I’ll save money when I have enough – Money myth 10
Reading time: 2 – 4 minutes
Any amount of money you save, no matter how small, is enough to save. The habit of saving money is more important than the amount. I got in the habit of putting pocket change into a jar when I did laundry. In the course of a year, the amount of change in the jar grew… into over a hundred dollars. This was little bits of money at a time, a quarter here, a couple dimes there… but it became a habit. It was effortless, and it piled money up. Habits are incredibly powerful things.
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I’m now developing other habits- like putting 10% of my income into ‘spendable savings’ right when I get paid… and putting 10% into my ‘financial freedom’ fund, and another 10% into an account earmarked specifically for having fun with so I’m not tempted to raid my savings, and another 10% is earmarked specifically for education purposes.
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At the same time I’m motivated to reduce my ‘necessities’ spending because I want to put more and more into the fun, freedom, and savings accounts. Also, at the same time, I’m motivated to increase my income- for the same reasons. I want to put more into those accounts!
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I’ve found that earmarking specific money for specific purposes and putting that money in specific accounts gives me enormous control over my money- I won’t overrun my fun budget because it’s got a finite amount of money in it, and I don’t want to raid my spendable savings because it’s on it’s way to becoming a nice truck for me. I’ll never spend my financial freedom money either- it’s going to grow and become the basis of my retirement income stream. These activities, as they become more and more habitual, they become effortless. They become ‘normal’.
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In short, the habit of managing your money (which includes saving and investing) can not only pile up money, it can also focus and clarify what you’re doing with it and what you want it for. If you don’t manage it because you think it’s too small to bother with managing… you risk waiting a long time before ‘enough to manage’ will come along. As your income goes up, your context for money expands too- remember when a quarter meant a lot to you? As your income grew, $5 started to mean less than that quarter did back then, right?
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The habit, not the amount, is the key here. If you’re in the habit, managing and saving money won’t feel like work. If you’re not, eventually spending everything you’ve got will feel ‘normal’. In effect, *that* will become your habit.
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I think saving is important especially because its like nowadays some people spend all of the money they have and wonder why they dont have enough for the future or always stay broke. Thats why for me Ive made it a must to save 50% of the money I get.
Once you find the amount of money you really need and stop allowing money to burn a hole in your pocket you’ll save naturally. I save naturally because I don’t celebrate by tricking. I don’t say Suckerism like I deserve a good dinner or some other shit I heard on tv.
50% is very good.
Good advice. 50%..Great goal. I always thought I had to have large amounts in order to save, but you’re saying just to start the habit is worth it.
This is so true we have to get into the habit of saving. The amount we save doesn’t really matter as much has the habit and discipline that comes with it. I read this in the Richest Man in Babylon (good book). It says no less than 10% or as much as you can afford.
@AH – The habit is just a shorter word of the discipline. I know on a daily basis I talk about business and hustle but I also know to keep my money when it doesn’t have a true purpose. Got to save and hustle at the same time. Each little bit will count!
@Hassan – Most cats don’t save anything period so even if they did 5% it would be significant. Got to think about putting money away for someday and not worry about rhyme or reason just make it part of who you are.
“Save part of all you earn. Money doesn’t spoil, it keep” A.G. Gaston
Couldn’t say it better myself. Thanks for hipping me to this brother Freeman!
Glad to be of service but most of us never put anything aside and we end up assess out. Believe me if I didn’t put any money aside i would’ve went broke years ago. Got to learn to save for savings sake.
mmm, saving 50% is ALOT. I assume the person doing that is probably debt free (otherwise it would go to paying down debt) & either establishing an emergency fund or shoring up their finances (maybe to just pay cash for everything?).
If not, then I’d say put some of that $ to work so it can at least keep up with inflation. If its In a savings account earning 1% its actually being devalued.
Man I quickly got that saving/stacking mentality in my system. I grew up where my folks had money and I grew up spoiled many would say. Then when I moved out to tx and lived in the hood, which wasn’t actually bad, I was never equipped with the stacking know how so I suffered from lack of knowledge. I mean there were times I wouldn’t know when I would eat again. Eventhough I cannot equivalat my experience to a child who was born in poverty and grows up to never be broke again. I have adapted that mentality where it a F going broke kinda thing. Where I never want to put myself in that again! If I didn’t have the homies I had I would have starved.
@Supreme – 50% is a lot and if you can do that you have already done an amazing job getting there. I agree with your investing point of view especially in real things like property or something that is somewhat inflation proof.
@Kozi – All money counts! Once you realize that you stop worrying about if you can contribute a little or a lot as all money counts.
I learned it early as I saved every check I had from McD’s until I bought my own car for 800 bucks. And, this was when minimum wage was like 4 bucks and I only had 20 hours a week. I saved for about 4 months straight without spending a dime all to get 1978 Toyota Celica. Then I bought a radio some 4 way 6×9′s and some Enkei rims! Shit, I know what saving my money can do! LOL
This is very true I remember always being very frugal but it wasn’t until last year that I started a systematic saving system I saved half of my income all year last year to have a big fund.
Now I save about 30 percent and half of that 30 is funding my side-hustle activities to make my money grow faster. Already have two bank accounts now and will soon open a third. Knowing you got enough money for almost any unexpected expense is a great feeling.
Excellent advice and certainly not for the “trick” minded individual. It’s funny I never thought about the root of my blind spending and this article shed some clarity on that.
I know for myself when I save money in certain areas by not drinking or eating out all the time ,I feel it entitles me to splurge in other areas. Those other areas are not pulling in any income or helping me save. I am truly “tricking” my money away and making all those other people rich without realizing it. Thankfully you referenced a good book “Discipline in 10 Days” and to be honest that is helping out quite a bit.
Thank you for taking the time to put this article together. It is short and concise without the esoteric fluff. You’re helping many black men ,including myself, get on track.
@JB – Once you get into the habit it’ll make you a believer. You just have to stick to it once and everyone will have that breakthrough.
@Larry – Most people will never get around to putting any money at all. We just have to put whatever we can in and it’ll turn into something.
Tricking is habit after a sucker makes it his hobby.