According to James Kalamarides, CEO of Prudential Bank and Trust, there are five behaviors that prevent families from saving and investing.
- Procrastination - Starting too late to save money.
- Optimism - Market’s bobble. Many savers only look at the market going upwards.
- Conformity - Buy high and sell low.
- Short-term gratification.
- Underestimating longevity - People are simply living longer.
I meet with 200 families a year and I find the biggest reason families don’t save is because they don’t have a plan. Most families have not spent the time defining what they want their futures to look like let alone understand how much money they will need to achieve it. Families are “too busy” with work, kids, school activities, and social events.
I help families identify and prioritize their future financial goals; life style, college, and retirement income needs. Once we have created a plan and have a goal to work toward, families are much more purposeful about savings and are much more successful with their finances.
The best time to start planning is TODAY! The sooner families get an efficient financial plan in place; the more successful they will be today and through their future.