A few years ago, I was cash-strapped and had run through my savings like a freight train. However in early 2009, I realized the importance of saving money. At that point, I revisited my goals for the future because of this revelation. In the budgeting classes I teach, I tell my students that saving money is essential for a multitude of reasons; listing these reasons on paper is one of the most momentous steps you take when changing your relationship with money. We invest in things we find value in, and by listing the reasons we save helps us see value in saving and reaffirm your commitment to do it. These are the top 7 reasons that I am a saver, not a spender and why you should be too.
I need a cushion for the “whens”
I need to know that I have the resources for the times when money is uncertain, the moments when the car breaks down or the dishwasher need replacing. I know that there are inevitability’s that I have to spend for, but I save in order to account for these “whens”.
I do not want to outlive my money
Every time I walk into Wal-Mart and see the elderly greeter at the door, I reaffirm that I do not want that person to be me. I save because I do not want to outlive my money in retirement; I want to enjoy my golden years.
I do not like paying someone to use my money
When I sat down and did the math for purchases large and small and compared financing to purchasing in cash, I was astounded at how much money I was throwing away in finance charges. In many cases, I could have purchased two cars for the price of one. I do not want to pay someone else to use my money; I would rather save and pay in cash for my purchases.
I have a plan to reach my financial goals
My financial goals exceed those of retirement. There are many things I want to accomplish; things I cannot do that unless I am making adequate preparations with my savings. By saving, I am helping myself to reach my short-term and long-term financial goals.
I want to make sure my family is taken care of
When I am gone, I want to make sure that my children are taken care of and not burdened with my debt or obligations. Saving for the future, no matter what it may bring, gives me the peace of mind that my children are taken care of, no matter what.
I see the value in making money on my money
Being paid for nothing is an fantastic idea to me. Essentially, that is what savings is. I see the value in leaving my money in the bank with its purpose of earning money on my money. I do this by diversifying between high-yield savings accounts, CD’s and investments.
I have the resources I need, when I need them
If I want to start a business, make a purchase, or take a vacation, I have the resources I need when I want them to enjoy living life to the fullest. If I did not save my money vigorously, I would not have those opportunities.
Reasons to save are based on individual needs and wants, but as I tell my class, not having these reasons written down and not revisiting them often will lead you astray, and make you to spend what you should be saving. Use this list to develop your own, and discover a lifetime of financial prosperity.
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