Painting by Belynda Wilson Thomas
Savings, remember, is the prerequisite of investment. Campbell R. Mcconnell
Are we scared to think about retirement even if it looms large? Do we calculate how much money we need to retire comfortably and know if we don’t sell our home, and even if we do, we might not have that astronomical number? Yet people retire every year, and most seem to manage. What is the secret the financial gurus who are scaring us aren’t telling us? Could it be that we don’t need an astronomical sum to retire and be okay?
Do-it-yourself investors – those who bought stock in quality companies, many of them paying dividends, and held the stock over long periods are the investors that have done well. We have many blogs and books telling us about dividend investing and how we can create a growing income, and we don’t need a million dollars according to Henry Mah author of Your TFSA Compounder, Income Investing Explained, Your Ever Growing Income, and Salary for Life.
We owe it to ourselves to take control of our financial life, and not be embarrassed that we weren’t able to amass the astronomical amount of money the financial industry tells us we need if we don’t want to eat dog food in our old age. One of the problems we have in my opinion is we don’t talk about money enough, and by not talking about it we don’t learn what there is to learn. Many people would rather talk about their sex life than their financial life if given a choice.
If we never save money or invest we will always be poor. No matter how much we earn. Unknown
In Canada, we have the Tax Free Savings Account (TFSA) available to us since 2009 which allows us to contribute a total of $88,000 if we were born before 1991. According to Henry Mah and others, using the TFSA over RRSPs will give us more money and if we have a choice of contributing to our TFSA or an RRSP we should choose the TFSA first in most cases.
Of course, not everyone agrees on this, but I trust someone that wants to help me manage and grow my money more than someone that wants fees to manage my money when it seems the most effective way to grow your money is without paying fees or taxes.
The more control we take in our life the better, whether it is our health, finances, or attitude. For the most part, we have to be our own control board. Who else can make us do what we need to do? Finding books, blogs, and podcasts that enlighten us might change the course of our lives. I think those who read Henry Mah’s books will find themselves offered possibilities they didn’t feel were open to them because they didn’t have millions saved for retirement.
None of this knowledge is hidden and yet so many of us don’t know it. We know we should live within our means and invest, and I think what causes a lot of us problems, is we think the little we could save and invest won’t make a difference, so why not spend what we have on little enjoyments?
Small amounts invested grow over time and the earlier we start the less we need to save because the power of compounding works for us. Those who turn eighteen now have the opportunity to invest in the TFSA their whole working lives. The rest of us could only invest in it since 2009 but the contribution limit we haven’t used accumulates, and we can take money out and replace it at a later date.
Knowledge is power. Information on many subjects is available to us, and the more we apply it to our lives the better our lives will be. Have we learned everything we should about creating a good retirement, or is there more to learn?
Do not save what is left after spending, but spend what is left after saving. Warren Buffet
Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. Dave Ramsey
Earn as much as you can. Save as much as you can. Invest as much as you can. Give as much as you can. Rev John Wellesley
Thank you for reading this post. Please come back and read some more. Have a blessed day filled with gratitude, joy, and love.
