Saving isn’t enough

I believe saving as much as possible, combined with reducing the amount you spend every month, are essential if you want to build wealth and safeguard your retirement.

Unfortunately, as many people in Japan are going to find out, keeping your savings in cash probably isn’t enough. We talked about cash last year on the blog. Basically it’s safe and liquid, but is vulnerable to inflation.

You might think that people in Japan are safe from inflation after the deflation we’ve seen here for the last couple of decades, but that is changing as we speak. Consumption tax, energy costs, health costs, and taxes have all risen recently, and are likely to continue rising.

 There are many ways to have your money work for you, and we’ll be talking about them on the blog, as well as elsewhere on the site (the NISA and J401k pages were updated this week, please check them out).

As ever, please feel free to post questions in the forums, through the contact form, or by commenting on the blog.

How are you saving for retirement?