1b  
As a nation, we're spending too much and saving too little—or not
at all. Social Security is not going to provide everything we want in
our old age.  We must save in our earning years, and to  save we
have to spend less than we earn.   Half the households in America
have no  retirement savings. Twenty nine percent of  households
50 years or older have no retirement savings or pension.  We all
know that we have to save, but we are all  not doing it.  It’s hard
to balance our budgets as it is without adding savings into the
mix.  It’s also  hard for us to give up our present wants for our 
future wants, which may be decades from now.   We all need to
save more in order to gain security  and peace of mind in our old
age.  We need to  figure out what "wants" are we telling ourselves 
are “needs”, and then use that money to save more. Spending
less means saving more, it’s as simple as  that. Go through your
expenses. What sticks out? What  alternatives can you discover?
Discuss all your  expenses with your financial team mate and 
brainstorm solutions. Here's an example of holding on until it
hurts. The problem item can be a house, a bad habit, spending too
much on others. Think of anything that is draining your budget to
the point that nothing else is affordable. In this example a couple
has a loss of income, they could no longer afford the things they
had.  Their mortgage payment is 60% of their  reduced income. So
they ran up credit card bills,  because they didn't have enough
money coming  in to pay their living expenses, the mortgage and
have some emergency savings. But instead of  recognizing the
problem—that their budget was severely out of whack, they just
continued to  borrow and got further in debt. They loved their
house, they felt they needed  to keep their house.  But in this
situation it was hurting them more than helping them. Their want
for that particular house had left  them unable to provide for their
needs! People sometimes sink financially because they refuse to
let go. They're floating in a sea of debt, but they won't let go of
the anchor that's pulling them under.  Don't let a "want" make
you lose  sight of a "need." Usually, we're not even aware when
we put our wants before needs. If your income and expenses
aren't balanced,  a new loan is not going to fix the problem. Debts
are a symptom, not the disease.  The disease is an unbalanced
budget! So, what are the key points to remember from  This unit
on the role of money? First, that money is a tool, and to use this
tool right, you need knowledge. Communication  about money is
key. Honestly discuss your financial goals with the people who are 
important to you. Think about Needs versus Wants. Needs are the
necessities of life: like food, clothing, shelter,  and medical care.
Don't let wants leave you  unable to provide for needs. Before we
conclude this first unit, we’d like to  leave you with a few final
thoughts about what skills it takes to reach your financial goals. 
The first is knowledge is power, we should  never stop seeking
additional financial  knowledge. The second area most of us need
to work on is  discipline. We're human beings and - let's face it –
we all like stuff! There's nothing wrong with stuff so long as the
stuff fits into your spending plan.  The discipline comes in to play
when we buy according to the plan we make to achieve our
personal goals, and not giving in to temptation. An antidote to
Temptation is the 4 P's: Prioritize  spending, Plan your purchases,
and have  Persistence and Patience to achieve your goals.
Discipline is MUCH easier when you realize that  you're not
denying or restricting yourself. Instead, you're empowering
yourself by choosing what you  want most! The 3rd skill we all
need is courage.  Courage  to take a step into the unknown, to
make changes in your life, to consider ALL possibilities. It takes
courage to admit that major changes are  needed. It takes even
more courage to make those changes... to do something that's
outside your  comfort zone. It could be getting another job or  a
less expensive place to live.  If you're in financial  trouble or you
aren't achieving your financial goals, you must have the courage
to  make changes.  It can be incredibly scary to  change, to step
into the unknown.  Stay focused on what you want, and if your
goals  Are realistic, you can reach them. It may take  learning,
discipline and the courage to do new  things that don’t feel
comfortable but if your  goal is worth it to you, you CAN do it!