My Philosophy On Saving Money
There are moments in life, which when you think about them, stand out as key moments that have shaped your life.
One of such moments was back in 2008 when I was so broke even though I was upcoming in my career.
I recall once coming out of our family home to meet my sister in her car, to have a catch-up. At that stage of my life, all things were falling apart financially and she could just tell.
Life felt very difficult and I was cornered in many ways. In fact, I was suffering not just financially, but also emotionally.
Something magical happened at that moment. My sister handed me an envelope, which when I got home and took a look, had £400 in it. A game-changing gift.
This was alot of money given the circumstances.
What was really interesting about this dynamic is that my sister is two years younger than I am, and culturally, this money exchange should have been the other way around.
That moment meant alot to me.
From a generosity perspective, I was helped when in serious need. This meant that going forward, I would always incline my ear to opportunities to help my sister.
Related: The Power Of Generosity And why It Pays
Furthermore, this marked a turning point in my perspective of what my relationship with money should be.
My philosophy on saving money has since evolved for the better and has transformed my life.
10 years later as I write this post, I do it from a place of greater confidence, knowledge, and understanding.
With this in mind, below is my philosophy on saving money:
Do you think you own the money that you currently have under your control?
It has taken me a while to understand this priviledged position I have with respect to money. My true purpose for saving money is to serve others and help myself.
The challenge I always had when I thought I owned money was that I never let it go. I was miserly rather than generous but shrewd.
Today, I see money as something that is all around and flows through me. When it comes into my hands, I have to remind myself that every pound has a power that can really make a difference.
I write a great deal about financial independence and freedom on this blog, and I do it because there are generally two ways you can go with money:
- You make money, which flows in and flows straight out in costs. And you live primarily for today and for your own self-interest.
- You make money but realise that it has power and purpose. That purpose being bigger than just who you are.
#2 is what the writer of the proverbs was referring to when he said:
[yellowbar]“The ants are not a strong people, yet they prepare their food in the summer”[/yellowbar]
The ant has a wisdom of contemplation and preparation and understands that there are seasons in life. This is one of the greatest keys to success (wealth, leadership etc).
If you are in a good season (e.g. good business, job etc), take some of what you have and prepare for tomorrow when a bad season arises. Life, as you know, works in cycles.
To be ready for tomorrow, it helps to start winning it today.
Saving money actively and by design, not only pretty much guarantees your financial independence in the near future, but it prepares you for a future life of influence.
Alot of money saving is common sense, but alot of people only think of it in one dimension.
If you want to save £10,000 every year, for example, there are lots of different ways you can go about it beyond just saving £833 in your bank account monthly.
The key is to realise that every pound or dollar matters. Savings made from different interactions you have with money add up to alot and fast.
A good analogy is to think about what happens when it rains. Imagine every raindrop as a bit of saving, and how this could easily build up into puddles and even floods.
Saving as a lifestyle shouldn’t be a choice but a necessity if you want to see a radical change in your financial life.
Read: 50+ Ways To Save Over £10,000 Every Year
This is one of the most powerful motivations for saving money. Seeds can be sown in a variety of ways, some of which include:
- Investing money in other asset classes (business, equities etc) to work for you,
- Buying back time and skill by investing in others,
- Supporting causes you care about,
- Investing in your own human capital.
By far the most important of these is #4 because your human capital is portable and will create ever more wealth generation opportunities if you actively invest in it.
#1, in particular, deserves special mention. This is practically a near-guaranteed way to achieve your financial independence if you focus on cash flow generating assets.
You’ll always hear people talk about investing in shares and funds etc. These are necessary and should most certainly be explored, especially if done in an environment of diversification.
However, there are many other assets classes, particularly digital assets, that are most definitely worth exploring in addition to the more traditional ones above.
Alot of these have to do with creating content and information products, which can be done very cheaply and with minimal risk.
In fact, if you’re creative enough, you could even pre-sell some of these assets before they’re created, providing you with sufficient cash flow to make your product a reality.
Related: How To Start A Successful Blog
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Being fearless is not about having no fear at all. It’s instead about fearing less.
Fear is the number one emotion most people experience when they think about money. It is for this reason that I call the reader of this blog The Fearless Generation.
It is my hope that you are not a passive reader, but like me, take action every single day.
Saving Money results from taking action every single day. And for this reason, the diligent saver will fear less in the day of trouble.
Nothing beats having that “F U Money”. It doesn’t mean that you become arrogant. It just simply means that you’ve become sensible and understand that circumstances change.
One day you’re having fun and possibly a top salesperson. Another day, you’re out on your own and wondering why life has dealt you a wicked blow!
Making saving money an active lifestyle choice will empower you when that day of inevitable bad news arrives.
I’ve been poor financially, and I am never going back. This is a deliberate choice and one I believe everyone can make even if they’re poor today.
[redbar]The reality of making this choice really begins in the mind, and transforms into thoughts, plans, and actions.[/redbar]
When coupled with the fact that we’re all inherently creative, saving money creates a clear path out of poverty.
The journey out of poverty builds character necessary for positive world influence, which itself leads to positive world change.
Read: How To Stop Being Broke Forever
Leave A Legacy
Ever considered what type of legacy you might want to leave one day?
Sure, you’re still fairly young and have a ton of time… or so you think.
Immigrating to the UK has been the key defining event in my life over the last 20 years. At one stage in my life, survival was the priority. The after many years, it became the need to thrive.
Yet after many years, this has moved on to thriving generationally.
Writing these blogs, and spending my precious time thinking about this content and bringing it into reality is part of my journey to legacy.
I can certainly tell you that had I not made saving money a thing, none of what you’re reading would be a reality.
Every aspect of this blog started life being funded from my savings, driven by my willingness to get quality information out to anyone that’s listening as far wide as possible.
Having savings makes having faith a little easier. I can put my money where my mouth is, and truly support the things I care about.
Again, what legacy do you want to leave? What are you sowing for others to reap eventually?
The Power Of Generosity And why It Pays
How Much Money You Should Have Saved By Age?
What is your money saving philosophy? Please comment below and share your perspective.
Do please share this post if you found it useful, and remember, in all things be thankful and Seek Joy.
I really wanted to save money, but I could not. I found your tips really helpful and I think now I will be able to save some money.
Thanks for your amazing article.
Ken Okoroafor says
Rihana, great stuff!
Douglas C. Olszewski says
I appreciate your blog.This is the first time i am visiting to your post.really it’s so intersresting to read.Please keep up writing. Thanx for sharing.
Ken Okoroafor says
Thanks a lot! I appreciate you stopping by 🙂