Walter Schwartz , senior_vice_president_of_investments for Merrill_Lynch in Pepper Pike , says people often fail to save money because they do not have a plan
.It's like driving from Cleveland to San_Francisco , he
says.If you don't have a map , you can't get there. While setting goals may be a wonderful idea , if you don't develop the discipline and follow through with the attempt to save , it doesn't work.That , too , involves defining some specific steps.
For_instance , people with 401 ( k ) and IRA plans should attempt to maximize their contributions by having their savings taken directly from their paycheck.Says Schwartz
, It's a discipline that is created by a signature , and it is truly a concept that requires you to pay yourself first. A person's ability to save is becoming increasingly important as people in our society spend more years in retirement than ever before.During those years , inflation has a huge impact on a person's lifestyle , and additional retirement income is needed to offset that effect.
But it's not a one-day event , says Schwartz
.People should develop a relationship with a financial professional , someone who will stress the discipline required to save more and to spend less.The plan must be reviewed periodically , using smaller , more meaningful steps that increase the likelihood of achieving the goal.