Saving and investing have the same objective and that is to increase one’s net worth. Contrary to popular belief, I do not agree that financial management equates to making one richer. Instead, I feel that successful financial management equates to freedom from financial pursuits as a lifestyle.
In this post, I would like to share some pointers which will be helpful for us to learn how to manage ourselves before our financial goals.
Saving to what end?
As a frugal person, I use to feel that every dollar not earned is a dollar lost. That mindset might be useful for people who have just begun to hit their first realistic financial goal. I suggest that after hitting our first few targets, we should consider to redistribute some energy from financial pursuits to other aspects of life. The question then becomes, how much is enough?
Short Answer: Not a lot
The reason is because you will never be fully satisfied. This is because every new target met will only promote a higher level of preservation. For example, when I hit my first financial goal in October of 2014, I was so excited but that only last for a few days. After which, all I wanted was to make sure I could keep that figure in the bank and that was all she wrote…
| Year | Year 1 | Year 2 | Year 3 |
| Financial Targets | $10,000 | $20,000 | $40,000 |
| New Fall Below Balance (after hitting) | $10,000 | $20,000 | $40,000 |
| Next year’s target | $20,000 | $40,000 | $60,000 |
Desires will never stop growing
Think of it this way, your goal is like a piggy bank, you try your best to fill it but when it does fill up, you will want to replace it to accommodate more. This is how it feels like and there will always be a bigger piggy bank out there. That is why desires are sometimes synonymous to temptations, greed and lust. As such, we should always keep ourselves in check when we plan ahead. Also, Identify dangers along the way when exposing yourself to people who are greedy or mercenaries in general.
Things Probably Unshared by Financial Planners
- You do not need so much money
- You will never be satisfied
- Are you investing enough finances for your family’s happiness today?
It is not a wonder why such things are not shared by conventional financial planners. Working based on commission, most of them are out for maximising gains for themselves after getting your go aheads. The next time when an opportunity arises for you to invest your monies, do take a step back to consider investing the money in your family’s happiness rather than just their financial futures.
Closing Thoughts
Being a person who does what he or she says is not easy in our society. Most of us are hungry to be like the next successful person beside us. That includes me every now and then however, let us sway away from being a half successful person in finance and a total failure in every other aspect of life. To me, financial management is to make finance something we do not have to worry about. That said, do not wait until you are rich, you can always choose not to worry about finance so much while being responsible for your family and loved ones.
