Saving for a rainy day...

Does that sentence end with a '.' or a '!' or maybe a '?' Why? Is that outfit you bought for a special occasion 5 years ago still hanging in the closet... unused? Did that 'special occasion' never occur or maybe wasn't special enough ... but why? We all do this about some item (whether apparel or tool or - fill in the blank) that we're 'saving' it for. What does this say about our mindset, our attitudes? (I realize that this post is clearly not the expected and probably will be dismissed as meddling... but is it?)

What is a rainy day? Does it ever come? If you don’t know what constitutes a ‘rainy day’ how will you recognize it if it does come... and act accordingly? Is it backup for an emergency? What constitutes an ‘emergency’? Perhaps you are building the funds up to get yourself something special? Does that ever happen? Or do you have to ‘borrow’ from the fund ‘intending' to repay? How did we get into the mindset of saving for later? Why? Or maybe this is a ‘condition’ only of a certain generation. OK - enough of the questions, I think you get my point. 

I remember writing on this subject early on in my blogging life. Somewhat immature? Possibly, but I was intrigued by the concept of saving in the context of a rainy day. Still am. Why do we do this... because most of us do? What are we trying to say? I suspect that this approach was used more often by earlier generations who did this with something specific in mind. The more 'instant gratification' we have become perhaps the less 'saving ...' we do. Then there's always monthly payments......

There are positives and negatives in waiting... and saving. If we postpone the gratification and we stop the seeming unending cycle of 'instant' - that's a positive. Why do you think this country has so much personal credit card debt? Because whatever we wanted... we wanted it now. The 'paying cash' frame of reference stopped being the primary MO decades ago. Proverbs 21:20 

   "There is precious treasure and oil in the house of the wise [who prepare for the future], But a short-sighted and foolish man swallows it up and wastes it."

How we got into the mindset of ... paying over time is so self defeating because 'over time' can be translated and defined in terms of INTEREST. When we use that little plastic card we aren't just appeasing our immediate want... it costs us far more than we realize when that cost plus is in the 20% bracket and above.We waste our future in our immediate because at some point the paying over time consumes far more of our 'dispensable' money and stops our spending. Or does it? Does this, in turn, mean that 'saving for a rainy day' could be the best approach? Oh yes.

Your 'paying over time' should really be not more than 10% of your DISPOSABLE income and your saving at least 10% of your TOTAL income. This way you can get some of the things you think you need/want and yet don't get into the constant paying Peter to pay Paul or overspending. Remember - whoever you are indebted to in a very real way you are their slave. 

I suspect I've meddled enough - but really, how you steward your finances says a great deal about who you are and how you express this. Saving for a rainy day is a kind of stewardship and can provide you with a needed cushion for those unexpected expenses. And at some point... you'll have all the funds you need for the rainy day purchase -  and it won't cost you. Besides... you'll be making interest FOR your future in that savings account. Win-Win.