Wednesday, January 26, 2005
MONEY MATTERS
I think it was Jimmy Ng who once told me about a financial philosophy where it is considered better to put what money we have to good use, instead of hoarding it away in savings. This was a few years back but I’m finding that lately, I have been applying versions of that philosophy more often.
In fact, I just decided to stop contributions to the “deferred compensation” retirement program at work (it works like a Roth IRA). It’s a humble sum but the idea is to have the money be liquid now! There are too many potential near term expenses (aka housing) and immediate opportunities to give (tsunami relief, etc.). I’m blessed enough to not have to worry too much about life at 55. At least, not yet.
So it took a long time for me to think that this is a good idea (and I’m still not completely convinced) but I was heartened to hear lots of confirmation from the people I talked about it with.
In fact, I just decided to stop contributions to the “deferred compensation” retirement program at work (it works like a Roth IRA). It’s a humble sum but the idea is to have the money be liquid now! There are too many potential near term expenses (aka housing) and immediate opportunities to give (tsunami relief, etc.). I’m blessed enough to not have to worry too much about life at 55. At least, not yet.
So it took a long time for me to think that this is a good idea (and I’m still not completely convinced) but I was heartened to hear lots of confirmation from the people I talked about it with.
