Fine Tune Finances

Are you Saving Money Just to Save? Or are You saving With Purpose?

Human nature dictates much time and money is wasted when we don’t have a goal. This also applies to our financial life, in short your goal your reason for saving, or purpose. If you are saving money just to build up a bank balance you are not likely to be successful at it.

Start by defining your financial goals. When do you want to retire? Do you want to buy a house? A car? Or a vacation? Start by writing it down, this way you know what your goal is and don’t get sidetracked. I find it important to break my goal down into manageable bits, and then post it somewhere I can see it so we can track my progress. This is the same process I use in my career and in my financial life.

Next so you don’t get discouraged make sure you track your progress. Don’t be afraid to adjust your goal if you are a little bit behind. If you don’t adjust your goal when you are not making good progress towards it then you will be setting yourself up for failure. Finally tell everyone about your goal, My goal is to retire at 55, and I find telling my friends helps to keep me honest. So what are you waiting for, start saving with purpose!

 

I’d be really interested to find out what your savings goals are for the future!!

 

1 Comment on Are you Saving Money Just to Save? Or are You saving With Purpose?

  1. STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION)
    March 10, 2013 at 5:00 pm (1 year ago)

    I have been a saver my whole life. First is was to have cash in reserve for emergencies, then for a house, then to pay off the house then to have retirement money and money for college for my kids. It is so true to have specific goals to keep you motivated but saving is just something that must be done. This is especially the case when retirement for most people is not realistic, especially at age 55 or some young age. The math just does not work for most people as far as the amount that has to be accumulated at that age and the actuarial life expectancy of many younger people. So savings needs to be automatic and it is never enough but I hate to break it to you but age 55 is rarely doable.

    Reply

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