Are you saving too much money? First of all, for many folks, that seems like such a ridiculous question in the first place. Many folks aren’t saving at all and many more aren’t saving enough; but saving too much? Is that really a thing?
I absolutely think so. Saving shouldn’t just be something that you do– it should be something that you do with purpose. Like I’ve said countless times in regards to our financial lives, it’s important to have a plan. That includes how and why we are saving. Continue reading
In this final post from our Financial Literacy Month special series on the Four Pillars of Financial Health, we’re talking about saving. It’s the most important part of your budget. Saving isn’t entirely without its challenges but it’s a necessity. Without savings, even the best-functioning budget is far more frail than it appears. A budget without savings is a house made out of straw instead of a house made out of bricks. If one big, bad life event comes along, it’ll blow your house down.
Sort of on that note, the economy is tough these days. We’re earning less as things are costing more. Some folks would argue that makes it harder to save money. I would say that makes it all the more important that we save.
I tend to write my posts in generalities. It’s a purposeful choice based on the fact that financial situations vary greatly from person to person. There are countless different factors that go into one’s financial health, from different incomes to different bills to different lifestyles to different financial personalities and more. That’s a huge part of why I base much of my counseling philosophy on the importance of values and goals– because each person is going to value different things and be seeking out different goals (and a huge part of why financial counseling, as a whole, can be valuable– because it takes something general and helps it become specific.)
But I’ve been thinking that, this week, I should post something a little more concrete. This week, I’m going to outline a pretty specific saving strategy that, if followed, can help you to meet your values and goals and can help you experience the joy of seeing your money grow towards meeting those values and goals. This week, we’re going to be talking about sub-accounts.
I’ve written a lot about the importance of awareness (and I’m sure I’ll continue to write about it in the future, too.) I probably at least touch on it in almost every post I publish because it’s so important. Awareness extends not just to the state of our finances or the choices that we make with them. It also extends to ourselves. I touched on that a little bit in “Know Thyself.”
I recently viewed a webinar about short dollar credit usage that got me doing some thinking about a particular aspect of awareness. It seems to me that, though we all have different circumstances, most people who have financial hardship fall into one of three categories of financial people. It might even be appropriate to call them archetypes. Let’s call them the Overspender, the Undersaver, and the Poor Scheduler.