We are always hearing save, save, save. But if you don't have a reason to save, it isn't likely you will. Most people live paycheck to paycheck. Many people simply do not have the money to save. There just doesn't seem to be enough money left over after paying the necessities. And I'm not just talking about the lower-income groups. Often, those driving new cars, living in nice homes and wearing name brand clothes are barely making it by financially. They often have a harder time finding extra money than do those who make incomes below poverty level. There are a lot of people that wear money well, yet they don't really have any. Is that you? Are you caught in an endless cycle of wanting more and wanting better? Do you see that it just isn't working for you? Sit down and examine what your main goals are in life. I mean the really important financial ones. You may want to retire someday. Have you started saving? Do you want your children to go to college? Have you started saving? You might just want to be able to pay all of your bills? Have you started saving? You get the hint -- it's all about the saving. I'm not going to go into how to save, you can research that later. Let's talk about why you should save. The number one reason to start saving right now is for emergencies. Things happen. People pass away. People get hurt at work. People get laid off. We have accidents. We have cars break down, washing machines stop working and sometimes even disasters hit our homes. With an emergency savings, you are cushioned from the financially ruin. You can make ends meet until you are able to figure something out. You are able to buy that new washer without hurting your monthly budget. You are able to sleep without worrying where you will find the money. It's in your savings. I suggest starting with three to six months worth of monthly expenses. This gives you a pretty good cushion. Put as much in as you can. My husband recently lost his job, and we found that three months fly by fast. Before we knew it, the fund was gone. But it gave him valuable time to find a good job -- he didn't have to take one just to make ends meet. Once you have this savings built up, you should start working on your goals. You can work on several at a time. For example, if you are able to put $100 from each paycheck into savings, yet have three goals you are saving for, do a portion to each. For example, your goals are for retirement, college for your child and buy a home. Decide which is most important to you and what you need to dedicate of that $100 to each goal. You might put the largest amount to your retirement, the second largest to your home and the third to the college education. You should save money. I can't tell you why. That is your decision. There are goals that can only be fulfilled from savings. Think about what you want in life. If you want out of debt, to own your own home or to retire comfortably, you have to start saving now. |
