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What's the Difference Between Saving and Hoarding Money

and It's Effect On the Quality of Life

By Jaymie SuhPublished 4 years ago 4 min read
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What's the Difference Between Saving and Hoarding Money
Photo by Viacheslav Bublyk on Unsplash

Saving money is a must for everyone who wants to have a secure financial future. However, some people are no longer practice the sacred way of saving money. They are already just hoarding money without a goal where to use it. Saving money is an action that you do to have enough for your future. Hoarding money, on the other hand, is already characterized as obsessive-compulsive behavior. Just like other hoarders, people who hoard money don't have real control over their finances. Therefore, the reason for saving money is not apparent. Below is the difference between saving and hoarding cash so that you can classify which category you fall into.

What is the Difference Between Saving and Hoarding Money

1. Purpose of Saving

Hoarders don't have a real purpose why they are saving up their income. They want to add up money into their savings account. It makes them feel good to keep on adding more to it. However, without a clear goal in mind, you are merely hoarding money, not saving it for the future. Saving money needs to have a purpose. It can be for your next trip, expensive future purchase, retirement, and other life events. If you have a goal to achieve in mind, saving money will feel better as well since you know that you are keeping it for the future.

2. No Specific Saving Goal

Without a specific saving goal in mind, you cannot decide how much will be enough. Hoarders will keep on saving their income and see it grow over time. Adding more and more money into his savings account is like second nature. However, the money will keep on growing without a plan where to use it. Having a specific saving goal will provide you an exact figure of how much you need to save. For example, youre saving to buy a brand new car. You have a way to know how much it will exactly cost you. Once you have the exact amount, you can set your savings goal on how you can have that amount for a specified period.

3. Spending Gets Stressful

For hoarders, spending can get stressful for them. They dont want to spend anything even if they need it. It's not wrong to be thrifty if you're on a budget. But if youre following a budget to save 80% of your income, you have to question yourself right away. If you have a saving goal in mind, you can fulfill it every month. You dont have to stress yourself too much if you need to buy something. Sticking with your budget is not a bad thing. But allocate a certain amount for your needs to ensure that you can save and maintain your lifestyle.

4. Feeling Bad About Paying Needs

Everybody needs to pay their bills one way or another. But hoarders feel bad about paying for what they need. Suppose you keep on holding off paying your bill to hold that money, youre doing it wrong. If your monthly bill reached it's due, you would end up paying more money to it. People who have a healthy financial status dont need to feel bad about paying for what they need. You have to do the income minus savings equals expenses strategy. If you are putting enough money on your savings account, there's no need to feel bad when you have to pay for something.

5. Anxiety In Making Money Decisions

Money hoarders will feel anxiety whenever they have to make money decisions. If you cant think about anything but money, then you might have a problem. It's not wrong to try to find a cheaper alternative to save money. But dont compromise the quality over price, or you'll end up buying a replacement. Being money smart doesn't always need to be about the price. People who are wise with making decisions about money dont compare the price tag alone. They examine the quality of the usual brands and decide if it's alright to go for the generic brands.

6. Hiding Your Financial Status

Being flashy is not cool, but if youre trying too hard to hide your financial status, that's another story. Money hoarders even pretend to be broke also if they have a lot of money on their savings account. If having a lot of money is not doing well for your mental health, it's best not to have it at all. There's nothing wrong with enjoying what you worked for. If you are used to being frugal, that's good too. But you dont have to hide or worse, deny that you have an excellent financial status. Being poor is a different thing from acting like poor with a lot of money in the bank.

7. Affects Quality of Life

Saving money for the future is good practice. But if it already affects the quality of your life, you need to reassess. Spending on your needs is a must, and if you have more, you can even treat yourself. But if you have the right amount of saving in the bank and want to eat out in a fancy restaurant sometimes, dont stop yourself. You deserve to enjoy every once in a while. Or if there's an occasion like birthdays to celebrate, have a party! It will not take all your savings fro enjoying life sometimes.

8. Suspicious About Other People

A severe case of being a money hoarder may become suspicious about other people. They think that they are just friends with them so they can get money from him. Seriously, that's a miserable thing to think about! If you or your loved one display this behavior about money, it's time to get some help. Just relax and know that nobody can get your savings without your consent. If having a lot of money in the bank makes you anti-social because of your suspicions, that's not healthy anymore.

Conclusion

What is the difference between saving and hoarding money? The difference between them is the purpose of saving money. Hoarders don't have a purpose why they are adding more to their savings. They don't even enjoy spending their income that will provide them a better lifestyle. While saving money has a purpose, and it doesn't mean giving up living a good life.

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About the Creator

Jaymie Suh

A highly regarded writer known for her insightful and engaging content. With a passion for storytelling and a talent for crafting compelling narratives, she has made a significant impact in the world of online writing and content creation.

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