From Crash Dieting Doesn’t Work for Savers, Either, by Anthony Isola:
Sure, deprivation diets can work temporarily. Brides preparing for weddings rely on this short-term effect, as do celebrities who want to fit into designer gowns for awards shows. But the more we deny ourselves, the more we crave what we deny.
Result? According to Bloomberg, the share of the population classified as obese has ballooned from 14% in 1960 to 36% in 2010. That’s a problem. Here’s another: CBS Moneywatch reports that 26% of people ages 50-54 and 14% of those over 65 have no savings. Boosting savings is critical, but just as you can’t live long-term on a starvation diet, you can’t realistically expect to build up a nest egg for tomorrow by starving yourself financially today.
I am still convinced that that the only savings plan anyone needs is to save 15% of every dollar ever earned (and invest that money wisely). Learn this as a teenager and live it throughout your life and personal finances will be a breeze.
HT: Abnormal Returns