One of the problems for the budget-challenged is that unless we can see big gains, we get frustrated. Saving $25 a month seems like chump change and hardly worth the effort because it takes four whole months just to get $100. So, why bother saving?
Well, there are two reasons to save. One is that developing financial discipline is good for the soul. When spending is out of control, you feel your life is out of control, and one really bad problem can have devastating effects. If on top of large credit card bills you have a major repair on your vehicle, you can end up charging something that will push you significantly further along the path to financial ruin. Most of us know this but have a hard time admitting it, particularly when we are in line at the super center with a cart full of stuff. So, beginning to save money is a way of telling yourself that you are choosing responsibility instead of constant stress.
Secondly, sometimes even a small savings can make what would be a huge problem into a slight challenge. Even $100 can make a difference on a dental bill for a broken tooth.
The problem becomes a matter of perspective. The “straw that broke the camel’s back” was one of many light-weight objects which eventually added up to a heavy weight. Saving money works the same way. Even a small amount every week or month eventually adds up, particularly if you can avoid thinking that everything is an emergency. Instead of seeing your savings account as a resource you can pretend you lost a $20 bill and that it is gone forever. Most of us can sustain the loss of twenty bucks.
Savings accounts these days don’t pay a whole lot of interest; nevertheless, the process of saving even a little bit on a regular basis pays huge dividends in the long run.