Savings accounts can be established for a specific reason, such as vacations or education.
Recent attention to hoarding as an emotional disorder has raised the question of whether there is any significant difference between saving and accumulating money. While the lines between the two can sometimes seem a bit blurry, there is an important distinction that revolves around the intention or reason for accumulating financial reserves. Depending on the reason for this accumulation, the activity can be considered responsible and productive, or be extremely harmful to the well-being of the person or family involved.
Hoarding money does not have an economic purpose, but simply to obtain as much money as possible.
When saving money, there is usually a specific purpose or intention in mind. This purpose can be short or long term. For example, a family could open a savings account or take advantage of money-saving add-ons to save for their next vacation. Alternatively, a family may choose to constantly deposit funds into this account as a way to save for a down payment on a house, a new car, or some other goal. Saving for retirement is also considered a goal-oriented strategy that is productive and responsible.
Money hoarders can store money in containers scattered throughout the house.
On the contrary, accumulating money has no other purpose than to accumulate financial resources. There is no intended goal for the funds set aside and no plans to use the money in the future. People who struggle to accumulate money often give up their necessities to add a little more to their savings account, like food or clothing. It’s not uncommon for a collector to forego purchasing life or health insurance, although these features will likely be beneficial at some point in the future.
Saving money is usually done with a goal in mind, like paying for college expenses.
Hoarding money implies an unhealthy obsession with accumulating financial reserves. Just as all sorts of hoarding maladies cause people to hoard things they don’t really need, the activity of hoarding money is likely to trigger a burst of good feelings in the short term. This is no different from someone who accumulates goods by finding a bargain and buying at a deep discount. This emotional euphoria is often followed by a period of depression, when he realizes that the effort to save has not produced lasting satisfaction.
Saving money is often goal-oriented, anticipating life’s changes.
For people suffering from any type of hoarding disease, it is important to identify the underlying causes of the activity. Once these causes are identified and the issues that led to hoarding are resolved, the individual can return to a better quality of life. For anyone in the business of accumulating money, this often means rethinking the way you view money and learning how to manage savings and spending in a responsible and balanced way that doesn’t motivate you to forgo necessities or set aside money unnecessarily. establish some kind of end goal or use of that money.