The power of accumulation

Discussion in 'Financial Planning' started by remnant, Jun 9, 2016.

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  1. remnant

    remnant Expert Member
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    Most people fail to plan and therefore plan to fail due to inability to appreciate the power of accumulation. Their most common refrain is that their income is too small for any appreciable savings. This is due to their inability to appreciate that a long journey starts with a single step. A little goes a long way. Nothing is too little to save as the power of addition increases over time.
     
    Keith H. likes this.
  2. Arkane

    Arkane Master Survivalist
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    Any accumulation you get is smashed by inflation and tax's!

    The house that cost you four years wages to buy nets you three years wages when you sell!

    Unless you actually "WORK" anything you gain is someone elses loss's!

    My uncle deposited 10% of his wages in a bank account for fifty two years, that's just over 5 years of sweat!
    Yes he got this huge figure as a total sum back! the end result after taxs and fees etc came to just under three years of his last years wage!
    It cost him two years pay to lend his money to the bank!
    To do good with money, spend it as you get it. Do not borrow do not save!
    Or stick as close to that as you can!
     
  3. ziskasun

    ziskasun New Member
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    I agree that saving is possible for everyone. A little of thrift goes a long way. Why not just say no to the next pizza and instead put that money in a jar? You could get a little side job and set that money aside, or sell a few things you don't need and save that cash. It all adds up. It also tends to gain momentum...you feel more encouraged as you go along and see you savings grow.
     
  4. Keith H.

    Keith H. Moderator Staff Member
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    The problem is that wages & savings are not keeping up with the cost of living. Purchase what you can when you can because later on you will not be able to afford it.
    Keith.
     
  5. cluckeyo

    cluckeyo Well-Known Member
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    You can accumulate quite a bit by always using rewards cards and paying balances in full, cash back apps, and spending a bit of time earning online pennies. Most of these activities create passive income. If things keep going the way they are for me. I will rake in around 2K in the course of a year, just by doing these types of activities. It is a place to start. thepennyhoarder.com is a great blog for getting ahead financially. I recomment it.
     
  6. John Snort

    John Snort Well-Known Member
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    Better to buy something whose value will appreciate or something whose value won't change that much. Buy farmland or lease if it you can't afford to. At the very least, you'll make some money regularly from the land. More than the interest your money would earn if it was lying in some bank account.
     
  7. lonewolf

    lonewolf Legendary Survivalist Staff Member
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    I wish! I've been trying to buy land for the last 5 years but the prices they want for even the smallest bit of scrappy land is just crazy.
     
  8. QtheMyst

    QtheMyst Member
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    I'm surprised some of you advocate not saving at all! I think it's important to save for the future, you may find yourself in a position where you are unable to work due to illness, injury or something else, and you will want some savings then! I try to be thrifty and only use my cash for really important expenses, it is far too easy to accumulate too much stuff and fail to accumulate any money!
     
  9. crimsonghost747

    crimsonghost747 New Member
      8/23

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    saving and letting the cash sit in a bank account, which currently gives you a very minimal interest rate, is indeed not a smart long-term move. When the inflation is higher than the income the cash is generating, you are losing purchasing power. So if you have money that you do not need in the foreseeable future, it might be time to think about investments with a higher expected yield than inflation. Just be careful because the higher the reward, the higher the risk.
     
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