This quarter’s theme is about saving. We could all probably be better savers, but until we get down to the reason behind WHY we are saving, we won’t make it a priority. Much like those resolutions, savings goals can fall by the wayside if not done intentionally. As I mentioned in last month’s post: a goal without a plan is just a wish.
So - what’s the plan? What exactly are you saving for right now? How do you feel about it? Does it bring you joy to think about what you’re going to do with your money once it’s saved? Or does it stress you out thinking it will never be enough?
Why Do You Save?
The reason ‘why’ matters - here’s why: different savings accounts can offer different benefits depending on how much you are trying to save and when you are going to want to use the funds.
Are you saving for a rainy day? Building up an emergency fund will bring a sense of peace of mind knowing you won’t have to use a credit card if, say, your car breaks down. One way to do that without having to think about it is to set up an automatic transfer from the main deposit in your checking account into your savings account. If you "pay" your savings account first, you’ll only spend what is left - rather than waiting until the end of the month when funds dwindle and the motivation to save does too.
Are you saving for a special event? Do you have a vacation, a wedding, or a milestone birthday coming up? These are cause for celebration that require funding, right? If you have a longer time frame in which to save, using a higher yield savings account will help grow your money while it sits awaiting your festivities.
Or are you saving for the long-term, like retirement? That is an entirely different type of saving that usually involves investing. That’s a whole other conversation we will cover later this year.
Whatever the reason, keep the ‘why’ front and center. Let the process of saving become a habit. And when the time comes to spend it, you’ll be so happy you made it a priority when you did.
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