Wikipedia definition- saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan
Personal finance definition- saving refers to preserving money for future use
Moneymonk definition - a slow, boring repetitive task.
Saving money is fun as long as you get to the goal.
We are all saving for something - car, house, retirement, whatever!
Some are saving for everything. But most of us are impatient with saving. Hence, that is why most people don't do it.
Emergencies pop up and you are constantly on and off the wagon.
Just because it's convenient does not means it's good! i.e fast food. Credit cards are nice to have but avoid paying interest.
When I was five figures in debt, I still saved for a rainy day. Saving can be a bore, heck, paying off debt is more exciting than saving. At least your money is being put to work.
Regardless of your debt level, Pay yourself first and save! Yes, it's boring but it's worth it.
[photo credit: blackenterprise.com]
Thursday, January 17
Paying off all debts before saving is foolery
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4 cool comments:
i find saving exciting, not boring. i like watching the numbers grow!
I know what you mean... I got impatient before I reached my original $1000 goal. With only $570 in the bank I've decided to focus on debt reduction. I still save $100/month in my emergency fund so I'll still reach my goal. I find both my growing emergency fund AND my debt reduction very exciting :)
I love to save but despise debt. Saving gives me a natural high!
you're saying... what? if your debt costs 6%, and your savings returns 3%, paying down debt is prudent. what's this romanticism transcending rate? saving is appropriate when rates are great. well the fomc just changed all that. so i'm gathering up my $10k in savings and shooting down my 6% mortgage debt. because i have no alternative now that rates have dropped. this isn't about what's fun. this is about rate, beginning to end.
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