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Redefining Savings: Why Treating it as an Expense is a Game Changer

Updated: Apr 22

We've all heard the saying, "Pay yourself first," but what if we took it a step further and treated savings as an actual expense? Let’s explore the concept of viewing savings as an expense and how it can transform your financial habits. Get ready to shift your perspective and enhance your savings journey! 

Savings: The Forgotten Expense 

Imagine you're creating a budget for the month. You allocate funds for rent, groceries, and utilities. Now, add "Savings" as a non-negotiable expense right alongside these essentials. We often prioritize expenses like dining out or entertainment, but by treating savings as an expense, it becomes a top priority. 

Consider an emergency fund. When it's treated as an expense, you consistently contribute to it, allowing you to be ready for unforeseen financial challenges.  

Just like paying your rent or electricity bill, saving regularly could offer financial stability. It's your safety net when life throws curveballs. 

Goal Achievement: 

Want to buy a car, a home, or go on a dream vacation? Treating savings as an expense propels you towards these goals. 

How to Make Saving a Habit 

Set up automatic transfers from your checking to your savings account on payday. It's like automating your monthly bills. Allocate a specific percentage of your income to savings. It's as essential as any other bill. Make saving for emergencies a non-negotiable "expense." It may prepare you for unexpected events. 

Short-Term vs. Long-Term Savings 

Distinguish between short-term goals like a vacation and long-term goals like retirement. Allocate funds accordingly. Just like paying off your monthly utilities, contribute to your retirement fund or investments regularly. When you hit savings goals, treat yourself. Just as you might for paying off a credit card. 


Treating savings as an expense is a financial game changer. It shifts your mindset, can provide security, and helps turn your goals into reality. Remember, it's not about having what's left after expenses; it's about making savings a top priority, just like any other bill. Start today and watch your financial future flourish. 

Remember! Saving is not a burden; it's an investment in yourself and your future financial well-being. By adopting this approach, you're on the path to pursuing financial success—one "savings expense" at a time. 

The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.


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