In my short, but tumultuous, 25 years of life on this planet I have learnt many many things! Some significant, others not so much, however I truly believe that the topic of this blog fits into the 'significant' category the way the sun would fit into the 'hot' category...
Savings really do matter.
Yes folks, they really do and I'm prepared to bed that that little lurch in your stomach that you felt as you read that agrees with me... I'm right arnt I?
They say that money can't buy happiness and for the most part I agree wholeheartedly, however what money can buy is a sense of peace, calm, security and an "I've got this" mentality, which in my experience is a solid prerequisite for happiness. When was the last time that you were up to your eyeballs in debt, struggling to make rent each week unable to do anything that you wanted to because you couldn't afford it and were truly happy? Yeah I thought so....
Personally I've experienced the extremes of both scenarios. I've had savings equal to 50% of the annual income and I've had savings equal to 100% of nothing. I sure as hell know which position made me a happier person. The feeling of knowing that you can handle any unexpected horror that arrives in the mail, car rego, speeding fines, parking tickets etc is such a liberating feeling, not to mention that you can now set aside some time each year for a holiday knowing that wether or not you have to use your savings money or not you can afford to go!
Im not about to continue on with some crazy savings lecture about how much money you could have by x if you set aside y since z, no this is just a simple and hopefully helpful reminder that it is NEVER too late to start saving. Period. Most people are blown away by how easy it is to save some money once they start. Even small amounts such as $50 per week or 10% of your pay can add up very quickly when you set up a direct debit into your savings account and forget about it for a while!
*Tip: Set up your savings account with a different financial institution than the one you bank with on the daily. Out of sight, out of mind you see ;)
Soooo... Who's ready to sacrifice a small, seemingly insignificant amount of their earnings each week in exchange for peace of mind, self worth, a more secure future and an "I've got this" mentality!?
*Tip: The best book I have ever come across in terms of financial advice and basic easy to follow strategy is called The Barefoot Investor, by Scott Pape. Read it! It has changed SOO many peoples lives, its changing mine and I am sure it will change yours too :) Also you will see where I got the whole "I've got this" mentality thing from...
Happy Saving!
Much love,
Jeremy