Why do we save?

[Broken Arrow]

I think it helps a lot that I enjoy saving and investing for what it is. So, in a way, I don't think I am depriving myself too much. That said, I recently blogged that I also don't want to give up shooting as a hobby. I'll try to do that as frugally as possible though.

[jIM_Ohio]

I save to become financially independant- so I will have the time to enjoy vacations, family and friends.

I have some time to enjoy those things now. I want more time, most of that time is currently tied up w*rking.

[disneysteve]

Originally Posted by maat55

I've got a few of my ducks in place and working like hell to catch the others.

The ducks can be mighty ornery, can't they?

[disneysteve]

Originally Posted by tripods68

Majority of Americans DO NOT save enough towards funding their retirements or kids college fund, life insurance, let alone enough EF. In fact the US has a negative saving rate of 4 percent. You already mentioned why Americans are broke and will be more in the future because of spending problem of instant gratification in this country.

I'm not sure what your comment adds to the discussion at hand. I'm not talking about folks who are living beyond their means or people who are living paycheck to paycheck. And I'm not talking about instant gratification.

I'm talking about the folks like my wife and myself who live below our means, save for retirement, save for kids' college, have an emergency fund and other investments but sometimes feel guilty about going out and spending money on something we really want because we feel that money could go to increase our savings even more. My point is just that if you are on track for the major goals, it is okay to enjoy yourself some now. Every penny beyond basic needs doesn't have to be sent to Vanguard and Fidelity and T. Rowe. It's okay for some of those pennies to go to Best Buy and Marriott and Disney.

As for that negative national savings rate, keep in mind that retirement savings is not included in that figure. So if you are putting 15% of income into your 401k, you would be recorded as having a savings rate of 0%.

[responduser]

Originally Posted by jIM_Ohio

I save to become financially independant- so I will have the time to enjoy vacations, family and friends.

I have some time to enjoy those things now. I want more time, most of that time is currently tied up w*rking.

In general, save to have a secure future.

[bjl584]

I save for a secure future and retirement, but also for security and peace of mind today. I have enough saved up that if my car breaks down, I can afford to fix it without taking on debt. I have enough saved that if I were lose my job, I have some time to find a new one without using credit cards. Having a disiplined savings routine makes life a lot less stressful.

[maat55]

Originally Posted by disneysteve

The ducks can be mighty ornery, can't they?

Soon as I catch one, my wife lets one go. I don't know whether to shoot the duck or my wife.

[Snave]

Does anyone watch Two-and-a-half Men? We were watching last night and I was chuckling because Charlie Sheen used the phrase "getting your ducks in a row" about something or other and the young kid asked what the heck that meant. Sheen tried to explain and the kid said that it wasn't possible because they were ducks. He said they just move all nilly-willy. I kept thinking about this thread and how we were throwing around "ducks in a row."

[disneysteve]

Originally Posted by Snave

Does anyone watch Two-and-a-half Men? We were watching last night and I was chuckling because Charlie Sheen used the phrase "getting your ducks in a row" about something or other and the young kid asked what the heck that meant. Sheen tried to explain and the kid said that it wasn't possible because they were ducks. He said they just move all nilly-willy. I kept thinking about this thread and how we were throwing around "ducks in a row."

Make Way for Ducklings - Wikipedia, the free encyclopedia

Go visit Boston Commons and you can see the statue of ducks in a row inspired by the book Make Way for Ducklings.

[SnoopyCool]

I'm glad you started this thread. I needed to read it.

[Snave]

They started on the patio and landscaping today! It will take about 10 days or so until they are finished. We are excited and are glad we decided to do it. It will be enjoyable this summer to be able to use it and play in the backyard with our son. That is what we were saving for!

[CreditExpert]

You should be putting saving first, even a small amount can add up over a period for example
If you invest $25/month and your mutual fund get a 12% rate of return, in 10 years you can potentially have $5800. In 20 years, $25,000. In 30 years, $78,000. In 40 years, $297,000.

After saving, then you pay your bills. And finally, you can spend the rest.

I strongly advise creating a budget worksheet for yourself. List everything you spend on a monthly basis and figure out what you can cut out or try something different to lower your costs.

[Snave]

Originally Posted by CreditExpert

You should be putting saving first, even a small amount can add up over a period for example
If you invest $25/month and your mutual fund get a 12% rate of return, in 10 years you can potentially have $5800. In 20 years, $25,000. In 30 years, $78,000. In 40 years, $297,000.

After saving, then you pay your bills. And finally, you can spend the rest.

I strongly advise creating a budget worksheet for yourself. List everything you spend on a monthly basis and figure out what you can cut out or try something different to lower your costs.

I'm not sure where this info is directed. I think DisneySteve commented above that the "spending" that some of us are talking about doing is after all of our other financial duties are in order. I believe the point of the spread was to discuss what our goals were outside of "retirement, college, etc..." that we are saving for. My thoughts are that you should be doing the maximum to save for those necessities such as retirement, college, etc... and also have a savings fund for your short term goals.

[stressedmama]

I save for the big stuff retirement, kids college, etc for security, but I also try to be frugal for future opportunities. If when my boys get to be school age and I decide I want them in private school vs public, I will be able to make that happen since I'm already being responsible saving for retirement and meeting all my other future obligations. That gives me satisfaction and peace of mind knowing that I can take advantage of future opportunities. Plus we'll be in a position to do even more of what we enjoy such as traveling, etc.

[Ima saver]

I save cause I don't want to be a bag lady!!! Actually, we are pretty set, have no bills and can enjoy several hobbies (cars, eating out) without breaking the bank. I think I pretty much have my "ducks in a row"

[Aleta]

I save because I want to be prepared for what will come up in life. I also want to be able to live below my means so that I can decide what is most important to me to spend my money on. Saving up for when times are lean.

[rob62521]

I think what so many of you have said is so true -- save some and spend some. My dh is retiring in September so we have been working to pay off things in the past few years. We just paid off our cars. I watched my parents who worked hard all their lives live in almost poverty and I don't want that. That's why I save.

That being said, I also agree with those who said they don't not spend. I have a friend who makes decent money, but doesn't spend. He's not financially savvy -- he always dreams of making it big in penny stocks and he always loses -- and he comes over and admires the nice furniture we have -- everything he owns is hand me downs. When I suggested he put his money in CD's or a savings account and save some and spend some, he just shakes his head. His clothes are threadbare, his car is old and crumbly, and he likes admiring the new things others might have -- yet he continues not spending and wishing he had things. I think he's going to look back on life (he's not ancient --54 -- and realize he could have had more. His mom fixes up her house and buys things and still saves money. And his brother does the same. Maybe he was dropped on his head in the hospital or something when he was born? :-)

[Aleta]

rob62521 just reminded me of how some people's lives have affected my way of thinking about finances. My step-father made good money but he worked every holiday and worked any overtime they would give him. He would buy quality items but wouldn't always replace them when they needed to be replaced. He had to retire early on medical disablilty at 61 or 62 and passed away at 66. He never enjoyed his retirement because of his illness. Others in the family enjoyed his money tremendously.

My father-in-law, will be 88 this year and never saved enough and also didn't do without many things in life. He has had money problems from his 40's because of his financial ideas.

I don't want to be like either one of them. I want to save but yet enjoy some of the money we have worked for. What's the sense of just saving and not enjoying anything in life? You can do both if you're sensible and have some kind of budget.

[rob62521]

Originally Posted by Aleta

I don't want to be like either one of them. I want to save but yet enjoy some of the money we have worked for. What's the sense of just saving and not enjoying anything in life? You can do both if you're sensible and have some kind of budget.

Who is it who said, "Everything in moderation?"

I concur with you, Aleta, you can do both if you are sensible and have a budget.

[m3racer]

Great thread!