Saving tough, but reward can be sweet
- B.J. Yoder: Young Money
- May 18, 2021
- 922
Putting together a reserve in case an emergency comes along is always a great idea. This rainy-day fund can seem asinine at the time — money that is only sitting there and doing nothing else — but when the car blows a tire or the air-conditioning at the house goes out, you will be thankful for the extra money you specifically laid aside.
That is for emergencies, but what about the larger things in life you want but can’t afford now? For example, a new car, a new set of kitchen appliances, a motorcycle, living room furniture. There is a way to be intentional in setting money aside for the larger things in life because “when I have the money” almost never works.
I have talked about my piece of junk car in past articles (the one where the gas tank fell off). I knew while I was driving the car it wouldn’t last forever and I would eventually have to buy a new one. So during the period while I was driving it, I was direct depositing part of every paycheck to a bank account I called “car fund.” In this specific situation, I had heard horror stories of how terrible it is to look for a car, especially when the person telling the story was blindsided by the old car suddenly giving out. I knew not having enough money would exacerbate the problem to new heights.
When my car finally took its last breath, I knew I had enough money for a car that would still suit my needs. Then one day I was driving home from New Philadelphia and saw a Cruze (now dubbed Rachel) sitting in front of Sugarcreek’s East of Chicago pizzeria. I was able to negotiate with the owner and buy it without getting a bank involved. This was solely due to looking forward to the future and not being stuck with having to figure out financing last minute when the opportunity arose. I wasn’t making that much money, either, so the money that was set aside every paycheck was slightly painful, but I obviously did not regret it when the time came.
Let’s shift the focus. What are you looking forward to? What seems out of reach or impossible? Dreaming about it will never get you anywhere. It might seem OK currently, but not starting at all won’t get you on the vacation you’re looking to take. As I have said before, every and any little bit helps, even when it feels like nothing is happening. It hurts at the time to have the money you worked so hard for go directly to a bank account you can’t touch, but we can’t always seek instant gratification. The long run can be so much more rewarding than spending that $50 on pants you barely like when you bought them.
Visualize where that $50 could be used when it gets hard saving for the long run. Visualize it could be used one night on vacation to buy ice cream for the whole family, or it could be used to help pay for part of a nightstand that is part of the bedroom set you’re saving for. The “why” doesn’t matter. It’s the fact you know you can stick with the plan to work toward this goal.
Goals are tough, especially when they take sacrifice, but when the finish line is crossed, all those “I should stop saving” and “what’s the point, it’s going to take me two years” thoughts are immediately vanquished. The hard work makes the reward even sweeter, and the hardest goals produce the sweetest results.
Holmes County native BJ Yoder is an insurance agent by day and a finance enthusiast by night. This column is for informational purposes only. He can be emailed at benjamin.john.yoder@gmail.com.