Ever read "Richest Man in Babylon"? It is not about greed, just simple money managing techniques. The basic premise is that if you make "10 coins", apply them accordingly: 7 for daily living expenses, 2 to pay outstanding debts (consumer debt, not mortgage) and 1 to save before paying anyone. The last one is key, save 10% of all you earn. I've been doing this since I was 22 and it has become a habit. Starting later in life may be tougher because it feels that there is always "too much month at the end of the money". Read the book. It seems one of the biggest problems that folks have is feeling helpless about the amount of money to spend.

Today many folks save through IRAs, 401Ks, etc. Why not just temporarily redirect your 10% (or 1%, doesn't matter) savings into food savings? Once the market direction is clear post-Y2K, simply restart your monetary savings and donate your food to your local food bank.

If you don't currently save part of your income, this will be a good way to condition your habits to start. Regardless of your level of savings post-Y2K, you will find that having a little saved actually reduces your wants and induces you to save further. Good luck.

br14

-- br14 (br14@bout.done), July 23, 1999

Answers

That is a wonderful book that changed my life, also. Enabled me to save enough to purchase my first house; the first in my family who was able to do so by that age.

-- Mommacares (harringtondesignX@earthlink.net), July 23, 1999.

I recommend the "Tightwad Gazette" of books. I learned ways to save over $1500 the first year in expenses.

For some people, mandating that you save 10% of your income may work, but I think that for some, it can backfire. If you say that you must save 10%, you may figure that since you have saved enough, you might as well spend the rest.

My wife and I, save over 30% of our income, and even that could be improved. Expensive repairs and such keep coming up, but at least we don't have to go into debt to handle them.

-- Bill (billclo@msgbox.com), July 23, 1999.