Long ago, I had a blog that I used to post on. I eventually removed that blog and relaunched a new one. I’ve decided to repost some of my older works on my blog. For this post specifically, I want to revisit my current financial situation in a future post, so to be continued.
Why do you save?
Do you even save?
If you don’t save, I encourage you to start today. Saving money can be useful for many reasons. One can save for travel, a rainy day, a new car or anything else like that.
Personally, I find that I like to save for a rainy day. An emergency fund is for emergencies –like an “I’m-hurt-and-I-can’t-get-up” emergency. Paying for a want doesn’t quite count as an emergency. I’ve heard financial experts say that you should have enough saved in the bank to support yourself without income for a few months to half a year. Calculate your revenue and expenses for a month. Plot each transaction in an excel spreadsheet or a transaction register*. Review online banking statements. Are you in the black at the end of the month? Are you under-spending or overspending in any areas? How long could your savings sustain you? How long would you want your savings to sustain you?
I also love to save money just for the fun of it. I love knowing that I have a lot of money in the bank. I hate to admit this, but I can be a bit of a miser. I would rather have money in the bank than go and buy myself necessities like food and clothing. While that is not a healthy practice, it is a good example of money habits.
In order to successfully use the money that you have, you need to know your money habits. Find the balance between a healthy amount of money saved and a decent quality of life. Record how you spend your money. Take financial literacy (or “money intelligence”) quizzes online: it is very important for you to figure out how you spend your money and why.
You are your own greatest enemy here. Of course, everyone knows that only a fool does not study his enemy before combat. Financial health is a war you need to win. Being forewarned is being forearmed.
*Some banks offer transaction registers for free, but most people don’t ask for them. Ask for one at a help desk.