Many young people ask me, when is the right time to start saving? And my answer is, yesterday! It can never be too early to initiate planned saving. Read on to know why.
Picture this. You enjoy an annual family vacation without fail, every year. Your goal for comfort, like buying a beautiful home and putting up a cozy décor is accomplished in your twenties itself. Your goal for luxury, like buying the top end version of your favorite car is accomplished, as per your plan. You have enjoyed major events like marriage and completed milestones like getting that higher degree without haunting money issues. And you can’t wait to look forward to life after retirement! Ideal life? Well, this can be your life if you start saving early. It will benefit you in a numerous wonderful ways.
#1 The numbers are in your favor!
When you are young, age and outgoing expenses, both are less. As life progresses there is a gradual increase in both which brings along with it a whole bunch of limitations. So make the most of those years when age is on your side and there aren’t too many responsibilities on your young shoulders. That’s when young millionaires start saving.
#2 The beginners block!
When it comes to financial matters, common sense is underrated and expertise is hyped. Do not let the hype become a road block for your saving plans. Many young people spend too much time researching, planning and wait for the “right time” to start. The right time to start saving is now. The amount does not matter too much because that will gradually increase once you make it a habit. If you are a beginner, I strongly recommend taking the first step today. Open a savings account and deposit a fixed amount every month. No excuses.
#3 Your best years are for enjoying and not worrying!
And yet, if you look around, most of the people spend their twenties and thirties, under stress and constantly worrying. This is the period when major transitions happen in one’s life. It may be completing higher education, getting married, taking care of parents who are getting older and kids who are growing up. All of these contribute of large amounts in your expenditure list and naturally cause stress. Life is about constant changes. How about saving in advance for these major events which are known to us? That will minimize the stress caused due to financial matters and help you sail smoothly.
#4 It’s a matter of habit.
Well, let’s just say saving in the later years is a lot more difficult. There will be so many more factors in your life, which you have to contribute to, in the form of money, time and energy. Starting a saving plan at that time would mean getting over the initial resistance and letting go of a few comfort habits. On the contrary, starting early simply requires discipline. So form the habit of saving early. Once the habit catches up, saving will be a cake walk as years fly by. Early birds do have an advantage!
#5 Long term happiness over instant gratification
Becoming a millionaire definitely requires planning and a vision. Don’t let everyday distractions get in your way. Though we may not realize it, we do spend a lot of money chasing instant happiness. For example, grabbing a Starbucks on the way to work, once in a while is fine. But if it is an everyday habit, it can definitely be avoided in the interest of saving money. The same logic is applicable for shopping or eating out. Do it when required and necessary and not because you are having a bad day or simple feeling bored. Saving requires focus. Have your goal in front of your mind’s eye and make the right choices.
#6 Live a happier life after retirement!
Retired life is the time when you would feel the most content. The only responsibility you would have then is living your sunset years to the fullest. That is when all the investments you have made throughout your life, in terms of finance and time invested in health and relationships, will count. Ageing is inevitable for all of us. So why not work towards making those years happier and comfortable for ourselves right from this day? Saving early on will ensure you are living it up in your sunset years as well!
Saving early is one of the definite ways to get rich and live a good life. A little bit of discipline and planning is all that is required. Hope this article has inspired you to chalk up and stick to a concrete saving plan, if you weren’t on one already. Save early and smile your way to riches. Cheers!
The author is Co-Founder & Director, CreditVidya.