Sunday, 1 May 2011

Journey or Destination?

Saving is the journey to a destination or it it?

This is how I have always considered saving to be, I would have a goal or destination and then I would put aside money weekly, monthly etc until I had arrived at the goal amount. Always short term goals - usually saving for a trip or the latest gadget but there was a start and an end. I always had part time jobs when I was growing up - I was from a family of five kids and as a solo parent my Mum couldn't afford to give us pocket money. I paid for all my school stationary and school trips from aged about 12 years old onward. After leaving school at aged 16, I went straight into work and paid board to my Mum and was responsible for all my own finances from then on.

Is the journey about debt and not credit?

I got my first cheque account at aged 16 years but I didn't really do much in the way of saving at all. When did I get my first credit card, I really can't remember, I guess it didn't mean that much to open a credit card account. But I had one once I had started travelling around the world and good thing too as I had a couple of emergency's in my travels. But the bills were from then on always there waiting when I got back home. I would load my credit card before a trip, the idea being that the credit on the card was for emergency's but I always ended up spending my emergency money too.
From then on my 'saving' were going to pay off my credit cards and then my consolidation loans and then both my credit cards and consolidation loans. I had a destination or goal, the balance on my card and the journey to pay it off. Lots of journeys for lots of different accounts.

So where does the journey lead too, what is the destination?

Having just cleared all my debt I have just arrived (again) and it's a strange new world. Suddenly I have money in my current account with no where for it to go. Oh don't get me wrong I have a plan, a budget and goals but now I need to find places to put that money. I no longer have multiple credit card accounts to put my money in so there for I need to start looking for saving accounts with all the care I put into finding the best credit card deal.

The journey is over and now I must adjust to living in my new world, to learn the new customs and traditions that are practiced here. Already I am trying to fit in by opening a regular saving account but I know there is more to do and this week, for the first time in along time, there will be a credit balance left over after all my monthly expense have been taken out of my pay cheque.

I have ear marked this to be put towards my emergency fund but will need a new saving account to put this in as the regular saving account I have doesn't allow withdraws for the first twelve month. Should I have a saving account for only my emergency fund and a second saving account for other savings or just one account and save everything together?

I'm new here and am looking for advice!

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