Most of us feel trapped because we get consumed in a consumerist society and spend all of our paychecks. We haven’t learned the habit of saving money. As a result of this, we keep working and grinding to survive and move forward.
The biggest question is how do we move from living paycheck to paycheck to becoming financially free? How do we gain the freedom to live our lives the way we want, and spend time with whoever we want? How do we gain the freedom to make an impact and do the work we love to do every day without feeling we are missing out or sacrificing too much?
Where does the idea of spending instead of saving money come from?
It originates from the introduction of the consumer mechanism into our lives. The thoughts pattern of instant gratification is something you need to change. This is because learning the habit of saving money will do you more good than fueling your gratifications.
If you check well, throughout history, this is not how your predecessors lived. Right now, the lifestyles you are seeing are a new concept. In the past, you wouldn’t go buy something on credit if you can’t afford it. You should be drawn to the realization that a lot of people rake in hundreds of thousands of debt because of this new concept.
Why bother saving money?
You can just spend and enjoy instead of saving money, it’s yours after all. However, money is a means to an end. It provides the freedom to live life on your terms. You can reach financial freedom if you can learn to live as frugal as possible while saving money in as high a percentage as possible.
Have a goal when you save
You need to know how much money is coming in and where it is going, and you should consider if any of the things you purchase brings you joy, fulfillment, and value or not.
Unfortunately, saving money for just saving money won’t bring you freedom. What will help propel your financial freedom when it comes to saving money is if you have a goal attached to it.
On a good scale, you will get to ride on the wind of compound interest if you save your money and then leave it in some investment portfolio. In a few years, you’ll have more money and that’s the beauty of compound interest. This reality makes saving money a lot easier and more fun.
When you choose saving money over and over again, it adds up in value in real-time, surely. After a few years, you will have a lot invested while others are still living paycheck to paycheck. It’s all of the little decisions you make today that will make a difference tomorrow. Therefore, you gotta learn to save and to invest properly.
How do you get into the habit of saving money so you can have freedom?
The first goal that will bring you freedom is saving 6 months of living expenses. It’s important because it gives you the freedom to get lucky, it puts you in a position to have opportunities that other people can not have. It might take you a few months and a few years, but you’ll have that initial chunk of living expenses.
This will be your first step to freedom because you can take this money and invest. Or you can just have peace of mind and flexibility at everything that you do including your job.
Read Also: 6 money traps you need to avoid in 2022.
Read this, if another job comes up and it’s half the payment, but it has the potential to be five times more in the future, you can take up this opportunity. If you are living from paycheck to paycheck, with no savings, you won’t be able to do this. You are stuck and it’s unfair to your personal growth.
The only thing that will help you scale and grow is if you had a certain junk of money saved and you got your expenses lowered. There will be no reason to worry about small things that will put you into debt, at all. Small emergencies can cripple you if you are living from paycheck to paycheck. The cushion you saved will give you peace of mind, and tiny emergencies won’t affect your peace of mind much.
The freedom comes not from saving money alone
The freedom you are looking for is embedded in investing. You can do this if you lower your expenses and send the extra funds to an investment account, it will help you reach your financial goals faster. If you desire to reach freedom as soon as possible then you need to start saving money and invest it afterward.
To live an intentional life, learn to save, invest, and try to get out of debt. The beauty of having money all boils down to the freedom it provides.