Saving money is always a great idea, but I have found that you will have greater long term success if you save with a purpose.
You should always have a goal in mind for what you will do with saved money.
A few ideas:
- Save for retirement – This is always a good strategy no matter how young or old you are. If you put away your saved dollars for retirement, that will make it that much easier when that time comes.
- Save for a down payment – If you have a goal to buy a house or a car or another large item, save to put a down payment on that item.
- Save for an emergency – If you don’t have an emergency account, putting saved money aside is a great way to prepare for the inevitable unexpected expense.
- Save for an opportunity – There is probably going to be at least one point in your life when you come across an opportunity that takes money in order to benefit. This could be a big ticket item, investment, or something else that you prioritize. Putting money toward your ‘opportunity fund’ is a great way to ensure that you don’t miss out.
- Save for an expense that’s down the line – Do you have kids in middle school that will be attending college in a few years? A ten year old who will one day turn sixteen and need a car? There’s nothing wrong with saving for a long term goal, even if it is a way off. Trust me, that time will likely come faster than you think!
Saving for the sake of saving is great, but saving with a goal in mind is going to keep you motivated and allow you to feel accomplished. The great thing about it is that you don’t necessarily have to use the money toward that goal. Once you’ve saved the money, it’s yours to do with as you please!
Do you set savings goals? What are they?
Thank you for reading.