Success is more of discipline, until you cultivate the habit of savings and make it fully part of your life, achieving financial freedom will keep remaining an unfulfilled dream.
Of all financial advice, savings is the first. The importance of saving is rarely disputed; the discipline is just what an average person will find an excuse that makes it impossible. Maybe, the reason you are convinced that your excuses are stronger compare to the benefits you will enjoy saving some of your income is that you don’t know it is more than just having enough money in your bank account.
From observation, the reason people find it difficult to save or don’t enjoy the benefit of saving is that;
- They think they don’t have enough to save
- They never see the reason they need to save
- They save only if they are forced to do so e.g. repayment of debt
- They are inconsistent.
Suggested Reading:
Whichever you belong, reading this will change your view about saving.
- Peace of Mind: So many causes of sudden death are a result of anxiety over the money issue. This is more than earning enough (there will never be enough money) but living below your income and most importantly having some set-aside either towards specific goals or for an emergency. If not for investment purpose which also needs lots of consideration, buying personal assets on debt is not advisable because you will pay back the capital and interest plus your peace of mind. There is happiness derived from buying those things with cash which you can achieve with saving.
- More Level of Freedom: The level of freedom you enjoy is largely determined by your financial status and most especially the flexibility of your sources of income. Aside from the limited freedom posed by your sources of income, you may be compelled to remain working for a long hour or working in the same company for too long just because you have nothing to fall back on. Those who make savings as part of their life whether they have little or enough have the joy to call it to quit when the job condition is not favourable and take time to find a better one. They can even take a break to decide on the next thing they will venture into.
- Become courageous: Debt and unavailability of money steal your courage and force you to doubt yourself. There are lots of necessary decision you will forgo due to lack of savings. Those who have savings do take reasonable risk while those who don’t gamble with their money hoping to get rich overnight. That is a decision out of fear.
- Grab More Opportunities: “Success occurs when opportunity meets preparation” – Zig Ziglar. You could recall how painful it is when rare opportunity surface only for you to run here and there but find no one to race you an amount you could easily afford if you consistently save. That is the time you should have resolved to save regularly no matter how small.
- Create Wealth: You can receive a large sum of money overnight maybe through lottery or inheritance but you cannot become wealthy overnight. If that is true, savings is one major process to wealth creation.
- Positive Attitude: The psychological benefits of savings are even more important. With savings, you have a more positive attitude to win more.
Savings is Natural
If there is any natural law of cause and effect that can make us better financially, it is savings, unfortunately, we consider it to be special for some set of people: people who earn more than enough, this wrong financially ideology is what puts majority in financial repression.
You don’t have to save because of specific set goals. Why that is not a bad idea, what I am trying to say is that you should make savings naturally part of your existence either you earn little or much.
As advised by many financial advisors, you should discipline yourself to save and spend the rest rather than spend and save the remaining if any. If you have not been that, it is not too late. In about five years, your will experience a tremendous improvement in your life with peace of mind than what you have experience in your whole life.
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