The term “savings” is such a high-level, all-compassing one. It can instill fear and loathing in many, while bringing a smile to others’ faces. For too long, I believe many have taken the notion of savings and just thought of it as this existential thing you threw money into and watched grow without taking any action on it.
Now, if you have been setting aside money for “savings”, you’re on the right track. I believe that it is important to set aside money from each paycheck to pay yourself, if you will. Where this can get you in trouble, or just be plain monotonous, is when you’re setting aside money without having any real, actionable plan for what it is for and how you’ll use it. No, simply saying it’s “for a rainy day” does not count.
In a past installment of Daily Dimes, I wrote about one writer that urged readers to look at savings like drawers in a dresser. I believe this is the right start. It forces you to break down “savings” into smaller, more digestible chunks — or goals. While your dressers could take on entirely different meanings, by attaching a picture to it, you can begin to visualize just how setting aside this money will help you in the long and short term.
I was one of those people that used to blindly set aside money for savings, and felt it was pointless since it just grew and grew and I felt bad every time I considered drawing from it. Let me show you how to make your savings more actionable and tangible.