Saving

Feb 25, 2008

Spending is not optional, but how much you spend is...

Last Tuesday on my way home a little late from work, I decided I was too tired to prepare dinner. Instead, I did what most Americans do these days: I stopped at a fast-food restaurant and bought some overpriced fried potatoes. Even though a 10-pound sack of potatoes is about $3 at a grocery store right now, I guiltily shelled out $4 for less than a pound of fries.

Like the next guy, I am sometimes willing to pay out a little extra for the convenience of prepared meals for me and my family. But the real danger is when we begin to pay more out than what we have.

Even worse, few of us are saving what we do have. The U.S. Department of Commerce frequently keeps us posted on how Americans are saving less and less; in fact, today we have a negative savings rate. That means our debt is ballooning as our savings deflate. The Federal Reserve reported that Americans hold more than $800 million in credit card debt. For me, this means that I need to stop charging my french fries to my Discover Card. It's time to start saving.

Like a quit-smoking campaign, United Way and Utah Saves would like to invite the community to quit spending so much and save a little each month. Save a little money to pay off some debt, save a little more for retirement and try to save more instead of spending more. Better saving habits can help us pay off debt, prepare for retirement or establish a college fund for our children. Saving will not only curtail short-term social issues such as hunger and homelessness, it will also result in more self-sufficiency, better retirement, a more educated work force -- all long-term goals that will prevent drains on our social service programs.

The goal of Utah Saves and United Way is not to encourage saving at the expense of ruining our credit, but rather saving to improve our financial health. Even with a limited income, saving each month can be accomplished.

I am a classic example -- saving hasn't always been that easy for me. Like so many of us, I lived paycheck to paycheck, and I found it difficult, if not impossible, to try to save. I didn't need money in the bank, I needed it pay bills to avoid late fines. Either with a limited income or with the luxury of a comfortable salary, I know that everyone can be a saver.

I set up an automatic transfer from my checking account into a savings account once a month. Granted, sometimes I transferred it right back into checking to avoid an overdraft fee, but the best part was I had a little in savings to help me avoid those fees. Because I still like to eat out, I found the restaurants that offer "kids eat free" nights -- so now I am saving while spending. In addition, to save up for a vacation, I buy gift cards to hotels in advance; this way I am not tempted to spend my vacation savings, nor do I just put the entire hotel purchase on a credit card.

United Way invites you to join with the thousands of Utah Savers and get started on the path to financial freedom as you learn to save, and spend, more wisely.

For me, I stopped buying french fries three times a week, and bought a sack of potatoes instead.