Saving 101: a how-to guide
Learning to save is learning to determine what's important to you now, and in the future
Saving is one of those things, right? You either already do it; know you should do it but haven’t started; or haven’t a clue how to do it.
Saving is an old-fashioned concept in today’s modern world of instant gratification. We live in a digital and virtually cashless society. We have access to a plethora of tools to help us keep track of our spending, but we’re more removed from our money than ever before. The convenience of EFTPOS and Paywave gives us immediate access to our money, yet allow us to easily and quickly overspend without a second thought.
No wonder it seems impossible to start saving money. But you know that slightly uneasy feeling you get as you’re purchasing your second coffee for the day – ‘Will it go thru...How much is in my bank account right now...How am I going to cover the car repairs...???' – that’s your subconscious quietly worrying about money in the background.
And you don’t need too.
Why saving is important
By setting up a savings plan, you start to take back control of your money. You’re in charge of your future, you can stop worrying about unexpected costs or bills, and you’re prepared for whatever life brings your way.
With savings, you can stop worrying about money and unexpected bills. You can cover those small emergencies that crop up, like a broken-down car, without stretching your credit card or asking your family for help.
It just means being sensible and thinking a little ahead, like your granny told you. Make hay while the sun shines, so when it rains you don’t have to live under a leaky roof. In other words, regularly save a little bit here and there now to help you out in the future.
Saving vs spending
Sounds too easy, doesn’t it? Well – it is, and it isn’t. It requires some dedication to get into the habit of saving. Identifying your savings goal and setting up a plan to reach it is a start. But, once you’re underway – it will become second nature.
It's not saving versus spending – saving is deciding what’s important to you now and in the future, and putting aside money you won’t spend now. You’re simply earmarking it to spend it later.
Committing to a savings plan also doesn’t mean living on baked beans forever – you can start saving and still enjoy all the things you love – just at a more measured pace.
Saving for your future
Life’s full of the unexpected. Contributing to an emergency fund regularly will give you peace of mind if something crops up. Savings gives you options – you can make decisions without worrying about financial implications.
And, if your goal is a big one – savings will help you bring your plans to life. No matter what they are. Whether it’s buying your first home or all the My Little Ponies you can lay your hands on. Whatever floats your boat, savings will help you do it.
With savings, you can enjoy life more. Now and in the future.