Why You Want to Save Money and What You’re Willing to Do About It

One of the things I’ve learned along my own frugal journey and through helping others with their financial problems is that the reasons behind living frugally/saving money often dictate just how far a person is willing to go in order to cut spending. I’ve learned that in order to have the greatest chance of success, you must first know exactly why you want to save money because that reason often dictates your savings strategies.

There are many reasons why people choose to save money and/or cut consumption. They may want to pay off debt, save for a specific goal like a car or a trip, create an emergency fund, pay for education, ensure a comfortable retirement, or to reduce their im

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10 Responses to Why You Want to Save Money and What You’re Willing to Do About It

  1. kenyantykoon says:

    i like this post. my goals are big businesses and a sound financial/investment base and so that is what i work towards, i have channeled ALL my money towards these two goals and working hard to achieve them in a specified period. i really dont save money in the bank but look for other investments with the same characteristics as a savings account like a money market mutual fund. instead of money sitting in the bank, i invest it in my financial education and my goals

  2. Adi says:

    I really like the post, I have been a saving person for quite some time now but I never had any specific goal! The sooner I created a logical goal in my mind (the car I always wanted to buy) the better was the visibility towards this target.Now am a much organized person with practically possible goals and I am saving towards it, month on month…

  3. The old path says know where you were, know where you are, and you’ll know where you’re going.

  4. Good post, I have always found that when it comes to goal setting and really making the goals stick that writing every one of them out by hand and keeping them in a visible place helps me immensely.

  5. SMB Kev says:

    The thing I find difficult is prioritizing my saving efforts. Should I be accumulating my emergency fund or trying to max out my IRA or contributing to my money market fund? I guess picking one is better than fretting over which to choose because in reality achieving any savings goal you set is beneficial. The plan to get there though, to reiterate your point, is an important part of that success.

  6. Minny says:

    What many people don’t realise is that money saved gives you freedom and choice. Like paying off your mortgage frees you up from being tied to a life you hate or want to change and can’t. I would rather have something small and paid for than large and mortgaged.

    When I save, every time I look at my bank balance I know that I am better able to deal with what life may throw at me. If my clunker car dies, I am able to negotiate hard for its replacement because I can pay cash.

    So, for me the saving was for that freedom and choice. It gives me a nice warm feeling.

  7. Rick says:

    Good Article.
    Everyone has their motivation for savings. We decided to save more and start paying down our debts when we saw how much we would have to save in order to have 6 month’s expenses. It was a real eye opener. We realized that if one of us lost our jobs for even a short amount of time, we’d be in trouble.

  8. Junebaby says:

    (retirement

  9. This is a good post.

    I never really thought about it this way, but this is very true. Sometimes I think that people don’t realize that if they continue their current spending habits that in the end they will be in a world of trouble (therefore they don’t see “why” they should make a change). So a clear picture must be painted.

    But then on the other hand, maybe some people do know, but are just content with living life one day at a time.

  10. Teamgav says:

    We live in a small house in a bad part of town. We are debt free apart from the house. My partner works and earns our only income. I look after things at home. To the outside world we look as though we couldn’t afford a new pair of shoes but we take our kids on fantastic holidays. How? We save for them.
    Next year we are going on a 10 night cruise around the south pacific. By researching different option and booking early we saved 50%. The booking confirmation is on the back of the front door so everything we leave the house we know what we are saving for.

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