What a great way to think about savings!
September 19th, 2005 | by mbhunter |MP Dunleavey of MSN Money’s “Women in Red” authored this article:
Why so many women can’t save
The advice is mostly good bread-and-butter financial common sense. One observation in the article was that non-recurring, but necessary, expenses ate up a lot of the slack in some budgets. You don’t typically budget for brake repairs, and your best friend from college doesn’t get married every day. Or if you do, your surplus is gone in a hurry. This is a cash flow issue.
So I thought it was a great idea to call savings “future spending money.”
This is a great way to think of savings. Often, savings get put off because there’s no use for the money now. Why am I saving? Is it just going to sit there? But, instead, if you save for a purpose — to cover those emergency expenses that will inevitably come up, or to spend on a vacation, or to live off of in retirement — you see why you’ll need the savings and when you’ll be using what you’ve saved.
One Response to “What a great way to think about savings!”
By Vickie on Jul 16, 2009 | Reply
visualizing the savings purpose is the only way to go – look at the effort people are making wheh it comes to saving for college for their kids