How to Really Save Money For These Modern Times

Not too long ago, savings was drilled into me as the thing to do in order to prepare for the rainy day and for retirement. In fact, I managed to save quite a bit over the years especially from well meaning relatives who have given me cash gifts. What was tough was having to understand how to deal with inflation. And of course, the ever dwindling interest rates offered by the bank.

This may be tough to accept but inflation is making your savings smaller and smaller as the years go by. Your savings amount may still seem the same, but if you aren't aware by now, your local supermarket would have been raising prices all this time. I am pretty sure all of us have to spend more to get the same amount of groceries. Of course, the supermarkets have been very creative in redesigning their products to maintain their margins while keeping prices affordable.

Another tough concept to accept is that bank savings deposits deliberately keep the interest rates low so that you will transfer your savings into their preferred mutual funds or stocks. The various investment entities involved have a vested interest in you pumping money into the stock market, where they risk your money while you have to pay them professional fees. They try and entice you with 2% interest rates for their portfolio! I remember a time when savings accounts commanded those interest rates and higher!

These are just two of the scenarios regarding your savings. The next question is, if I can't park my money in savings accounts without that kind of risk, what else can you do? What do you do with the money you have set aside for your retirement or the kids education fund?

The answer is actually quite simple, but sure hard to understand for the regular guys and even harder to implement. You just have to find a way to increase your income every year to beat inflation! At the same time, you might want to avoid those junk otherwise known as mutual funds. I don't think you slaved for so long to hand it over to a bunch of wall street guys.

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My name is Christopher Brown and I fully intend to be financially free by 45. Check out [http://www.swingsforchildren.com/wicker-swings].