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
This week, I read the journal publication of a study regarding a particular financial counseling strategy. The researcher was looking at a Transtheoretical Model from counseling psychology and seeking to adapt it and apply it to financial counseling. I thought it was a very interesting read. Yes, I am that nerdy. 🙂 Psychology is very interesting to me and I’m always looking for ways to try and improve myself and my ability as a counselor.
Reading that study got me thinking a lot about a particular idea: Motivation. Motivation is one of the biggest precursors to both change and success. So, if we don’t feel motivated to change, are we lost? Is there no hope for us to turn things around? I think the answer is yes and no.
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.