Saving IS doing something with your money
I know you’re all about getting out of debt, and I agree with your stance on that. I started college last month, and scholarships and Pell Grants will pay for everything. But is saving money really that important if you’re young and have a good income? What good does money do you if you don’t use it for something?
Dear Dave,
I know you're all about getting out of debt, and I agree with your stance on that. I started college last month, and scholarships and Pell Grants will pay for everything. But is saving money really that important if you're young and have a good income? What good does money do you if you don't use it for something?
Tim
Dear Tim,
Congrats on beginning college! I'm glad, too, that you understand how I feel about debt. But it worries me that you seem to think that you're not doing anything with your money when you save. Saving money is one of the most important things you can do with your money, because when you save you're planning for the future and the unexpected.
Retirement may seem long way off right now, but think for a second how it would feel to have worked your entire life only to end up broke at age 65. If that thought doesn't scare you, it should. Have you ever seen someone that age, or older, wrangling shopping carts in the rain or flipping burgers at a fast food joint? In most cases, it's not because they love the job and being around people. They're doing it because they have to, because they failed to plan for the future and save some money.
Let's talk about something a little closer. You said you agree with my stance on debt. Okay, so how are you going to buy your next car without going into debt if you haven't saved anything? How will you survive if you get laid off from your job if you haven't saved any money? Bad things happen when people are foolish enough not to save money.
Saving is doing something with your money, Tim. It's one of the most important things you can do with money — for yourself and those around you!
-Dave
Dave Ramsey is America's trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover,EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.