Comments on: Concentrate On Savings First

By: Hanks Weekly Hangouts #32 (May 31, 2008) | My Investing Blog

Hanks Weekly Hangouts #32 (May 31, 2008) | My Investing Blog — Sat, 31 May 2008 08:05:31 +0000

[...] FourPillars says to concentrate on savings first! Probably one of the best ideas you can focus on when you’re [...]

By: secrets and smarts and saving « centsprout

secrets and smarts and saving « centsprout — Thu, 22 May 2008 04:33:13 +0000

[...] Concentrate On Savings First [...]

By: My Six Word Memoir, The Ridiculously Small Car, and the Housing Market

My Six Word Memoir, The Ridiculously Small Car, and the Housing Market — Wed, 21 May 2008 13:30:20 +0000

[...] Concentrate On Savings First at Quest for Four Pillars [...]

By: Four Pillars

Four Pillars — Sat, 17 May 2008 11:00:42 +0000

Enough Wealth – you are correct that if the time frame is long enough the money saved from lower expenses becomes larger than the money saved. However the savings aspect is still important after that crossover point.

The message behind the post is aimed at people who haven’t really done much saving and need to get started or need to save more.

By: Enough Wealth

Enough Wealth — Sat, 17 May 2008 08:08:19 +0000

Oops, typo – by year 30 they’re even…

By: Enough Wealth

Enough Wealth — Sat, 17 May 2008 08:07:08 +0000

True, but only when you’re starting out. The figures are correct for 21 years (not 20), but by year 20 Tim and Bob have the same amounts (about $560K), Thereafter, Tim would be streets ahead. Since most investors save for around 40 years (while working), yet invest for 60+ years (both working and retired) the investment return does count a lot in the “long term”.

Of course, as with most of these sort of “either-or” question, the best answer is “do both” – save as much as possible AND ensure you get a decent return by knowing your investment risk tolerance and using asset allocation and diversification to get the maximum return for that risk level (and also watch costs).

By: Four Pillars

Four Pillars — Sat, 17 May 2008 03:42:53 +0000

Rachel – you are right. Saving isn’t the only thing – but it is the first thing.

By: Mr. Cheap

Mr. Cheap — Fri, 16 May 2008 15:43:27 +0000

I agree completely Mike. So many people don’t bother saving to invest because they don’t know what to invest in. Focus on the savings first, you can always figure out the investing part of the equation later…

By: Rachel @ Master Your Card

Rachel @ Master Your Card — Fri, 16 May 2008 13:41:18 +0000

Where you put your money can make a pretty big difference to how much you get at the end, but as you say, wasting a lot of time researching where to put it, when you should just be getting on with saving more could be very costly indeed.

By: moneygardener

moneygardener — Fri, 16 May 2008 12:03:56 +0000

here ,here Mike! Have a good weekend!