When you hear the phrase “saving money,” what comes to mind? Take a few seconds to think of a few related words. We’ll wait.
Hopefully words such as “future” and “freedom” popped into your head. But be honest. We’re guessing some words like “restrictive,” “hassle,” and “boring” maybe snuck in there, too, right?
At Simply Money, we don’t want you to think of saving as a chore. We want you to think about saving as a means to an end (in most cases, your eventual retirement).
But we know “saving” can come with negative connotations. So, to help put a more encouraging spin on the idea, we have a unique way for you to look at the money you’re (hopefully) saving on a routine basis: think of it as your “profit.”
Now, doesn’t that sound better?
“Profit” is positive. It signifies a gain. It signifies progress. It signifies that, after all was said and done – after you paid the mortgage, the car loan, the electric bill, the phone bill, the credit card bills – you managed to come out ahead and have some money left over to save for your future. (Truthfully, you should make saving a priority before you pay bills, but that’s a different topic for a different blog post.)
And consider this: corporations are focused on profits all the time. Profits are their lifeblood. Take a page from their book.
Here’s what we mean: every three months during earnings season, Wall Street collectively holds its breath to see how much America’s biggest companies made in revenue, AKA, profit. Profit affords companies the flexibility to pay its stockholders dividends, fund new projects, conduct new research and development, give its employees raises, even invest in other businesses. In this context, it’s not a negative to have extra money left over each quarter.
Simply put, profit helps corporations grow. In your case, your monthly profit can help you grow in a different sense: getting closer to retiring well.
The Simply Money Point
The prism through which you view something will alter your perspective. So, try taking a different viewpoint about saving. Look at saving money as setting aside your monthly profit – and be proud of your accomplishment.
Are you confident you’ll be able to retire well? If not, educate yourself on how best to manage your life and money! Visit our Retirement Resources library for free online video tutorials, downloadable guides, and live events.