The difference between saving money and accumulating or investing money

With the recent focus on hoarding as an emotional problem, it's worth considering whether there's a substantial difference between conserving money and hoarding it. While the distinctions between the two scenarios may appear to be blurry at times, there is a key distinction that focuses on the purpose or cause for the accumulation of financial reserves. The action may be regarded as responsible and beneficial, or severely destructive to the well-being of the individual or family involved, depending on the purpose for the accumulation.

When it comes to saving money, most people have a certain goal or plan in mind. This can be a short-term or long-term goal. A family, for example, might create a savings account to put money down for a vacation. Alternatively, a family may decide to make regular deposits into that account to save for a down payment on a home, a new automobile, or another objective. Saving for retirement is also regarded as a productive and acceptable goal-oriented technique.

Money hoarding, on the other hand, has no other goal but to amass financial wealth. There is no planned use for the funds that have been set aside, and there are no intentions to use them in the future. People who are in the business of saving money would sometimes forego needs such as food or clothing in order to add a bit more to their savings account. Even though these resources are likely to prove valuable at some point in the future, it is not uncommon for a hoarder to forego getting health or life insurance.

Hoarding money denotes an unhealthy preoccupation with building up financial reserves. In the same way that all forms of hoarding illnesses encourage people to hoard things they don't need, hoarding money is likely to produce a rush of positive emotions in the near run. This is similar to someone accumulating possessions when they locate a good deal and buy a lot of stuff. This emotional high is frequently followed by a time of melancholy thinking when he recognises that his efforts to save have yielded little long-term satisfaction.

It is critical to understand the underlying reasons of hoarding disorder in persons who are suffering from it. Once the causes of hoarding are identified and the circumstances that led to hoarding are remedied, the person can resume a higher quality of life. This often means rethinking how you view money and learning how to manage both saving and spending in a balanced, responsible way that doesn't motivate you to go without necessities or put money aside without establishing some kind of purpose or eventual use for that money for anyone in the business of accumulating money.

In summary…

We are to use money not to hoard it. You can save it, definitely invest it but never spend money or hoard your money. Again, USE MONEY.

What strategies have you used to inspire positivism in your students? What was the outcome of this motivation? Please tell us about your experience!

With love,

coachAOG