Do you think saving is all about living minimally and spending sparingly? Do you believe that a person who is into saving is not living his life to the fullest? Well, I must tell you that these are limiting beliefs.
Saving by definition is the income that is not exhausted. It is keeping the money aside in the form of a deposit, pension, investment, or cash. Reducing your expenses or recurrent costs is also characterized as “saving”.
According to the Saudi Fintech report 2021, only 44% of people in Saudi Arabia have a habit of saving. At the same time, the statistics tell us that the saving rate in Saudi Arabia is lower than the low (48%) and high-income countries (71%). Although time and again, we are being reminded of the significance of saving, many of us are still not on track. Low income is mainly deemed as the main excuse while in actuality it is not. Rather, the real issue is a bare focus on limiting expenses and a lack of knowledge on how to manage our finances. Here are three reasons that will make you think about saving today.
1. Meet your life goals
Saving can be a terrific way to reach the life goals that matter to you the most. It could be saving for a luxury home or buying your dream car. It can help you build the business empire you want to build. From short to long-term goals, saving can come in handy to fulfill your desires one after the other. It is quite certain that if you start saving today, you will have a lot more control over your money. You will not be stressed regarding financial security and you will find a lot of opportunities your way to reach your financial goals.
2. Salvation for your rainy days
Becoming a saving freak is more about spending smart which can lead you to save generous amounts of money. Believe me or not, when you stop wasting money, you become more resourceful. You not only start building wealth, but you are also paving your way to a secure future. Life is uncertain and you never know what adversity you may fall in, and your savings can come to your rescue on your rainy days.
3. Planning your retirement
When you are in your 20s, saving for your retirement may be the last thought you have. However, starting saving at a young age for your retirement can offer you financial freedom sooner and may let you take calculated risks. It can also let you reach your retirement age quite early.
Where to begin?
Here are some quick ways that can make you a pro at saving and take you toward a secure future.
- Maintain your budget monthly and develop enough discipline to follow it
- Establish the habit of saving for the things you want to have
- Do not fall into the trap of borrowing money and strive to stay out of debt
- Start investing in your early 20s
At the end of the day, just remember it is not how much money you earn but how much money goes into your saving account. A penny saved is a penny earned.
The current challenge that the public face is the high cost of financial management services and the lack of awareness of solutions available from banks and other services. The Saudi Vision 2030 aims to foster an environment where the nationals and expatriates can become more financially independent. They plan to do this through the development of tools such as mortgages, saving portfolios as well as giving retirement choices. Each individual is responsible for one’s future, however, Saudi Vision 2030 intends to give the right set of skills for reaching their goal of raising savings from the basic household income to almost 10%.
