An Ode to Savings

An Ode is a poem in praise of a person, idea, or event. Now, I don’t know how poetic this piece will be, but I hope it’ll still resonate within you as high praise for the unsung hero of finances: Saving for saving’s sake.

I’m not talking about saving for a car. Or saving for a down payment. Saving with a specific goal in mind is great, and an important way to keep from misusing credit card debt.

But savings is more than that. Savings is the bedrock of investing, and growing net worth, but it is so often overlooked.

Even Ben Franklin said, “A penny saved is a penny earned.” It’s hard in today’s world to resist the temptation of Spending. So when you manage to save money, it’s true – you’ve earned it.

Remember this:

Savings, savings, savings. Savings saves the day.

Photo by Damir Spanic on Unsplash

The act of monthly savings is short term protection.

If mayhem strikes and you need to buy new tires. Or if mayhem blows a leak into your roof. Or if mayhem increases the prices of common goods like gas.

Your savings rate protects you from it all.

With prices rising due to inflation, many people across the country are getting squeezed. A weekly $20 spend for gas quickly went to $30, and in some cases doubled to $40. Those who did not put money aside suddenly found themselves at the end of their rope, and forced to make difficult and uncomfortable decisions.

However, those with a savings rate built in had an easier decision. In times when mayhem strikes, the first thing that can be adjusted in a budget is the savings rate. With their savings rate, these savers have bought themselves time to adjust!

Even in retirement, maintaining a savings rate protects against inflation. Without continued savings, a retiree needs to dig into their nest egg. And each dollar pulled from their retirement accounts becomes one dollar less that can grow and generate income.

But with continued savings, retirees build in the ability to adjust their retirement expenses to things beyond their control.

Savings, savings, savings. Savings saves the day.

A savings account provides medium term protection

The first thing to build up would be a savings account. Studies show that 56% of Americans have less than $1000 dollars in savings at any point in time.

With inflation rising, how long do you think $1000 would last?

When savings run out, what do people turn to?

The ugly truth is that people turn to pay-day loans and credit cards to tide them over. And those strategies, with their exorbitant interest rates, cut people off at the knees.

Building up a savings account builds that buffer.

I’ll never forget the first time I experienced the difference of having an adequately built savings account. I was going to grab lunch with a friend. I sat in the car, turned the key, and nothing. The car wouldn’t start.

The battery, I realized, was dead.

A year earlier, I hadn’t had enough in savings. I would have panicked. A new battery can cost up to $250. When unexpected expenses came up, I still remember that feeling of dread. My breath caught in my throat. My jaw would clench.

How was I going to cover it? Could I afford to take a day off of work to get the situation resolved?

However. That was a year ago. I’d built up a savings account. I knew how much was in there, and I knew that even after the expense, I’d still have enough left to cover anything else that came my way. Mayhem didn’t stand a chance.

All I felt was disappointed, and a bit annoyed that I’d have to take the time to go buy a new battery.

What a difference one year of saving had made!

Savings, savings, savings. Savings saved the day.

Savings builds your long-term future

For so many people, the focus is on investments. What stocks should they pick? Should they invest in crypto?

But for most people, investment strategy is built on the back of savings.

Savings comes first.

Once you’ve built an adequate savings account, investments are the next step.

Your savings rate can then go towards building up your portfolio.

Start as a Saver, become an Investor.

Become an investor – don’t just work for money, make money work for you.

Once money works for you, you’re on the path to financial independence.

But remember, it all starts with savings.

Save first. Save for the sake of saving. Save money, so that one day, money can save you.

Savings, savings, savings. Savings saves the day.


If you’re ready to become a Saver, click here to sign up for a FREE Bronze Account and take our Free Financial Check Up. A licensed financial advisor will reach out to help get you make progress on your financial journey.

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