Finance 101: Part 2 – Saving

Part 1 of the ‘course’ laid out the concept of patience, and its importance to creating finance.  The link between patience and finance is through 2 principal concepts:

  1. Saving – when I’m more patient with what I could consume, or have more than I need to consume.
  2. Borrowing – when I need to consume something I don’t have, or when I’m impatient to consume now.

Let’s discuss the first concept.


As a verb, saving implies a flow; that is, I’m envisioning a somewhat continuous flow of extra money from a regular pay check.  Those with lump sums, stay tuned.

Why are you saving?

This is the key question, in my mind, when answering how much to save and where to save it.  In the CFA (Chartered Financial Analyst) world, they speak of an ‘Investment Policy Statement‘, which is essentially a formal plan beginning with the goals of the investor – essentially, why are you saving?

How to save more

There are numerous ways to learn to save more.  Most things come down to being more patient with what you have, and what you think you need.  One of my favourite blogs about day-to-day savings is The Simple Dollar, or Money Saving Expert in the UK.

Hmm… this entry could go anywhere.  I’ll leave it for now, and revise as more ideas come to mind – suggestions welcome.


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