According to an article at Yahoo Finance entitled, Put Savings (and Yourself) First With a Budget, it states, "Where does that money go? America, it seems, is in the midst of a savings crisis. Personal savings rates have dropped in recent years and remain low by historical standards as many people continue to spend beyond their means. If you're among those Americans who can't seem to save, it might be time to create a budget. A budget allows you to understand where the money goes and may help you free up cash for important savings goals, such as college and retirement".
Now, I am all for savings (for those of you just coming on board, please feel free to start from the beginning at my first post The First Two Weeks), but I think this brings up an interesting point, that I would like to turn into at least a two-part series.
Tonight, I would like to discuss Point Three in the Put Savings (and Yourself) First With a Budget article. Basically it states that "Less Spending = More Savings". Sure, I am sold on that, as long as the money you are saving, you are also putting into your savings! But, is that the truth?
Are we really taking the money we are saving and putting in a piggy bank, a savings account, a CD, or anything? Or, are we just considering that money for somewhere else?
And that is the question for tonight.
Are you making an active effort to put all money saved into some sort of savings account? And which ever your answer may be, feel free to explain the methods behind your thinking.
As always, thank you...The Runner
I have a savings account that I treat like a bill that I owe...it's figured into my budget each month and allowed for.
ReplyDeleteThe money that I "save" each month by using coupons and doing without, goes to my actual bill paying. I don't have the liberty right now of taking the extra money and saving it for a rainy day - or something extra. Someday, if the day ever comes that my income exceeds my "out go" - I will save it...I'm really looking forward to that day.
My saving account (with ING) has grown each month..and I'm very proud of it.
That is really great! I definitely have never looked at the money I am putting into my savings as a "bill" that I HAVE to pay each month, but that certainly has changed!!!
ReplyDeleteI enjoy watching my ING account as well!!!
Thanks!
Saving accounts should be used for saving and not to be spent unless you have no other choice.
ReplyDeleteAnother great point!!!
ReplyDeleteI have found through the last couple of months especially that the self-discipline to not touch those funds is paramount. It is to the point that it should almost be a law.
Thanks for the response!
Yes, in the beginning, not touching your savings is HARD TO DO. However, in the beginning of my savings crusade found if you link your savings to your checking and have the money automatically w/d from checking and deposited into savings twice a month, you have no reason to go into your savings account. Another recommendation is to not have your savings account as an option on your credit/debit bank card, this will limit your access to the funds. I have found once your savings gets to a certain point, you don't want to touch the money and its fun to sit back and watch it grow. But the answer to the question is no, I don't put the extra money that I save each month from cutting back into my savings. It seems to get spent on other things.
ReplyDeleteEither way, you're saving, and that's the point!
ReplyDeleteThanks!