HfW – Mindset on Savings

‘I don’t need to save because I don’t see a need to yet’

‘What is savings?’

‘Why should I save up now? I am still single’

‘I have enough right now’

‘How can I save up when I don’t have enough to begin with?’

‘Savings? I have not thought about it’

These are some of the statements you often hear when one talks about savings.

In my last post, I asked if you started saving as much as $100 a month, how much would that be in 10 years?

With savings of $100/month, that translates to $1,200/year. That amount if rightly invested would yield you the following :

$21,037 (Year 10)

$41,940 (Year15)

$75,603 (Year20)

Many are not aware of this as they think saving up $100 a month is totally insignificant.

Well, that is absolutely not true. I will write more about it in my later post.

Coming back to the topic at hand, I have spoken to many people from different age category. They can be split into 4 major categories :

Age 22 – 28 : Don’t need to save up. Shall save later when I see a need to.

Age 29 – 35 : Need to begin saving. Some know how to save, some don’t know how to begin with.

Age 36 – 45 : Definitely must save. Some already have proper savings plan

> Age 46 : Yeah there is a savings plan for my future – retirement, children, etc.

I have been thru 2 out of the 4 age categories, and now I am in strolling in the 3^rd (Age 36-45) and I used to be like them.

When I was in my mid 20s I didn’t see a need to save. Everything was enough and self-sufficient. I understood what savings was and I understood a need for it but later. As like all those in their 20’s I saw a greater need to spend. Lol

Do you know why? The thrill in spending, that’s why.

If saving was like spending just like how you would spend a $100 on CDs, gadgets and other useless stuff, then savings would also equally give you the same thrill. Unfortunately it doesn’t.

You just needed to spend to satisfy that lust of yours.

Fast forward 10 years later, you would still need to spend but on greater materials. The question then begs, where would you get the money then?

Well, had you saved up a $100/month 10 years ago, todate you will have on hand $21,037.

In my next post, I will share more about this topic and also a concerning one - the bankruptcy rate amongst our youth todate.

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