Growing Up Savings

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(Podcast transcription) For some, Savings is on their to-do list... if I have leftover money after spending or if I get a big lump sum come on. For others, Savings is an obsession, and they miss out on the day-to-day fun.


This month, we're deep-diving into the why, who, what, where, when and how of Savings to help you take steps towards the right amount of savings and types of investments.


Saving is very much about Dreaming.


In the post, we'll be highlighting the action of accumulating Savings, which means we are in Planning mode. So, log in to your Dashboard, as you listen or read this blog - if you're not a member, just grab some paper.


Savings

To do something well, we always need to understand, "why do I need to do it?" Why do I need to do squats to keep my back from hurting? Why does my daughter need to do homework? Why do I need 7 hours of sleep? Why, why, why? We are all just big kids, really?


So, why do we save?


The first thing people usually think of is that it can make us feel safe. Excess short-term cash keeps us away from the financial edge in tough times. Savings also makes us feel smart - having enough money to save means we have made smart decisions about our lifestyle and our work.


Listen to how you can make smarter financial decisions about your career and lifestyle.


Savings can also keep us healthy, and well. One of my first clients had her hair falling out in the shower. Money worries are one of the largest sources of stress and can lead to relationship problems, anxiety and depression.


Savings also keep us Dreaming. Long-term Savings gives us a fork in the road for work at a later stage. Having a Portfolio lifestyle provides 'passive' income, and changing up your income sources creates options for us all.


For me, my favourite reason for saving is - it anchors my serendipity.


  • When I wanted to take a chance on a new career path, that is now AfireFi

  • When I wanted to take a chance in a new relationship, which is now a 16 year marriage

  • When a travel opportunity with a friend, brought me to a new country

It all takes courage, but also money. These lapses into serendipity keep me evolving - it's an important element of being human for all of us. There are so many Why's that I have heard... But let's talk about the Who.


The 'Who' in Saving is the royal YOU

Saving is essentially about your Future Self - who are you evolving towards? If your future self were to turn around and be able to speak to you today, will they smile and say thank you or will they hold up the middle finger to you?


The royal you includes of course those in your care - children, partners, parents, pets and family members.


How much should you be saving?

Covered in _____ episode, you should be saving 20% of your take-home income. If you can't save 20%, that's OK. Maybe it's 1%. Start wherever you are now - but have that 20% in the back of your head.


Now, automate it and forget it. Use your bank's technology to save to various accounts - you want to ensure that you're saving before spending.


What, Where, and When are you Saving for?

Now we're getting into the juicy bit, head over to Timeline on your Dashboard. You should be able to compare your Assets to the Dreams you have. You should be able to see this quite easily, and in a simple, pleasant format - we've done this, so you can easily spot gaps, or achievements and make adjustments before the cracks start to appear in your finances.


In reviewing your Timeline, you may wind up with more questions than answers, but these questions are the first steps to action.


As they say in AA, progress not perfection.


Things your Timeline may reveal...

  1. Are you saving enough? If not, review your Dreams and check in on your needed Savings and your Actual. Is there an easier way to achieve a goal? An internship, scholarship, a smaller house, a more affordable car?

  2. Are there any changes that you can make to a Dream that won't affect the happiness or success of the goal?

  3. Is the risk of what you are holding aligning with the time of your Dreams? If not, begin to review the changes you should consider. Make notes in the Dashboard.

Now, wrapping up, duck into 'Esoteric's & Qualities'. Make a note about what you can do to shore up these skills. Do you need more skills, or maybe you need to stick your head out and make more contacts? Have you checked off all the qualities but still your confidence is low? This is all too common. Improvements here will help you take risks that your Savings will afford you.


Stay tuned for our next articles on Savings in a Bull and Bear Market, Avoid Financial Holiday Hangover (AKA get your financial sh*t together before the holiday), and Are you Spending Much on Your Children? (Also known as the great country song, Guilt-Fest Put Me in Debt).


As always have any questions, send us an email at support@afirefi.com we'll be happy to help you along your financial journey!