Do you have a savings account? If yes, do you regularly (which means every month) deposit a fixed amount in it? If yes again, then congratulations. You are in the right track toward achieving financial freedom.
If not, then what went wrong? What’s stopping you from having a savings account or at least regularly depositing from that account?
Perhaps, below are the reasons:
Procrastination
Dictionary defines “procrastination” as the “act of delaying or postponing something.”
In other words, you promised to save or open a savings account but constantly delays it and find tons of excuses not to do so (like a sale of your kids’ favorite shoe brand, so you promise to start saving next month and forget about it for the nth time).
What can you do? It’s about having the right and committed mindset. You will never run out of excuses just to delay saving, but if you start teaching your mind that you really need to do it NOW, then you could have a shot of at least depositing something on that particular month until it becomes a habit. The more committed and disciplined you are, the higher the chance of making saving happen.
Lack of Self Control
You promised to save 10 percent of your monthly earnings and put it in a fund. Unfortunately, you passed by a department store on your way home and saw that big “Sale” sign on the front door. Instead of walking away, you decided to go inside and that “10 percent per month for savings” is gone for good.
What can you do? It’s hard to deny that spending feels better than saving – for now. Consequently, you also feel discouraged every time you see a not-so-big amount reflecting on your bank account. It may be cliche, but all good things come to those who wait.
Keep in mind that achieving financial freedom doesn’t happen overnight. At the same time, it is a combination of commitment, discipline, and (a lot of) self-control to keep you focused on your financial priorities. It’s hard at first, but resisting the habit of spending will help you achieve your financial goals.
Twisted View on Saving
Have you heard of the term “loss aversion?” This means you prefer to avoid losses to acquire equivalent gains. For instance, you prefer holding on to your P1,000 instead of saving or investing it in order to grow the said amount.
This is where the twisted view on saving comes in. There are people who will hold on to that getting a portion in their monthly salary is equivalent to loss because something is being taken away. If you look at saving as a form of loss, then saving is and will have a hard time being part of your system.
What can you do? Start thinking of saving (or even investing) as a form of gain. Look at saving as a value and understand its value. Once you start recognizing the value of setting aside money, then it will come to you naturally.
The truth is you’re not alone in the No Savings Department. There are thousands of OFWs who are struggling when it comes to saving, thereby causing them financial distress in the long run. The good news is it’s not too late to start saving for your and your family’s future. Start now and don’t wait for that “emergency” to happen. You can do it.