Every second week, I share with you a financial or business book I've been reading. I read a few a week so I pick the best of the best (or at least the most innovative of the best – the books filled with something new to talk about). This week, that book is Passion Saving By Rob Bennett.
We all know we should be saving more. I save and even I should be saving more. But saving, especially for the long term, is difficult, isn't it? If you're 20 (I wish) and you plan to retire at 65, well, who cares about that? That's 45 years from now.
However, if you're 20 and you want to go to Europe for your 21st birthday, THAT saving is quite a bit easier. Why? Because it is short term. It is happening soon. You can get excited about it.
So Rob's clever solution is to save for the long term (retirement) but use the cash flow (dividends, rental income if you're a real estate investor, interest) to pay for short term goals.
Yeah, I told you it was clever. Short term goals, long term goals, short term rewards, long term rewards.
Of course, faithful readers know that if that was the only brilliant idea in this 248 page book, I wouldn't be talking about it this week. It wouldn't be worth the cover price. BUT there is more, much more than I'll be able to cover.