We’ve all heard stories about a woman who managed to save a million dollars on a secretary’s salary or the gas station manager that retired into a mansion he saved his whole life to buy. Financial planning consultant Richard Cayne of Meyer International has even met a few of these intrepid savers over the course of his career and listens closely to what they have to say.
He has received many useful lessons about financial planning from these super-savers. He knows that, no matter how much we know about money – we can always learn more. Is it any wonder he went on to become the knowledgeable financial planning consultant leading the staff at Meyer International today?
Maybe it was hearing the stories of these savers that instilled in him a knack for smart saving or a love for financial planning. “Some of them have had these amazing stories. I still can’t believe it when they tell me that they managed to save a million dollars while earning such modest wages. Somehow, they find satisfaction in it,” said Richard Cayne.
Here are some of the lessons that Richard Cayne has learned from super-savers and still puts into practice today:
Stay on Schedule
Many people save. But the most common method is to simply move any money left in their checking account at the end of the month into savings. That is not aggressive or scheduled saving, it’s more like accidental saving.
Super savers do it differently. They know how much they want to save and move it into another account (or into bonds or safe mutual funds) as soon as they are paid. Then they need to keep to a strict budget based on the sum that remains in their spending account.
Playing it Safe Is the Norm (Though You Don’t Have To!)
Traditional savers tend to favor long-term, safe investments. Richard Cayne noted that this sort of saver tends to be most fond of investing in bonds with fixed deposits and other ultra-safe options. While this is highly preferable to not saving at all, he advises that your money can – and should – be working much harder for you.
Since these saved funds are not going to be used anytime soon, the saver doesn’t have to be as concerned with market fluctuations. As Richard Cayne is fond of saying, “The longer the term the more aggressive an investor can be because time is on their side. In this case, market fluctuations lose importance as long as the trend is higher over time. To be honest, if you wait long enough, markets have always trended higher despite cycles along the way.
However you decide to invest your long-term savings, the mantra for savers like this could be, “slow and steady wins the race.”
Think of the Future
When you are in the midst of a strict savings regime, it can feel like a war between you and your wallet. You might lose hope as you watch friends vacation and enjoy fancy dinners at the latest restaurants.
At times like those, try to think of what you are saving for: education, retirement, peace of mind and more. Making your money work for you by investing is certainly wiser, in the long run, than spending every last cent, satang or yen as soon as it comes in.
For further information about saving and other investment-related topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561
