Saving with a goal in mind

Paolo Pagkalinawan
Jul 10, 2017 · 2 min read

What does saving mean to you? Is it a nuisance? Something that makes you feel like you are limiting yourself every time your pay comes to your bank account?

Try thinking of the above questions and you'll find that many people actually think of saving as a bothersome activity that can only lead to stress and to the joy of life being sucked away from them. This is a wrong way of thinking about money and about saving, let me tell you why.

The key factor in wealth accumulation and to ultimately becoming wealthy is saving. There is no person out there who is wealthy just by spending and enjoying life like there is no tomorrow - living paycheck to paycheck. One can only become wealthy by keeping and owning their money. But why should you save?

Just like a Vision and Mission

You will find that visions and missions are an integral part of every company and organization. A vision allows one to look at the long term goal and visualize what that long term goal means. A mission are the more specific actions by which a vision may become reality. A good company must be driven by its vision and mission in order to succeed, it is its foundation. Why should it be different for people? For saving, in this case?

Why are you saving?

I open to you that question. If you could not answer it with a list of things and reasons you are saving for then are you sure that you are saving for a good enough reason that you will commit to? Do not just save for the sake of saving! That path will only lead you towards the cycle of saving and spending what you have saved for pretty much any reason. Think about it, if you are saving merely to save then anything that may come up, a new gadget to own or a gimmick to go to, would just pop up everywhere and you will just buy into it. The power of having a vision and mission allows one to be focused on what is really important.

How to do it?

The key to having a good goal for saving, and making the act of saving meaningful starts simply by listing down the following: why you are saving, what it is you are saving for, when you are targeting to save it by, and how - why, what, when, how. Very simple isn't it?

Take a piece of paper or open a notepad on your computer or mobile phone and begin listing. Write it down and every day read it out loud. The act of saving should become a habit that will be driven by a commitment from you. Remind yourself every day what you are saving for and it will come to you naturally.

Now, why are you saving? For what? When do you plan on completing this savings target? How do you plan on doing it?

Paolo Pagkalinawan

Written by

I am a personal finance enthusiast with the aim to help people of any age in their journey towards financial freedom.

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