Money Psychology: Why Do We Have to Save Money?

The BF and I constantly talk about money. I feel like I open up every blog post with this. We can't help it when all we want to do is roll in the dough and take vacations everywhere, but we can't because we have to save money and live in a shack. 

We're huge fans of Netflix, Hulu+ and Blockbuster Express. We get our money's worth out of Netflix at $7.99/month but I am going to be cancelling Hulu+ since most of the shows on there are available for free on the networks' websites. Also, we're homebodies so we like to spend our weekends catching up on lots of TV series. Our favorites currently are: The Walking Dead, Breaking Bad, Supernatural, Sons of Anarchy, Awake, Once Upon a Time, Fringe, New Girl, and a lot more that I can't think of right now. Apparently we watch a lot of TV. 

After we watched all 3 seasons of Breaking Bad through Netflix, we were conflicted with what we wanted to do. That's what's wrong with Netflix. It ropes you in, and then they leave you hanging. After Season 1 of Walking Dead was up, we just had to get Season 2 of The Walking Dead, because Season 1 ended way too quickly. We had to know what was going to happen next. After the 3rd season of Breaking Bad ended, we were dying to see Season 4. Let's also not forget about how I also purchased Fringe Season 1 and Season 2 a few weeks ago! Because of our recent TV series binge, I said I would save up $20 to buy Season 4 of Breaking Bad. 

I mentioned that our PS3 burned out a few weeks ago. Since it was a first generation PS3 and super old,  our only options were to send it back to get repaired ($150) or exchange it for a new PS3 Slim ($120). Not sure why it would be more expensive to repair it when we could just get a new one. This is when I suggested that we save up $120 to exchange it for the PS3 Slim.


BF then asked, "Why do we have to save up if we already have the money?"

I had to seriously think about that one for a bit. I'm not sure if I just like having all of my savings accounts clearly labeled and ready to go for different spending categories like gifts, travel and condo down payment or if I was just making things too complicated. I could understand if you are saving for something specifically, it makes it more rewarding when you reached that savings goal. I also understand if you don't have the cash on hand, then one would be logical to save up. What do you do if you already have savings but still want to save up for something else?

I'm conflicted because I love saving for specific items, but is there such a thing as TOO MANY SAVINGS GOALS!? I should probably just have one "Fun Fund" that I contribute to that encompasses all of these random entertainment purchases. That would solve my first world problems. But it still got me thinking how we can psychologically change our mentality when we are basically just moving money around. It still feels like we are saving specifically for something, yet if you think about it... it's just virtually separated. Sorry, I'm getting way too philosophical for a Friday. Btw, I'm only talking about cash and not investments or retirement funds. Those should be separated to grow interest and all that fun stuff.

How do you determine what you should "save up" for and what you can buy right away with the money you have on hand?


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