How to save money is a simple question, which often requires a simple answer. It’s certainly easier said than done. Just like losing weight, you just need to move more and eat less. I wish it was that easy. However, it is more difficult to change behavior.
Specifically, I’m talking about the usual behavior we all trust. We all have our own patterns of behavior at work, at home, with friends, family and even money management. Because of these behaviors, we can rely on previous customizations to maintain control of our environment. Human nature wants consistency, reliability and even predictability in life. We even rely on companies like Fidelity ISA to handle and invest or savings so that e don’t have to. Otherwise, life seems chaotic and we feel uncontrollable. This can lead to stress and anxiety.
We can all agree that habitual behaviors make life easier, but what if some of these behaviors are counterproductive? A common example is someone who earns a good salary but does not invest. We do not want to change the usual behavior of getting a good salary, but we want to change our behavior to be an investor.
Saving habits probably started in our childhood. Our parents were our role models, but our socio-economic status is also important. Many of them, coming from low-income families, are very aware of the costs, even if they change class. They often have economical habits, although they earn more.
If you have been educated in the middle or upper class, you are probably less worried about the money. But in the end, you can save less and spend more on complacency. I’m not saying you’re afraid to save, but you need a plan. It seems that the middle class, most of the United States, has fallen into this situation, not enough to save the retirement.
As retirement age approaches, their behaviors are well developed due to the number of years of use. Changing these models in the long run is very difficult and often fails. It is natural to return to behaviors with which we feel comfortable. So if we make automatic savings before we get the money, we do not have the unbearable pressure to save.
Many authors say that it takes millions to last more than 30 years in retirement. The truth is that income streams are the basis of retirement for most of us, not significant savings. Social security, pensions, dividends and interest, as well as accumulated income, will be distributed over time. It is therefore a source of ongoing income that provides us with security and sustainability in retirement. In other words, do not panic if your savings are low, just work to maximize revenue streams.
A good way to reduce daily expenses is to use cash. If we pay with plastic cards, we will pay the amount spent. Counting the amount in cash increases our notoriety and reduces our expenses. There are times when credit card protection is required. However, for daily expenses, cash can help balance your budget.
You must also be realistic before taking savings until retirement. We know we have to spend less, but at the same time, we do not want to feel deprived. As a result, our retirement identity is a successful person who manages his money and lifestyle creatively to adapt to the changing economic conditions of our time.
I set this blog up a couple of years ago now as a way to share my experience that I’ve gained through my school education and my real life education. It sounds geeky, but the economy is something that I’m really passionate about and it’s something that I am actually pretty talented in, so it’s great for me to share these experiences with those that may be struggling a little bit with finance and figuring out how to navigate the economy.