A stitch in time...

Growing up I often heard the proverb "a stitch in time saves nine" and looking back I wonder just how many proverbs and famous quotes are out there to guide us that we so often overlook and do not take the time to understand the true value of the message therein.  Take for an example one of Abraham Lincoln's quotes "“You cannot escape the responsibility of tomorrow by evading it today.”  That speaks to the heart of financial/retirement planning, our need to prepare for tomorrow today!

Too often people use the excuse of lack of time to sit down and go over their finances.  For some it is "not having enough money to live on today let alone save for tomorrow".  All in all many fail to see how plugging that one leak in our budget today can serve to increase our savings for tomorrow when we do not have the flexibility of youth. A stitch in time - every dollar saved today, compounded accumulates to serve a future need.  

It is our view of reality that alters what we view as important.  For most economist it is our inability to relate to our future self that prevents us from being more committed to saving for retirement.  I contend that our level of income guides us on what we view is being important.  For the very poor it is the next meal that they invest all their efforts into acquiring.  For the homeless it is where they will sleep tonight.  For the working poor it is putting food on table and paying some of their bills, for not every need can be met.  For the middle class it is buying a home, planning for retirement or putting your children through college.  For the wealthy it generational estate planning, ensuring your children and grandchildren will be comfortable while still being able make a difference to the world around you through philanthropy.  All in all our station in life predetermines what we need to plan for.

Missing from the groups I mentioned above are the groups who do not know where they fall.  For they either view themselves poorer than they actually are and still others perceive themselves as being more affluent than a true reality check would reveal.  The need for a thorough financial assessment for these two groups is acute.  A change in behavior today can still have positive results regardless of your age.  It goes without saying, the younger one is when responsible behavioral changes are adopted, the better the chances that your tomorrow will be more financially secure.