All we hear is “Save! Save! Save!”. It’s been hammered home to us for years, mostly from our parents or people older than us.
We’re told to save without anyone explaining why or what it’s for. Instead we just assume if the number in our savings account goes up, we must be doing something right on our financial journey.
But telling someone to save for the sake of saving is similar to telling someone to eat healthy for the sake of eating healthy.
Without context and purpose, the commitment is hard to sustain which leads to feelings of failure and guilt which make it even harder to achieve your goal.
The purpose of saving
Simple. Financial freedom & peace of mind.
Having a savings account can help you manage your anxiety and also save for big purchases or emergencies.
The reality is, money = freedom. It’s the freedom to purchase something you want without the guilt that comes along with it. Or confidence that you can pay for an emergency vet bill without worrying about how you’re going to pay your other bills. That’s the emergency fund everyone talks about. The recommendation is having 3-ish months of your regular expenses saved up.
So how can we get to a place where we have the confidence to cover surprise bills and the freedom to splurge on what we want? By building the consistent habit of putting some money away.
Keeping saving simple
There are many different hacks to help you save but we find that by keeping it simple and rewarding yourself along the way, we are able to build the long-lasting behavior that leads to big savings.
So here’s our breakdown that actually works:
- Daily or even weekly to start, set aside a small amount of money, ideally in a seperate account
- After the 10th day—once a month if you’re saving weekly—treat yourself to something small, like indulging in some (responsible) retail therapy
- Rinse and repeat
The goal is to focus on making small behavior changes that increase your confidence in your money ability. This positive reinforcement builds healthy habits and fosters a better relationship with your money.
Because when there is something you really want, or an unexpected bill pops up which you need to pay, being able to buy or pay for it using those savings will help increase the sense of control you feel around your money situation