Saving With Purpose
Several years ago, my wife and I were in New York City. It had only been about nine months since I had brain surgery and I was still very unstable. Sometimes I wonder why we took that trip because it took all I had to stay upright and she was holding onto me with a bear grip the whole time to keep me steady.
We were walking down 34th street and trying to hug the buildings to stay out of the way of pedestrian traffic as much as possible. It was a sloooooow walk.
Before long, a group of three teenage girls walked by and one of them glanced over her shoulder and said “Walk.With.Purpose.”
She had no idea what I had been dealing with.
What’s Your Purpose?
I think about what those girls said that day as it relates to savings and it takes on some significance.
What is the purpose of your savings?
Actually, there can be many reasons for saving. Some good and some bad.
What could be bad about saving?
Well, biblically speaking, I think about Luke 12:13-21 “The Rich Fool” who hoarded money and possessions. Greed to the point where you have more than you know what to do with but only want more isn’t a good thing. What’s the point? When you die, you aren’t taking it with you.
There are many good reasons to save though. In today’s society, it’s important to save towards retirement so that you can have the life you want when and if you decide to stop working. Ask around. It’s tough to live a decent life anywhere on social security alone.
Emergency savings are important to cover those unexpected events that always seem to come our way. However, $1000 can cover just about everything that can go wrong. It doesn’t matter if the A/C in your house goes out or your car breaks down. Unless the car engine or transmission is gone, you can pretty much fix just about anything else with your car for $1000. Broken windows in your house, repairs to you air conditioning and even a water heater replacement can be covered by that money.
These types of savings are for a specific purpose. Want to take a trip to another state? Save some money. Buying new living room furniture? Save something for that. Kids college? There are accounts for that too.
What Should I Save For First?
I would think the emergency savings would come first. Having that account allows you to fix just about anything without having to go into debt using a credit card. The alternative would be to use a credit card instead, which only means paying interest that could have been planned for in advance.
Don’t have an extra $1000 laying around for an emergency fund? That’s ok. Start where you are. If you can save $100, or $50, or even $5 this week, start there. Put the money aside and next week, work on adding more to it. Even at $5 per week, at the end of a year, you’ll have $260. That’s a whole lot better than having $5 and your car needing new tires.
What do you do to save money? What is the purpose of your savings?
Save. With. Purpose!
If you need help with the purchase or sale of a home, reach out to me for more information about how I can help you get where you want to be.
I’m never too busy for your referrals.
Ebby Halliday, REALTORS®