Saving money is awesome. Sorry, but no matter how wealthy I become I will never enjoy the feeling of spending money as much as I do saving it. Some people would say this makes me cheap. I think this makes me smart. If I say so myself.
The thing is, if you are randomly saving with no goal in mind, the saving/spending line becomes kind of blurry. You may think, "oh, I have money in savings, I can spend on this <insert frivolous item here>." Or you may think, "I have X amount in savings, I can take out $1000 and get a new <insert frivolous item here>." You might even lose motivation to save altogether, because your savings account just sits there doing nothing. Your checking account? Now that's exciting. That gets you stuff. That account sees some action.
I've been there, and my savings have suffered for it. When I moved here to Boston five years ago, I had over $5000 in savings and no job. I had nothing but time on my hands and cash in that savings account. And wouldn't you know it, that savings account was all but gone in a matter of a few short months, and I really had essentially nothing to show for it, except a supreme feeling of guilt and shame. In that time I could potentially have doubled that $5000; instead, I squandered it.
It wasn't until I set a savings goal for myself -- to save enough cash to put 20% down on my first home to avoid private mortgage insurance -- that I saw the savings begin to stack up. My husband also came on board. A former non-saver, this savings goal helped clarify for him why he was saving, giving him more motivation and momentum. Every time I check our savings balance and give him the update, I can see in his eyes his excitement and pride at how we are managing to go from being over $15,000 in debt to being at 54% of our savings goal... especially considering we did it in 2.5 years and despite my job loss and having our first child, things that can drastically reduce your income.
There is no trick to it; we are not special. It's literally just asking yourself things like, "what do I want more? To buy this trinket, or to have a house of my own?" The answer comes easier and easier each time. There are techniques that help, of course... things like menu planning, combining coupons with sales, buying generic, reducing trips to restaurants, etc. But we have definitely found that having a stated savings goal is absolutely fundamental in keeping us focused and motivated.
The goal could be anything! Maybe you want to save for your children's college, or a home improvement, or a sweet vacation. Maybe you want to save cash for a car, or for a new camera, or a day at a spa. Whatever motivates you is what's important, because you will be the one saving!
So let's hear it, what are YOU saving for?