The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1917-02-23
TALKS ON BANKING
(American Bankers Association
HOW SOME PEOPLE SAVE

HOW SOME PEOPLE SAVE
Tho New York Evening World has
been Offering series Of cash prizes
for the most sensible plan Of saving as
applied to the management Of house
hold, where the income does not ex-
ceed $3.50 a month. A large number
oe plans were submitted by persons IN
all walks Of life. a reading of which
leads to the conclusion that there are
a lot Of level-headed people getting
somewhere by good management and
definite plans of living. A perusal Of
these answers would seem to justify
the following conclusions:
First, that the only method Of saw
ing that proves practical and permar-
ent is the adoption Of well defined
plan. This means scheme Of living
that provides for the various expenses
incidental to rearing a family, such as
rent, food, fuel and light, clothing, rec
creation, education, etc. No one gets
anywhere in particular by "hit and
miss" method Of life. This is the rea-
son so many people are living next
door to poverty all the time. Any plan
Of life to be successful must include
the determination to save, and it pos
sible a definite amount as q minimum.
The determination without plan ac-
complishes but little.
Second, the wife is the saving
element in the household. AS rule
the man earns the money and the wife
spends it. To her is entrusted the
buying of the supplies, the care Of the
children, their clothes, and spending
money. Even though the husband pays
the bills, his wife contracts them. She
has time to shop and he has not.
Third, that the most workable plan
| is as follows: Apportion the income.
There are certain fixed charges in the
home, such as rent, clothing and food.
| It is well settled that the rent should
not exceed one-quarter of the income,
ia weeks wage for months rent"
If it is larger, it is out Of proportion
and extravagant. You cannot live on
Fifth avenue with Third avenue in
come. The greatest extravagances
are possibly in the line Of food and
here the wife can do her best work.
The cost Of clothing can be fairly well
estimated from experience. Educa-
tional expenses can be figured with
safety, and recreation can be kept
within bounds. The doctor and dem
tist may be uncertain quantities at
times, yet these need not be excessive
burdens as general rule. An appor-
tionment should be made for life in
surance and the savings bank, no mat
ter how small the latter may be. A
great many people set aside definite
amount for each class of expenditures
and try and keep within the appor-
Itionment Il
| Practically every competitor in the
contest confessed that they started
their financial success with a savings
bank account. It was small in many
cases, but grew steadily. The man
who starts out to save will astonish
even himself with the results he never
anticipated. 1t is the small steady
savings that count.
i Some people divide the weekly
wage into parts, setting aside enough
| for each class Of expenditure, while
Others make the apportionment and
| keep an expense account as a guide
to determine how they keep within OF
exceed their allotment.
i To pay each bill out Of its particular
compartment in the family cash box
is sometimes impossible, and the sim
pie and effective way is to merely
| keep an expense record, and if the ex-
penditures exceed the expectation, cur
/ tailment or readjustment is in order.
j Lastly, many who have acquired
property have done so through the
| medium Of debt incurred helpful
| debt, such as a mortgage, building and
loan shares, installment home buying
| etc. But look out in incurring such
obligations that they be within your
ipowers to fulfill, and the values con-
servative. Don't hitch up to more than
you can pull.
The marvel in such experiences is
| not that these people saved consid.
cradle sum, but that they saved at all
It wasn't the result Of planning, will
| ing, sacrificing the little things to have
: the greater ones, elimination Of waste
} foresight, good judgment, setting 9
course and steering by it, making reso.
lutions to keep and not break, anC
; being firm with ones self, but not par
simonious. Thrift is getting habit
and keeping it until it gets you. These
} people got the habit Of getting aheac
/, | and tho result is thew p0t aheaO