When it comes to saving money, it’s often not remotely helpful for you to just save for the sake of saving. After all, making money and then spending that money on your favorite stuff is extremely fun and hits all of your brain’s reward centers. So, why would you choose to put any money aside and not spend it on stuff you want right now?
The answer to that question is the topic of today’s lesson: you need to save for a goal when you decide to begin saving money. What are you saving up for? Let’s take a closer look.
One of the most common goals to save for is, of course, retirement. No one wants to work forever, and everyone loves the idea of someday setting all of their burdens down and retiring to a nice country hamlet. You can’t do that without some money in the bank.
So, think about your retirement if you’re getting started saving. Remember that every dollar you put into a retirement account will spend the rest of your working years accruing interest. After thirty years, that one dollar will have multiplied into quite a few more dollars.
This idea, your money accruing interest for you, should motivate you to start saving this instant. The sooner you’ve got your money gaining interest in your favor, the better. That interest is cumulative, after all! Each extra dollar you earn from interest will in turn help earn you more interest over the next period.
Maybe your savings plan isn’t quite as grand as thinking of your entire financial future. Maybe you’d just like to visit a water park or the beach. That’s okay! Every financial goal can be achieved with the right planning and motivation. Just visualize that vacation when you’re saving money!
Thinking about the time you’ll be able to spend off work and enjoying yourself is often a great motivator for those who are saving for a vacation. Think about how much money you’ll save by not borrowing to have enough money for a vacation!
The same can be said of a goal like saving for a new car or a similar purchase. Buying something like this outright instead of taking a loan out for it can save you quite a lot of money in terms of interest. Keep that in mind the next time you’re thinking about dipping into your savings account!