Saving money is one of the most difficult habits to get yourself into. This is because a lot of us have no money to save due to our living expenses being too high, even when using Raise discounts and switching utility suppliers to cut costs. In addition, many of us have not had a pay rise in a while and are hooked on the instant gratification we get from spending money.
However, if you adopt the right mindset, then it’s actually entirely possible to flip your way of thinking and start saving money on a regular basis, especially once you realize how many large expenses are coming your way in the future.
There are lots of different reasons why we might find it difficult to save money, but in this post, the hope to offer you some insight into how you can convince yourself to change your financial habits for the best.
The Idea Behind Saving Money
First, it’s a good idea to speak about why we save money for the future. Let’s explain this by talking about a very common future expense that most of us will have; retirement.
As you grow older, you’re less likely to be able to work. This could be due to factors such as fatigue or physical constraints. As a result, you’ll need to have more savings in the bank so that you can pay for living costs and other necessary expenses. Your reduced level of income could have a major effect on your lifestyle, so it’s ideal to prepare for it by saving money for your retirement.
In other words, the idea behind saving money is for financial security in the face of uncertain times. The current situation affecting the world is a good example of this. Those that have saved money for a rainy day are less likely to be affected by being out of work, but those who haven’t saved likely don’t have a layer of financial security to fall back on.
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Saving Money Trades Present Luxuries for Future Security
There are countless important things to save money for in the future–it’s not limited to just your retirement. It could be your mortgage, your child’s education or even freak natural disasters that destroy your home. With financial security, you can face an uncertain future with your head held high.
Situations like the sudden passing of a loved one can also create a lot of stress. You need to be able to cope with the situation both emotionally and financially. Something like picking grave marker stones for the cemetery can be more expensive than you might think, and you also need to consider the time you spend away from work that might be unpaid due to your employer’s own terms and conditions.
While a lot of people don’t like the idea of saving money for something that might or might not affect them in the future, it certainly provides peace of mind and helps you cope with an uncertain future.
Therefore, you’re essentially trading present luxuries for financial security in the future. For some people, this means cutting back on expensive clothes and technology. For others, it means trying to secure a second job to bolster their income and prepare for situations like the possibility of losing a job.
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Be Mindful When Saving
Lastly, be mindful when saving. Make sure that you have enough to save for the future, but also enough to replace the things you need, as you are going about your everyday life.
For example, there’s a difference between being cheap and frugal that many people struggle with. But in most cases, being cheap tends to reduce your quality of life and create more frustrations and problems in the future.
As a simple example, imagine purchasing or replacing something like a microwave. Even if it’s cheap, it’ll work fine and you’ll feel like you’ve saved a lot of money. However, if it’s cheap to a point that it breaks down after a month, then you’ll need to replace it again in the future.
To make matters worse, it could affect your lifestyle, such as making it more difficult to heat up your prepared meals or making it hard for your kids to cook up a snack while you’re at work.
So, just be mindful to make sure you are balancing your savings in a financially healthy manner.
Final Thoughts
Saving money may seem like a tough or daunting task, but it is a very important life task to do and an important habit to create. If you struggle with getting started, there are so many books and resources online that are available to you such as Think and Grow Rich, Rich Dad, Poor Dad, etc. A simple Google search on Money Management will give you a wealth of resources and information.
