She Strengthens

The Power of Savings: A Journey to Financial Freedom

Growing up, my parents instilled in me a crucial habit: saving a portion of every amount I received. This self-imposed rule has been instrumental in helping me achieve financial milestones, even from a young age. Looking back, I realize that this habit allowed me to travel abroad during college, thanks to a scholarship, and enjoy weekends with friends without worrying about money.

The Importance of Financial Peace of Mind

After returning from my exchange program, I had to start from scratch, rebuilding my savings. This experience taught me that whatever I saved was, in fact, the cost of my present peace of mind. When I landed my first full-time job, I made it a priority to save a significant chunk of my salary every payday. I treated my savings like a separate entity, momentarily forgetting about it and letting it grow.

Balancing Savings and Spending

As I transitioned jobs and navigated financial decisions, I opened a retirement fund, which has been instrumental in helping me prioritize my savings. However, this meant that my contingency fund grew at a slower rate. Last month, I spent the most I ever had in a 30-day period, and it was overwhelming. I realized that I had been fortunate enough to afford these expenses by dipping into my contingency fund.

Lessons Learned

This experience taught me several valuable lessons. Firstly, it’s essential to know what you’re comfortable paying and make peace with it. Saving doesn’t have to mean depriving yourself; it’s about being honest with yourself and occasionally saying no to activities that might strain your financial goals. I also learned the importance of pre-checking prices online to avoid surprises and mental stress. When you want a service or experience, you have to pay for it – accepting this reality relieves some of the emotional burden of spending.

The Purpose of Savings

If you’re hesitant to save because you like to live in the moment, remember that your peace of mind in the present is what you’re paying for when you save for your future. It’s crucial to strike a balance between spending and saving. Finally, it’s okay to spend your contingency fund – that’s why you saved it in the first place. But know that there’s a time to spend and a time to save.

For me, it’s time to focus on saving again. By prioritizing my financial goals, I’m investing in my present peace of mind and securing a brighter future.