Fostering Saving Culture

Hey guys! I am going to be out of town this week so a friend of mine is guest posting  on her own savings story. Enjoy!!

I have heard of stories about how celebrities and influential people in our societies have ended up being declared bankrupt despite making huge amounts of money during their peak days. It is just fascinating how this is even possible in the first place. Nevertheless, the saddening accounts of how reality rudely hits these people has made me conclude that indeed, no matter how much you make in a year, without financial knowledge, one can still be living paycheck to paycheck and eventually end up in a financial ruin. In this context, financial knowledge is vital in understanding what a financial plan is and how one goes about making a budget and actually sticking to it.

From a personal point of view, my experiences with the whole issue of debts and how to settle them have taught me a lot. Growing up as a kid and all throughout my high school I really had a big financial problem. At times I tend to blame it on my parents who virtually gave me everything I needed to the extent of seeing no need to save the huge chunks of money I had all to myself. Nevertheless, the harsh reality is that whether we are from that kind of a family or not, our reckless financial behaviors usually catch up with us at some point in life.

For my case, my college life was a real hell on earth. My dad’s job was no more, meaning there was no more extra cash for me. Having gotten used to the heaven on earth kind of a life, I was soon into huge debts that I even did not know how I got into them in the first place. I remember the situation got worse to a point I had to change institutions so as to save myself from my creditor who were always on my neck. This is the point I learned the hard lesson of how important it is to cultivate a culture of managing finances however more or little they are. I now believe in the spirit of saving and I promised myself to foster it in my kids from the youngest age possible.  One of the lessons I have learnt over time is that when there is no budget in place, it is very likely for one to spend more money than he is making. Therefore, by accounting for all income one receives and spends, he is able to see his spending habits. As a result, he will be able to assess whether his habits are good or bad or need to be adjusted/improved. This is a notion I have believed in ever since my troubled college life. As we speak, debt problem is a foregone case since I have learnt to save the little I can and only resort to borrowing when I really have to.

With this belief, I have managed to build in me a character of creating a financial plan and budget for earnings, spending, saving and investing. These things are separate but affect each other in almost equal magnitudes. More so, they are a necessity to laying a solid foundation on which any family’s future is built. As such, today, I concentrate on making good financial choices that will enable me save the little I can to add to my retirement income since from personal experiences, I believe personal financial choices will not only affect our lives now, but also affect how comfortable we will be when we retire.

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