#7: Saving: The Diffindo Spell of Finance
Finding the awesome new thing to spend our money is absurdly easy in today’s world. And the instant pleasure, gratification and dopamine boost we can buy in an instant is overwhelming. Being it a Starbucks coffee in the morning, the sweater that looks cool, the Hogwarts video game, the takeout meal when we are too lazy to cook. And it’s all at our fingertips with a single click or two. Spending money in today’s world is easier, and more fun, than ever.
And that just may be one of the reasons why so many people today live from month to month, unable to save any money. In the recent report, LendingClub found out that 64% of Americans live from paycheck to paycheck, and that applies to more than 50% of people who make USD $100 000 per year and more. Alarming.
And it’s precisely the making sure that at the end of month there is still some money left after all your expenses(=savings), that is one of the most important things you can do for your financial wellbeing. It’s the foundation of financial stability and independence. Having a financial buffer provides a safety net in case of emergencies, unexpected expenses or job loss. It is also a stepping stone to achieving your long-term financial goals and liberty.
Get Rich Slowly: Step by Step approach
Creating a saving plan is the first step towards building a solid financial foundation. Start by setting specific financial goals and figuring out how much money you need to achieve them. This could be anything from saving for a down payment on a home to building an emergency fund. Once the goal is clear, create a budget that allows you to save a certain amount of money each month. In the last article we discuss a step by step plan on how to budget, you can find it (here).
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Looking for an actionable game plan?
Saving money can seem like a drag, but it's actually one of the most important things you can do for your financial wellbeing. Think of it like a game: how much money can you save each month? It's like leveling up in a video game, but instead of unlocking the Diffindo spell to rain suffering on the goblin rebels, you're unlocking your financial stability and independence.
So just remember: stick to your budget, be patient and disciplined in your approach and start making saving a habit. Confringo!