You might be wondering why on earth I would choose to focus on savings three weeks before Christmas! Surely it can wait until January when some are living frugally and more willing to take advice on handling their finances. Now is as good a time as any.
As far as I am concerned, savings are not just for a certain period in our lifetime – they should be ongoing. I am a saver (as you probably have guessed) and my wonderful husband is more of a spender. It works as we complement one another bringing a healthy balance to our marriage when it comes to our finances. I maintain our expenditure which as you know fluctuates on a monthly basis. I use a formulated Excel spreadsheet which I cannot praise enough. At a glace you can identify your expenditure and what remains as your disposable income and savings.
If you currently save then good on you. You or your family members will most certainly reap the rewards in years to come.
If you are not a saver, I urge you to consider this. I suggest you split your savings into three;
1. Long term – a lump sum for your children when they go off to university, investment for retirement
2. Medium term – A holiday of a lifetime, an expensive clothes or jewellery purchase
3. Short term/contingency fund – weekend breaks, birthdays, Christmas, car repairs, household repairs (if home owner)
You can start by looking at your disposable income and choosing a realistic figure to save each month. Resist the urge to become over zealous and save more than you can comfortably afford. You would only end up dipping into your savings when you run low or feel you deserve a night out/a new top – are you getting the picture? I would advise you set up a standing order to ensure the money is transferred on the same day of each month.
Do you regularly save?
Who or what influenced your decision?
Perhaps you have some tips for newbee savers
organisedlady 
Phoenicia — a very important topic. I feel I should have saved more while I was still working full time. In addition to saving, though, you have to watch where you make your investments. I invested in my first business and it was a loser. I did it too late it my career and dipped into my savings. Not a good idea. I’ve come out fine and I moved to lower my expenses. I feel very fortunate it all worked out for the best.
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We can only learn from our mistakes. There are a number of decisions I would have made differently only because I am now more informed.
I am glad life has worked out for you despite the challenges with your business.
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This is an important post. Saving is important, for the future and now. Having something set aside helps when there are unforeseen difficulties which occur in our life, and this gives us security and stability.
Having a goal, setting aside for a specific task as you indicated, is also great; not just to get to that goal, but also to put you into a mindset of how to save.
Thanks for sharing.
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You are welcome William. I could talk non stop about budgeting!
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Phoenicia, I believe the starting step for investment is ‘Savings’.
To the newbies, I would say ‘It’s Difficult but is important to make your Financial Future!’
When you’re in your 20s, time is truly your ally. The power of compounding can help your cash grow in a way that it never will again because starting right now gives you decades on your side to save.
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Sushmita – thank you for your pearls of wisdom. Your 20’s really is the best time to start saving though it may not feel like it at the time.
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I have to hand it to you Phonecia because I fear your point about the timing may be spot on considering where most people’s minds are at the moment. At the same time, I certainly agree with your point. I don’t recall learning about saving from anyone, it’s always been more of a matter of common sense.
One thing that has been a plus for me in that regard is that I am not a materials kind of gal. Possessions have never meant much to me so I’m not tempted to buy just to have or impress others. Thanks for the reminder and your ongoing inspiration!
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Marquita – I was feeling a little brave!
If nobody informs you then how will you know?
I value experiences far more than items.
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At the moment saving money is not a lucrative idea. You get very little, if any, interest rate and unless you are an expert on the financial markets you will not make much, if any, money that way. The best thing to do currently is invest/save your money in valuable antiques/art or gold or diamonds.
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The main factor is that one saves or invests whether short or long term.
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My husband and I are regular savers. I heard years ago that you should always pay yourself first. What that meant to me is watch how much you spend, so you will have enough left over to save money for you.
Pay yourself by saving a percentage of your money. Start out by saving at least 10% each month and saving this about in different types of accounts. 4 % for long term i.e. investing in retirement, 3% for savings a 5-year goal, and 3% for cash liquidate. Then over the years, when you have a change of job or raise, add even more to the savings.
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I am not surprised that you are a saver Sabrina! You definitely know and understand the principles behind saving.
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This is such an important topic. Those who don’t save now will surely regret it later. And I think it is important not to just save, but invest it as well as possible I know people who have lots of money in a savings account. and that won’t get you too far these days.
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Erica – investing is key but one must know how to ensure they reap even more than they put in.
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Have saved ever since my first babysitting job. It’s a mindset to believe that your money works for you, you don’t work for your money, right?
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Yes it is a mindset. We should control money, our money should not control us.
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Hi Phoenicia. I’ve never been a saver. My mother died young and I made a few at that time that I would live everyday to the fullest and not “save for a rainy day” as my parents had done. My mother never had the opportunity to enjoy any of the money that she and my father had saved. So … I’m enjoying my life to the fullest and hoping for the best. 🙂
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Doreen – our upbringing can heavily influence the relationship we go on to have with money.
Thank you for sharing this.
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