Ask Leo - Are you saving for the future or saving for your present needs?
For many people, saving for the future is an abstract notion. How can you save for something that's not even guaranteed? What if saving for the future doesn't work out? It pays to compare your goals with your current situation. If you have a present need, odds are good you can meet that need with a small amount of savings. If you have a future need, you'll need to save more and put those savings in a different place.
This is a question that I ask myself every day. To be candid I don't like to think about the future, so I don't save for it. I save for my present needs only. I don't have a lot of money to invest, so I don't have a lot of money to save. I only have a few things that I save for, like my health, insurance, my emergency, and save for my own education. I am not sure if I am saving for the future or saving for my present needs.
Let me dive into the difference between saving for the future and saving for your current needs. For example, if you are saving for your future, you will find it difficult because you will want to save more than what you spend. But if you are saving for your present, you will consider to save less than spending.
What's the difference between saving for the future and saving for your present needs?
The difference between saving for the future and saving for your present needs is that saving for the future uses your money for a future goal or goal that you know for sure that you will achieve. Saving for your present needs uses your money for a present goal or goal that you do not know for sure that you will achieve. Saving for the future is a long-term strategy and saving for your present needs is a short-term strategy. However, saving for the future may be risky because you might never achieve your goal, but saving for your present needs is less risky because you might achieve your goal.
Infact the two "present need and future" might be a difficult things to do. But when I understand saving for future is much more important I changed my mindset towards saving for present need and look forward to save for future because it will help me get a better life, even if that means I have to wait a little longer to enjoy it. Saving for the future will also help in the present to get money for the things I need in the present. Saving for the future will help you to have more money in the future.
Can you see it work in the two way, so what is your thoughts on saving up for present need and for the future?
Thank you for your attention ๐๐
Posted Using LeoFinance Beta
