One of the easiest ways to fail to save money like you should is to frame saving in the wrong way. Are you saving for the future in a formless way? Do you know what your saving is moving towards? If you’re just saving for the sake of saving, you can often lose sight of what you’re even saving for. If that sounds like you, then this article might be of some help.
The key to saving effectively is often saving with a purpose. What are you saving money for? If you’re not saving for yourself, then you’re probably not saving enough. What does it mean to save for yourself? Read on to find out.
If you’re saving for the future in a formless, amorphous way, you might not have the drive you need to actually keep up with your saving. When you save “for retirement” or just “for a rainy day,” it’s easy to keep some more of your money to spend now.
However, when you frame your saving as being for yourself, just down the line, then it can become easier to save aggressively and get interest rolling in on your money.
So, how do you save for yourself? Envision what the money you’re saving is actually for. This is easier to do when you craft a budget for your finances, too.
When you assign each dollar of your paycheck a job, you can make sure as much as is reasonable is going into a savings or retirement account. Get that money working for you!
Often, people are told to save for retirement but fail to grasp what’s so important about that. If you’re a young person, think about your body, and your ability.
Do you feel like over time, you’re going to feel even more willing to perform tough jobs and hustle for your money? Or, would you rather your older years consist of kicking your feet up by the beach, sipping a cool drink, and enjoying the sunshine?
Remember, “just wing it” isn’t a sound retirement strategy. Save up for the days when you won’t want to, or be able to, work. Social Security won’t cover all your bills, let alone the fun stuff you know you’re going to want to do.
Let’s be honest: by the time you’re 70, there might not be Social Security. So, save for yourself: save for your future self. You never know what the future will hold, unless, of course, that’s a sound financial future.