Many Americans do not have any money set aside to cover a sudden expense and many people struggle with debt and bad credit. We aren’t taught how or why to save. In fact, our society encourages consumerism at any cost. It’s much easier to spend than to save! Savings is a habit, one that we can practice, getting better and adjusting, creating a lifestyle of financial confidence.
Learning to save is crucial to pursuing our goals, finding financial peace of mind, and aligning our spending with our values. It can seem overwhelming if you have never made a savings plan. But it’s never too late to start saving; start where you are.
This week is America Saves Week. ASW is a call to action to commit to savings by making a pledge, setting a goal, and creating a plan. The top savings goals in prior years included funding or increasing an emergency fund, paying down debt, and saving for a vacation or special event. Achieving these goals reduces financial fragility.
The benefits of savings include financial stability, feeling prepared for unexpected expenses, and having more money. Yes, I said having more money! If you have debt or use debt to pay for vacations or emergencies, you are paying interest and/or fees for all those purchases. When you stop paying extra for your purchases and improve your credit, you will have more money to spend as you want! Intentional spending and saving also allows us to feel less financial stress and support our values through our spending.
What are you saving for this year?
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Virginia Asher, MSAFP, CFP®
My whealthiness journey has taught me that there is not one single way for us to live a prosperous life. I'll share what I've learned to help you find your way.