What are you saving your money for?? Or maybe I should take a step back and ask, ARE you saving?
Life is a lot easier with savings in the bank (no ####, Sherlock). However, the act of getting around to saving money may be one of the hardest tasks to achieve in life. It can help first to figure out for what — and when and with whom — would we even save in the first place? Accumulating savings can be much more attainable after asking yourself these questions. From here, a “savings plan” can begin to form.
Here are a few typical savings items. Feel free to compare to your current list or start adding your own personal ideas:
- First house
- Bigger house
- College or graduate school (for self or kids/grandkids)
- New car
- Business venture or to expand a business
- Vacation(s)
- Retirement
- Hobby
- ……………………….
This is what “Quadrant #1 of Saving” is all about: Personal Vision.
A wise man or woman once said, “How are you going to know you arrived when you get there, if you don’t know where you are going?” It is the same with saving. Let’s take saving for retirement as an example (but feel free to fill in your own savings item).
There are the “overlooked aspects” and the “standard objectives” of saving for retirement — or really any goal:
Commonly Overlooked
- Are you and your spouse (if you are married) in agreement on the where and when?
- When is the last time you talked or thought seriously about it?
- Have you taken a hard look at your cash flows (i.e. what you spend your money on)?
- What and where will work best with your personality?
Standard Objectives
- Live where you want
- Spend time with family and friends
- Volunteer and contribute
- Travel
- Have fun
- Feel and be healthy
One big misconception at this stage is that there is “a right answer”. There is no perfect, right answer. Of course, deciding to save money in the first place is a no-brainer. But each person’s or each family’s situation, timing — and solutions required — are different. Expert advice is needed along the way and to optimize results and success.