INTRODUCTION

There is no clear answer. When you review what you spend your money on, or save your money for, you’re actually assessing what you value, your personal wants and needs. However, what you want and what you need aren’t necessarily the same thing. By attempting to understand the emotional relationship you have with money and your feelings about spending or saving it, you’ll be better able use money in a positive way to improve your quality of life.

With respect to the impact that money has on our lives, it must be understood that money is a limited resource—unless of course, you are currently a billionaire or your name is Bill Gates, Mark Zuckerburg or Oprah Winfrey. Since the vast majority of us have limited funds, we must make choices—choices on how we use our money in the pursuit of our life goals and in crafting the kind of lifestyle that delivers purpose and satisfaction. However, we must understand that choices have consequences.

The explicit aim of this section on savings and debt is to:

• Raise your awareness and understanding of the differences between saving and borrowing.
• Examine the many varieties of debt and credit.
• Compare and contrast savings vehicles.
• Equip you with debt reduction and elimination strategies.
• Demonstrate when to be a saver or a borrower.

If you are informed about the choices available to you, you will be better equipped to make better decisions, decisions that will play a significant role in your ability to live a life of purpose and satisfaction.