People who say that they will save "when they get their next pay rise" (or similar) are procrastinating. Usually they just end up spending the extra money when it comes through. I call this form of financial planning, "planning to be poor".

I am a big fan of the "pay yourself first prinicple" for savings as a means to address this problem. Taking on a mortgage is a form of "pay yourself first" - it effectively forces people to save the principal component of the mortgage. It is no accident that home owners are, on average, significantly better off (financially) than non-home owners.
traineeinvestor | Homepage | 06.15.06 - 9:33 am | #

Yes Yes Yes... So easy to do, but nobody does it.

Love you blog BTW.

- Bryan
Bryan Fleming | Homepage | 06.15.06 - 6:05 pm | #