When you think about it, there are lots of ways to put money into savings:
You could deposit money into a savings account manually.
You could automate the process so that part of your paycheck is put into a savings account each month.
Et cetera.
Here’s my favorite way. (It could actually be thousands of different ways: it’s an open-ended invitation)
My line of work has given me inside access to the financial habits of many, many people. From starving college students to the rich and famous, I have had the opportunity to peer into what money habits really look like for a wide cross section of society.
If I could distill all that into just one observation, it would be that no one is doing as well as you think. I’m thinking specifically of a couple of very rich people I’ve met over the course of the past two years or so. Both worked in high finance. One was a former hedge fund manager.
Both of these guys were in serious financial trouble. They weren’t going to make it through the recession unscathed. They were looking at a major restructuring of their lifestyle. One was facing foreclosure. Think the job market is tough for ex-factory workers? Try being an ex-hedge fund manager.
