have grown, you can direct them to realise your target goal or you can invest them to help make them grow even more.

At Nixon Financial Services we have savings programs to help get you started.