When I was 22 years old and just about to graduate from the Air Force Academy, I attended a mandatory financial seminar that changed my life. The seminar was not part of the formal curriculum but the school was forunate enough to have a former stock trader who was now a member of the faculty. All of us graduates were about experience a considerable increase in pay from being a cadet to becoming a 2nd Lieutenant but most of us had never lived completely on our own. We had gone straight from living at home to a very regimented and control environment at the Academy. Most of us didn’t really have a clue about any long term strategy for our money.
The speaker was amazing and I still remember everything from that evening. He started with the basics of what was the difference between stocks, mutual funds, bonds, CDs, and savings accounts, and moved pretty quickly to what we should be doing right now to plan for the future. It was exactly what I needed to hear and it had a profound inpact on me. It changed the way I thought about money and gave me a goal to work towards. It also shaped how I approached opportunities and risks.
I’m happy to say that by most measures I read about online I’ve been successful. That is not to say that I’m retired early and full of secret tips and opportunities. I’m not. I still work and I’m still saving, but I don’t stress about making ends meet. I have security in the form of savings.
I’m writing this blog for two primary reasons. First, I’d like to share what has worked for me. In my case it can be summed up with starting early, being diciplined, and, most importantly, being patient. And second, it is something of an instruction manual to my kids who are still young and any other young person out there that is interested in learning about money.
Schools don’t teach this. However, as early as possible is when our kids should be starting to save. Compounded interest is one of the most important things a person can learn about when they are young. It harnesses the power of time and works for you every second of every day of every year. It starts very slowly but eventually it is like a rocketship if you just give it enough time. There would not be any retirement crisis in this country if we got our kids to learn about saving as early as we can. This blog is an attempt to do that.
I hope that you enjoy.
Patient and Disciplined Saving 