The
power of saving
By: José Canto
The popular saying: “Take care of your
pennies and your dollars will take care of themselves” is nothing
more than a simple tribute to the power of saving, which promotes
optimal wealth creation in a country. "Saving is equivalent
to having more money. Saving means, according to economists, deferred
consumption as opposed to the debts of advanced consumption. Saving
your money offers psychological, economic and financial advantages.
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It doesn’t matter if you are rich or poor.
We can all save if we understand that to save is to use the resources
available, delay impulsive purchases or non-meditated expenses, think
about our goals and keep in mind that time is always advancing. Save
with precaution and think about securing a good economic future for
you and your family.
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Begin to save early. Remember: life has cycles
and there are moments of wealth and abundance, but also of shortage
and poverty.
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Set goals. Nobody can save if they do not set
clear and precise goals. When you ask yourself why you save, answer:
I am saving because I want to buy an apartment in such-and-such neighborhood
in three years or because I want to go on a trip to Paris in May
2004 and have $2000 to spend. A goal has a due date, an amount, and
a plan to reach it.
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Do not view saving as an effort undertaken for
a specific period. See it as a continuous and long term effort. Save
to meet expenses for gifts on Christmas, school tuition, insurance,
car repairs or tag fees, purchase of household appliances, a trip,
etc. Never forget that time does not stop.
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A well planned savings program allows for terms
of: 5, 10, or 20 years. It is to resign, with a feeling of achievement,
to a momentary desire. It requires great control and maturity on
your part.
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Saving is more than depositing money in a bank
account. Clearly, that is an excellent way to save, especially in
a reliable bank. However, saving is also the intelligent use of the
most favorable resources available to meet many of life’s daily
expenditures: energy, food, clothing, etc.
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Use banks or financial institutions to safeguard
and increase your savings. The bank guarantees that your money will
not be subject to theft and, in addition, it pays interest on your
money and provides access to those funds anywhere and anytime. As
part of the bank’s clientele, you can take advantage of its
other services and benefits such as secured loans on your savings,
credit cards to round out your financial plans and financial advisory
services to assist in investment decisions.
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Discuss your savings plan with the members of
your family. Family discussions are the best solution against the
resistance to save that some people experience. Ask how, in what,
and how much they could save.
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If you save, unlike if you fall into debt, your
life will be more pleasant because you will feel more secure, calmer
and protected from the hassles and unforeseen events that life hurls
at you. Your health will improve because you will be free of financial
worries, or they will have diminished. Saving is an excellent method
to feel well physically and spiritually.
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Talk with people who save and who have reached
their goals via saving. Emulate the behaviors that show results and
look for ways to feel positive about saving. Stay motivated by doing
little things like placing a photo of a place you wish to visit in
a visible area, write down the time to finish paying off a debt or
to acquire the downpayment for the house of your dreams, etc. To
save is to have faith in oneself and the future. It is to be fearless.
