If I said before I’ll say it again, savings is a means to an end. What end that will be is completely dependent on what you value for your money life. What is Savings? Something as simple as taking 3 years off to raise you’re kids, can be a savings goal. Another one can be saving for a business venture. We tend to over assume things will just work out, and we don’t prepare enough with finances. What is savings defined in my life, well you will soon read below.
When you have long term savings goals, life gets interesting because you’ll usually achieve them, but without a plan you will most likely just get by completing smaller savings goal. Lets rev up our internal engines or brain waves and save some cold hard cash.
No excuses here for this topic because having savings is and should be a priority even above paying Chase. Because Chase will never cover your monthly expenses if you lose a job. Find out below why you need savings today.
What is Savings?
S – Security at its purest form when you have enough of this
A – Ability to build assets when you have sufficient emergency funds
V – Valuable use of free cash flow to help build a safety net
I – Income is used to build this PF tool up every month or every week
N – Net present value should equal 3-8 months of living expenses
G – Goals can be accomplished in tandem with funding various accounts
S – Savings is security, sanity, and sexily avoiding debt successfully
Guys seriously give me feedback on the what is savings poem above. Do you have something in mind on what current savings goals you may have? Right Now I am saving for:
A. Financial Freedom
B. To Give a Big Down Payment on a House
C. For a Rolex (Did a PF blogger publicly admit he wants a Rolex-Shame)
Right now being financially secure is imperative for anyone due to a plethora of reasons, like
1. Layoffs
2. Tax Return Mistakes
3. Major Car Repairs
4. Moving to Cuba now that the port is open
5. Buying a Mail order Bride (Was that going to Far?)
6. Possible Financial Freedom like some Smart Bloggers
If you focus on living simply one day a week, and avoid any spending, guess what you can now save the amount you would’ve normally spent. Or if you want to go extreme like me, go on a weekly spending freeze, and save a 100 dollars. It’s that easy folks!
I am a great motivator because I can now sense that in July all of my readers will save some big booku bucks.
“Having savings is a means to favorable end. – Rich Uncle EL”
Comment on anything you would like to discuss about the What is Savings topic.
Previous Poem – What is Wealth
Rich Uncle EL
What a great back to basics post. I especially liked the S-A-V-I-N-G-S acronym. I believe the greatest benefit from having savings is that it gives people choices in life that they may not otherwise have had if they had no savings at all. From my own experience, I'd have to say that having a solid savings / investment plan has given me a lot of financial flexibility on my way to financial freedom.
Take care and have a great weekend!
My recent post The Joy of Being a Dividend Investor
Yes I enjoy creating acronyms like that to motivate myself and others. Yes you must graduate to having savings because then you’re living paycheck to paycheck and nobody wants that. Thanks for commenting Road 2 wealth.
Unfortunately, we have too many savings goals and not enough to go around. The major focus right now is the $25,000 dental implant bill for my husband next year. Meanwhile, I'm funneling $50 a month into the emergency fund (about all we can spare) to help get that up to 3 months' living expenses.
Once the $25k is in the bank, we can focus on IRA contributions which are woefully behind. My goal will be to fully fund a SEP. Once we can comfortably do that, it'll be time to increase our mortgage payment. Once the house is paid off, it'll be saving for a rental property.
Never a dull moment, eh?
My recent post 10 reasons sleep is frugal
Nice plan, and if you have a dull moment life will not be interesting. Save a lot and save often for all those goals. I’ve noticed in the past focusing on 1 goal helps me achieve it sooner, good luck.
I've had a lot more saving success since I broke down my goals into exactly what I was saving for and put time limits on them. I don't succeed every month, but at least I'm aware of where those goals are and can work harder the following month if I need to catch up.
My recent post How to Avoid Blowing Your Car Budget
I believe focusing on 1 goal at a time is a preferred method for surplus cash as you will most likely gain more traction on big goals. If it’s not a pressing goal, it’s fine breaking up cash into various smaller goals. Thanks for the comment.