Life's mathematical.

I have $3,000*. If I save $400 every month, for the next seven months, I'll have an additional $2,800 to my $3,000 already invested in a high interest, six month CD. But, the holidays are coming and I should really buy gifts for everyone, including myself. What if I save $300 a month, rather than $400? I can afford gifts and still save. Besides, I've worked hard this past year, I deserve to treat myself. Maybe I'll save $200 a month. Yeah, that should cover me. I'll only save an additional $1,400, but it's better than not saving at all. My goal is to have $20,000 by 28. I inherit money at 26, $8,000 to be exact. So, $3,000 plus $1,400 plus $8,000. $12,400. Hmm...What if I invest 50% of my money into the stock market? We're in a recession, it's a great time to buy! Stock prices will bounce back, three to five years is my prediction. It'll be a true test of character, sustaining the strength to think 'long term.' I can do it. Man, I really want a new car, though. Maybe I can buy a new car with the money I make in the stock market. Yeah...now we're talking! Ok, back to reality. I've got $6,200 in a CD (no longer a high interest account) and I've got $6,200 invested in the market. Now what?

Meanwhile...

Your Brother graduates from college, your Mother is diagnosed with osteoporosis, your Father is left longing for a game of catch, and your Girlfriend, alone in bed, secretly mourns the loss of a once blossoming relationship.

How much more of a wakeup call do you need?




* All financial numbers and human scenarios are fictional.