We all know we are supposed to be saving money (most of us). But how come we don’t actually do it? Do we forget? Is it something we put off for another day?
Priorities is why we don’t save money in today’s world. When I began to think about writing a post about saving money, I researched the topic’s relevance in Google.
What I found was that the popularity of the word “saving money” had a dramatic increase between 2008 and 2009 and then headed on a downward slope into 2013.
The reason is because of the recession. The economic slow down forced people to save more money in 2008 and 2009 because of need and survival. Essentially, we made it a priority.
Now that the economy is slowly coming out of its slumber, spending is going up (which is good for the economy) and saving is heading back down.
What if we pretended that we had an urgent need and used these three reasons to make saving money a priority NOW?
- Emergency Fund: An emergency fund creates a margin in your life. Recently, I have been coaching an individual who has had a series of unexpected things happen to him. He is already at the poverty level, but he could create some room in his life IF he followed my advice to get one or two extra jobs to fund a small emergency fund. However, it is not a priority to him, so he continues to struggle and will never get ahead until he makes saving money a priority.
- Retirement: What if you had to retire in less than 5 years? Would you make saving money a priority? You may be able to get by on Social Security, but if you want to live comfortably, you need to save NOW.
- Large Purchases: Most people spend everything they make on purchases by using credit cards or some other form of creative financing. How about getting rid of that credit card and actually save for large purchases such as a car or a vacation. It’s not the car or vacation that is the priority, it’s the concept of saving for such items instead of using debt to get you there.
I have heard the lame argument that saving money is hard. Yes and no. Yes, it is hard if you put other things in front of it like spending everything you make.
It is not hard if you make it a priority. The latest smart phone that will be obsolete in two months won’t seem like such an urgent need as saving for emergencies, retirement, or large purchases.
Question: What “Jedi Mind Tricks” do you use to make saving money a priority? Please share. Our culture could you use some tips.