THIS is one of the most openly excuses used by people when they are questioned as to why they are not saving. Their apt answer is that “I don’t have enough money to save”.
We need to test this answer to how far it is true for most people. Though from the answers offered I could easily observe that among these some have certain genuine reasons to offer, however the one and the most commonly used reasons which I have heard on numerous occasions relate to a situation when a person abruptly makes a statement that, “I will start saving when I have enough money”.
This is the easiest escape route which I can suggest you, if somebody poses a difficult question to you on savings and investment. More than anybody else our parents, spouse, family members or our other wellwishers are the ones who normally are most concerned about our savings habit, and quite often they are caution us on the importance of savings in our life.
Though, it is a different matter that we often tend to ignore such warnings from our well-wishers. What do you feel about this statement - “I will start saving when I have enough money”? Keep your hand on your heart and make sincere efforts to find out the truthfulness which lies in this statement.
I am sure very soon you would reach to a firm conclusion that this statement lacks a formidable truth and conversely represents a mere “myth” on money matters.
On the face of it you may not agree with my quick assessment of this statement, however if you come along with me till the concluding part of this article, I am sure you would, on one side discover this great truth here, while on other hand you will clearly understand the hidden ‘money myth’ which I am referring to in this statement.
At the outset let me clarify that there exists no direct correlation between the quantum or volume of money to be saved and the corresponding practice followed by a person on savings. One person may be earning millions but with ZERO saving, while another person earning say less than 500,000/- may be practicing a disciplined saving approach.
From the above version please understand that when we talk about ‘savings’ or ‘investment’, we do not refer to a specific amount or quantum of money to be saved. What merely is being emphasised hereupon is the savings part, thus leaving aside the amount of money to be saved by a person.
It is a known fact that the quantum of saving for a person is generally determined by the income one earns and the corresponding expenses one incurs out of his/her income. Two persons with the same level of income may differ on their savings pursuit, depending on their respective expenditure levels.
So from a savings perspective a person keeping aside 10,000/-per day is quite similar to the one saving 100,000/-per day for investment purpose. Don’t compare the amount of money saved by you vis-àvis that of the other person. What is more important is to concentrate on the savings part.
You two may be unmatchable in terms of the money saved by each, however you are no less than the other when judged on pursuing a disciplined savings approach. Believe me, that day will never come for which you are waiting to prove the statement to be correct that - “I will start saving when I have enough money”.
So the need of the hour is to start today with whatever you have. If your current financial condition does not allow you to start TODAY, then work on it and create conditions so that you can start your savings pursuit ASAP i.e. as soon as possible.
With this approach in mind, slowly and steadily you will succeed in creating a widely distributed portfolio of investment and then it is going to protect you from many financial hardships which may strike a normal human in the form of - like falling sick, getting divorced or losing a job and incurring a loss in business etc
. If you want to be protected from the impact of such hardships, then you need to make sure that you have enough money saved away for rainy days. Even if you can only get the ball rolling with a small amount of savings, then every penny saved will help to grow your savings over time. Therefore, ‘set goals for savings’.
This is going to help you create the discipline that is needed in order for you to save enough money. You should be making a list of your short term savings goals such as spending for the holidays or saving up for a vacation etc. Then you can look at your longer term goals such as paying for college tuitions, retiring or buying a home etc.
Once you have established whatever financial goals, look to see how much money you can comfortably afford to pay into your savings on a regular basis. By building up your regular savings through your normal monthly budget, you will find it much easier to pay yourself first.
Then when you get ready to pay your normal monthly bills, you will be able to include a bill for saving money. So don’t wait for an opportune time so as to save enough, remember the most opportune time for you is “NOW” with whatever amount you can start saving.