Why Are You Saving?

WhySaveWe can talk about all the tips and tricks for saving money in the world, but if you don’t know why you are saving, you won’t stay motivated. Sure, you may do the easy stuff like putting 5% of your paycheck into your company’s 401(k) without a second thought, but the areas you have to work at, the ones that lead to creativity, a fuller life, and greater wealth aren’t motivation enough on their own.

 

What’s the point of cooking your own meals?

What’s the point of avoiding cabs?

What’s the point of cutting cable?

You have to have purpose to maintain these actions. I’ll tell you my reasons: time and freedom. When I found out about financial¬†independence and the ability to truly be free from a corporate job, something clicked. What would I do with my new found freedom? I would be more confident at work, knowing my well-being wasn’t dependent on my employment. I would use more free time to spend with friends and family. I would use the time and money I had earned to travel, expand my horizons as well as my comfort zone. I would spend more time working on projects that I loved while being able to ditch the ones that I don’t. Money wouldn’t control me any more. That’s my reason and I think it is a pretty compelling one. However, it’s not necessarily your reason.

Take a moment and think about what you want your life to be like in 20 years. Where do you want to be and how can saving money in NYC help you get there?

Do you want to be free of debt? The power of saving is pretty obvious in this scenario.

Do you want to create an amazing mobile app? The faster you save, the faster you can quit your job and fund your efforts.

Do you want to climb the ladder and sit atop your industry? Most people with this goal dismiss saving money as they never plan to quit their jobs. However, the sooner you get to financial independence, the sooner you get to a place of confidence that will allow you to take risks, further your skill set through classes, and be in a position to make decisions at your company that will allow you to rise to the top.

Now, finding your reason, your “why”, is difficult. It can be a process that you’d rather¬†put off. It’s like answering the question, “where do you see yourself in 3-5 years”. Ugh, what a pain in the ass. But more important than any tip or trick in personal finance is figuring out your “why”. It will sustain you and motivate you. It will be the difference between aggressively saving for 3 months vs 3 years. It can cut the amount of time it takes you to be financially independent in half. It helps you reach your goals exponentially faster. Hell, it helps you figure out what your goals even are!

Don’t wait any longer. Find your “why” today!

Ask the Readers: Have you found your “why”? What is it?


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6 thoughts on “Why Are You Saving?

  1. Anna Karin October 27, 2014 at 8:13 am

    I m a 57 year old woman living in Sweden. My Why is, that I have a very low income due to illness and will have an even worse pension when I m 65. So I save about 22% of my income.

    • Mr NYBudget October 27, 2014 at 10:40 am

      Good for you! Keep up the good work. The more you can cut expenses, the more you save AND the less money you need to live once you do hit retirement, so you have a multiplier effect. Best of luck to you!

  2. Danny October 27, 2014 at 10:23 am

    Really good post! I think we forget sometimes why we save, and it’s good to question our thought process at times. Definitely liked your answers to your own question as I think we’re on a similar path.
    For me, it’s a two step process:
    1) Paying off my mortgage in 4 years time (if all goes according to plan). Currently, my savings rate is a little over 50% with a mortgage. I can imagine what it will be like once it’s gone….and a glorious day it will be.
    2) From there, having the ability to choose to continue to work for others I really enjoy working with, or doing my own thing (work related or not). Honestly, I enjoy my current lifestyle and where I am at. However, don’t know if this will change in 4 years time (almost certain it’s a yes), or what my thinking will be. Just want to give my future self more options when the time comes.

    • Mr NYBudget October 27, 2014 at 10:42 am

      Thanks Danny. Wow, that will be an amazing day when you pay off your mortgage. And you have a great mindset. Too often, people wait until they are in a bad situation to save/improve their choices. Good for you for having the foresight to work towards a goal, even when you are satisfied with your current work.

  3. Mel October 29, 2014 at 11:32 am

    I think a lot of people’s why is to be free from their corporate jobs. I just don’t think a lot of people realize they CAN be free. I remember reading about financial independence while I was still working at my last job and it was the main thing that really clicked in my mind and got me starting crunching numbers to see how to achieve it. The thought of maybe not being owned by some necessary job at a crappy company was too good to resist.
    Mel recently posted: How to Save Money on Your Halloween CostumeMy Profile

    • Mr NYBudget October 29, 2014 at 11:59 am

      Great point – as it gains traction, I wonder if it will become a more popular (and more well-known) concept.

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