How much percentage do you save with your monthly income? 50% 70% 30%.
Most people save at least 20%, that is a good percentage for savings. While you spend 80% for things such as food, rent, mortgages(if you have mortgages, your savings can be lesser as mortgages tend to be higher cost) etc.
But sometimes you overspend. You overspend of food, on a date, on items and on many things.
For now I’m sure you know the difference between wants and needs. It’s basic. Basically, wants are things that you don’t need. You can survive without the “wants”. While needs are important. You need the need things in order to survive in your life and help you in your daily living, education and career. A high end expensive PC is not a want for video editors or game developers, it is a need. They need it for their career. While buying an expensive PC for gaming is first a need, and then a want. I don’t bash people for playing games, yes you need a high end PC for heavy gaming, but do you need to play games in life or is it just a want?
Overspending is the enemy of saving. We need to find the root cause of overspending, here it is, it’s very simple.
- You think you have enough money in your bank atm card.
This is the most important thing to think about. When you have money in your atm card or wallet, you don’t worry about anything. You become careless. You purchase “WANTS” and not “NEEDS” You can buy an expensive dinner, or buy an item that amazes you without any worry in the world.You think “as long as I can retain that amount of money in my bank I can do what I want”.This is a problem. Many people are like this. Smart people do not leave money in their banks, they invest it. For them, it is better to use the money to buy an item that is a need rather than a money stuck in the bank.Money is meant to be circulated, not to be saved. This statement kind-of goes against the title of this article. But let me explain further.
- You don’t plan.
This is is connected to #1.Simple. if you have plans in the future, then you’re a smart person. You save money for your plans. Whether this plans are buying need items or travelling, it’s good to have plans.Having money stuck in your bank plus you don’t have plans, equals disaster. When you plan, you plan it seriously. Whether you’re out for a walk, or a dinner date, your plans are stuck in your head. You are mindful of your expenses because all your money are saved for your plans. You wanna buy a car? buy a new laptop? It’s better to have a plan, this helps you save money for your goals.So next time you spend money for that expensive dinner? Stop. Stop being a mindless fool. Save money and spend it on your goals.
Real life experience.
One time I had 100,000 in my bank. Apparently, it retained for more than a year. It never went up. Sometimes I buy an item worth 10k, with 90k remaining. The next payday, its’ back to 100,000-ish. That’s one of my stupidest, lowliest, dumbest era of my life. I never saved money, I never had plans, I never spent that 100,000 for something good. I just went foolishly spending on things I want and never increased it. When you have money in the bank, and a relative or a close family member asks for money, you tend to give more. And families don’t repay. You could give away money because you think “because I have money” when in fact you’re slowly making yourself poor.
Then one day, I decided to buy a 100,000 worth PC. It is for my game development career. Then I realized suddenly it changed me. I suddenly became aware of my spending. All the useless expenses in my mind I suddenly regret or suddenly I didn’t want them anymore.
I became mindful suddenly. Before planning, I was thinking inviting my partner to a dinner, go out, grab some starbucks coffee, spend a minimum 1,000 in one day just for dinner. But after planning, I suddenly didn’t want to do that. See my point?
TIP
So for my tip, when you go out alone or on a date, remember your goals and plans, and make them a priority. think about it before going into a restaurants. This is also helpful when you’re stopped outside and is trapped by sales people, making you buy stuff you don’t really need. Better, when you’re trapped by scammers, and is trying to force you to purchase their stuff, just remember that you have a plan, a goal a priority, this will help you turn them down, say no. You will become a strong tower that cannot be torn down. When you’re outside, remember how much money you have in your bank, it can be a third, or half of the price of the thing you need to buy. Every cent counts.
