There’s a great article written by Donna Rosato last Monday, July 19, 2010 which I had just read today at the Yahoo News giving us excellent ideas why some families have saved money earlier, how they did it and what are the outcomes.
For some, the main motivation for saving earlier is to retire early at the age of 50, 55 or 60 and do whatever they want without any problem about money.
Considered super-saver family is saving 50% of after-tax income from their combined yearly earnings. The husband who is now 50 years old who had retired 10 years ago and his wife, now 52 years old and will retire in six years had projected to have $2.5 million retirement nest egg by that time.
The key to their success is avoidance of debts. Their aggressive savings had started when they were still dating and now the couple has one 15-year old daughter.
Next in rank super-savers couple, also have only one 11-year old child saving 35% of their yearly net income.
They trimmed the grocery budget for five months to find the cash they need to buy something. It’s surely involves a lot of sacrifices.
Though both are good in waiting, the key is the wife is known as the master of the long wait. According to the author, it's the couples’ ability to curb impulse buys that has fueled the family's savings.
The third super saver who prefers to be called smart saver is earning an extra $25,000 a year income apart from her regular six-figure income. She is saving 20% to 25% each year. Her motivation is to retire at the age of 55.
Another inspiring family who has two children with more than $250,000 combined income a year is saving 60%. Their motto is to “leave below your means.”
Finally, the last inspiring super-saver couple has three children, with the wife just stays home to take care of the kids and yet, the family is saving 40% of the family’s income.
Their advice is “Cut down everyday expenses.”
To see the details, please go to this link: http://financiallyfit.yahoo.com/finance/article-110102-5999-1-secrets-of-extreme-savers?ywaad=ad0035
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