My son´s nanny and I were engaged in a casual conversation when she made a comment that we live simply and that we are not drowning in debts compared to other couples/families that she knows. I took that as a compliment. Some of the lifestyle approaches that I take seriously are simplicity and minimalism. However, these are 2 concepts which are oftentimes misconstrued and misjudged especially now that we are living in a quite materialistic world. Although it is understandable, sometimes it is also disheartening that we are judged according to our looks, the clothes or brands that we wear, the car that we are driving (and worse, if we are taking the public transpo! hahaha).
Really in our life, there is more to it than meets the eye. There is no point in earning a lot of money if we are spending a lot as well and saving almost nothing. I have read it several times that the wealthy ones become wealthier by continuing to live within their means while the poor ones become poorer because they try to live like rich people, a lifestyle that they cannot afford.
The cue is really spending within your means and spending after you save. I do not deny the fact that from time to time I indulge. I consider it as a reward for my hard work and sometimes, it is also a way to relax me. I indulge in my favorite things - Food, Bags/Clothes/Watches, Travels, Massage/Spa/Acupuncture and other non-traditional forms of healing. But I am happy, grateful and humble to say that I do not overspend. I do not go on loans just to get these whims.
When I was younger, learning the rudiments of saving and at the same time, fighting and resisting in vain the temptation to over-indulge in material things, I overused my credit card. And though I am not proud of that phase of my life, I learned my lesson the hard way. And I can say that I am blessed to take the lessons seriously, engrave them into my heart and now, I am in a better position. I am not rich. But I can say that slowly but surely, my financial freedom and capability is much better than it was 15 years and 10 years ago. I am somewhat financially independent, able to enjoy the fruits of my hard labor and able to share my blessings.
Money is important not to feel important but to give the security that we need. The earlier we save and understand the value of saving, the better. Save pennies for the rainy days. :)
Here are my practical tips, as a working mom to slowly but surely save money:
1. Spend for and buy the essentials first before splurging on the whims. Food on the table, medical insurance, my child´s necessities i.e, extracurricular activities, cream, etc are my 1st and foremost concerns.
2. Save, save, save at least 30% of your income. The higher the savings, the better.
3. Diversify both in income and in savings. It has been said that it is better to not just rely on our jobs as our sole source of income. However, in cases that diversifying sources of income is a challenge, we can diversify our savings but combining low/medium/high risks savings.
4. Save up for your major/big expenses. A major house area renovation? A designer bag? A dream holiday/travel? It will be good to keep them as your vision and make them a reality by saving hard for them, having a timeline instead of getting a loan and then paying interest.
5. Buy only the essentials. People are shocked everytime they find out that I don´t drive and that I don´t own a car. Aside from not having a driver´s licence, I live in the city center. I move around in public transport (eco friendly and cheaper). It is not a perfect world but I have embraced its limitations. The same may not apply to people who live in the suburbs, outskirts of the city where a car is a necessity to be mobile. The sane applies for my monthly groceries, I only buy the essentials.
6. Have a checklist of your expenses, savings so you will continue to optimize your expenses and maximize your savings.
7. Be ambitious and go bigtime with your dreams!!
8. Be sincerely generous (but not to a fault). No one ever becomes poor by giving. Give and it will come back to you!
Take care! Hugs!! Thank you.