The Saving Habit

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So when it’s appropriate to start saving money?

Lately I have been thinking a lot about the importance of developing the habit of saving money consistently. It is important to make yourself develop a habit when it comes to saving money. You need to make sure that your relationship with money is very positive.

Just like if you don’t respect your business it won’t respect you, so as your money; if you don’t respect it, guess what? It won’t respect you. Think of money like you think about your business. There are things about your business that you want it to do for you. One, you want it to generate profit for you. Two, you want it to last longer, maybe generation after generation, and to be a multigenerational ongoing business. You want it to bring value not only to your customer, but to you too. Nobody wants to invest on things or projects that won’t help to grow his or her business.

The best way to help you with developing this saving habit is to find a purpose of why you need to save the money for instance. It will force you to want to get into this habit and actually save money, and it’s all because you have a real purpose to dedicate your money to, so that you can accomplish it. To me it makes sense that way. If I need to save 10 percent from my income I need to know where it is going to. If I save it without knowing where it’s going to, I may get tempted to use for something else that may not be a priority, or may not help me achieve some of my goals and plans I want to accomplish in life.

And your purpose can range from simple to complicated goal or dream. One of the examples will be to buy a house, or if you already own a house, you can say to start investing on property investment. To another person could be to start saving on your children college education from early on. For others will be to first start saving for a rainy day and having an emergence fund to cover them for at least three to six months in case they will come to need it, maybe for their personal life or their business. Because sometimes life can happen in ways unexpected, okay…, where in some days you will need your savings to keep things going.

To be able to manage your money very well experts suggest that you should have more than one account. That’s why even bank institutions have variety kinds of accounts to help you with your needs. As some of us know our personal checking accounts should be different from our personal savings account. The same thing should be for your business. Don’t mix business with pleasure, hahaha. You can’t mix your personal and business money activities together.

In accounting there is this system or technique called Departmental Accounting. It is widely used in organizations and companies to help arrange the financial activities based on departments, to have each department or project to have its own financial performance measurement. Therefore you need to departmental your money or funds.

And before you have got to pay everybody else, you need to pay yourself first. Rich and wealthy people pay themselves first. You need to set aside a predetermined amount of money into your savings every time you are paid before using any of that money for your life expenses, and on your spending or giving.

Let’s say maybe you have planned for every of your personal income earning you are going to pay yourself 25 percent and put it into your saving plan. And the rest of 75 percent, maybe 10 percent you are going to tithe, and 65 percent you are going to use it on your living expenses and so on. Therefore, paying yourself first will help you to be in position to have more control over your life and money, on what you should save, invest, and spend. It will help you also to be able to direct your money to some of your projects, objectives, and goals that you have without having them affect your overall lifestyle. It will also help you come up with a budget to fit the lifestyle based on what you can afford.

The banking system nowadays can help us setup automatic transfers, deposits, and savings to direct wherever that 25 percent you want to go; into which saving and investment account. You can decide from that 25 percent what to save and invest on. And you can do it automatically so that you don’t have to touch that money to avoid being tempted to use it on something else. You can even assign a purpose name or a project name for each bank card account. Some bank intuitions they have saving accounts where they won’t issue you a card, and you can only withdraw money three times a year. That will help you not to touch it, isn’t it?

I know there are some people since they were young they have been taught to save. Whenever they had money whether given as gifts or allowances, their parents taught them to save it, and put it on their home piggybanks, hahaha, to use them for something reward able later on. I wish I have developed from early on this saving habit. Let me just say, life circumstance made me learn about the importance of saving, hahaha. Nobody taught me, I figured out on my own in my adulthood that I need to start learning and developing this saving habit for my own good. I learned the hard way, hahaha. I had to learn through the mistakes I made.

You know what? I have come to realize that when it comes to financial matters and having a good relationship with money; it’s not about the issue of spending. It’s really not. It’s all about what you spend on and not really about the spending. Think about it; you can make a lot of money and still end up back to zero because of lack of knowledge, wrong money behaviors and mindsets. You make a lot of money but you empty your pocket with things don’t matter that will only get your back to shortage. But on the other side you can also be very good and strong in withholding money and keeping it, and saving it, but weak in hedging it and use it to make it grow or multiply by investing it somewhere to give you higher interest and investment return maybe because of lack of financial knowledge.

Think like rich and wealthy people. When it comes to making money decisions, make it in terms of business and investment. Spend on things that matter, things that are valid. Invest a portion of your money on assets, on things that may generate you more income, and so on. You want to tell your money how you are going to spend it and not other way around. You don’t want your money to drive your behaviors. Tell your money what to do for you. Tell money go and buy me this asset. Go and create for me this content, because I want to create more money later on through this content and be able to return my investment. You will always spend your money on things that you put on top of the list of your priorities. Therefore, make sure you have your priorities in order of importance.

So when it’s appropriate to start saving money?

Some people start saving since they were young. Some people start saving from their first job. But I think it’s never too late to start saving; you can start even today. If you start today, in ten years you will be where you never been before. You can turn around your life with the choices and decisions you start making today. Start small and work on your way up.


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