Crickets and Ants: Savings and Planning for Families

“It will not always be summer; build barns”

Hesiod - Greek Philosopher and Poet

Planning ahead isn’t what one would consider a virtue of the average human being. Our ancestors had to institutionalize the very concept of sacrificing for the future in ancient religious rituals, but apart from that, we humans like to consume and keep moving.

“Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it”
Will Rogers - American Comedian

After all, summer is here and what better manifestation of our consumption patterns than summer? We vacation, take three-day weekends, and spend money on grilling meats and chilled rosé. It’s all part of the enjoyment of warmer days, and yet the winter is still coming in a few months and like the proverbial ant, we should be still taking the time to save.

Balancing the desire to save for the future with enjoying the present is a constant battle in our lives. Life is short and why wait to enjoy the fruits of our labor until it’s too late? On the other hand, knowing how much we need to put away in order to survive and enjoy our retirement years is a difficult calculation to make.

The Boston College Center for Retirement Research has found that the 40% of Americans in good shape for their retirement are aware of it, as are the 20% who are in bad shape and “know it.”

The Consumer Financial Protection Bureau (CFPB) did a survey in 2022 and discovered that 24% of Americans don’t have any money saved for emergencies and 37% have only a month’s worth. It’s not a surprising statistic, but one that proves the point that “saving for a rainy day,” or even knowing how much to start saving in the first place, is a challenge for many.

Of course, that’s where the financial plan comes into play. Financial planning helps quantify those unknown future numbers that we often have difficulty calculating: how much do I need for an emergency fund? How much do I need before I retire? How much will I need if I become a sole survivor?

I’m Nickolas Urpí

From Emergent Financial Services

Catch us on Today y Mañana on the iLove Cville Network every Thursday at 10:15 and contact Emergent Financial services for all your financial planning needs

From 401(k)s to rollover IRAs to Roth IRAs to Retirement planning.