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Savings Calling
By Daphne | May 19, 2008
Your savings are calling you.
There are people who save, then say take the amount they saved and put it into a savings account or put it aside must have extra money. I do not understand how that will really work. If you are looking for a particular item and you only have a certain amount of money to spend, and you luck out on something that is on sale that falls within your budget then you buy it.
When you go to the grocery store and see that there are unadvertised sales or specials on items that you need, that just means that you have more money to keep in your wallet to use for something else. Nowadays, that something else seems to be gas or other groceries.
The strategy to set aside the money that you didn’t spend seems too outlandish and unpredictable. Why not just decide to spend money and then put the amount that you save into an account regularly?
Do not take a chance with your savings by waiting until you “catch” something on sale. The savings plan of setting aside what you do not spend is very flawed. If you wait until an item is reduced or you use a coupon to get a discount, you might not have the full amount to pay, so then you would have nothing to set aside for savings.
You will be in better shape if you decide to save regularly, even $10 a week or so when you have the money in hand or actually available. This way you will have a real not fictional savings plan. This plan is one that you can stick to and your savings will increase, as opposed to languishing until you get the money that you saved.
Topics: May 2008 |
May 20th, 2008 at 2:30 pm
Our family uses Bank of America, but many others have a similar program called keep the change. They round off the change from purchases and put them in your savings account. They will even match the amount in savings, up to a certain amount. I prefer using credit cards as they have some great rebate program. But for people who need help and need to stay clear of credit, the debit card keep the change program is a good alternative. Of course, cash is the best method if you have budget issues.
I’ve enjoyed reading your blog!
Scott