I think one of the least understood concepts of saving/investing is the time value of money. I have been contributing 10% of my salary (with a 5% employer match) to a personal retirement account for about 15 years now. At the rate it has been growing plus all my future contributions, it would be worth around $1,200,000 (US) in about 20 years. Even if I stopped contributions at this point, it would still be worth about $1,100,000 in 20 years at its current growth rate. No rate is guaranteed and my memory is a little fuzzy right now on thos figures, but they are close, but you should look at what some amount of your savings would be worth at different annual growth rates (5%, 7%, 10%). I never assume more than a 10% per year growth rate, but I have been getting about that now for all these years.

Also, interest on credit card debt is a killer. If you have multiple debts, get rid of ones that would free up the most cash flow, then work on getting rid of your other debts with the freed-up cash. Others may suggest paying off the highest interest rate debts, but you will need to decide what would work best to pay off debts as quickly as possible.

>My income has been quite good for quite a time. My wife also works, parttime (for 20 years a physiotherapist, now teacher in elementary school). We even had the opportunity to save some money, notwithstanding the fact that we have three teenagers to feed. Athough, the amount we saved is not what it could have been. I'm not sure how long we could afford the same living standard if hard times started. I do have a disability insurance. But I fear that my pension will be quite low.
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>Today I read in the newspaper that it happens a lot in the States that people with good income and good living standards get fired suddenly and soon have to sell their car and house, due to credit accounts.
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>How do you cope?