| Sargent & Lundy Savings Investment Plan |
| EVERYDAY TIPS |
| The following excerpts are from an article in the Wednesday,
February 3, 1999 "Wall Street Journal". The opinions expressed
by the author, Jonathan Clements, and his readers may or may not reflect
those of the SIP Committee.
A dollar saved is a dollar earned - and you're mighty proud of it. A month ago, I asked readers to tell me about their smartest and dumbest financial moves. A later column will deal with your mistakes. Today, you get to boast. And what you like to boast about is not picking great investments, but saving a few bucks. Long-Run Investing When I was 23, I had a substantial portion of my paycheck directly deposited into a bank that was 25 miles from home. It was so inconvenient to get there that I almost never touched the money. I turned down an ATM card, making it even harder to access the cash. Though I didn't make a lot of money, my savings built up quickly and, within five years, I was able to buy a house with 20% down. Ellen Galambos Duxbury, Mass. Making Dough In 1967, while on vacation from college, I spent part of the summer loading boxcars with 100-pound sacks of flour. I made $1,600. Following my father's advice, I bought 37 shares of AT&T. Today, after the break up of AT&T, various spinoffs and the reinvestment of dividends, the portfolio is worth in excess of $142,000. William C. Strutz Shawnee, Kan. No Place Like Home I didn't move out of my parents' house until I was almost 29 years old. Then I bought my own house. Mary Ann Lydon West Roxbury, Mass. Budget Baby Before I gave birth to my daughter, I called the hospital and asked the head of billing what kind of discount he could offer me. He agreed, in writing, to a 15% discount. Stephanie J. London Chapel Hill, N.C. Debtor's Prism I took $1,000 I had earmarked to pay down credit-card debt and used it to get past the minimum investment requirement for a mutual fund and start an automatic-investment plan. In the short term, it would have been better to pay the card down. But long term, we are much better off. It allowed us to develop the habit of saving. Rocco Davanzo Jacksonville, Fla. Investing 101 My wife and I take the change out of our pockets at the end of the day and put it into our daughter's piggy bank. At the end of the month, we have $50 or more, and we stick it into a mutual fund that will pay for her college education. Mark L. Gardella St. Louis Car Talk In 1987, I bought a sued 1984 Mercedes for $20,000. After I finished paying off the car loan, I made a vow to myself that I would never make car payments again. So, after the loan was satisfied in 1990, I started investing that same $500 per month. Today, it is worth over $100,000. Bill Wilson Dallas, Tx Liquid Assets I always cringe whenever we go out to eat and the three kids order soft drinks. We all know the margins on those. Therefore, I made a deal: The kids have the option of either ordering a soft drink or ordering water and receiving a dollar from me. The results have been great, especially on vacations when all meals are eaten out. The benefits are threefold: The money stays in the family, the kids learn to forgo present gratification and water is healthier for them. Mike Giangardella Warren, Ohio No Future My smartest financial move was becoming interest in commodity futures. It stoked my interest in investing and gave me valuable experience in learning to ignore touts and prognosticators. After experiencing commodity futures, the recent volatility in the stock market has caused me virtually no concern. My second smartest financial move was to stop trading commodity futures. Gregory Fuchs Lafayette, Ind. |
This page updated on 2/8/99