Simple mention of the word “Savings” sends different signals to people’s minds. To some, it brings a sense of happiness and imagination of opulence. To others, it creates fear – fear of changing certain spending habits.
For those who sense fear when the subject of savings comes up, their main concern is that they may be forced to reduce their expensive lifestyle. They are scared of cutting down on certain things.
Indeed, saving is all about self-discipline. It is an unflinching commitment to set some amount of money aside on a regular basis for future needs. In other words, it could be argued that there is actually nothing like savings in the sense that you will still get to spend whatever you keep aside at a future date. You are only delaying your spending.
Hope that makes you feel better if you belong to the class of people that dread savings and investment.
Delaying your spending is absolutely necessary because, at your present stage, you have the means and ability to generate income. There will come a time when that means and ability will no longer be there. At that time, you must have something to fall back on in order not to die of hunger.
That last statement infers that you have to save for old age. Yes, that’s what easily comes to mind when talking about savings. But the idea goes beyond that. Who says you cannot retire early?
Of course you can decide to retire at 40, 50, or any age you so desire and I’m sure you know the condition on which you can conveniently do that – availability of money!
It will never cross your mind that you should stop working if you don’t have enough fund or investment that can keep you going for the remainder of your life. You will rather stay put and continue with the rat race – wake up at 4.30AM; catch a bus or train at 5.30AM; work from 8.00AM till God knows when; sleep at 11.00PM or 12.00AM; wake up again at 4.30AM the following morning…on and on your life keeps rolling like a ball.
Who knows, the pay may be so good. Yes, the salary could be very fat. You collect it at the end of each month but you blow it before the middle of the following month. You start looking forward to collecting another salary at the end of that new month.
One question keeps bothering your mind though. You keep wondering why you are always broke despite the income you earn on a monthly basis. In fact, you always end each month with indebtedness ranging from credit card balance to soft loans from friends.
You are constantly praying that something bad should not happen to you because you don’t have a clue as to where you will get the money to meet any emergency that may rear an ugly head.
Everyone asks you to get married. They can’t understand why a highly paid person like you should be so married to his job instead of a beautiful lady.
Haha! They can’t see your mind. They don’t know how empty you are in spite of the flashy official car you’re riding; the gold wrist watch you are wearing; and the designer shirt you put on.
Boy, you have no reserves!
Well, you may be a married man, anyway. You work hard to feed yourself and your family. But you suddenly wake up one Sunday morning to hear your wife, children, and possibly grand children singing by your bedside, “Happy birthday to you, happy birthday to you daddyyy, happy birthday to yoouuu…”
Gosh! You are 60. No savings!
As someone who has been working for more than a quarter of a century, I can attest to what workers face day in day out.
In most cases, what people see is not real. Many employees are encouraged to live a false life by their employers, friends, and colleagues. When the die is cast they are left in the cold. In fact, it is the same set of people that lure you into ostentatious life that will be the first to start blaming you for being a spendthrift. That’s life for you!
By saving, you are actually spending less than you earn. The earlier you imbibe this culture the better for your future; and for your present life too.
What do I mean by present life? Isn’t savings supposed to be against future years?
Yes, that’s correct. But move closer to someone who has some form of savings or investment somewhere. You will notice how confident and unshaken he is. He is not the fearful type. He can afford to buy whatever he wants. He can “sack” his employer if he so desires. He feels secure. He can afford to go on holiday. His wife doesn’t quarrel with him so much at home. In a nutshell, our guy is at peace with himself.
There are many reasons that prevent people from saving and I’m sure you know some of them. The main reason is that spending makes many of us feel so good. It is an emotional thing actually.
Space will not permit me to go into full details of why people blow away their future, and what they can do to rescue themselves from future financial doom. But you can take advantage of the Money and Wealth resources in the Free Download Section of this site.
Another lovely book has just been added to that section and it is called “The Money Mastery – 10 Principles That Will Change Your Financial Life Forever.”
The book is written by Allan M. Williams, Peter R. Jeppson, and Sanford C. Botkin. It is a money book with a difference and you need to read it if you are really serious about changing your financial life. How best can I end this post than to leave you with this wonderful excerpt from the book:
“A man with savings can afford to resign from his work, if his principles so dictate. A man who can afford to change his work is much more valuable. He can afford to give his company the benefits of his most candid judgments.
“A man always concerned about the immediate necessities, such as food, rent, school, and medical needs, cannot afford to think in long-range career goals.
“A man with savings can afford the wonderful privilege of being generous in family or other emergencies. Emergencies become opportunities for service; they help shape personality and develop character.
“Schools do not teach thrift. Schools do not teach work habits. However, a man with savings can teach his children by example how to have a more successful and worry-free life.
“The ability to save has nothing to do with the size of a man’s income. Many high-income people spend it all, and are forever on a treadmill, always working—never able to rest. Many years ago, the dean of American bankers, J. P. Morgan, advised a young broker, ‘Take waste out of your spending, and you’ll drive the haste out of your life.’
“If you don’t need money for college, a home, or retirement, then save for your self-confidence and you can take a level stare from the eyes of any man, whether he be friend or stranger. Start paying yourself regularly, because the state of your savings does have a lot to do with how tall you stand and how relaxed you walk.”
To your financial health and happiness!