Are Small Payments Expensive?

A person with no savings can indulge himself in dreaming that some day, without effort, a lot of money will fall into his lap; and of course, sometimes dreams come true. But for nearly all of us, the only way we can logically expect to ac quire capital is to accumulate it, bit by bit, with the assistance of wise investing.

Consistent saving is usually advocated on psychological grounds forming a habit, making the sacrifice less painful by saving a little bit each time, and having the satisfaction of watching our capital grow. Many families, before new in come arrives, are so thoroughly committed to installment pay ments for things already bought and in use that they haven’t a dime to spare for saving. The only possible way for such a family to save money is to set up an investment plan with a schedule of a fixed dollar amount they are obligated to pay on specified dates, so that meeting the periodic investment payment is just as firm a commitment as their other install ment payments are. Certified Financial Planner - Read More.