Saving is important, but what are you saving for? Having clearly defined goals is a key factor in whether saving is a priority and whether it is successful. Because, face it, everybody wants to save more, but unless you have the proper motivation, it can easily get pushed off.
Here are ten things we are currently saving for:
- Retirement – I like working and I like what I’m doing, but at some point I won’t want to work anymore, and I’d like to feel comfortable and secure when that day comes.
- New car – We have two cars, 6 and 7 years old respectively. We don’t drive a lot of miles, so hopefully they last at least another 6-7 years each, but we put aside some money for when that day comes.
- Car repairs – The cars run great but things wear out or break down, so when the inevitable bills come, we like to have money stashed away.
- Home repairs – This past spring, we had to put a new roof on our house. By saving money each month for this and similar repairs, we were able to write a check and pay for the whole thing without a second thought.
- Property taxes – The tax bill comes twice a year, but by saving throughout all twelve months, we never have to figure out how to pay this big bill.
- Kids needs – We have two kids of preschool age who will also be ramping up costs for activities and lessons, so we set aside some money on a regular basis to cover these costs.
- College – Yes, another fund for the kids, but this one is a long term savings account, and will help pay for their college educations down the line. I can’t promise that we’ll have enough to fully fund their educations, but we will promise to put them in a position where they won’t have to start in a deep hole, a position that so many people find themselves in who have to take out loans for a big chunk of their college education.
- Gifts – Christmas comes but once a year, right? While that’s true, our strategy of setting aside money every month assures us that we can pay for all of our gifts without having to take on a credit card balance.
- Health – We have a health savings account to cover costs associated with health care, both as they come up now and for down the line.
- Vacations – With all that saving, we need a vacation every now and then! We are planning a trip to Disney World in a couple of years, and have a fund specifically set aside for that goal.
Every household and family has different goals and different ways of getting there. I’d love to hear some of your goals.
Thank you for reading.