How To Save With A Real Purpose
There are many financial advisors out there who say you should save a certain percentage or amount of your income in savings account. This is advised under the notion that saving is a good thing, which it is, but only within the right context. Allow me to explain.
The Intentionality of Savings
Awhile back, I wrote about shopping with intentionality. Why is intentionality so important? Moreover, why is intentionality so important for eBillme? The basis of eBillme is to be intentional about our finances and shop securely and shop debt free. People who do these things are not going about their lives on autopilot. Truly, they are manually checking their bank accounts for eBills, cutting up their credit cards, and being responsible with their money.
Today I want to pose an idea to you: that saving money should only be done with a specific purpose. You should not save money merely for the sake of saving money. Nor should you put money into a savings account for vague reasons. Every savings account should be properly labeled and funded with intentionality.
Why Label Savings Funds?
To be financially successful, it is important to know the next step in your plan. There are a number of financial plans out there, but I’ve personally found Dave Ramsey’s 7 Baby Steps to be the most beneficial. Within the scope of this plan, is it the right timing for you to be saving? If so, what goals are you saving for? You might want to save money to:
- Be better able to fund college.
- Be better able to fund holiday presents.
- Be well prepared for emergencies.
Whatever your savings goals are, make sure you make it clear what the money in those funds are to be used for. Many times, you can actually label your savings accounts with the purpose behind them. For example, my emergency fund is labeled, “For Emergencies Only” – a clear reminder of the purpose of that fund every time I open it.
Why Automated Savings Might Not Work For You
There are many banks out there advocating an automatic savings program that pulls a specified amount of money from your checking account at certain time intervals. This may not work for you if you are intentional with your budgeting style. For example, if you plan your expenses to be lower than your income, the gap that’s created should all go towards savings (if that is your current goal). If your expenses and income are variable month to month, you’ll never know exactly how much you’ll be able to contribute. Therefore, you must manually contribute a certain amount to savings based on what you can afford that month.
Automated savings also might not work for you if you already have an emergency fund and have certain savings goals met. You might be better suited to contribute money to the stock market or real estate. Keep in mind that the interest rate of the typical savings account is often below inflation – you’re losing money in a savings account! The only reason to put money in a savings account is if there is a purpose behind it. Don’t fall into the trap of automated savings with no purpose.
Use eBillme To Boost Savings!
You can take advantage of eBillme’s cash back rewards program to save money that you can throw right into your savings account! Yes, that’s right! You can get a check in the mail and boost your savings! What a deal!
So there you have it: how to save with a real purpose! Saving isn’t something that should be done randomly or without thought. Save for specific goals and design a strong financial plan!
How do you save your money? Let us know in the comments!
Photo By yomanimus
We are curious to know, What did you learn about money growing up?
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