The Real Reason People Save Money

piggy banks

This morning it was 2 degrees outside when I woke up. When it’s that cold outside, most people tend to want a hot cup of coffee or hot chocolate to warm them up. However, I made myself an iced latte this morning. Most people think I’m crazy for drinking iced coffee when it’s hardly holding a positive temperature outside. The idea of a hot drink does sound appealing, but I honestly enjoy the taste of cold coffee beverages over hot ones — it’s my personal preference. This made me think of other things I choose in life that may make me seem crazy to others. One such thing is choosing to spend less than I make and save money for the future. Chances are that

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8 Responses to The Real Reason People Save Money

  1. Chica Marks says:

    Thanks, Cortni Marrazzo, for sharing your thoughts about why you save money. For what it’s worth I share your preferences and I like saving money too.

    The personal saving rate in your country is very very low, despite the paucity of social safety nets compared to other industrialized nations. Is that because of policies focusing on increasing the divide between the very rich and the rest of us, or is it because most people don’t share your preferences for saving?

    You wrote “There are people that prefer to have all the nice material things instead of the security of knowing the bills will be paid.” If these people, who don’t share your preferences for saving, are numerous enough to bring the savings rate down to or below zero, then why is the consumer spending such a worry?

    I don’t mean to be confrontational — I already stated that I agree with your reasons for saving and share them too; however, it has always appeared to me that Americans spend on nice material things because they have a stash. Obviously my perception is awry in the face of current evidence, and I don’t know why I persist in believing Americans are rich — maybe it’s the inundation of advertising or the full parking lots in the mall or the cars I see on the road.

    “Granted there are no guarantees in life”… a gentle constructive suggestion for you or another on your team of contributors for an article, if one hasn’t been printed already (please someone give me the URL) but what is “enough”? How does one get to the point of being 99.6% sure that they can handle sudden disability, flood/fire/famine, sudden loss of immediate family, sudden loss of job, in a country with a poor safety net and a rough economic future ahead, before sprinkling some disposable income around the community in terms of spending? That’s what keeps me up at night.

  2. A Marino says:

    To Chica: I think that many in the world think that Americans have stashes and that’s why they buy so many material goods. The truth is that their stash is in a plastic card called credit, which is why we are having problems in this country. Many are just living above their means instead of saving.

  3. Well said!

    I try to think of every purchase in similar terms: do I prefer to have this, or to pay down the debt. The fact that I have debt shows (at least in my case) that sometimes I have preferred the stuff.

    I’m not totally against having debt, but my preference for not having debt is getting a lot stronger and that’s what’s really helping me spend less.

  4. Alex Liu says:

    Yup. What you did was crazy for the short term because it’s really not worth it because of those tax policies and people’s habit.

    But when you look in the long term, you are the smart one. Although future is not something you can predict, you are willing to take the risk and be who you are right now!

    Alex Liu

  5. TheWalrus says:

    Hey, nice blog! I grew up paranoid about saving because I know what it’s like to have parents live paycheck to paycheck. It’s a very stressful lifestyle and it leaves the door open for hard times should an emergency take place.

    TheWalrus

  6. jennifer says:

    i actuly think that saving money is important for such and such times like if a car breaks down or emergencies or funds & espacialy for education everything has it’s matter

  7. nabil says:

    I prefer saving instead of just spending the money because surely you are going to face an emergencies situation, so how can you face or pass it if you don’t have enough money.I really suffer by spending the money whole the time . If I have the money.I’ll just spend it. How can I get rid of this proplems?

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