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The Feel Good Factor of Saving Money!

By Will from Holland

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You've heard all the doom and gloom reasons for saving money, such as:

  • You should save for rainy days.
  • You should save for emergencies.
  • If you don't save, you're going to be in bigger trouble than I can cover in this article.

But, what about the fun part of saving?

Saving has a huge "feel good" factor attached to it. Saving money can have a very positive and rewarding effect on you. Saving makes you feel like you've really accomplished something. Using a step-by-step approach, you can turn saving into a series of milestones that help you reach an ultimate goal.

Even the smallest savings program can make you feel good about yourself, and that "feel good moment" can be the start of something big!

What do you save money to buy?

You save money to buy a cool gadget. You save money to go on a fun vacation with friends. You save money to eventually buy a house or a car.

Basically, you save money for you!

Here's what I mean:

You have a nice house or apartment. You have a good job. And you make enough money, so you're able to save a little cash every month. After a while, you've managed to stash a nice amount of cash in your savings account. Perfect!

Now, let's say one of these things happens to you:

  • You lose your job – Not a problem. You have three months worth of income in your savings account, so you can stay afloat while you find an alternate source of income.
  • You get sick – Yuck. Luckily, your health insurance pays for your major medical bills. But, you are able to pay any additional bills that may come up using your savings.
  • You need a new car – You make it up the ladder and get a better paying job, but it's further away from where you live. Your heavily used car won't get you there, so you need to upgrade. Your savings can help you buy a better car. And, that higher-paying job that you're about to start will help you build up your savings account quicker. Brilliant.
  • House repairs - Every house needs maintenance. Because you planned ahead, you have savings to pay for repairs and maintenance—so that leaking tap won't ruin the wooden floor in your living room. Excellent.
  • Little expenses add up - You get a new girlfriend or boyfriend. Great stuff! You use your cell phone rather than Skype to call each other all the time. Your cell bill ends up being twice the normal amount. No big deal. You can fill that gap with money from your savings account and then switch to a less expensive way to maintain that love connection.

So, how do you start saving?

  • Pay yourself first! As soon as you get any money, whether it's your paycheck, allowance, or some other income, pay yourself first. Put some money away in your savings account.
  • Budget properly. If you know how much money you're spending on a monthly basis, you'll be less likely to overspend. If you are very conservative with your budget, you may have some money left over at the end of the month (to put in your savings account).
  • Use our budget and savings tutorial. We've created a tool to help you stay in control of your money and have some savings as well. Go to FoolProof Solo, sign up and work through our four "Burning Money" modules.
  • Additional tools: After checking out Burning Money, be sure to take a look at our other money-saving tools on this website, too.

Forget the doom and gloom and focus on the positive! Having money in a savings account makes you more independent and definitely contributes to your happiness factor.

Head to Burning Money to see if I'm right!

Cheers, Will