By Craig Erwin, Ph.D.
Look around your apartment or home. Do you see things you have bought, but really don’t need? Try keeping track of everything you buy over the next month and determine how many items you buy that you really don’t need. Most of us buy things that depreciate (lose value) rapidly. What we should do is buy things that appreciate (increase in value) like stocks, bonds, and rental property. Sign up for your employer’s retirement savings plan or start an IRA (or both). That’s the way to accumulate enough wealth to retire comfortably. Think carefully the next time you go shopping. Ask yourself if you would be better off buying assets likely to appreciate. You would if you want to retire.
Are you more likely to buy assets that appreciate or depreciate? Are you enrolled in your employer’s savings plan? Are you confident that you will be able to retire comfortably?
For more information on saving, spending, retirement savings, and investing, check out the articles and videos posted on this website.
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