THE SQUEEZE-AND-SPEND STRATEGY

I I Provides a motivating goal. Saving money to receive immediate rewards is motivating to some people. 

I I Nothing to lose. When your retirement income is modest and you cannot do anything about it, why worry  

I I No feeling of security. To live without a small cushion falls outside the comfort zone of many retirees. 

I I No contingency fund. If the TV needs repairing, you can t pay the bill until you save something. 

I I Dependency on government. Without a cushion, it might be necessary to ask for help from a social service agency. 

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