When you hear any financial professional talk about money, one of the most common themes repeated over and over is that we need to be saving, and for many of us we need to be saving MORE! Many of us also heard a similar mantra from our parents when we got our first jobs, “I hope you are saving your money”, or “I hope you are saving enough”, but what is this arbitrary savings thing and how do you know that you are doing it right.
Did anyone ever detail or define the following for you?
- Why am I saving?
- How much am I supposed to save?
- What am I supposed to do with said “saved” money?
- Where am I supposed to save it?
- When am I supposed to stop saving?