Saving is one thing many look down on because of how infinitesimally small each input is. Also, steady inflation makes money lose value and hence savings, a waste of time. Truth is, money is never enough. I’m fact, will never be enough but we have to always set something aside for the rainy day and emergencies. We have all been in tight situations where we needed 10-20k to save the day.
One of the reasons I’m quite prudent with money is because I learned how to save pretty much early as a child. 3rd grade (Pry 3) to be precise.
For a long time I have talked a lot about the benefits of savings and the discipline it comes with to my kids, hoping that they would be inspired or encouraged to give it a try. All to no avail.
Then this year, we decided we would start a Christmas savings from January. Every week, we saved a certain amount and we kept at it. I was the main person doing the savings, anyways, but the kids were observing.
When I hit 200k from this weekly savings of my lose change, something happened to my daughter’s psyche and she decided to start her own savings. It wasn’t difficult for her. All she needed to do was stop spending her pocket money on snacks and candies. And so she started.
The thing about savings is, once you start gathering money, you’ll get that push to keep gathering more. From saving a fraction of her money and spending the rest, she eventually stopped spending and started saving all.
In the last few weeks, I noticed she’s now very disciplined with her spending. She’s never in a hurry to spend without cross checking to be sure it is necessary.
And then her younger brother saw her counting her notes one day and brought his first 1k to me to keep for him. Little bro has started saving too.
The thing about saving is, there has to be an end goal, a purpose to it. What are you saving for? Your why will serve as a propeller. The moment the kids came up with a strong why, the discipline came easily.
Another thing savings did to them is open their eyes to little business opportunities so that they can get more money. Because, why wait for pocket money when you can do business and save more from profits? Profits are always more, right?
And so, they looked around and started seeing little avenues to make money. Some things that didn’t seem valuable turned out to be high value and someone has started selling something like her mom.
Savings makes you disciplined with your spending. It helps curb excesses. Suddenly, those things that seemed important to have and do, become less important. Unnecessary, even.
Savings means denying yourself immediate gratification.
To be able to save successfully and with ease, you’ll have to do these 3 things.
- Create an escrow account. This account is one you do not have easy access to. No nearest branch of the bank close to you, no ATM cards, no mobile app on your phone. This way, you won’t be quick to make withdrawals. I recommend having an escrow account over joining a group of people to do contributions. To avoid problems with humans.
- Seal all leakages. By leakages, I mean those habits and expenses that cost you money. For men, it could be frequently hanging out with the boys where thousands are spent on drinks. Or upgrading to a bigger car when the old one is still serving you with no issues. For ladies, it could be saying no to expenses on latest fashion pieces. Those seemingly little things that take money from you without your knowing. It could even be this habit of constantly eating out for those who are always eating out.
- Also that awareness that you’re never to touch that money unless it’s for what it was intended. That’s why we have no. 1 in place. Different things will come up and may even seem legit but you have to stay focused.
Lack of having this saving culture and living within planned budget has made reasonably comfortable middle class earners have their finances messed up and living like paupers, leaving those who aren’t particularly high income earners seem rich because they practice these things.
Think about this and commit to it.
- Joy Mfon Essien is an Entrepreneur and the CEO, of Discover Essence Media, Millionaire Woman Soapworks and Delicioso Foods. Writer, TV presenter and producer, Wellness Coach and mom of two.
