How should people save as they get older?

[carrottop]

New here and my first post. I know that you should change the way that you invest as you get older, but does that also apply to the way that you save money? Should I save money the same way in my 40s and I did in my 20s? Or should you save the same way throughout your entire life?

[lorraineb]

Saving and investing are different. I think that no matter what your age, you should be looking for value with every dollar you spend. You don't have to change that as you get older.

[Retired To Win]

New here and my first post. I know that you should change the way that you invest as you get older, but does that also apply to the way that you save money? Should I save money the same way in my 40s and I did in my 20s? Or should you save the same way throughout your entire life?

When you say "saving" do you mean putting money away or do you mean spending less on what you buy?

[feh]

New here and my first post. I know that you should change the way that you invest as you get older, but does that also apply to the way that you save money? Should I save money the same way in my 40s and I did in my 20s? Or should you save the same way throughout your entire life?

It's not clear what you are asking. Please clarify.

[bjl584]

If you are talking about investment allocations, then as you get older you should shift to more conservative investments.

[carrottop]

When you say "saving" do you mean putting money away or do you mean spending less on what you buy?

I mean spending less than you buy. Isn't putting money away investing?

[feh]

I mean spending less than you buy. Isn't putting money away investing?

Please click on "personal finance" below.

[Gailete]

As people get older they should save with a greater intensity as you never know when your work days will be over. An accident or illness can sideline you, so use less money and save it instead if at all possible.

[DaisyT101]

By Being Practical

I don't know about you guys but saving doesn't just involve putting money in the bank, you also nee to be very smart with your everyday purchases. I guess we all know that but a lot of people take it for granted.

[DaisyT101]

As people get older they should save with a greater intensity as you never know when your work days will be over. An accident or illness can sideline you, so use less money and save it instead if at all possible.

Totally agree

[snafu]

@ carrottop, savings is totally different from investing. You may automatically send money from your regular account to a linked saving account but it's just sitting there, losing value to inflation, possibly paying up to 2%. On the other hand investing in it's easiest form is buying units in a no cost, low expense Index Mutual Fund like Vanguard offers. If you have an employer sponsored Retirement Program, you need to ask for details. Who is the custodian, what are the fee, what is it invested in specifically and how much they are charging. It's important to know how much of your money is silently leaving your pocket to pay someone else.

Feel free to list your program as there are many very knowledgable investors who may offer direction.

[DaisyT101]

Saving and investing are different. I think that no matter what your age, you should be looking for value with every dollar you spend. You don't have to change that as you get older.

I second that.

[DaisyT101]

I think it's a matter of always being aware where you put your money

[Gailete]

Totally agree

I remember being on a forum about a year after I ended up on total disability so I was around 45 at the time. The thing that saved our bacon was my having paid about $20 a pay period into a short term disability program which ended up paying me my salary (but without any taxes, etc. taken out ) for 6 months. This young thing on the board insisted this would never happen to her and couldn't see any reason to 'waste' the money paying for disability insurance. When something like 1 in 3 or 4 people in the US land on short term disability itself sometime during their working years it showed a lack of being realistic on her part. It is very important to have disability insurance if at all possible whether you think you need it or not. What does that have to do with old age? I was at my peek earning levels and was cut off in one big swoop. My SS checks are less than a third of what I was making and I doubt when I turn 65 (retire haha!) I will magically get a bigger check as I think it is the same amount I have been getting. So it is important to not overspend, save by investing what you can, and be a good steward of the money that comes your way. AND plan for potential emergencies!

My getting sick almost 12 years ago to this day, ended up putting us on a very rough patch financially for many years, but with dedicated work we have managed to dig ourselves out and while we are not rich, our needs are supplied and we have even been able to save in several different investment vehicles. Will we hit retirement with a million in the bank? Hardly. We will end up though with more than we would have had if we had thrown our hands up in the air and said there was no point in trying because we only have $20 to tuck away this week/month. Using Capital 360/Sharebuilders on line account, we tucked away those $20's and whatever we could and in a couple of years we have almost $4000 in that one account alone! Those little bits do add up and if you are careful you might really get some great stocks, one of ours at 100% above what we bought it at!

I don't think it is even a difference about what to do as you get older, but a lifelong lifestyle and the sooner you change to one that is economical the better, and no it doesn't mean giving up all luxuries. You just have to decide which luxury is important to you and fund that one but not the ones you really don't care about.