When someone doesn't any good reasons why they are saving money then it might be hard for them to save any money because they have only this vague goal — save some money. But for what? You need some motivation in order to deny yourself things you may want to have but can't because there's something much better that you'll have to get first. When setting your saving goals prioritize financial security. The more you save the less you'll have to worry about money in future. Thoughts?
I agree with you, @Denis Hard. You do need to have reasons for savings, because for me I find they really spur me on to make more of an effort to save, and save more. One of my motivations for saving money is the possibility of falling on hard times and becoming somebody's burden. The very idea is enough to give me nightmares, and I always ensure that no matter what else is going on, I set aside a sizeable amount of my earnings; even if it's the only thing I do in that month. I may be a huge clothing shopping fan, but I never spend money unless I know I can afford to. I also want to be prepared to be able to help people within my family should they need me, because they're always there for me.
As I had posted in another thread, I have several bank accounts so my finances are distributed. One of the account is for temporary savings. That money saved is what we use to spend for vacations. That's why it is named temporary because it is save only to be spent soon. Another savings is a long-term which is meant for making big purchases like a new car or a lot. It is easier to have separate savings depending on the purpose than having no solid plans.
I'm a big believer in purposeful spending and purposeful saving. Whether that means setting targets or simply being more conscious of how you behave in both areas, m,ost of us don't do either properly, in my view. It's all about putting in place good disciplines and having boundaries on your behaviour.
If you're more of an externally motivated person, perhaps you could tell a social group that you plan to have a savings goal of X by some certain date in the future. That way, you've made the external promise to others who can keep you accountable to your goals.
Saving money is no different from being on a diet. If you want to achieve the body that you want, you have to make adjustments to your eating habits. You repeat the same process until you get the hang of things. However, just because you're on a diet that doesn't mean you have deprive yourself completely. Cheat days help you cope up with the sacrifices you've made. The same concept applies to your savings. Every now and then, buy clothes or eat out with family and friends or have a burger at your favorite fastfood joint. Just make sure the amount you spend during your "financial cheat days" are only a fraction of the amount you often allot for your savings.
Now I have finished college but now only I understood the value of saving money. While I was in college I used to spend lavishly as my father will keep putting money in my bank account so I didn't know the hardship he undergoes in earning it. But only after I started working online and earn some money I understood the hardship and I made up my mind to save money for me and my family as well.
My goals for saving had always been to retire comfortably, have something for emergency, and to give my child a head start in life. I came from a hardworking family with modest means and I have to work hard and make sacrifices to support my child and send him to a good school. I want him to always feel secure and not worry about finances so I'm working double time and making personal cutbacks when needed.
@xTinx I agree with this post. It is good to save for a goal. However, i must say that a goal is not a must when you are planning to save. It certainly helps one to get into the habit of saving however, you may continue to save despite having no set goal just like the way i do. I just save without giving it much if a thought (habit I guess). I do know that cash will help in tmes of crises which are unpredictable and unavoidable.
I think unless one has some specific expenses. It's better to save at-least 50% of the salary or earning whatever that it is out there. So this way one can make sure that saving does not affect their daily life. And also it can save them for the future. You just have to focus on what you can get out with the best approach. I think my personal savings have 90% of the things there with the bank. And that is something I aim to keep up there as well.
