Money Talk - Are you addicted to saving?

I must confess: “Yes, I am addicted to saving.” Every time when I see my account balance and investment return increase, I know I’m on the right track. The immediate result is that I just want to save more and invest them to make the money work for me. I was joking the other day that I don’t want to spend money anymore, because it doesn’t give me joy. It’s true. Another truth is that I know I have more freedom to choose rather than being forced to take because of lacking financial capability.

Some of you might say, yes, it’s important to save, but it’s not really worth the time and effort to save a small amount every month if we just make a small amount of income, or it’s not possible to maintain the lifestyle if we save. These are all excuses. Saving is a habit and a mindset. It doesn’t matter if you save big or small, as long as you save before you spend, you are building a healthy financial habit that will benefit you in the long run once you have higher income. It is a million dollar habit that you can find in almost all the successful people.

What you will get from the savings- it’s the courage to seek freedom in life and find things you are interested in and worthwhile for your time, but not trading your time for money.

How to efficiently save your income?

  • Dedicate a bank account for your savings, which you don’t allow yourself to touch except for investment and emergency.
  • Transfer 10- 15% of your salary every month right after your payday to the savings account. It’s recommended to set “auto transfer” from your salary account to the savings account.
  • If you don’t have enough motivation, try to set up some short-term and long-term goals that encourage you to keep on the habit.
  • Put your savings account debit card aside and don’t touch it except for emergencies.

But being addicted to savings is not enough, the money laying in your bank account won’t guarantee your life because it loses its value day by day. You need to make it work for you, through investment in assets that can maintain or grow its value, or invest in yourself, which grows the value day by day as well. What to invest with your savings? Check out our first few newsletters that talk in-depth about it.

From today on, save more, invest more and earn more.

I am curious about the power of money. I have been exploring personal finance and in search of the best ways to make money work for me.