Since When is Saving Money Rational?

Budgeting seems so rational. You merely have to calculate how much you want to have at retirement, look at the number of working years, and save a certain amount per year. Voila! Financial brochures make it look so darned simple – you must be the only one not doing it.

Unfortunately, life, and the human psyche, get in the way. Most people blow their budget at some time – or all of the time. These last few years has taught us we need to save a bit more, and live a little more simply. But the budget behaviors that work for one woman, won’t work for another. You need to understand your own money triggers and how to combat them. Budgeting is not, as the industry would suggest – a “one size fits all”.

For instance, if you like to keep up with your neighbors and girl friends,  you may not have budgeted for the iPhone, or iPad updates every year – or the suit for this season. Your money mischief is coveting the latest and greatest – and always finding a reason to justify it.

Of if you’re more of a bargain hunter, the last two years have just presented way too many good deals that you couldn’t refuse. You’ll probably never get those prices again, so it makes sense to buy now and start saving next year. Except that you love the chase – the deal – and you’ll find new bargains next year you can’t refuse. This is your money mischief.

So if you’re one of those women who bought a budget book and left it sitting on the night table because you just couldn’t find the energy – that’s ok. It’s just not your way. If you’re a woman who has never even thought about buying a budget book – hopefully you’ll at least read this blog – because prince charming just lost a lot of his fortune in the market.

When is saving money rational?

• When it’s aligned with what matters most to you, not others
• When it’s planned for ahead of time rather than impulsive
• When it protects you – like an emergency plan
• When it gets you closer to a goal – like a vacation, a home, college

Carrie Rattle is the CEO and Founder at BehavioralCents. She is an executive veteran of the financial services industry and works with professional women on their mind and money behaviors to help them build an equal voice in the world. Thoughts always welcome: carrierattle@behavioralcents.com.