People with financial plans are much more likely to feel prepared, even in tumultuous times. They're more likely to feel that their dreams and goals are secure. And, oh yes, they do actually save significantly more.

There are two things that you need to save for. First, you need an emergency cushion of no fewer than six months of living expenses. This needs to be cash in a liquid account where you can get at it in - yes - an emergency if you need it. In other words, money markets, not CDs. You also need to save for your future: that means retirement.

By definition, saving - for anything - requires us to not get things now so that we can get bigger ones later. That's hard. Our brains are hard wired to prefer the here and now.

Jean Chatzky Quotes