I love shopping. One of my favorite book series is the Shopaholic books by Sophie Kinsella. When I worked as the senior community moderator for iVillage’s Money Channel, one of the more popular message boards was for compulsive shoppers. I have lists in Amazon for myself and each of the girls filled with things I want to buy.
Saving is better. We should have three to six months’ salary in savings in case of an emergency. There is nothing quite as satisfying as looking at a large bank balance. Saving isn’t always easy. If you’re living paycheck to paycheck and pinching every penny, putting money away doesn’t fit in. It can be very hard to squeeze any room in the budget for it.
The question of savings versus debt is also a big one. If you have debt then it makes more sense to put any extra money toward the debt than socking it away in savings. Interest rates on savings accounts are low while the interest paid to debt is much higher. The easiest way to give yourself a large break in interest is to pay debt.
Putting aside the need for an emergency fund to get past any losses in income, there’s later years to plan for. We need to save. Is there a way to make saving make sense and easier to do? Yes, start slow and you’ll find it’s not that hard.
Saving is like losing weight. You can’t see the whole picture or you’ll be so overwhelmed you can’t move. Start with a small amount like one-percent. Save that percentage for a few months. Once you realize that you have the room to save, you can add another one-percent. Even though interest rates are low, they’ll compound and add up. Keep increasing the amount you’re saving and watch your savings grown. Then admire the balance.