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People saved more money in 2008

READ MORE: People saved more money in 2008
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According to the Bureau of Economic Analysis, people saved a lot more money in 2008. For some, putting more money aside became a necessity. Dick Welch said, “What savings we've had have been pretty well attacked with the down slide in the economy.” Pete Cox, a wealth management advisor with Northwestern Mutual Financial Network, said the easiest way to start saving is by writing down your expenses and seeing where you can cut back on what are called "variable expenses,” such as those trips to Starbucks. People are also looking to save on groceries. Mr. Welch noted, “I've looked at all the papers, I know where to buy my grapes where to buy the tomatoes this week, just being frugal that way.” Cox said it's good that people are starting to save more money, but it's still not enough. “Ten percent should be the minimum, and then based again on these standards of people living longer in this day and time and not having the company pension plans, I would say it's probably closer to 15 to 20 percent.” Asian countries prove it can be done. In China and Japan, the average personal savings is more than 25 percent of a person's salary. At Northwestern Mutual Financial, they perform a complete financial questionnaire with their clients. It helps them have a better understanding of their financial situation so they know where their clients can save money. Cox said it helps to teach kids to start saving at a young age. A 20-year-old, who saves 100 dollars a month with a 10 percent return, could have a million dollars in the bank when they're ready to retire. Rodney Delves tried to teach his grandson about saving with a piggy bank. “He's conditioned now to every bit of income that he gets, whoever gives it to him, he puts 10 percent in the piggy bank and understands that he's not to spend it until retirement.” If you are looking for new investment options, Cox said it's safer to invest in things like electric companies because they provide a service that people won't go without, even in a bad economy.

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10% return????

Mr. Cox neglects to tell us where we should invest our savings to achieve 10% return. That's a laughable and unrealistic amount these days. He makes it sound so easy.

Savings, not return

I believe he said saving 10% not investing to earn 10%. Saving 10% is not hard if you do a want/need assessment on anything that requires spending money. Try it....you'll love it as well as the power you'll feel by having money in your pocket instead of thinking about what you owe and how you are going to pay it!

quote

"A 20-year-old, who saves 100 dollars a month with a 10 percent return, could have a million dollars in the bank when they're ready to retire". No bank will give you 10% return. I have an annuity (15 years) that reached that % plus several times but last month I lost almost half of that in the wall street bull along with all my other investments.... Banks pay less than 1/2 a percent on savings accounts, CD's are what maybe 4% on a good day? BTW: what 20 year old does this? Or can afford too for that matter?

It still may not be enough

The insane deficit we've run in the past year (and are about to add to) and our refusal to do anything to start lowering the national debt are going to lead to hyperinflation unless we take strong action quickly. We are now stoking the fires of first-order inflation, simply printing money (bonds) with nothing whatsoever to back them up. The simple fact is that saving and investing may not be a guarantee of future comfort because lots of worthless money is still worthless. I strongly suggest purchasing enough canned freeze-dried food a year or two, as well as several firearms and lots of ammunition. Learn how to plant a garden. Learn how to raise and care for chikens. If we don't turn off the federal red-ink-spigot, things are going to be grim in a very few years.

Way to fan the flames of the

Way to fan the flames of the doomsday Sayers. What is the United States going to all of a sudden turn into the wild wild west with no law and order? Please don't let fact of the next president being bi-racial dupe you into feeling America is going to turn into something akin to Apocalypse Now, or worse Grand Theft Auto. The economy is bad, no duh. Things will likely get worse before they get better, but I sincerely doubt it will result in the demise of civilized society. We will all survive through this and be stronger and wiser from it. Think positive :)

It has nothing to do with Obama

It has to do with a nation that refuses to address it's insane level of debt, and the fact that we are getting ready to add another trillion to it. We may have invited a pyromaniac (Obama) to a fire that's already out of control, but for the past eight years the Republicans have been as bad about spending money as the Democrats. Instead of allowing (but managing) a recession that will effect a limited number of the population, we are risking hyperinflation which will impact everyone. You cannot ignore history or basic Economics. We cannot continue to rack up crippling debt indefinitely without risking the total economic collapse of the United States. Little covered in the mainstream media right now - there is great concern in Washington because the treasury auctions are attracting less global interest. Investors are starting to realize that the ironclad guarantee of the Untied States government is gradually becoming a house of cards. Remember too, that in a very few years, the great Ponzi schemes of Social Security and Medicare start unravelling. In 2052, those two programs combined with Medicaid will exceed our annual tax revenue! Where do we get the money for everything else in the coming years? Do you sincerely believe that the United States will be the first empire in the history of the world to avoid eventual collapse?

exactly

... So why were/are you still bashing others on here who voted for him? Humm?

Because he's about to throw gas on that fire

He's inheriting the largest debt this country has had since the end of WW II, and the first things he's going to do is add another trillion to it. The problem is, in 1945, we weren't facing the collapse of Social Security. We didn't even have Medicare or Medicaid. We could recover and we did, very well over the following twenty years. Now, however, in addition to all that, we're still talking about universal health care, a massive new entitlement program destined to bring that 2042 date much closer. They want to make massive additions to pre-K schooling, ramp up the war in Afghanistan, and launch a massive infrastructure rebuilding her at home. WHERE is that money coming from? (Please don't say from leaving Iraq, because Iraq was placed entirely on the credit card. We've never paid for Iraq.) Obama may have to beat Bill Clinton as the biggest tax-raiser of all times.

Sort of

sounds like pre WWII Germany when inflation was so severe the average citizen would use a wheel barrow to carry sufficient paper money to the local market to buy groceries. Inflation became so severe, it was a prime factor in the rise to power of a fella named Adolf. On a more current note, a recent report from the Comptroller of the Treasury predicted by the year 2040, our Country will barely be able to support the debt payments on the growing national debt. You might also add a few cows to that list for both meat and milk. How about a couple of horses for transportation?