10 April 2008 No Comment Print This Post  Email This Post

The Wall Street Journal’s personal finance columnist, Jonathan Clements, is leaving the paper after 14 years and 1,008 columns. The WSJ published his farewell column yesterday, and it may be the clearest explanation of why saving money is a good thing that I’ve ever heard.

Clements doesn’t advocate building up massive savings so that you can go retire and do nothing. He says that doing nothing gets boring after only a few months, and I have to agree with him. I can’t actually think of a single healthy retiree that I know who honestly sits around doing nothing. Some volunteer, some start second careers, some even go back to school — but they do keep active.

Instead, Clements’ last column is written to get us all thinking about what our savings really can do for us. Rather than funding the ultimate in sedentary lifestyles, Clements suggests our savings should do exactly three things for us — whether we’re wealthy or just scraping by.

1. Having money should allow us the luxury of not worrying about money. Building up savings, no matter how much, and generally living below our means reduce our need to worry about money problems.
2. Money should give us the opportunity to follow our passions, whether working for a worthy cause or learning a new language. We shouldn’t have to retire to get this benefit, either. I know a certain portion of my savings is earmarked to give me the opportunity to spend time on things I enjoy.
3. Lastly, money should buy us time to spend with our families and friends. Our friends and families make us happy and make life more enjoyable. And what’s the point, after all, of working if we’re going to be miserable?

I think it’s pretty clear that I agree with Clements’ opinion on the reasons we should make the effort to save. I think these three points show us a life that’s simply worth living — less worry, more enjoyment — and worth striving for.

Both Clements and I admit, though, that money is not absolutely necessary for any of these three benefits. It’s simply a tool to make them easier. You don’t have to save money in order to afford time with your family — but it can make the experience easier to manage. So can earning more, or living in a frugal manner. Your personal finance path is just that — personal. But I do think that these three points are worthy goals, no matter how you reach them.

Thumbnail image by Enrico Fuente