Some Ways To Cultivate A Personal Savings Plan

in #hive-1679222 years ago

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There's never a bulky way to invest or save and this is because people usually procrastinate when they're dealing with huge sums of money or figures. For example, saving translates to setting aside some percentage of one's income or earnings over time but sometimes people think they need to earn more than their present expenditure to consider saving.

This means that many people feel the need to be financially comfortable before they can save which is wrong. Firstly, I think saving is meant to secondarily test one's financial discipline in the face of scarcity.

What does this mean? It means that we're spenders, more than savers but then, cultivating the "saving" mentality would require a choice to be disciplined. We cannot blame ourselves for being spenders and this is because we live in the moment and need resources to thrive, hence we need to take care of today's expenses to guarantee tomorrow.


The Primary & Secondary Aim Of Saving

We should know that one of the purposes of financial education is being futuristically inclined, hence saving is being futuristically inclined even in the presence of scarcity. This is why I say savings is to secondarily make us disciplined towards our finances.

Nevertheless, this isn't the primary aim of saving, the primary aim is to build up bulk money for emergency purposes or for when one is no longer capable of replicating or exchanging their efforts for money, and majorly the way to do so is to save for a long period or get a loan that's most definitely collateral-based.

However, not everyone saves for emergencies, some people do so to guarantee a very comfortable future, but the point is that slashing off one's earnings for a savings plan isn't easy. This is because money is never enough no matter how much we're earning.


The Illusion Of Having Enough

As I said, people always wait for "enough" for them to save, but the truth is, "enough" is an illusion it's a peak that keeps increasing the more we aim for it, this is why there's never a good time to save. Generally, we'd always be faced with financial challenges and the degree of its urgency makes it an emergency.

For example, we don't wait to need an apartment before we start "saving for a new house". However, we might not know our futuristic emergencies but the best way to plan for them is to blindly prepare for them. Saving looks stressful because it isn't intrinsic.

A friend of mine was telling me how he planned to save for his $1000 per annum rents and looking at his plans, it seemed doable. But what made it seem impossible was trying to pay the money when the rent was due rather than planning to pay for it when he had over 100 months left to go.


Saving: A Financial Discipline?

Truth is, people do not like to plan to save it forward this is an act of gross financial indiscipline and the reason for accruing unnecessary debt. One of the reasons why we look at some people and attach a status of "wealth" or "richness" to them is because of their ability to save even in the most unpleasant situations.

In reality, people who save more are the ones who have less to even spend while people who don't save are the ones with more to spend. However, while the former attains longevity, the latter finds it very difficult.

Hence, it's always possible to attach the status of "rich" to the former, because of their ability to manage their finances well. People can save traditionally, long-term or short-term. However, cultivating the habit is what makes a few people thrive in a crumbling economy.


Raising Money For Financial Inevitabilities

Some things are financially inevitable. Some of them are raising money for a business, retiring willfully or unwillingly, or no longer being able to work and these situations can only be salvaged by saving, raising bulk money is difficult, but sometimes people underestimate how much they can save, hence they tend to see futility towards it.

Most Fintech companies, take advantage of people's financial capacities to become rich themselves. For example, I've seen Fintech companies, that provide loan opportunities for people at an affordable interest rate, while giving them the option of providing some of their data pending when they'll pay. In reality, there are more incentives to gamble rather than to save.

Working-class people living on minimum wage are prone to live from hands to mouth and this is because of their inclination to their limited salaries. However, there's nothing as affordable and safe as handling one's savings plan.




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I try so hard to save but the moment I'm strong on it, something happens and I'm back to square one.

I think there's a belief though that comes with savings and not having enough; what happens if something happens to me, wouldn't that money go to someone else.

Something is always bound to happen when it comes to saving and that's why we require financial discipline to actually save. It's not easy, there are emergencies everywhere especially because we don't have abundance. When savings becomes a lifestyle or an attitude it'll become inevitable irrespective of the circumstances.

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This is actually very enlightening, I guess I need to cultivate this habit back because I can't even remember the last time I saved.

Hahaha that might be because you feel you didn't have enough to save.

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How can I save nothing 😆 cause that's what I have.

!1UP


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It's hard to save and the amount you want will change over time. However, once you start and thinking about it long-term, I think it's a lot easier. I didn't really invest much in the start and it's only after I took the time to do the math that I focused on it.

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No one actually saves the amount they want but eventually we can calculate or measure how much we could save overtime. I think having the intention and giving it our best is what's important.

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It is very hard to save when your needs is greater than your income. But the truth is the higher you earn the higher your needs which make savings look impossible. Savings is a mind set that starts with cutting your coat to your size

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It's important to have discipline regarding savings. But so difficult to implement. If you can just commit to put asides $5 weekly, it really makes a difference especially with the compounding effect !

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You are right bro.. nothing like like handling your savings plans but sometimes making this decision can be hard because one has other expenses to look after and doing this we see that it takes us back if we aren't determined

That's absolutely true, until and unless you develop a discipline on savings how much ever you make you will always be broke after some time. I know people have that tendency of saying that who knows about the future or live in present, but what if they see the future in broke condition.

There was a episode in Friends, where Monica's father was telling her about 10% in savings fund when she was fired from her Chef job, so yes that's what the savings will do for you.

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You're absolutely correct. In reality, we always need an external motivation to actually save, since it involves making sacrifices and denying ourselves of that percentage we could have enjoyed at the moment. Since savings can be for futuristic purposes, sometimes we're not so sure if it'll be worth it .

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