Earn, Save, Save & Save Before You Spend…Only Sure Way To Financial Freedom!
Dear Reader,
We trust that you are keeping safe and following all the guidelines shared by the Ministry of Health as we continue to fight COVID – 19. We also trust that as you reflect on making smart money moves beyond the Financial Literacy Week (FLW), you also take time to think about how you can change your spending habits forever. We encourage you to take stock of moments and times when you seem to spend unnecessarily so that you begin to make plans of how you can reverse such trends for life.
We normally seem to overspend during celebrations or commemorations of key events in life, ranging from Easter and Christmas to our birthdays and that of our loved ones.
In today’s story, we challenge you to begin to seriously think of how you can stop overspending and make being Money Smart your way of life. Remember, too, that achieving a Money Smart life is more behavioural than it is a skill. It means that you have the power to attain this because it is within and in your control to change behaviour. When you do this, you will get to a point in your life where the money that you have steadily saved and invested will begin to do the hard work for you without you doing anything. Yes, you read right, just like that! Money does get to make itself with you having to do nothing only if you let it and make it happen!
This brings us to some of the key lessons in life which we must take seriously. These are so important that others call them the ‘ Ethics of life’. These remind us of things we shouldn’t do before doing other things or rather things we should do first before doing other things; it is the same thing. These are, listen before you speak, earn before you spend, think before you write, try before you quit and live before you die. Life lessons are not limited to these five; you can add to the list things that you value, and you believe you can change the quality of life that we live. Having put the lessons/ethics of life in perspective, we will now zero down on the key message of our story, ‘ earn before you spend’, which we have enhanced to read ‘earn and save before you spend.
What It Really Means To Earn And Save Before Spending
When all is said and done, what does ‘earn and save before you spend’ really mean? It simply means that you are in control of yourself and your universe where money is concerned. Just try to reflect for a moment about the role money plays in your life and that of your loved ones. The realisation that the way we manage money affects the quality of life that we can live should force us to make quality behavioural decisions about how we behave/act towards money. It calls for us to stop being silly with/towards money and to be responsible. We should do this for life and not only during selected periods on our various activity calendars. Let us get our personal ‘ financial houses’ in order for life.
Why It Is Important
It Sets The Tone For You – It Puts You In Financial Control
If you make budgeting your expenditure to make sure that you are spending less than you earn your way of life, then you are already on the path to financial stability. Well done, and keep at it; if not, not all hope is lost, start now, like now! Don’t leave it too late. Age matters in these matters, you know! If you save before you spend, you significantly reduce the effect of surprises that come with money and unpleasant eventualities in life. Take charge of your financial future by being responsible for money management today.
Health Improvement
The stress that money and the lack of good management has on our lives is real, and we are sure that we all relate to this. Scientific studies show that financial security has a positive impact on our physical, emotional and mental wellbeing. Those with adequate savings at any point in their lives report feeling happier and more secure than those who mismanage money. Those who mismanage money exhibit ill- health ranging from ulcers, back pain and headaches to depression, anxiety and other conditions. Have honest discussions with yourself regarding this; if the reason you are constantly sick is because of money mismanagement, decide to live a Money Smart life today.
Cushion For That Rainy Day
Life being what it is, no one knows what tomorrow brings. Anything could happen to us, and no matter how insignificant some of these occurrences may appear, they affect us greatly when we do not have something to fall back on in monetary terms. We need to make saving a habit so that when the unexpected strike, we can safely sail to the other side. Let us create safety nets by making Saving a habit. Remember that this safety net should not be huge. Experts teach us and recommend that we should at any time have at least an equivalent of 3 to 6 months of our salary or other income tucked away somewhere in a savings account for seeing us through during unsettling eventualities.
Sense Of Achievement
As human beings, we are wired to feel proud when we achieve. We become elated when we achieve whatever goals we set for ourselves. It is not different with Savings. Outside ensuring that we have our safety nets covered, we all have various savings goals that we set for ourselves. When we achieve this, we feel a sense of achievement, that is the way it should be. When you do achieve your goal, by all means give yourself a little treat, but be sure not to overdo it. A lunch date with family or friends or any other ‘small’ treat will be just fine. This energises you, and it does not only help to make the sacrifices you made in achieving your target worthwhile, it also mentally reinforces your good behaviour.
Credit Is Expensive
Please do not deceive yourself about money expenditure when it comes to purchasing items on credit. When you do that, it simply means that you do not have money to purchase a particular item and that you cannot afford it at that particular time. The brutal fact is that credit is expensive so please avoid it. Develop a habit of paying cash for everyday purchases by using money that you have budgeted for and allocated for specific items.
Money Makes Money
The beauty of saving is that when you do it using a savings account or invest money wisely, this money eventually begins to make money for you without you having to do anything. Yes, you read right. This can happen to anyone who puts their mind to being Money Smart. Grow your savings steadily, and watch the money grow right before your eyes in your own account! This is called attaining Financial Freedom. It does not happen in a vacuum; you need to make it happen by changing your behaviour towards money.
Acceleration Of Financial Goals Achievement
We all want to achieve our financial goals at some point. One sure way of accelerating one’s financial goals is by saving, saving and saving. If you save before you spend and make it a habit, you are on the way to achieving your financial goals even faster. Remember, this is not only good for your wallet; you will be happier, healthier and enjoy your sleep knowing that you have greater financial stability. What beats that? Dear Reader, we trust that this read will propel you to make life-changing decisions regarding managing money today for a better tomorrow for you and your loved ones. Be Money Smart for life and lead a happier and healthier life.
Until next time, stay blessed and be a blessing to others and remember to keep safe as we fight COVID -19. Wash your hands thoroughly with water and soap for at least 20 seconds or use alcohol-based hand sanitisers, observe at least 1m of social distancing, cover your mouth and nose with a mask or indeed any cloth when you step out of your home to go to any public places and more importantly, stay at home!