Saving money is good. Saving money is something we should all be doing. But is it too far-fetched to suggest that we need not do it 100% of the time? So when is it not a priority to save money?
Here are five reasons why saving money may not be your top most goal. The bottom line is that there could be other ways to put your money to better use!
1. Do you have credit card debts to pay? Your money may go a longer way when you use it to pay off your cards. Why? Because you’ll pay more on interest on an existing balance than you would earn by placing your money in the bank, even if you stash your funds in a top high yield savings account. Credit card interest rates always trounce savings rates. Pay your cards off first and then start saving. You will save more by doing this.
2. Do you have an unexpected bill coming up? Have you got a 0% intro APR credit card whose introductory rate may be expiring soon? Circumstances like this may spur you to pay down your existing balance before higher rates hit. Suspend your savings for a month or two so you can pay off your bill in one fell swoop. Other situations that may cause you to interrupt your savings schedule include emergencies such as an unexpected car repair, a few essential repairs at home, or sudden job loss.
3. Should you pay off your mortgage or other large loans? You may have a personal loan that you’d like to take care of and do away with quickly.
4. Do you need to funnel your cash elsewhere? This extends from the two points mentioned above. Sometimes it makes more sense to use your cash for other reasons than it does to save it. If you owe someone in your family some cash, pay them back first to draw a line under that loan. You’ll feel better and you’ll be able to save more in the future as well without feeling guilty.
5. Would you be putting off an essential purchase in order to save? When we say essentials, we mean essentials. Say you have leaky guttering that you know could lead to bigger and more expensive problems if you don’t fix it soon. Invest in those repairs first and then get back to the issue of saving. If you are saving cash but you are worrying every time you look out of the window and it’s raining, you’re not getting the peace of mind you need.
Let’s be clear here though. Not saving money is not an excuse to waste it. In order to get away without saving anything during the month, you need to have a good excuse why that cash should go elsewhere. All of the above categories are good excuses. Anything less really isn’t.
You should think carefully before saving each month. Ask yourself whether you have any other needs that really should be attended to first. Usually, you’ll know what the answer is. The bottom line is that you should make the right financial decisions for you, based on your personal financial circumstances.
