May 06, 2013

Savings Overload?

Is there such a thing as saving too much? I learned last week that there is. In my haste to put as much as I could into the Emergency Fund, I ended up causing my account to be overdrawn. Thankfully, I check my account daily & noticed it the very next morning and contacted my bank. I explained my error to the representative and was provided with a courtesy reversal of the fee, a hefty $29 dollars.

I decided to re-evaluate my weekly contributions so as to never let it happen again. But I thought about it a bit more and discovered I was becoming obsessed with saving money. It was affecting me on a personal level, I was questioning every single transaction, even if it was actually necessary. I would delay a purchase just for the sake of watching the Emergency Fund grow.

I really had to reflect on this because it was such reckless behavior that I was creating, in fact I was becoming greedy & was hoarding money.  That knowledge slapped me pretty hard in the face. I had to remind myself that the importance of establishing an Emergency Fund of $2500 was not as important as having total financial stability. I am so disappointed in myself because I know better than that. The big picture is what is important.

I figured out that I was trying too many different savings methods at once. I was doing my daily $1 transfer, the 52 week challenge, along with my own weekly contribution. It was just too much! After some long thought, I decided to eliminate my own weekly contribution and just stick with the $1 a day and 52 week methods. These will be plenty to manage without becoming overwhelmed and allowing myself to let greed creep in. Ultimately, the Father is going to be the source for all of my needs, I need to remind myself of that daily.

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