Saving Money: Do You Want To Live A More Enjoyable Life?

Saving Money

photo credit: Steven A. Hill

Saving money should be an integral part of everyone’s finances. It’s not only important to spend your money wisely, but it’s also important to save your money wisely. You need to save as much money as you possibly can to better improve your future.

Don’t you want to live a life free of debt, and with enough money in savings that you can do whatever you want to do with your life?

That’s where saving money comes in. If you use a budget to manage your finances (and I really hope you do), make sure that saving money is a big part of it.

Don’t have enough money to save after you pay all of your bills?

This is something I hear all the time. After all of your mandatory bills are paid, there is simply no money left over to put into savings.

If that’s your problem, then here is what you need to do: start treating savings as a mandatory bill.

I strongly believe that paying yourself first is crucial. When you treat your savings account as a bill that absolutely must be paid, it no longer becomes difficult to save money.

How much you should be saving

Another concern that I hear quite often is this: “I can’t figure how much I need to save, so I don’t bother”. Please don’t let this concern deter you from saving money. Even if you don’t know how much you “should” save, you definitely need to be saving something.

My friend Gail Vaz-Oxlade tells people that you need to be saving 10% of your monthly income, to which I agree. That’s for retirement. If you want to buy a house, or car, or go on a fancy vacation – that’s additional savings.

If saving money is difficult for you, start off by saving a minimum of 5% of your income to put towards your retirement. Once that becomes easy, bump it up to 10%. If you need to, set it up so that your savings is automatically deducted from your paycheck and put into a retirement account (or wherever else you keep your retirement savings).

Not sure what you need to save for?

Everyone has very different savings goals. Of course, retirement is the number one thing that everyone needs to be saving for.

In addition to that, you should also have an emergency fund to help you out if you become critically injured and can’t work for awhile, suffer a job loss or if your car breaks down and needs to be repaired.

Those are the two areas of savings that should be in your budget. If you want to buy something, such as a vehicle, a home, new furniture, or anything of that nature, you will also need to save for those items – separately.

My husband and I currently have retirement savings, an RESP account for our children, an emergency fund, and vacation savings. Up until about a month ago, we also had a house fund. When we want to buy something, like a television, new bedding, or a gaming system, we make the decision and then start saving by putting away a bit of money every month.

Saving money is extremely important not only to be sure you can afford the things you buy, but to simply live a more enjoyable life. Don’t you agree that life would be more enjoyable if you knew you could afford the things and experiences you want?

As William Shatner once said: If saving money is wrong, I don’t want to be right! {Tweet This}

Do you have challenges with saving money or is it easy for you?

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Comments
  1. jo says:

    good article. being in debt puts such stress in your life. personal debt levels are really high right now which means alot of people are under stress right now.

  2. Poor Fat Chick says:

    I love saving. Its become a real addiction for me in ways. I look forward to pay day not because i am desperate for it but i love seeing my savings account growing. I have a seperate account for savings which my boyfriend can’t access (but knows about it and knows what’s in it). he can’t touch it as he is self proclaimed spender and will spend it before we have saved it.
    Right now we have a debt payment fund and a holiday fund. Next year (once our biggest debt is paid we are going to start out retirement and emergency fund.
    What i love MOST about savings for stuff i want (like travelling) is know while i am away i am not incuring interest by paying for it in credit and i don’t need to work it off when i get back..
    I love savings.. probably as much as i love spending those savings LOL

  3. Alex says:

    Great article and good advice.
    I always encourage young people to start saving 10% right from the beginning.
    As time goes by they feel ‘well off’ and their saving habits become stronger and stronger.

  4. Betty says:

    I’ve always been a saver (especially when Canada Savings Bond were paying 19% compounded but I don’t think we’ll see that interest rate for a long time; made enough for a downpayment for a house about 35 yrs. ago)

    For now, I take all my lose change & put it in an empty coffee can. then I take all that loose change & take it to a bank that has a coin sorting machine (easier than rolling it & no fees), take the receipt & put it directly into savings. It adds up.

    Save quite a big by making my own coffee & putting it in vaccuum sealed coffee mug when I’m going out, making sandwiches & lunches rather than going out for fast food. Lots of ways of saving money. It’s worth it!!

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